[Author’s Name]
[Institution’s Name]
Essay on Microeconomics
Definition
International trade is the exchange of goods and services across international boundaries. In most countries, it represents a significant share of GDP. While international trade has been present throughout much of history, its economic, social, and political importance have been on the rise in recent centuries, mainly because of industrialization, advanced transportation, globalization, multinational corporations, and outsourcing. In fact, it is probably the increasing prevalence of international trade that is usually meant by the term "globalization".
THREAT
Due to a diverse range of policy issues including the environment, world poverty, multinational corporate strategy and trade policy, international trade can be more of a threat than opportunity. Also the globalization of production is creating a widening asymmetry in the world market-place; on the one hand, there is an unprecedented volume of capital mobility and technology transfer across borders. On the other hand, labor mobility is subject to a myriad of restrictions, from visa requirements to occupational licensing. The freedom for monetary flows in capital markets does not exist for labor. While capital markets are being globalized, labor markets are ‘blocked' and becoming increasingly dysfunctional. Unregulated financial flows create shocks and instability, such as the East Asian currency crisis of 1997. However, there is another, less recognized, crisis in the form of expanding exploitation, discrimination and unfair employment practices in global labor markets. This trend can only be arrested and reversed through a universal acceptance of and compliance with ‘core’ labor standards, ensuring that all markets, including labor markets, function efficiently as well as equitably..........
