SCO104 Globalisation & Technology: Analysis of US-China Trade War

This report explores the interconnectedness of globalisation and technology, using the US-China trade war as a case study. It discusses how technological advancements have facilitated globalisation, particularly through online payment systems and increased international trade. The report highligh...Read More

Globalisation and
technology

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Globalisation refers to those process under which the countries of the world are
interconnected on the basis of trade and commerce. In the past ti me most of the economies of
the world are closed economy under which no international trade exists between the nations. On
the basis of efforts of different nation the level of international trade increases under
globalisation and world becomes more competitive. This report is bases on the scenario of
globalisation and technology under which the US- China trade war taken as a example. This
report also states various impact of this trade war on the trade of other countries. (Gravina and
Lanzafame, 2021)
TASK
Globalisation is one of the most important aspect of the world in the present time it is
based on the trade between different nation of the world. The level of importance of globalisation
is very high because it helps the nation to make their development possible. One of the most
important reason for the development of globalisation is the development in technology. There
are new and advanced technology came in the market regularly. These technological
advancement helps to reduce the efforts in the trade and it also promotes the concept. The online
payment technology plays an important role in the promotion of globalisation in the world.
Under this concept, it is not required for any type trade ,that they make payment in cash which is
not possible because of high volume of the trade. (Dunn, 2021)
There are many changes are occurred in the environment in relation to the technology such as
online payment system which initiates the globalisation in the world. Globalisation is related to
the business between different nation and online payment method plays an important role in the
promotion of international business.
There are many advantages of international trade are present in the market because the
concept of globalisation plays a important role in the development of the nation. One of the
greatest advantage of the international trade are based on the economic growth of the nation.
There are different parts of economy such as labour, employment and resources. International
trade has developed many job opportunities for the people which helps them to improve their life
style. The level of unemployment are reduced at very high level due to globalisation because it
provide huge number of employment. All the things was on the track but one natural disaster

called covid-19 has break the stance. At the time of covid pandemic, all countries has restrict
trade with other nation and not allowed any type of movement. The negative impact of this
scenario is that it enables all the economies of the world to move in negative growth. There are
large number people has lost their job and become unemployment. The level of unemployment
are at their peak.
Due to the globalisation in the world, all the countries of the world has developed effective and
efficient relationships with other countries so that there will be no problem in their trade. The
reason for these collective efforts of the nation is the huge advantages of international trade. All
the nations has understand that the development of their nation only take place if international
trade are promoted. There are many countries are present in international market whose relations
are not favourable and the best example of this scenario is US-China trade war. (Olaopa, 2019)
The US-China trade war begun in the the year 2018 when the then president of United states
Donald Trump has put many restriction and terrif on the trade of China. The government of both
the countries has increased taxes on the business and trade. It is done to reduce the unfair trade
practises and intellectual property theft. There are many consequences and disadvantages are
face by both the nation due to this trade war. Most of the company which operate their business
in cross nations has set out their companies and operate their business in other nations.
There are many disadvantages of US-,China trade war has to face by the nations and the most
biggest negative aspect of this arrangement is the negative growth of the countries. Under this
trade war the economy of both the countries has negatively impacted because the volume of
trade between these nations are very high. It also impacts on the economies of other countries of
the world because many companies are interconnected with these nations. It also impacts on the
employment factors of both the nations.
The biggest party which has suffer from this trade war are the buyers of both the countries. Due
to the trade war between the nations the price of the goods and services are increases which
provide negative impact on the budget of the buyers. The main reason on the hike of prices is the
increase of taxes by both the countries on the cross nation organisation. The prices of the raw
material also increases and it becomes very difficult for the management of the organisations to
main their cost structure.
There are number of positive impact also present of this price war because the companies which
left China and America due to increase in Taxes has search for another countries to set up their

industries. The big American countries such as HP and Dell has pulled out their manufacturing
Units from China due to intense hike in taxes and other liabilities. These companies has pulled
out around 30 percent of their notebook production from the country. There are different
countries are present which has benefits from these trade war such as Mexico, south Korea and
many more. It is very important for both the countries that they develop effective strategies in
their business under which the negative impact of the war can be reduced. (Al-Etaibi, 2020)
CONCLUSION
It is concluded from this report that it is very important for the development of the nation to have
globalisation. There positive and negative aspect are conclude in this report. The brief discussion
related to the US-China trade war are concluded in this report.

REFERENCES
Books and Journals
Al-Etaibi, A., 2020. Identity and Globalisation: Tribal Identity in the Age of Social Media.
Dunn, H.S., 2021. Globalisation from Within: Enhancing Digital Productivity and Technology
Transformation in the South. In Re-imagining Communication in Africa and the
Caribbean (pp. 33-50). Palgrave Macmillan, Cham.
Gravina, A.F. and Lanzafame, M., 2021. Finance, globalisation, technology and inequality: Do
nonlinearities matter?. Economic Modelling, 96, pp.96-110.
Olaopa, O.R., 2019. Fostering Egalitarianism Through Globalisation of Africa’s Indigenous
Knowledge and Technology (IK&T) for Enhanced Industrial Development and Global
Competitiveness. In Globalization and Development (pp. 257-279). Springer, Cham.
Streten, E., 2021. The modern role of insolvency practitioners amidst globalisation and the
changing concept of the'professional'. A Collection of Short Papers by INSOL Early
Research Academics (INSOL ERA). Vol. Nov 2021., pp.149-163.
Toubal, F., 2018. Comment–The impact of globalisation and technology on local labour
markets. Economie & Statistique, (497-498), p.145.