The Influence of Globalization

The interdependence of nations, the internationalization of domestic economies, the frequent international cooperation, all of these phenomena are brought by globalization, which has become the buzzword of the twenty-first century. Business dictionary (2004) define globalization as a process of ‘interaction’ and ‘integration’ among the people, companies, and governments of different nations, the process driven by ‘international trade’, ‘investment’ and ‘information technology’. It is well known that contemporary globalization has effects on the economy, culture, environment as well as political fields in societies around the world. As a positive force in the world, globalization has already brought immense benefits to those countries that were able to participate in the process, although it exerts some negative impacts. This essay will primarily focus on international trade and illustrate this use in China as an example.

Nowadays, many governments and international institutions have adopted policies designed to increase integration into the global economy. Actually, research carried out by World Bank (2002) finds that open economies grow between 2% and 2.5% per year more rapidly than closed ones. An increasing number of countries are eager to embrace the growing trend of globalization as its benefits.
Firstly, through international trade, globalization strengthens international cooperation and expands people’s scope of activity. Countries tend to export what they produce efficiently and to import what they produce relatively less efficiently. Exports bring a vast amount of income to government and company while imports bring cheaper products to consumers, including high-quality goods and services that were not available previously. Due to globalization, international trade becomes increasing prosperous .Take China for example, China’s imports have risen by 70% since it joined the World Trade Organization, who institutes the rules for globalization. China became...