Globalization of Trade of Goods and Services
Globalization of Trade of Goods and Services
Globalization of Trade of Goods and Services
BRIEF H I S T O R Y O F G L O B A L I Z A T I O N O F
T R A D E O F G O O D S A N D SERVICES
Silk R o a d G a l l e o n Tr a d e
PERFECT
C O M PET IT IO N
product is homogenous
MONOPOLISTIC
COMPETITION
product is differentiated
O L I G O P O LY
products may be homogenous
or differentiated
M O N O P O LY
product is unique
04 The Globalization of Trade of Goods and Services
A D VA N TA G E S O F T H E G L O B A L I Z AT I O N
O F T R A D E O F G O O D S A N D SERVICES
•Foundation for
international growth
•Improvement of
financial performance
•Diversification for risk
protection
05 The Globalization of Trade of Goods and Services
A D VA N TA G E S O F T H E G L O B A L I Z AT I O N
O F T R A D E O F G O O D S A N D SERVICES
•Encourages market
competitiveness
•Benefits from international
exchange rates
•Protection for revenue
stream
•Increase in
competitiveness
in domestic market
06 The Globalization of Trade of Goods and Services
D ISA D VA N TA G ES
-Political risk involved
OF THE
-Severe exhange rate risk
G L O B A L I Z AT I O N
-Cultural complications
OF TRADE OF -Credit risks
GOODS AND -Risk of proprietary
SERVICES information theft