Economic globalisation denotes the increment of the interdependence of the world economies as a result of the growth of trade, commodities, and services, the flow and rapid spread of international capital and technologies across borders. There are several components/ features of economic globalisation, this is in form of economic practices of mainly liberal economic policies, International trade /free trade, Foreign Direct Investment, capital market flow, economic liberalization is widely practised, technology and Migration. One of the key elements in economic globalisation is also global finance in which the U.S. dollar key role.
Free trade is one of the features of economic globalisation, it means greater access to emerging markets and economically powerful nation’s most especially the United States. It is a global trading regime with which countries can determine the terms of trade. An example is the General Agreement on Trade and Tariffs GATTS core principle is non-discrimination and the World Trade Organisation (WTO) which is involved in multilateral trade in which WTO arbitrates trade disputes. The primary beneficiaries of international trade are America, the developed countries and multinational corporations among others. These beneficiaries are at all levels of national and global governance to further free trade.
The Global economic system is characterised by integrated services, manufacturing, and distribution. Integrated service and free trade have been facilitated by globalisation which has promoted the integration process. This has been achieved through economic blocs that have encouraged standardisation, which deals with setting up a common frame that benefits trade. An example is the agreement between U.S.A, Mexico and Canada named the North America Free Trade Agreement (NAFTA). In theory, this agreement is supposed to be about free trade. But in practice, it does not remove trade and investment barriers among U.S.A, Mexico, and Canada but retains and erect barriers among these countries and the rest of the world. Arguments have been raised that NAFTA was initiated by the US producers because of their strong desire to have direct asses to the Mexican market. Thus, by this agreement, corporations have legal rights to the Mexican trade at the expense of Mexican national sovereignty.
In summary, economic globalisation deals with the economy and the different features attached to the economy and can aid economic development such as trade, capital, etc. The impact of economic globalisation and its components varies across countries, to some, it is more beneficial than to other countries.
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