International Trade and the Process of Globalization

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 its implications on labour worldwide.…