Management of change and transition ppl
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This document discusses globalization and world trade. It begins with definitions of globalization as the increasing integration of economies worldwide through factors like trade, investment, and technology. This process has industrial, financial, economic, and informational effects on a global scale. The document then discusses the history of world trade from ancient times to modern times. It describes the World Trade Organization as the global body that establishes rules for international trade and helps resolve trade disputes between nations. Membership in the WTO provides benefits like fair methods for trade and economic growth.
Management of change and transition ppl
- 1. Management of change and transition Globalization and pursuit of world trade by Abdulkadir sugal Master of engineering management globalization and the world trade by abdulkadir sugal 1
- 2. Globalization and the pursuit of world trade globalization and the world trade by abdulkadir sugal 2 Introduction: Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology, as well as trade globalization is one of the types of economic globalization, and define trade globalization as "the extent to which the long-distance and global exchange of commodities has increased (or decreased) relative to the exchange of commodities within national societies", http://en.wikipedia.org/wiki/Globalization
- 3. Globalization: globalization and the world trade by abdulkadir sugal 3 Globalization can be defined as a set of economic, social, technological, political and cultural structures and processes arising from the changing character of the production, consumption and trade of goods and assets that comprise the base of the international political economy There is an increasing structural differentiation of these goods and assets that has spread across traditional political borders and economic sectors, and has resulted in the greater influence of political and economic changes. source: by internet
- 4. globalization cont…. globalization and the world trade by abdulkadir sugal 4 Globalization describes the interplay across cultures of macro-social forces. These forces include religion, politics, and economics. Globalization can erode and universalize the characteristics of a local group. Used to describe the growing integration of economics worldwide through increases in trade investment flows, and technology transfer.
- 5. Effect of globalization: globalization and the world trade by abdulkadir sugal 5 Globalization has various aspects which affect the world in several different ways such as: Industrial - emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies. Particularly movement of material and goods between and within national boundaries. Financial - emergence of worldwide financial markets and better access to external financing for borrowers
- 6. Effect of globalization:…. globalization and the world trade by abdulkadir sugal 6 Economic - realization of a global common market, based on the freedom of exchange of goods and capital. The interconnectedness of these markets however meant that an economic collapse in any one given country could not be contained. Informational - increase in information flows between geographically remote locations. Arguably this is a technological change with the advent of fiber optic communications, satellites, and increased availability of telephone and Internet.
- 7. World trade globalization and the world trade by abdulkadir sugal 7 Introduction: World trade is the capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history. Its economic, social, and political importance has been on the rise in recent centuries. It is the presupposition of international trade that a sufficient level of geopolitical peace and stability are prevailing in order to allow for the peaceful exchange of trade and commerce to take place between nations. source by internet
- 8. Ancient and modern world trade globalization and the world trade by abdulkadir sugal 8 In the era before the rise of the nation state, the term 'international' trade cannot be literally applied, but simply means trade over long distances; the sort of movement in goods which would represent world trade in the modern world. Besides the modern world trade more easier then the ancient one
- 9. Ancient world trade globalization and the world trade by abdulkadir sugal 9 Some examples: The domestication of camel allows Arabian nomads to control long distance trade in spices and silk from the Far East. The Egyptians trade in the Red sea, importing spices from the "Land of Punt" and from Arabia Indian goods are brought in Arabian vessels to Aden http://en.wikipedia.org/wiki/Timeline_of_international_trade
- 10. Early Modern world trade globalization and the world trade by abdulkadir sugal 10 In 1799, The Dutch East India company, formerly the world's largest company goes bankrupt, partly due to the rise of competitive free trade. Free trade agreement (1860) finalized between Britain and France under the presidency of Napoleon III, prepared by Michel Chevalier and Richard Cobden, sparks off successive agreements between other countries in Europe. http://en.wikipedia.org/wiki/Timeline_of_international_trade
- 11. International trade: globalization and the world trade by abdulkadir sugal 11 What is 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. if you walk into a supermarket and are able to buy Somaliland bananas, Brazilian coffee and a bottle of South African honey, you are experiencing the effects of international trade.
- 12. Domestic trade: globalization and the world trade by abdulkadir sugal 12 Domestic trade, also known as internal trade or home trade is the exchange of domestic goods within the boundaries of a country. This may be sub-divided into two categories, wholesale and retail. Wholesale trade is concerned with buying goods from manufacturers or dealers or producers in large quantities and selling them in smaller quantities to others who may be retailers or even consumers source: by internet
- 13. globalization and the world trade by abdulkadir sugal 13 .Wholesale trade is undertaken by wholesale merchants or wholesale commission agents. Retail trade is concerned with the sale of goods in small quantities to consumers. This type of trade is taken care of by retailers. In actual practice, however, manufacturers and wholesalers may also undertake retail distribution of goods to bypass the intermediary retailer, by which they earn higher profits. Domestic trade:
- 14. World trade organization (WTO) globalization and the world trade by abdulkadir sugal 14 The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments The goal is to help producers of goods and services, exporters, and importers conduct their business http://www.wto.org/
- 15. Why world trade organization is important? globalization and the world trade by abdulkadir sugal 15 The WTO is a body designed to promote free trade through organizing trade negotiations and act as an independent arbiter in settling trade disputes. To some extent the WTO has been successful in promoting greater free trade. • There can be an increase in economic welfare for all countries. Free trade enables countries to specialise in those goods where they have a comparative advantage http://www.wto.org/
- 16. World trade organization…… globalization and the world trade by abdulkadir sugal 16 Free trade has many advantages, such as: Lower prices for consumers. Removing tariffs enables us to buy cheaper imports Free trade encourages greater competitiveness. Firms face a higher incentive to cut costs. For example, a domestic monopoly may now face competition from foreign firms. Law of comparative advantage states that free trade will enable an increase in economic welfare. This is because countries can specialise in producing goods where they have a lower opportunity cost. Source by internet
- 17. Free trade has many advantages, such as globalization and the world trade by abdulkadir sugal 17 Economies of scale. By encouraging free trade, firms can specialise and produce a higher quantity. This enables more economies of scale, this is important for industries with high fixed costs, such as car and aero plane manufacture. Free trade can help increase global economic growth.
- 18. World trade organization globalization and the world trade by abdulkadir sugal 18 When WTO was formed? The WTO was formed in 1995 and has 157 member countries working together to supervise and liberalize international trade. When Philippines became a member to WTO? The Philippines has been a WTO member since 1 January 1995 http://www.wto.org/
- 19. Why Is WTO Membership So Important? globalization and the world trade by abdulkadir sugal 19 Members of the WTO enjoy the benefits conferred by any trade agreement. However, since the WTO has so many members, its benefits are really global The WTO helps trade throughout the world to flow smoothly through its trade agreements. This provides its members with a fair method to resolve trade disputes without resorting to violence or even war. Membership in the WTO also has responsibilities. Members agree to avoid erecting trade barriers, instead abiding by the WTO's resolution of the dispute.
- 20. globalization and the world trade by abdulkadir sugal 20