Assess the extent to which the globalization of trade can bring problems as well as benefits
Globalisation which is characterized by the liberalisation of cross-border trade and investment flows,
has reshaped economies worldwide over the past few decades. There are both positives such as the
reduction of poverty and increase of the economy worldwide that have been brought by trade
however there have also been problems such as deindustrialisation.
The most significant factor which demonstrates the benefits of the globalisation of trade is the
World Trade Organisation(WTO).The establishment of the WTO in 1995 is one of the most significant
milestones in global trade, with many benefits such as the liberalisation of trade. WTO agreements
have dramatically reduced average tariff rates among member countries. Since its creation, global
average tariffs have fallen by nearly 60% in many product categories, spurring growth in
merchandise trade. Additionally, countries that joined the organization experienced an average
annual FDI growth rate that was 35% higher than non-members, contributing to economic
development and job creation. In addition the WTO provides a structured mechanism to settle trade
disputes. Since its dispute settlement system was put in place, over 600 cases have been resolved,
helping to reduce trade tensions. By facilitating negotiations and standard-setting, the WTO has
contributed to the global merchandise trade volume expanding from around $8.8 trillion in 2005 to
$18.9 trillion in 2019.This dramatic increase underscores the pro-trade environment it helped
create. Furthermore, around 70 million people each year are estimated to be bought out of poverty
by trade alone (access to employment, increase in wages, improved schooling from tax received
etc…). To add to this point the global rate of extreme poverty fell from 36% in 1990 to 8.4% in 2019
which was a dramatic change linked closely to trade-led growth in countries such as China, Vietnam,
and India. Additionally, in Vietnam, GDP per capita soared from $100 in 1986 to over $4,000 by
2023, driven largely by export-led growth. Additionally another key benefit of trade is the rise of
containerization has revolutionized trade logistics by reducing shipping costs by approximately 70%,
enhancing the efficiency of global supply chains. Today’s mega container ships can carry over 24,000
TEUs (Twenty-foot Equivalent Units), and the industry moves more than 90% of the world’s trade by
volume. For instance, the Port of Shanghai handled over 43 million TEUs in 2022 reflecting the scale
and efficiency that containerisation brings to international supply chains. All of these factors
demonstrate the benefits that have been brought about due to the WTO, global trade as a whole
and containerisation.
On the other hand there can also be challenges created by the globalisation of trade. While the
WTO has brought positives it has also brought costs which make it less of a benefit. For example
trade liberalisation disproportionately benefits developed economies. Africa, home to 17% of the
global population, accounts for only 3% of global merchandise trade. Additionally,
developed nations like the US and EU heavily subsidise agriculture, distorting competition. For
instance, the EU spent $395 billion on agricultural subsidies in 2022, while Sub-Saharan African
farmers struggle with limited government support. Another weaknesses brought about by the
globalisation of trade is that it can lead to deindustrialisation. This was the case of Govan Shipyard in
Glasgow which was very impactful. Govern used to be thriving hub employing over 70,000 workers
at its peak however it experienced a reduction in employment of over 91% (to less than 6,000 now)
due to competition from low-cost producers and the impact of containerisation, which streamlined
global shipping but reduced the demand for traditional shipbuilding methods. All of these factors
demonstrate the problems that can be brought about from the globalisation of trade.
In conclusion, the globalisation of trade brings more positives than negatives as it can bring job
opportunities, reduce poverty rates and increase efficiency of the movement of goods and services
which have made it beneficial. However there are still problems such as deindustrialisation and how
trade can benefit some areas (e.g. China) and damage others (e.g. Govern in Glasgow).
, Assess the importance of ICT and mobile communications in the growth of globalisation
Outsourcing is where you obtaining key products from alternative, cheaper locations - often abroad -
than original home-sources. This idea has been very successful in the country of Indian because the idea
of ICT and communications has allowed them to grow as a country and become more globalised, I will
look at in this essay how important ICT and mobile communications has been and whether or not other
factors such as the WTO and international organisations have been more important
On one hand, ICT and mobile communications has been very important in the growth of globalisation. For
example Bangalore, known as India’s "Silicon Valley", is a prime example of how ICT has driven
globalisation. The city's rapid rise in IT and outsourcing has been due to advancements in communication
technology and enabling firms to work internationally. Firstly, India’s digital economy is projected to
reach $1 trillion by 2025, showing the large size of the ICT industry in India. And India’s IT and software
services industry was worth $150 billion in 2023, contributing 8% of India’s GDP. Additionally, Indi a's
IT exports were worth $194 billion in 2023, up from just $4 billion in 2000, allowing them to branch out
and grow in terms of globalisation and connections worldwide. Furthermore, the communications
industry in India has allowed for many opportunities such as the number of IT employees in India to
increase from 284,000 in 1999 to over 5 million in 2023. And over 12% of these employees are
international, creating a more globalised and switched on country in India. Moreover, 70% of Fortune 500
companies now outsource software and IT support to India. Call centre industry employs over 1.2 million
people, with employees handling customer service for UK and US firms. In addition, India has the third-
largest number of tech startups globally (over 99,000 startups in 2023). All of these factors demonstrate
how important ICT and mobile communications have been in the growth of globalisation, specifically in
India as they have allowed it outsource and develop as a nation, becoming more globalised.
