GLOBALIZATION AND THE

INTERNATIONAL TRADE.
 INTERNATIONAL
TRADE
-Is the exchange of
goods and services
between countries. This
type of trade gives rise
to a world economy, in
which prices, or supply
and demand, affect
and are affected by
global events.
GLOBALIZATION
-Has brought benefits
in developed countries
as well as NEGATIVE
EFFECTS. The POSITIVE
EFFECTS include a
number of factors
which are education,
trade technology,
competition,
investments and
capital flows,
employment, culture
and organization
structure.
 GLOBALIZATION
PHASE 3
 It was when the modern globalization
started in the 19th century. Steam ships and
railroads made it economical to consume
goods that we were made far away. With
things being made in one country and
consumed in another, trade boomed.
 Production and consumption separate
geographically.
 Trade increases massively.
 * Trade cost drop, Old Globalization
starts, the Great Divergence appears.
PHASE 4
 The one that we are in today. Started
when production got broken up and
shifted around different nations. This is
known offshoring and it radically
transformed world trade and
manufacturing.
 Factories separate geographically
(offshoring)
 Trade and international knowledge flows
bloom, New Globalization starts, the
Great Convergence.
 * International knowledge flow boom,
New globalization starts, the Great
Convergence.
 GLOBALIZATION

POSITIVE EFFECTS NEGATIVE EFFECTS

 Global Market.  Jobs insecurity.
 Cross-cultural management.
 Fluctuation in prices.
 Foreign trade.
 Resource imperative.
 Foreign investments.
 Competition.
 Culture.
 Legal effects.
IMPORT TRADE
-Is a good or service brought into one country from another.

EX: Chocolates from Switzerland, Cars, Crude oil, Steel, Pharmaceuticals

NEGATIVE EFFECTS POSITIVE EFFECTS

 Imports make a country dependent
on other countries political and
economic power.
 Other countries is no more attracted
to import products than to their local
products.
 Helps national economies grow and
expand.
 No shortage of products
 Consumers can benefit from certain
products or components that are not
produced locally, but are available to
purchase online from a business
abroad.
EXPORT
Is to spread or introduce (ideas and beliefs) to another country.

EX: Semiconductors and electronic products, transport equipment, garments, copper

products, petroleum products, coconut oil, and fruits.

POSITIVE EFFECTS NEGATIVE EFFECTS

 Increased sales and profits.  Drug trade.
 Compensate for seasonal demands.  Not much beneficial for poor
countries.
 Create potential for company
expansion.
 Gain new knowledge and
experience.
 Sell excess production capacity.
IMPORT AND EXPORT TRADE

IMPORT TRADE EXPORT TRADE

TRANSPORTATION
-Any device used to move
an item from one location
to another. Common
forms of transportation
include planes, trains,
automobiles, and other
two-wheel devices such
as bike or motorcycles.
-The process of shipping or
moving an item from point
A to point B.
 TRANSPORTATION

NEGATIVE EFFECTS POSITIVE EFFECTS

 The transportation’s biggest negative  Provides people with a way to carry
impact is its impact to the water system
and wildlife habitat. goods from places to places. It is
meant for people to save their times.
 This leads people to expand the urban
areas, which eventually destroys the  In every urban areas, transportation in
land for agriculture.
all forms have a big impact on the
 The negative noises can also make a society and economy.
person’s characteristics disturbing and
unpleasant in a long term effect. And
lastly, the high noises spreads people in
urban areas, which eventually destroys
the land for agriculture.
 BALANCE OF
TRADE
-Can be a misleading
term because trade
measures a flow of
exports and imports
over a given period of
time. Also, balance of
trade does not mean
that exports and
imports are “in
balance “ with each
other or anything else.
Www.investopedia.com
https://www.investopedia.com/terms/i/import.asp
https://www.aacb.com/benefits-of-importing-and-exporting/
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