Globalization &
International
TRADE
Hello!
We are GROUP 4
We are here to give a
presentation on Globalization
& International Trade…
facilitated by
Prof. Bala Ado Kofarmata
SN
NAMES
REGISTRATION NUMBER
1
JAMILU H. MAIBISKIT
DBS/19/MBA/00157
2
SAADU S. ALIMI
DBS/19/MBA/00071
3
AISHA B. WAZIRI
DBS/19/MBA/00364
4
BOKIYE T. OTOBO
DBS/19/MBA/00459
5
ILYAS A. SANI
DBS/19/MBA/00019
6
AISHA S. UMAR
DBS/19/MBA/00360
7
MUSTAPHA A. ADEWALE
DBS/19/MBA/00359
8
SHUAIBU S. TAUHEED
DBS/19/MBA/00325
9
RAHAMA I. MUHAMMAD
DBS/19/MBA/00032
10
ABDULSALAM A. ABOLARIN
DBS/19/MBA/00017
2
Statement of the Problem
The general economic power of a nation has become
an important defining variable in the evaluation of that
nation’s position in the global power ranking. At this
time in the world, most governments cannot control
the flow of money, technology, ideas, goods, and
people across their borders. Multinational corporations
take advantage of this by acquiring some of the
economic functions and powers of a state.
3
Statement of the Problem
Alapiki (2005) also observes the emerging global
order is a continuous process no one can claim full
understanding of all its aspects, yet no one can exist
outside its influence and impact. The above analysis
underpins the fact that current trends in globalization
may have serious implications for international
business practices across the globe.
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Objectives of this Presentation
The major objectives of this presentation is to look
at the;
▸ Concept of Globalization
▸ International Trade
▸ Drivers of Globalizaton
▸ Changing Paradigm of the Global Econnomy
▸ Processes of Globalization
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Introduction
Definition of Key Terms
In the last three decades international
interactions have intensified dramatically,
from the globalization of production
systems and financial transfers to the
worldwide dissemination of information and
images through the media, or the mass
movement of people whether as tourists or
refuges.
7
The extraordinary range and depth of
these transnational interactions have
led some authors to view them as a
rupture with previous form of crossborder
interactions,
a
new
phenomenon termed “globalization”.
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Big concept
What is Globalization?
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Globalization refers to the process of
interaction and integration between
people, companies, and government
worldwide.
10
Globalization has grown due to
advances in transportation and
communication technology.
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“
Globalization has much potential. It
could be the answer to many of the
world’s seemingly intractable problems.
But this requires strong democratic
foundations based on political will to
ensure equity and justice.
- Sharan Burrow
12
What is
International
Trade?
International trade refers to economic
transactions that are made between
countries.
14
International trade transactions are
facilitated by international financial
payments, in which the private banking
system and the central banks of the
trading nations play important roles. has
grown due to advances in transportation
and communication technology.
15
International trade and the
accompanying financial transactions
are generally conducted for the
purpose of providing a nation with
commodities it lacks in exchange for
those that it produces in abundance.
16
Some Reasons Countries trade hasn’t
been advanced
The first,
The second,
in which the receiving
country itself cannot
produce the goods or
provide the services in
question, or where they do
not have enough.
in which they have the
capability of producing the
goods or supplying the
services, but still import
them. The rationale for the
first kind of trade is very
clear.
17
Drivers of Globalization
of the World’s Economy
Friedman’s Flatteners
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IT and Communications across the World
If we take the first driver of globalization, the integration
of the global economy has mainly been due to the rapid
spread of IT and communications that enabled
countries like India and China to circumvent hitherto
aspects that were holding them back. In other words,
the increasing interconnectedness was driven by real
time communication between the West and the East
which enabled these countries to reach out to wider
markets and audiences in the Western countries.
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Technological Drivers
Technology shaped and set the foundation for modern
globalization, Innovations in the transportation
technology revolutionized the industry. The most
important developments among these are the
commercial jet aircraft and the concept of
containerization in the late 1970s and 1980s.
20
Political Drivers
Liberalized trading rules and deregulated markets lead
to lowered tariffs and allowed foreign direct
investments in almost all over the world. The institution
of GATT (General Agreement on Tariffs and Trade)
1947 and the WTO (World Trade Organization) 1995 as
well as the ongoing opening and privatization in Eastern
Europe are only some examples of latest developments.
It about the kind of policies government of countries
put in place to drive globalization process.
21
Market Drivers
As domestic markets become more and more
saturated, the opportunities for growth are limited and
global expansion is a way most organizations choose to
overcome this situation. Common customer needs and
the opportunity to use global marketing channels and
transfer marketing to some extent are also incentives
to choose internationalization. (Ferrier, 2004)
22
Cost Drivers
Sourcing efficiency and costs vary from country to
country and global firms can take advantage of this
fact. Other cost drivers to globalization are the
opportunity to build global scale economies and the
high product development costs nowadays. (Ferrier,
2004)
23
Competitive Drivers
With the global market, global inter-firm
competition increases and organizations are forced
to “play” international. Strong interdependences
among countries and high two-way trades and FDI
actions also support this driver.
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Conclusion &
Summary
Successful participation in the global economy will
be increasingly determined by whether a country
maintains high quality, reliable trade infrastructure,
whether competition is permitted to flourish in the
logistics services industries, and whether the
regulatory environment is conducive to the
relatively frictionless movement of goods and
services through the supply chain. Trade
facilitation is not only for developing countries.
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All countries can benefit from the reform
and continuous improvements of their trade
processes. This kind of reforms that move
countries in the necessary direction do not
require
formal
commitments
and
obligations to other countries. Trade
facilitation is primarily in the interest of the
country implementing the reform.
27
Thanks!
for Listening
Any questions…
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Submitted by GROUP 4
SN
NAMES
REGISTRATION NUMBER
1
JAMILU HARUNA MAIBISKIT
DBS/19/MBA/00157
2
SAADU SHA’ABA ALIMI
DBS/19/MBA/00071
3
AISHA BELLO WAZIRI
DBS/19/MBA/00364
4
BOKIYE TINA OTOBO
DBS/19/MBA/00459
5
ILYAS ABBATI SANI
DBS/19/MBA/00019
6
AISHA SHATU UMAR
DBS/19/MBA/00360
7
MUSTAPHA ABDULSAMAD ADEWALE
DBS/19/MBA/00359
8
SHUAIBU SAIFULLAH TAUHEED
DBS/19/MBA/00325
9
RAHAMA IDRIS MUHAMMAD
DBS/19/MBA/00032
10
ABDULSALAM ABDULGANIYU ABOLARIN
DBS/19/MBA/00017
29