However there are also other factors which have also been just as or more important than ICT and mobile
communications in terms of the growth of globalisation. For example, international organisations such as
the World Trade Organisation have been very important and significant in aiding the growth of
globalisation. The WTO has been instrumental in reducing trade barriers and promoting free trade
worldwide. For example, over 98% of global trade is conducted under WTO rules, as 164 countries are
members. Additionally, since its creation in 1995, global trade has tripled, reaching $32 trillion in 2022,
largely due to WTO-led trade liberalisation. Moreover, due to the WTO and its role as an international
organisations the average global tariff rate has fallen from 15% in 1990 to below 5% today, allowing
easier trade. Additionally, China’s WTO accession in 2001 led to its exports growing from $266 billion
(2001) to $3.6 trillion (2022), making it the world’s largest exporter and for it to be more globalised as a
country. And India’s exports increased from $32 billion in 1995 to $775 billion in 2023, showing how WTO
policies have benefited from emerging economies and allowed nations such as India to develop. Finally,
Regional trade agreements (e.g., NAFTA or the EU) have flourished under WTO rules, with over 350 trade
agreements in force, strengthening these blocs together and creating a more globalised world. All of
these factors demonstrate how important international organisations such as the WTO have been in the
growth of globalisation, specifically in promoting free trade and allowing countries such as China and
India to become more globalised.
In conclusion, ICT and communications has been very important in the growth of globalisation across the
world due to their help in countries such as India, where they have hugely allowed the country to develop
and become less switched off. However international organisations, such as the WTO have been
important in promoting the growth of globalisation as they have allowed and created less tariffs, more
free trade and the development of nations imports and exports e.g. China.
Globalisation which is characterized by the liberalisation of cross-border trade and investment flows,
has reshaped economies worldwide over the past few decades. There are both positives such as the
reduction of poverty and increase of the economy worldwide that have been brought by trade
however there have also been problems such as deindustrialisation.
The most significant factor which demonstrates the benefits of the globalisation of trade is the
World Trade Organisation(WTO).The establishment of the WTO in 1995 is one of the most significant
milestones in global trade, with many benefits such as the liberalisation of trade. WTO agreements
have dramatically reduced average tariff rates among member countries. Since its creation, global
average tariffs have fallen by nearly 60% in many product categories, spurring growth in
merchandise trade. Additionally, countries that joined the organization experienced an average
annual FDI growth rate that was 35% higher than non-members, contributing to economic
development and job creation. In addition the WTO provides a structured mechanism to settle trade
disputes. Since its dispute settlement system was put in place, over 600 cases have been resolved,
helping to reduce trade tensions. By facilitating negotiations and standard-setting, the WTO has
contributed to the global merchandise trade volume expanding from around $8.8 trillion in 2005 to
$18.9 trillion in 2019.This dramatic increase underscores the pro-trade environment it helped
create. Furthermore, around 70 million people each year are estimated to be bought out of poverty
by trade alone (access to employment, increase in wages, improved schooling from tax received
etc…). To add to this point the global rate of extreme poverty fell from 36% in 1990 to 8.4% in 2019
which was a dramatic change linked closely to trade-led growth in countries such as China, Vietnam,
and India. Additionally, in Vietnam, GDP per capita soared from $100 in 1986 to over $4,000 by
2023, driven largely by export-led growth. Additionally another key benefit of trade is the rise of
containerization has revolutionized trade logistics by reducing shipping costs by approximately 70%,
enhancing the efficiency of global supply chains. Today’s mega container ships can carry over 24,000
TEUs (Twenty-foot Equivalent Units), and the industry moves more than 90% of the world’s trade by
volume. For instance, the Port of Shanghai handled over 43 million TEUs in 2022 reflecting the scale
and efficiency that containerisation brings to international supply chains. All of these factors
demonstrate the benefits that have been brought about due to the WTO, global trade as a whole
and containerisation.
