The Affects of Global Trade

Running Head : EFFECTS OF GLOBAL TRADE

The Effects of Global Trade

[Name of Author]

[Affiliation of author] Effects of Global Trade

After successfully searching for the web sites that promotes Global Trade , but on the other hand , unsuccessfully obtaining Global Trade 's formal definition , I decided to give my own definition for it . Global trade for me is the collective term used for the act of making transnational negotiations and /or partnership aiming for better business ventures to the people concerned . These negotiations includes lowering if not eliminating trade

barriers such as tariffs and quotas that affects very much on the prices of foreign exported products that originally tries to protect local products against entry of foreign commodities to the local market . Whether these negotiations involve the government and /or private corporations , as long as the scope of the trading is at least between two countries , it would then be considered as part of Global Trade . Furthermore , Global Trade , I think , is one of the forms of Globalization , which is regarded as the revolutionary phenomenon the fields of politics , economics and culture are heading for . Best example Global Trade Agreement was the one of the most publicized North American Free Trade Agreement (NAFTA , which governs trade between the United States , Canada , and Mexico

Though it aim for the partnership of involved countries , many opposes for these Global Trade Agreements . The Center for Global Development , an independent research organization explained why in their article , Global Trade and Development

Trade has been a part of economic development for centuries . It can greatly affect a nation by reducing poverty , creating jobs , reducing prices , increasing the variety of goods for consumers , and helping countries acquire new technologies

But economic assimilation affects different people differently . For example , the North American Free Trade Agreement (NAFTA , which governs trade between the U .S , Canada , and Mexico , has had mixed effects for the people of Mexico ? It is estimated that without NAFTA , Mexico would have had 40 less foreign direct investment and its exports would have been 25 lower This resulted fewer jobs , and average personal income in 2002 would have been 4 -5 lower ? However , NAFTA has not been able to ensure that the supply of jobs in Mexico keep pace with the growing demand . Since NAFTA took effect in 1994 , Mexico has seen an increase of 500 ,000 manufacturing jobs but a loss of 1 .3 million agricultural jobs . The number of jobs only increased in the service sector which requires low compensation

Global Trade aims for better business ventures among the countries involved . But with the facts given above , we could conclude that Global Trade may give negative effects on one or more parties involved . CNG had presented facts that Mexico had rather lost than gain with the agreement he had entered with the rich countries , United States and Mexico . The provisions in the agreement he had entered may have seemed to give a boost for his economy but after it had been implemented statistics...