Analysis of Winners and Losers from Free Trade and Globalisation

This report provides an overview of globalisation and free trade, defining key terms and exploring the drivers behind these phenomena, including technological advancements, political factors, market dynamics, and cost considerations. It examines the reasons for the increase in globalisation over time, such as improved transportation, technological progress, capital mobility, and reduced trade barriers. The report further analyzes both the positive and negative impacts of globalisation, including access to larger markets, cheaper goods, innovation, and improved product quality, as well as environmental damage, price fluctuations, and job insecurity. The conclusion emphasizes the multifaceted nature of globalisation and its effects on various economies and markets, highlighting the interconnectedness of global trade and its consequences.

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The Winners And Losers From
Free Trade And Globalisation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Definition of globalisation and free trade....................................................................................3
Different drivers of globalisation.................................................................................................4
Reasons of increase in globalisation over time............................................................................5
The positive and negative impact of globalisation......................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1
Books and journals.......................................................................................................................1
Online...........................................................................................................................................1

·INTRODUCTION
Globalisation has caused a wide range of benefits for the human life. It relates to the
globally connected communications and trading. Globalisation involves having a group decision
making process, international recruitment and adoption of safety standards while taking some
performance measures. This modern form of communication has lead to the increase in number
of trading and ending the limitations from geographic reasons. This report deals with the basic
understanding of globalisation and free trade and the reasons behind driving the globalisation.
·MAIN BODY
·Definition of globalisation and free trade
Globalisation means the government, individual, various companies and countries
interact with one or affect for another. While through helping the developing strong alliance but
beneficially for one another. This might be important for the companies in making their profits
and easily makes sure for having the proper estimation in completing the goals and objective.
Globalisation also accomplished through having the technology as well traders or making their
investment traditionally. In addition, since past decades or second world war- the majority for
the government that could be taken on having free-market system (Lim and Tanaka, 2020).
Moreover, which not only increase the potentially towards the countries but also make more
possibility for having international trading and investments. While through which a lots of
governments had gone in having bargaining table and try to remove out the restrictive between
the nations and high taxes along with tariffs on global goods and services. In globalisation
technology key is taking more and more place while through which this could also have better
economic conditions in various countries. This could be also important in working and make
their business towards the high tech condition which might be led for having the growth and
developments.
Free trade is type of policy which government make sure for not discriminate against the
imports or having their interference with exports in using the tariffs or subsidies. Moreover, free
trade agreements is might be done between two countries and make sure for having the better
option in which the both countries can work and have their business to be more developed
(Leveson-Gower, 2020). Free trade can include the import goods are those goods which are
manufactured from the foreign land and brought to some other countries which might be

consumed by domestic residents. Exports goods are just opposite to imports goods in this
manufactured located in one country and sells their products and services to buyers in foreign
countries. While this might be more important in having free trade between countries that could
keep more attraction about the various sources and also make sure for having the better business
growth.
l壱Different drivers of globalisation
The drivers of globalisation have been affected more and more in various countries.
While through which the countries can get more advantage and this could also led for having the
proper business growth and developments. Here are some of the drivers of globalisation such as:
Technological:-
Technology set and shaped the better globalisation in which the transportation in the
industry have become more and more innovation. While this might be also important for the
company in taking more benefits in technology and make sure for intervention (Perraton, 2019).
Innovation in the area for having the high effective communication and also having more better
growth and development. While this might be more important in knowing about those things
which might be important in taking advance technology for which the business can run.
Political:-
Liberalized trading rules and market are taking place while leading more lowered tariffs
and allow to have the direct investment and make sure for having the better business. Most of the
business starting their organization in new countries as they are being more and more taxes in
which they can work for having succession. Taxes might be important in which the company can
have their better growth and developments.
Market:-
As domestic business have become more saturated. As the opportunities for the growth
are being more limited and global expanding have been selected by the more organization.
While many companies thinks about having the customer and they can easily make their
customer requirements to be fulfil (Gravina and Lanzafame, 2021). In having the expansion the
business needs to keep their more growth in goods and services along with also keeping the free
trade agreements with many countries.
Cost:-