On the other hand there can also be challenges created by the globalisation of trade. While the
WTO has brought positives it has also brought costs which make it less of a benefit. For example
trade liberalisation disproportionately benefits developed economies. Africa, home to 17% of the
global population, accounts for only 3% of global merchandise trade. Additionally,
developed nations like the US and EU heavily subsidise agriculture, distorting competition. For
instance, the EU spent $395 billion on agricultural subsidies in 2022, while Sub-Saharan African
farmers struggle with limited government support. Another weaknesses brought about by the
globalisation of trade is that it can lead to deindustrialisation. This was the case of Govan Shipyard in
Glasgow which was very impactful. Govern used to be thriving hub employing over 70,000 workers
at its peak however it experienced a reduction in employment of over 91% (to less than 6,000 now)
due to competition from low-cost producers and the impact of containerisation, which streamlined
global shipping but reduced the demand for traditional shipbuilding methods. All of these factors
demonstrate the problems that can be brought about from the globalisation of trade.
In conclusion, the globalisation of trade brings more positives than negatives as it can bring job
opportunities, reduce poverty rates and increase efficiency of the movement of goods and services
which have made it beneficial. However there are still problems such as deindustrialisation and how
trade can benefit some areas (e.g. China) and damage others (e.g. Govern in Glasgow).
, Assess the importance of ICT and mobile communications in the growth of globalisation
Outsourcing is where you obtaining key products from alternative, cheaper locations - often abroad -
than original home-sources. This idea has been very successful in the country of Indian because the idea
of ICT and communications has allowed them to grow as a country and become more globalised, I will
look at in this essay how important ICT and mobile communications has been and whether or not other
factors such as the WTO and international organisations have been more important
On one hand, ICT and mobile communications has been very important in the growth of globalisation. For
example Bangalore, known as India’s "Silicon Valley", is a prime example of how ICT has driven
globalisation. The city's rapid rise in IT and outsourcing has been due to advancements in communication
technology and enabling firms to work internationally. Firstly, India’s digital economy is projected to
reach $1 trillion by 2025, showing the large size of the ICT industry in India. And India’s IT and software
services industry was worth $150 billion in 2023, contributing 8% of India’s GDP. Additionally, Indi a's
IT exports were worth $194 billion in 2023, up from just $4 billion in 2000, allowing them to branch out
and grow in terms of globalisation and connections worldwide. Furthermore, the communications
industry in India has allowed for many opportunities such as the number of IT employees in India to
increase from 284,000 in 1999 to over 5 million in 2023. And over 12% of these employees are
international, creating a more globalised and switched on country in India. Moreover, 70% of Fortune 500
companies now outsource software and IT support to India. Call centre industry employs over 1.2 million
people, with employees handling customer service for UK and US firms. In addition, India has the third-
largest number of tech startups globally (over 99,000 startups in 2023). All of these factors demonstrate
how important ICT and mobile communications have been in the growth of globalisation, specifically in
India as they have allowed it outsource and develop as a nation, becoming more globalised.
However there are also other factors which have also been just as or more important than ICT and mobile
communications in terms of the growth of globalisation. For example, international organisations such as
the World Trade Organisation have been very important and significant in aiding the growth of
globalisation. The WTO has been instrumental in reducing trade barriers and promoting free trade
worldwide. For example, over 98% of global trade is conducted under WTO rules, as 164 countries are
members. Additionally, since its creation in 1995, global trade has tripled, reaching $32 trillion in 2022,
largely due to WTO-led trade liberalisation. Moreover, due to the WTO and its role as an international
organisations the average global tariff rate has fallen from 15% in 1990 to below 5% today, allowing
easier trade. Additionally, China’s WTO accession in 2001 led to its exports growing from $266 billion
(2001) to $3.6 trillion (2022), making it the world’s largest exporter and for it to be more globalised as a
country. And India’s exports increased from $32 billion in 1995 to $775 billion in 2023, showing how WTO
policies have benefited from emerging economies and allowed nations such as India to develop. Finally,
Regional trade agreements (e.g., NAFTA or the EU) have flourished under WTO rules, with over 350 trade
agreements in force, strengthening these blocs together and creating a more globalised world. All of
these factors demonstrate how important international organisations such as the WTO have been in the
growth of globalisation, specifically in promoting free trade and allowing countries such as China and
India to become more globalised.
In conclusion, ICT and communications has been very important in the growth of globalisation across the
world due to their help in countries such as India, where they have hugely allowed the country to develop
and become less switched off. However international organisations, such as the WTO have been
important in promoting the growth of globalisation as they have allowed and created less tariffs, more
free trade and the development of nations imports and exports e.g. China.
