Globalization and Economic Development Essay Example | Topics and Well Written Essays - 750 words

Globalization and Economic Development - Essay Example However, extra legal means of bringing products into a country normally result to an increased in smuggling activities. These practices will eventually corrode if not slowly disintegrate the economy of the country. â€Å"Corrosion in the system of trade relations does not produce a blow-up from one day to the next. When nations find the rules too constraining and no longer appropriate to their needs they find ways of flouting them. The effects tend to be more subtle and show up over time in a gradual retreat from the cornerstone principles of multi-literalism and non-discrimination† (Rodrik). Trade in a globalized economy provides equal opportunity for all players as provided for by the WTO and the GATT. Goods can now be produced in another country without too much impact on the price and in fact can be lowered since products from another country can be produced or assembled locally and be given the same benefits as that of the local brand. Adverse effects of short cuts and ot her extra legal means of trading is not only avoided but governments earn the advantage of taxing the goods. Healthy trade between countries are assured by the WTO and GATT for member nations providing equal opportunity for the products with that of the local products. ... However a move towards ensuring that making each country a member of WTO and compliant to GATT, BASEL and other UN directives remains a challenge. WTO and other agreements prevent several archaic trading imperatives that existed and accepted in the better part of the last century. These trading practices sometimes result to war or conflicts because of its predatory nature. Equal opportunity is given to all players that wish to transact with the other WTO members preventing favouritism and preferential treatment. Globalization in its purest form makes it more efficient for trade to be concluded by moving manufacturing plants to where the market is. Long are the days where waste in the manufacture, shipment and distribution of goods are left not only to normal market forces but also to the devices of the elements and environmental factors because of the lag in shipment and distribution. Positioning for better prices due to a more efficient manufacturing process within the country where the market is if not where the actual raw materials are manufactured will also be more competitive. A more sustainable manufacturing process that will safe guard the environment if not reduce carbon emission. Corporate strategy that could include reduction of operating expense while increasing the level of quality is due to globalization. Technology as an enabler of globalization makes it easier for company to monitor and manage their remote facilities or offices that could be on the other side of the globe. In sum, decrease operating cost, immediate response to market forces that dictate price and supply under an economic environment that do not discriminate between local and imported products when it comes to tax will make the global economy more prudent. Another