ECONOMIC GLOBALIZATION AND GLOBAL
TRADE
According to the United Nations (as cited in Shangquan,
2000), "Economic globalization refers to the increasing
interdependence of world economies as a result of the growing
scale of cross-border trade of commodities and services, flow
of international capital, and wide and rapid spread of
technologies."
There are two different types of economies associated with
economic globalization:
1. Protectionism is a policy of systematic government
intervention in foreign trade with the objective of
encouraging domestic production.
2. Trade liberalization Trade liberalization is the process of
reducing or eliminating trade barriers such as tariffs,
quotas, and import restrictions to encourage free trade
among nations.
Protectionism is when a government takes steps to support its
own industries by making it harder for foreign goods to
compete. This can be done through tariffs (taxes on imports) or
quotas (limits on how much of a product can be imported).
Protectionism was widely practiced during the mercantilist era
(16th–17th centuries) and became even more common during
the Great Depression (1929) when countries tried to protect
their economies from collapse.
Even today, some countries, like China, Japan, and the U.S.,
are sometimes accused of using protectionist policies despite
the push for trade liberalization (free trade with fewer
restrictions).
After World War II, global economic policy transitioned from
protectionism to trade liberalization, leading to increased
international trade.
Trade liberalization is the process of reducing or eliminating
trade barriers such as tariffs, quotas, and import restrictions to
encourage free trade among nations.
Fair Trade as a Response to Inequities in Global Trade:
Ensures fair wages and better conditions for marginalized
producers.
Encourages sustainable and environmentally responsible
production.
Strengthens relationships between producers in
developing countries and consumers in developed
nations.
Promotes ethical trade in products like coffee, bananas,
tea, and chocolate.
ECONOMIC GLOBALIZATION AND SUSTAINABLE
DEVELOPMENT
There are some significant downsides to globalize trade and
perhaps the strongest argument against economic
globalization is its lack of sustainability or the degree to which
the earth's resources can be used for our needs, even in the
future.
One significant global response or approach to economic
globalization is that of sustainable development, which seeks
to chart a middle path between economic growth and a
sustainable environment (Borghesi and Vercelli, 2008). The
relationship between globalization and sustainability is multi-
dimensional-it involves economic, political, and technological
aspects.
The continuous production of the world's natural resources,
such as water and fossil fuel allows humanity to discover and
innovate many things. We were able to utilize energy, discover
new technologies, and make advancements in transportation
and communication.
Climate change accelerated and global inequality was not
eradicated. This means that development, although beneficial
at one hand, entails cost on the other.
ENVIRONMENTAL DEGRADATION
There are some significant downsides to globalize trade and
perhaps the strongest argument against economic
globalization is its lack of sustainability or the degree to which
the earth's resources can be used for our needs, even in the
future.
Development, especially economic development, was
hastened by the Industrial Revolution. This is the period in
human history that made possible tye cycle of efficiency. This
cycle harms the planet in a number of ways.
Many experts do not think that the planet can sustain a
growing global economy. Deforestation, pollution, and climate
change will not adjust for us, especially if increases in living
standards lead people to demand more consumer goods like
cars, meat, and smartphones.
FOOD SECURITY
Global Food Security means delivering sufficient food to the
entire world population. It also means the sustainability of
society such as population growth, climate change, water
scarcity, and agriculture.
The demand for food will be 60% greater than it is today and
the challenge of food security requires the world to feed 9
billion people by 2050 (Brenee, 2016)
ENVIRONMENTAL CHALLENGES
Destruction of natural habitats, particularly through
deforestation.
Destruction of marine life and ecosystem.
Decline of biodiversity and farmland at a rapid pace.
Decline in the availability of freshwater.
Pollution through toxic chemicals.
DIFFERENT MODELS AND AGENDA
United Nation
The UN has set ending hunger, achieving food security
and improved nutrition, and promoting agriculture as the
second of its 17 Sustainable Development Goals (2030)
The World Economic Forum
New Vision for Agriculture (2009)-Forum's initiatives were
lunched to-establish cooperation and encourage
exchange of knowledge among farmers, gov't, cli society,
and the private sector in both regional and national levels
(Breene,2016)
ECONOMIC GLOBALIZATION, POVERTY, AND
INEQUALITY
The 1 to 2 billion poorest in the world who don't have food for
the day suffer from the worst disease, globalization deficiency
The way globalization is occurring could he much better, but
the worst thing is not being part of it." (Hans Rosling)
Economic and trade globalization is the result of companies
trying to outmancuver their competitors.
MULTIPLIER EFFECT
An increase in one economic activity can lead to an
increase in other economic activities.
Economic globalization has helped millions of people get
out of extreme poverty but the challenges of the future is
