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Globalization and Internationale Trade - Coggle Diagram
Globalization and Internationale Trade
Globalisation
Definition
cooperation of countries worldwide in trade and policy
aim of improving the situation of the people living on our planet
help tear down the invisible walls between nations so that we can understand each other better, in every aspect of life (socially, culturally)
started with the Dutch East India Company and the British East India Company started trading with India.
Globalisation is a process where the world become integrated into a single global market. This involves the free exchange of goods, services, information, and ideas across national borders.
The underlying idea of globalisation is to create a global network that generates prosperity and opportunities for all. It aims to promote free trade and strengthen competition.
Advantages/Winners and Disadvantages/Losers of Globalisation
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theoretically boosts efficiency and wealth for all
global markets enable poorer countries to alleviate poverty
emerging nations like India, South Korea or China have significantly improved due to their rapid growth
future globalization will provide more opportunities for people and countries
(it promotes tolerance and integration)
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opponents link globalisation to the rise of monopolistic global corporations
workers in industrial countries face challenges due to outsourcing to countries like China with cheaper labour
consequence – increase unemployment in countries where labour is more expensive
made the rich people richer while making the non-rich poorer
Free Trade
Definition
policy that allows goods and services to flow between countries without restrictions or tariffs, fostering international commerce and economic growth
The World Trade Organization (WTO)
international body promoting free trade by urging countries to abolish import tariffs and barriers
closely associated with globalisation
headquarters is in Geneva – official languages – English, French and Spanish
covers trade in services – telecommunications, banking, intellectual property rights
only global international organization dealing with rules of trade between nations
goal – ensure that trade flows smoothly, predictably and freely
Ngozi Okonjo-Iweala – 7th Director-General, took office on March 1, 2021, first human and first African, term of office expires on August 31, 2025
many roles – sets global trade rules, hosts negotiations, aids developing nations
major decisions – made by ministers (meet at least every two years), or their ambassadors or delegates (meet regularly in Geneva)
primary purpose – open trade for the benefit of all
over 160 members, representing 98 per cent of global trade
The G7
founded in France in 1975
members set out to tackle global challenges through discussion and action
no headquarters, no budget, no permanent staff
comprises of seven of the world’s leading industrial nations – Germany, Canada, United States, France, Italy, Japan, United Kingdom
leaders meet face-to-face at an annual summit
presidency of G7 rotates between group´s member nations on an annual basis
in the past decade, G7 initiated drives against diseases like HIV/AIDS and announced development programs and debt-relief schemes
at the 45th summit – decided to provide $20 million to help countries to fight the wildfires in the Amazon rainforest
in March 2014, Russia was suspended from the former G8 political forum, following the Russian annexation of Crimea
in January 2017, Russia decided to leave permanently – now it is the G7
International Monetary Fund (IMF)
provides financial assistance and advice to countries facing economic difficulties
aims to promote global monetary cooperation, exchange rate stability and balanced economic growth
The International Monetary Fund (IMF) is an international organization that aims to promote global economic stability, foster international trade, and reduce poverty. It was established in 1944 during the Bretton Woods Conference and officially came into existence on December 27, 1945. The IMF is headquartered in Washington, D.C., and currently has 190 member countries.
The World Bank
founded in 1944 in the USA
financial institute that aiding developing countries with loans and grants for poverty reduction, economic development and better living standards
International Trade
Definition
exchange of goods and services between countries
gives rise to a world economy in which prices, or supply and demand affect and are affected by global events
provides consumers and countries access to goods and services not available domestically
every kind of product – food, clothes, spare parts, oil, jewellery, wine, water etc, services such as tourism, banking, consulting, transportation
Import
products are bought from the global market
clothes, automobiles, food
Export
products are sold to the global market
electronics, energy products, textiles
Child Labour and Child´s Rights
can sometimes involve child labour, which violates children´s rights
protecting children´s rights in international trade necessitates enforcing laws against child labour, promoting children´s education and supporting fair labour practices
consumers can also make ethical choices by supporting products made without child labour and advocating for policies that protect children´s rights globally
Fair Trade
Definition
promotes fair prices, sustainable livelihoods and improved working conditions for producers in developing countries
aims to alleviate poverty, empower communities, and ensure environmental sustainability
facts and figures
more than 1.7 Milionen farmers &workers in fairtrade certified producer organization
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Improved Living Conditions: Fairtrade aims to ensure that producers receive a fair price for their goods, which can lead to higher incomes and better living conditions for farmers and workers in developing countries.
Community Development: A portion of Fairtrade premiums (extra money paid on top of the selling price) is invested in community projects such as education, healthcare, and infrastructure, benefiting entire communities.
Stable Prices: Fairtrade can provide more stable prices for producers, protecting them from volatile market fluctuations that can otherwise be devastating for small-scale farmers.
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Higher Costs for Consumers: Fairtrade products are often more expensive than non-Fairtrade alternatives, which can limit their appeal to price-sensitive consumers and restrict market growth.
Market Access: Even with Fairtrade certification, producers may still face challenges accessing large and lucrative markets, limiting the economic benefits they receive.
Certification Costs: The cost of obtaining and maintaining Fairtrade certification can be high for small producers, sometimes making it difficult for them to participate in the Fairtrade system.
The three types of Fairtrade
100% of all ingredients are grown and traded under Fairtrade conditions
Is a mixed product or was produced with quantity compensation. Some of the products are fairly produced and traded and some are not.
The ingredient in the mixed product specified in the seal is Fairtrade certified
the pros and cons of being an EU member state
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economic benefits – single market promotes trade, investment, and economic growth
political influence – provides a platform for collaboration and decision-making on regional and global issues
legal standards – enhance standards in areas like consumer protection, environmental conservation, and human rights
Crossing borders in the EU without control
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loss of sovereignty – EU regulations and decisions can limit a member state's ability to make independent policy choices
financial contributions – member states must contribute to the EU budget, which can be a significant financial burden
regulatory burden – compliance with EU laws and regulations may require administrative effort and resources