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What Is Globalization

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Running head: GLOBALIZATION 1

GLOBALIZATION

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Running head: GLOBALIZATION 2

What is globalization, and what are three specific traditional international trade theories that

support the concept of globalization?

In definition, globalization is the process by which, people, companies and governments

of different nations interact and integrate to form a global village aided by internet technology

(Ervin and Smith, 2008). Globalization, for instance, through a web cam and web conferencing, a

company in Asia can forge a business partnership with a company in Europe.

In this regard, there are three international theories that support the concept of

globalization. These three theories include; the theory of absolute advantage, the theory of

comparative advantage and lastly, the theory of factor proportion (Jewczyn, 2010).

How does each traditional international trade theory support the concept of globalization?

The concept of globalization is one that has been widely welcomed and widely disputed.

On these bases there are certain international trade theories that support the concept of

globalization. These theories include: theory of absolute advantage that states that other

countries, with the same amount of inputs, are able to produce more goods than others. In this

sense, if a country can produce much produce, it will seek to sell to sell the product to the other

nation that cannot produce as much, thus encouraging globalization (Ijioui, 2010). For example,

if Ghana produces a high amount of cocoa, it will sell to Brazil which cannot produce as much as

Ghana does, yet it also needs the same produce.

The second theory is the theory of comparative advantage. This theory supports trade

between two countries because it advocates for buying from other countries even if the country

can sufficiently produce its own products. This is in order to create good relations with your

neighbors. For instance, a country that produces its own sugar, can buy the sugar from another

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Running head: GLOBALIZATION 1 GLOBALIZATION Name Institution affiliation Date Year Running head: GLOBALIZATION 2 What is globalization, and what are three specific traditional international trade theories that support the concept of globalization? In definition, globalization is the process by which, people, companies and governments of different nations interact and integrate to form a global village aided by internet technology ( Ervin and Smith, 2008). Globalization, for instance, through a web cam and web conferencing, a company in Asia can forge a business partnership with a company in Europe. In this regard, there are three international theories that support the concept of globalization. These three theories include; the theory of absolute advantage, the theory of comparative advantage and lastly, the theory of factor proportion (Jewczyn, 2010). How does each traditional international trade theory support the concept of globalization? The concept of globalization is one that has been widely welcomed and widely disputed. On these bases there are certain international trade theories that support the concept of globalization. These theories include: theory of absolute advantage that states that other countries, with the same amount of inputs, are able to produce more goods than others. In this sense, if a country can produce much produce, it will seek to sell to sell the product to the other nation that cannot produce as much, thus encouraging globalization ( Ijiou ...
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