Sourcing cost and efficiency this could keep vary from country to country and also make
sure for taking the advantage from the globalisation in which the company can work. In this
costs the business needs to make their customer attraction while having the proper estimation in
which they can work and also make sure for their requirements as per having costs.
l壱
l壱Reasons of increase in globalisation over time
Globalisation is not new as the economy has increased in being interdependent for some
period of time. From past few years, the process of globalisation has significantly accelerated. It
is because of many number of factors which are important to improve the training process with
the increase in labour, capital and technology (Gravina and Lanzafame, 2021). These reasons
are:
Transportation: Improved ways of transportation has made the global travel easy as with the
growth of air travel which enables peoples and goods to move across from any part of the globe.
This movement has become very easy and comfortable source of transport options.
Technology: The growth of technology and its advancements are there to make human life easy.
The new and developed forms of technology has made it very easy to communicate and pass on
the information present around the world. The increased use of internet has helped in
improvements in website and growth of global online community. People from any corner of the
world with proper internet connection can bid for the right to provide service.
Mobility of capital: From the past few years, it is witness that there is a decrease in capital
barriers which makes it easy for the capital amount to flow smoothly between different types of
economy. It has also helped the organisation looking for globalisation their brand to receive
finance. This has increased the interconnectedness on a global level for the global financial
markets.
The other reasons behind the growth of globalisation over past few years is growth of
multinational companies having their presence on the global level in different economies, there
is a reduction of national barriers (Arslan, and et.al., 2018). Along with this, there are reduced
tariff barriers which boosts the global trading process as well as the increasing growth of global
media. There is also the increase in mobility of labours as people are now willing to travel
between different countries. Internet has helped companies to communicate on the global
grounds and overcome the managerial diseconomies of the scale. The organisations in the

modern business world have more availability of cheaper supplies with the help of ordering
online and meeting the customer satisfaction.
l壱The positive and negative impact of globalisation
Positive
Access to larger market: Globalisation can help organisations to have the access to large
number of customer base as the company can sell its products to not just the population of single
country but can expand their business to other regions. It helps in boosting the sales and
generating more revenue.
Cheaper goods: Globalisation has made many companies to shift to the locations where
cost of production is low. This leads to offering cheaper products as the process of producing
them is not expensive and thus, lower prices for the customers (Leal, Marques and Shahbaz,
2021).
Innovation: Today, the companies are looking for different ways to generate more profits
by expanding their trades and leading the step to innovation and developing of ideas. These great
ideas are lead by the leaders and spread more easily.
Better quality: Companies are suffering from competition with different countries in the
process of globalisation, so this reason drives the businesses to offer more improved and better
quality of product and good range of variety to its customers.
Negative
Environmental damage: The growth of globalisation has lead to increase in the
production process of the business in order to meet the global demands. This increase in
production will result in usage of more natural resources which will be used up before they are
again regenerated. Many companies shift to the developing countries in order to take the
advantage of lax regulations which enables them to manufacture the products which are harmful
to the environment.
Fluctuation of prices: Globalisation creates heavy competition in the market which
makes them offer best prices to win(Beumer, Figge and Elliott, 2018). This the reason behind
the fluctuations of prices. Reducing the prices result negatively on the profits generated by the
company which can lead to actions such as removing some employees of the organisation.

Job insecurity: Globalisation helps in creating more job opportunities for the people
coming from developing countries to take the cheaper manufacturing jobs, This leads to the
fewer opportunities in the developed places of the world. Globalisation takes the jobs from one
country and provide it to other.
·CONCLUSION
It can be concluded that globalisation is the way to make connections with other
countries. It leads to decrease the barriers coming in between of trading in different economies.
There are many drivers of globalisation which have affected the spread of globalisation in a
positive context. Along with this, this modern business world has offered many reasons which
contributed in the growth of globalisation as well as made the whole process possible. Lastly, it
can be evaluated that it has created many positive as well as negative effects on the market.

·REFERENCES
·Books and journals
Arslan, and et.al., 2018. Globalisation and deglobalisation in emerging market economies: facts
and trends. BIS Paper. (100a).
Beumer, C., Figge, L. and Elliott, J., 2018. The sustainability of globalisation: Including the
‘social robustness criterion’. Journal of cleaner production, 179. pp.704-715.
Gravina, A.F. and Lanzafame, M., 2021. Finance, globalisation, technology and inequality: Do
nonlinearities matter?. Economic Modelling. 96. pp.96-110.
Leal, P.H., Marques, A.C. and Shahbaz, M., 2021. The role of globalisation, de jure and de
facto, on environmental performance: evidence from developing and developed
countries. Environment, Development and Sustainability. 23(5). pp.7412-7431.
Leveson-Gower, H., 2020. Trade and the environment. In Human ecology, human economy (pp.
148-167). Routledge.
Lim, S. and Tanaka, S., 2020. Multifaceted effects of globalisation on welfare attitudes: When
winners and losers join forces. The British Journal of Politics and International
Relations. p.1369148120974885.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
l壱Online
Arrington, P., 2018. Globalization and Technological Advancements [Online]. Available
through: <https://www.enotes.com/homework-help/what-four-drivers-globalisation-
36263>
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