Trade and Globalization and Gains of Free Trade Essay

Trade and Globalization and Gains of Free Trade - Essay Example The various inter-governmental organizations are not as much effectual, and international businesses and entities continue to define stipulations. Governments’ role in controlling trade is still enormous and many governments are increasingly accepting it as the norm rather than the exception (Tung and Henry, 2009). Debates in recent times center whether globalization is diminishing trade or increasing it. Questions have been raised about the state the traditional roles and national governments sovereignty play over trade, and the effects that these portend in promoting fairness or inequality among countries. Others have zeroed on the balance of trade and trade payments the less developed countries, the developing countries vis-a-vis the developed world, and the focus on the glaring policy intervention differences between the global north and the global south. This paper states at the outset that Meaning of the term globalization Whereas globalization has been touching on every aspect of society today, scholars and thinkers alike have not agreed on a universal single definition of the term. Instead, a number of definitions, conceptualizations, and perspectives exist depending on which lens one views the concept. Q1. The classical ‘gains from international trade proposition’ In Kemp’s world, the gains must be examined within the confluence of world tarries such that no country in the pedestal of globalization would be worse off than in the smaller customs union (Kemp, 1987). Kemp (1987) observes that the phenomenon of globalization has been extensively used in the world, specifically in admired discourses and policy issues. For him, globalization is a term that describes ways in which the world is progressively more interrelated, organized, and interdependent through a set of socially reinforced processes that is controlled by customs. These processes include among others, integration of markets, nation-states and technologies to a scal e that is aiding individuals, corporations and distinct governments to access and ‘navigate’ the world much more, more rapidly, much deeper an by less costly methods (Kemp and Wong, 1995). Kemp further characterizes the global economy and trade as that which is based on spread and networking of data and knowledge, and which is predominantly borrowing from technology to focus on what he calls â€Å"post-industrial and service-oriented† outlook. In addition, cultural and pure political meaning of globalization cannot be authoritatively affirmed without bringing in the aspect of trade and economy. Moreover, cultural and political meanings are now under blockade by global financial and hi-tech reorganization. Kemp thus speaks of a mode that is data centered as a prelude to development. This happens in two ways: Through universal financial links and information, tailored connections and that these are made possible due to hunger for trade. He proceeds to assert that t here is now a tendency to ‘renovate’ places and pressure to control restricted processes of cultural meanings of economies (Kemp, 1987). Q2. The classical GFITP and Proof provided by Grandmont and McFadden (1972). Grandmount and McFadden (1972) observe that businesses in globalization largely function at one of the four basic levels of globalization. The first level is what they call the ‘’multi-domestic’’ company.