Progress and Globalization

Globalization is the rapid increase in cross-border economic, social, technological exchange under the conditions of capitalism. International trade and investment have been the engines of world growth over the past 50 years. The tons of goods traded around the world have grown by 16 times since 1950, reflecting the lowering of tariff barriers. The growth of trade in services is even greater. Many people believe that exports create jobs, and imports cost jobs and that it therefore makes sense to have barriers against imports. Countries that lower trade barriers concentrate their national energies in industries they are good at, where they have an international advantage. Integration in the world economy contributes to environmental improvements by promoting growth, increasing incomes, improving property right and the allowing the efficient use of resources. Import barriers encourage countries to focus efforts in industries where they do not have any advantage. It leads to wasteful and lazy investment. There is evidence that developing countries that erect barriers to imports have slower growth in incomes than those that are open to trade. Companies of all sizes are involved in world trade – the benefits do not just flow to large multi-nationals. WTO rules expressly permit countries to take actions to protect human, animal or plant life or health, and to conserve exhaustible natural resources. However, such restrictions must pursue legitimate environmental objectives, and not be a disguised form of trade protectionism. The WTO rules do not prevent countries from banning or restricting the marketing of genetically modified organisms.