Globalization and emergence of world economy

Posted on at

1. Globalization and emergence of world economy:

                                                           International trade means the trade of additional products or the trade of domestically abundant products or trade of specialization across the borders of countries. International trade is a very old phenomenon. From the time when there was no concept of currency it was in shape of barter. After the evaluation of currency trade become a regular part of economy. From the beginning of 16th century trade policy become a necessary part of national polices. After the development of most nations in 16th and 17th century international trade patterns also develop.                       

                                                         Globalization means there is no restriction of border for trading between countries. Globalization of economy means emergence of world economic order from culture to bases for trade. Lots of prospect and restriction are imposed in Globalization. The restriction means not to stop international trade its general purpose is to create law and order and justice conditions international market place and to uphold benefits and competition. Humanity needs to esurience that globalization is working for enough humanity space.

                                                        An agreement by the name of General agreement on tariff and trade was first regulation agreement of international trade. Its main purpose was to remove hurdles of trade like tariff, quota restriction etc. many other regional trade agreements was imposed. Latter the organization was given the name of world trade organization. Under the trade agreement on textile and clothing ultimate changes was made in ten year plan of agreement.  The members of world trade organization make a commitment to remove barrier of trade from this industrial sectors and facilitate this sector from rules of world trade organization. Before this agreement a big amount of textile products was exported under quota restriction from developing to developed countries. The main facts of world trade organizations agreement on textile and clothing was access of domestic products yarn, cloth, fiber and garments towards international markets, increasing integration, freedom from quota system, in case of problems surety of safety and to create a supervision or management body for completion of contract. A number of trade polices and number of strategies to enhance exports and revenue has used.

                                                   For the creation of open international markets a number of free trade polices has adopted. In start it was restricted by some developed nations by protectionism polices. But with the passage of time as they earn more profit they start to reduce retractions. By removing monopolies this system create a condition of competition. After removal of quota now there is a competition market with high well developed countries for Pakistan textile industry. There is chance to improve production and capture open market.         

1.8 Challenges:

                                   For creation a condition of perfect competition in global market there Pakistan has to produce quality and quantity but at domestic and international level Pakistan is facing a number of challenges. 

                                     It was too much difficult to fined relevant proper data. The representative information on the similar theme from various resources scarcely gathers. A very few studies and articles was available on this topic especially after free trade agreements no major study and report was prepared. Most of available studies were just small articles published in newspapers. Most of studies are on polices and behaviors. On the focusing points “performance of and challenges to Pakistan textile in global free markets” no study was available.

About the author