Step 1

Globalization is the process by which the economies of several countries become intertwined, allowing consumers in one country to purchase goods from other countries readily. Globalization was aided by factors such as a growth in cross-national trade, the removal of trade obstacles, the simplification of procedures, etc. Globalization has both advantages and disadvantages, including a better offer of products and services for consumers, cost savings for businesses, access to new markets, and so on.

Step 2

Global Economic Order in the Early Years

The United States shaped the postwar world economy architecture to a considerable measure to rebuild a liberal international economic system. International trade and financial flows gradually resumed after the International Monetary Fund (IMF), the World Bank, and the General Agreement on Tariffs and Trade (GATT) created the groundwork for the postwar global economic order. To maintain its dominance in the shadow of the Cold War, the US provided aid to its allies to help them build their economies, such as the Marshall Plan for Western Europe and massive investment for Japan during the Korean War. The power of the United States began to erode in the 1970s, as a slew of developing countries spawned by the postwar National Liberation Movement came to the United Nations, advocating for a so-called New International Economic Order that would be more popular in Third World countries. Furthermore, the United States had to rely on macroeconomic policy coordination mechanisms with other developed countries to sustain the international monetary order after the Bretton Woods arrangement collapsed in 1973.

Step 3

The emergence of the New Global Economic Order

The New International Economic Order (NIEO) is a set of suggestions by developing countries to abolish economic colonialism and reliance by establishing a new interdependent economy. The main paper of the NIEO acknowledged that the current international financial system "was founded at a time when most developing countries did not even exist as independent states and which perpetuated inequality." The NIEO advocated for changes in commerce, industrialization, agricultural output, finance, and technology transfer in the spirit of "trade, not aid." The Declaration for the Establishment of a New International Economic Order and its associated program of action were adopted by the United Nations General Assembly on May 1, 1974.
The following are the NIEO's main principles:

All States' sovereign equality, with non-interference in their internal affairs, effective participation in the solution of global problems, and the right to develop their own economic and social systems;
Full sovereignty of each state over its natural resources and other development-related economic activities, as well as control of international enterprises;
Between the prices of raw materials and other commodities exported by developing nations and the costs of raw materials and other goods exported by industrialized countries, there must be a just and equitable relationship;
Strengthening bilateral and multilateral international aid to help developing countries industrialize by providing adequate financial resources and opportunities to transfer appropriate techniques and technologies.

The following are the primary reforms that the NIEO calls for:

An overhaul of international trade regulations, particularly in the areas of raw materials, food, the preferential trade system, reciprocity, commodity agreements, transportation, and insurance;
Reform of the international monetary system and other financial systems to align them with development requirements;
Incentives for financial and technology transfer, as well as aid for developing-country industrialization projects;
This industrialization is seen as necessary for the diversification of economies based on a limited range of raw materials during colonization.
Promotion of South-South collaboration to achieve more individual and collective autonomy, as well as broader engagement and increased involvement in international trade.
Economic Cooperation among Developing Countries (ECDC) replaces colonial dependence with new interrelationships between developing countries based on commerce, production, and markets and creates collective self-reliance.

Step 4

International Trade and Globalization

Companies nowadays want to be able to access worldwide markets, which could lead to new commercial prospects. As a result, international trade looks to be bolstered by the globalization process, with a demand that extends beyond one's own country's borders. International trade primarily refers to the exchange of products and services across a country's borders. Multinational corporations, along with other variables such as globalization and outsourcing, play a vital role in developing international trade. Consumers in different countries can buy goods and services made in other countries thanks to international trade, which requires significant resources because crossing a border incurs certain costs, such as taxes and economic, social, cultural, legislative, and political differences between countries. It is critical for a firm that wants to advertise its products and services in other countries to consider local culture and language to secure a strategic position in the market successfully.

Businesses now cannot afford to ignore globalization, first and foremost because of fierce competition on the domestic market and the potential afforded by overseas markets and foreign clients. Because the global marketplace includes economically, culturally, and technically multilateral and interdependent countries, marketing orientation on an international level is vital and critical for managers (Doole and Lowe, 2008) – who must plan, adjust, and implement marketing strategies to meet the specific objectives of the overall market.
Globalization influences corporate development by providing the option to reach the worldwide market by leveraging benefits, and the method of growing international activities differs depending on firm size. On the one hand, it impacts developing countries' economies, a lack of small businesses' ability to compete with larger ones, and so on. However, the worldwide environment presents possibilities, challenges, and hazards to any organization, regardless of size, the latter of which can be mitigated via effective planning.

Explain the following: Economic Dimension of Globalization Global Economic Order in the Early Years The emergence of the New Global Economic Order International Trade and Globalization

Public Answer

Explain the following:

Economic Dimension of Globalization

Global Economic Order in the Early Years

The emergence of the New Global Economic Order

International Trade and Globalization