International trade and the process of globalisation

Introduction Globalisation today is characterised by world economies which are more deeply integrated, supported by technological progress and liberalisation of markets. This paper will investigate some of the effects globalisation had with respect to international trade, both on developed and developing countries. The first section will deal with the liberal theory of trade and the problems associated with international trade in practice. The next section illustrates how companies take benefit from comparative cost advantage and …

…normally the more powerful, people and countries have benefited from globalisation. The world's majority is excluded from prosperity. This paper cannot give a final answer to the question whether globalisation is beneficial or not. But one thing is for sure: Humans are affected from globalisation developments worldwide - currently mostly negative. However, globalisation might achieve the benefits which are stated in standard theory in the long run. Time will tell if globalisation is eventually advantageous.