Marketing Concepts Globalization and World Trade

The Concept of Globalization Marketing and World Trade, and to organizations that promote the freer world trade. Such opposition may come in the form of certain government interventions. There are several reasons for such opposition. First, certain occupations and industries need to be protected from foreign competition (Hill, 2004). The United States provided protection to key industries such as automobiles, machine tools and steels in the form of Voluntary Export Restraints (VERs) in the 1980s, which also protected jobs (Hill, 2004). However, such a move is not justified because the price of this product turns out to be higher than the world price by reducing foreign imports, thereby reducing its global competitiveness (Hill, 2004). Another argument related to the opposition is the need to protect the baby industry with the appropriate tariffs, import quotas and subsidies until they are developed enough to compete on the global stage (Hill, 2004). However.

such protectionism usually does not make industry more efficient, with bad effects making them more complacent. Brazil’s automotive industry is still very inefficient after 30 years of government protection (Journal of Commerce, 1991). Krugman (2001) also mentioned that interventionist policies to promote a particular industry sector should attract resources from other sectors, thus making such policies inefficient. In fact, supporters of free trade have called for an end to all subsidies that promote the extravagant use of natural resources and to introduce pollution taxes, so that current prices may reflect the risks of global warming (Economist, 2001). The argument for free trade can thus be justified in this regard.

National security is another reason to oppose globalization. Industries associated with the production of defense products, such as aerospace and semi-conductors, are considered too important and dangerous to be relied upon from overseas sources (Hill, 2004). Government of the U.S. has previously funded and protected Sematech, which is a consortium in semiconductor production, in the mid-1980s (World Investment Report, 2002). However, such arguments proved to have failed him, since semi-conductors were then used for computer chips and personal microprocessors, and ultimately resulted in more efficient private funds during 1996 (World Investment Report, 2002).

Protecting consumers is another strong call to oppose globalization. Sometimes, government intervention is required, with applicable regulations, to protect consumers from products that are considered unsafe (Hill, 2004). US. has banned the importation of some weapons and weapons in 1998 following the rampant killings of people using such weapons (World Investment Report 2002). Such opposition is justified in this regard.

Protecting human rights has always been a popular appeal against globalization. Countries like China and India have poor human rights records, with the use of child labor and poor working conditions in rural areas (Hill, 2004). US. wants to grant the Most Favored Nation (MFN) status to China, with many critics opposing the move. They claimed that the status of MFN should have been given when China showed signs of improvement in their human rights record (Hill, 2004). Others, however, argue that the best way to improve a nation’s human rights position may involve them through international trade (Hill, 2004). With China’s entry into the World Trade Organization (WTO) in 2001, it remains to be seen whether China can show a major improvement in the human rights situation and their working conditions.

There is some criticism from the WTO in promoting the freer world trade. First, the WTO is not considered very politically powerful (Rugman, 2001). All previous tariff cuts must be screened and implemented by each sovereign government, such as the U.S. and English. Therefore the WTO lacks its own power to be actively involved in politics (Rugman, 2001).

Secondly, the WTO lacks the technical skills in dealing with non-trade and labor issues such as environmental regulations, labor standards and human rights (Rugman, 2001). This can cause adverse impacts on some WTO decisions on environmental and human rights policies. One example is how the WTO has blocked the U.S. decision. where fish nets are required to be equipped with a device that allows endangered turtles to escape (Bangkok Post, 1998). This caused a commotion among environmentalists as they found this decision necessary to protect this endangered species (Bangkok Post, 1998

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