International Trade, Globalization, and Protectionism

International Trade, Globalization, and Protectionism
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Abstract
International trade is the critical driver of globalization. It involves trade across borders in which people exchange goods, services, and capital. Through free trade agreements like NAFTA and technological development, MNEs like Coca-Cola have established a global presence leading to what is now known as the global village. However, while nations enjoy the benefits of international trade, which include increased access to quality goods & services and international markets, its shortcomings and globalization are pushing some countries to consider protectionism. These three concepts, international trade, globalization, and protectionism from the basis of the current paper, are defined, explained, and demonstrated through examples.
International Trade, Globalization, and Protectionism
Since Word War II, the global community has embarked on international trade as a common goal among nations which has, in turn, fostered development and stability. With the advent of international trade, global organizations have gone beyond borders, searching for business opportunities leading to what is known as globalization. Through globalization and international trade, there has been a tremendous increase in the interaction of national cultures and the entry of foreign entities into different nations. However, due to regional political tensions, the pandemic, and threats of terrorism and cyber-attacks, protectionism has emerged as a means to limit international trade. The current paper looks at each of the three concepts and how they intersect on a national and global level.
International Trade
International trade refers to exchanging goods, services, and capital across international territories and borders (Taylor, 2014). In other words, it involves two or more countries involved in trade with a common goal of sustaining stability and growth. International trade gives consumers exposure to goods and services not available locally or those products or services that would be otherwise expensive if produced locally. Factors such as price, quality, availability, and demand influence the need for international trade. For instance, if companies in a foreign country can produce high-quality products compared to local organizations, importing such products is necessary to ensure that consumers have the best quality.
There are three types of international trade: export, import, and entrepot trade. Export trade involves goods and services produced or developed in one country and consumed by customers in a different country. China, for instance, is the biggest producer of rice. Often, rice production surpasses the local needs leading to a need for foreign consumers. Therefore, China's export of rice to other countries provides an example of export trade.
On the other hand, import trade is when a country purchases goods and services from another country. Looking at China's rice export as an example, Egypt is among the leading countries that rely on rice from China. In this case, therefore, Egypt is involved in import trade. A country can import goods from another c...