Prepared by: Prof. Ester Onag M.A.

Political Science
Is the buying and selling
of goods and services
across national borders
International Trade is a major issue for
environmentalist, because all of that
shipping back and forth emits
greenhouse gases and other pollutants
that contribute to climate change, acid
rain and other environmental problems
Adam Smith remarked that trade
is deeply embedded in human
nature, since human have a
propensity to “truck, barter and
exchange one thing for another,”
a trait he observed can be found
in no other species
 Great
2009
Recession

Contracted
Global
12% from the
Trade
year before
International trade is a
powerful topic in
international and domestic
politics for many reasons
Trade stimulates both
economic growth and
efficiency
It allows companies to
find new customers
by expanding in
overseas market
 It increases
competition between
companies and
countries
It allows consumers to have
more choices in the goods
and service they buy and
to buy these goods and
services more cheaply
• Fan tension between countries
• Harm the environment
• Increase poverty
• Hurt health
• Fuel conflicts
Implication of Trade
International trade can put
some companies out of
business and help others
expand rapidly

It can benefit some

countries and hurt others
Government Intervention
• They regularly set up barriers to keep
foreign competition out and then
negotiate
Globalization is an idea
of economic integration
at the global level
Globalization Increased travel
Waves of migration
Capital flows
between countries
Trading blocs
“As the WTO becomes more important to the world economy, it
also becomes a growing focal point for public hopes and concerns:
How should the world protect endangered species and promote
sustainable development? Should trade be linked to labor
standards and human rights? Can we preserve cultural identities in
an age of borderless communications? Can we have an open world
economy without stable financial system? And what about
eradicating poverty, reducing inequalities and promoting the rights
of women? These and many issues are a world away from
“traditional” trade concerns such as tariffs or qoutas. And yet all
find themselves part, directly or indirectly of the new trade
agenda” – WTO Secretary – General Renato Ruggiero
 Free trade ideas
represent what is called
the liberal perspective
in economics
Liberal Perspective
Economics
•Which emphasizes equality,
and liberty
 Smith argued that the “wealth
of nation” increases if market
barriers are removed and
people are left to pursue their
trucking, bartering and trading
▪ Explain the impact of globalization in: PESTLE (Political, Economic, Social,
Technological, Legal and Environmental) of the following countries
▪ Japan
▪ China
▪ USA
▪ Philippines
▪ India
It was an agreement that sought to
liberalize world trade by promoting
open, non-discriminatory trade,
mainly through rounds of negotiations
that pursued reductions in tariffs
January 1, 1995 161 members

Geneva
Building
Trade
• Intellectual
Property
• Access to
Medicine