THE RELATIONSHIP BETWEEN INTERNATIONAL TRADE, APPROACHES TO INDUSTRIALISATION AND ECONOMIC DEVELOPMENT
Introduction
Globalization involves integration among companies or governments around the world in a multifaceted event influenced by capitalist expansion. The thesis statement of this essay is comprehension of the association between global trade, industrialization approaches and economic development in the present business world. The paper sheds light on three theoretical perspectives of thexport-oriented present and future trends of trade.
Association among international trade, economic development and industrialization
The purpose of the global economy is to promote free trade as well as serve as efficient market running. Minimal intervention on the state-regulated import-export is driven by critical parameters of an individual or organizational base. As stated by Glasgow & Schrecker (2016), The primary focus in case of individualistic pursuit of interest is driven by the economic exchange between stakeholders. Similarly, In the case of a country-based exchange, a positive-sum game is a key motivator. The role of the state is to exploit available marketplaces and reduce trade barriers to facilitate international business. In addition to this, the development of global agreements and their intervention, like conflict referee makes the global market desirable. To achieve this sustainable state, nations must reach a collaborative level of perspectives to influence trade and limit triggering factors such as inflation and conflicts.
As mentioned above, perspectives in case of economic development can be either liberal, nationalist or critical. Liberal views are driven by the influence of the State to manage the national economy in international contexts, such as protected industries or citizens. The critical parameters involve the government, trade unions, banks or businesses. Lack of sum game introduces the reduction of trade barriers and subsidies. Pomeranz (2016) comments perspective of economic nationalism creates wealth and inequalities and is driven by conflicting theories of Marxism, feminism and environmentalism. It also has a null sum game owing to its sceptic view of globalization. Critical perspective entails adjustment of product pricing to match corresponding currency rates. Product pricing will be adjusted to match the theory motivates critiquing the understanding relative to the global economy.
As per these given theories it can seen that internationalization has enhanced economic transactions among countries with the scope of reduced trade barriers. Universalization of the ideas has accepted widespread prevalence of European or American business culture, even in far East countries. Trade in global platforms initiated when Europeans decided to collect products that could not be locally grown. O’brien & Williams (2016) opine this lead to the development of finance and banking to provide for exploration and companies. One of the companies are set up in different lands, concepts of labor and production came into consideration. Ultimately, it increased world trade volumes through global governance and open market systems. Foreign direct investments are involved in cheap labor and extended supply chains. The WTO substitutes externally production with local goods to promote economic independence as a part of import substitution industrialization (Tooze, 2018). Similarly, the export-oriented industrialization provides free trade areas, tax concessions and flexible employment laws.
Development of liberal governance has been stemmed from discontent among disenfranchised cohorts that was later intervened by international regulation. As noted by Gereffi (2014), international trade laws stabilized international trading and monetary system by redistributing income across demography. The emergence of World Wars influenced embedded liberalism theories in trade initiatives that lead to the growth of international corporations and improvements of Asian economies. Capital mobility strengthened global supply chains and motivated emergence of independent governance with competing capitalisms. This competition is driven by information revolution in socioeconomic and military spheres of the United Nations to create an interconnected business platform.
Conclusion
Based on the information studied above, it can be concluded that trade, economy and industrialization in the global platform are readily influenced by one another. The essay has shed light on issues of export-driven approaches and import substitution towards industrialization. In addition to this, perspectives of different nations such as the US, South Korea and the UK are also reviewed in a longitudinal association. Liberalism portrays a need for new trends in the market, while nationalism brings imperialist conflicts. Similar conflicts are also seen in the form of critical approach that stems from gender or class differentiation.
Reference List
Gereffi, G. (2014). Global value chains in a post-Washington Consensus world. Review of international political economy, 21(1), 9-37.
Glasgow, S., & Schrecker, T. (2016). The double burden of neoliberalism? Noncommunicable disease policies and the global political economy of risk. Health & place, 39(1), 204-211.
O’brien, R., & Williams, M. (2016). Global political economy: Evolution and dynamics. London: Macmillan International Higher Education.
Pomeranz, K. (2016). Political economy and ecology on the eve of industrialization: Europe, China, and the global conjuncture. The New World History: A Field Guide for Teachers and Researchers, 23(1), 366.
Tooze, R. (2018). Ideology, knowledge and power in international relations and international political economy. In Strange power: Shaping the parameters of international relations and international political economy, 1(1), 197-216.
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