International Trade and Globalization: Implications and Shifts in the World Economy, with a Focus on New Zealand

0
RUNNING HEAD: INTERNATIONAL TRADE
International Trade
Student Name
3/19/2019

1
International Trade
Contents
Introduction................................................................................................................................2
Globalisation..............................................................................................................................2
Significant shifts in globalisation...............................................................................................3
The implication of trade shifts in the world economy...............................................................4
New Zealand..............................................................................................................................6
Conclusion..................................................................................................................................8
References..................................................................................................................................9

2
International Trade
Introduction
Globalisation is a process of integrating the economy globally. It allows the free flow
of goods and services without any barriers. Globalisation helps a country economy to grow
by introducing it to global markets. It improves the exports and imports of the country. With
the help of globalisation, we can reduce the cost of the product by outsourcing the product
and services from the economy, like major manufacturing units are located in China which
helps in reducing the product cost. Globalisation also helps in the advancement of technology
since now the knowledge is shared and improvised globally (Hopkins, 2011). Since
globalisation is complicated and there is no narrative available to understand its impact, there
are several organisation and regulation guiding the global trade activity such as WTO, GATT
and IMF.
The report provides a deeper understanding of the globalisation, and how it has
benefited our economy. It also discusses the major shift in the international market and how it
has impacted the world trade. The report discusses the challenges and impact of globalisation
in New Zealand.
Globalisation
Globalisation is the movement of goods and services across the boundaries without
any barriers. Globalisation can be understood as a mechanism of integration between the
countries and region across the world involving goods and services. It involves promoting
global capital transfer including expansion in Foreign Direct Investment and impacts the
sovereign wealth funds. The process of globalisation is an attempt to connect the economy of
the countries globally (Steger, 2010). Globalisation has also resulted in an increase in the
number of labour not only within the country but also across the world. Globalisation has
promoted outsourcing of product and services, such as apple software was enhanced in India,
designed in the USA and assembled this help the companies to minimise the production cost.
Globalisation provides a regulation and manages international trade such as GATT, WTO
and the World exposure to all type of industries existing across the globe.
The process of Globalisation integrates the trade financial market, trade and
technological advancement across the globe. It influences trade policies, political
philosophies, economy, culture and values of the country. The world economy is guided by

3
International Trade
the various trend of the globalisation. There are various impacts of globalisation on the
international business in various sectors such as Trade, Finance, Communication and
Transport (Monkman & Stromquist, 2014)
Significant shifts in globalisation
A year ago observed the greatest breakdown in the estimation of products exchanged
far and wide since 2009 — when the effect of the worldwide money related emergency was
even under the least favourable conditions. Real ports, for example, Hamburg and Singapore
have likewise announced abating development and notwithstanding declining volumes.
Notwithstanding an astounding turnround in the worldwide economy, the trashy execution is
probably going to be rehashed in 2016, making it the fifth straight year of dreary
development in worldwide exchange, an example unheard of since the doldrums of the 1970s
(Times, 2019).
A developing number of market analysts contend that the stoppage isn't only
repetitive, yet a sign that the powers that have driven globalization for quite a long time are
starting to move. The primary enormous change is China's endeavour to rebalance from
assembling and fare drove the economy towards one concentrated on household utilization.
What's more, a few financial specialists note that the level in overall exchange products and
capital has matched with a flood in information streams — a pointer, they state, that the
advanced economy of the 21st century is beginning to topple the old request (Fernando,
2012).
Indeed, even as streams of fund, products and enterprises have moderated — tumbling
from a pinnacle of 53 percent of worldwide yield in 2007 to 39 percent in 2014 — the world
has seen a flood in cross-fringe information. The stream of computerized data around the
globe dramatically increased somewhere in the range of 2013 and 2015 alone, to an expected
290 terabytes for each second. That figure will develop by a third again this year, implying
that before the finish of 2016 organizations and people far and wide will send multiple times
a bigger number of information crosswise over fringes than they did in 2008 (Future Centre,
2019).
As indicated by the World Economic Situation and Prospects (WESP) 2018, propelled
on 11 December 2017, the world economy has reinforced, as emergency related fragilities
and the unfavourable impacts of late stuns die down. Venture conditions have improved in