“Why is World Trade Slowing?”
Definition of Term
Global trade is the import and export of goods and services between two or more countries across international boundaries.
Article Summary
This article discusses the reasons why the growth of the global trade is slowing in the recent years. First, the article contains information that demonstrates the drop in the global growth rate as from 2012 onwards as compared to the previous years. The article then explains why the global trade growth rate is dwindling by stating reasons such as protectionism, falling cost of doing business and China’s entry into the global market. These reasons give insight to the policy makers on how to better deal with the global trade crisis.
Furthermore, the article explains the particular role that each factor plays in the collapse of the global market growth rate. For instance, the article states that China caused a sixth of Asia’s export to slow down between 2014 and 2015. Finally, the article provides possible solutions to avert the collapse of the global market. Measures such as implementing international business agreements are feasible and helpful to the global trade crisis.
Discussion on How “Why is World Trade Slowing” article is related to global trade
The article is related to global trade since the article covers the progress of the global business growth rate. According to the article, the global trade growth rate is dwindling in the recent past years since 2012 (S.K., 2016). The information that the article provides about the adjustments that the World Trade Organization made concerning the growth rate predictions further explains this drop in the rate of growth. This information focuses on global trade thus making the article relevant to global trade.
Additionally, the article proves to be relevant to global trade since the article has explanations of the causes of the drop in the global trade growth rate and the solutions to the problems. The global trade growth rate is collapsing because of China’s entry into the global market, protectionism and a weak global demand. In an attempt to solve this challenge, policy makers should form and implement international business agreements. This step would save the global trade from collapse.
References
Buttonwood. (2016, November 23). The changing face of global trade. The Great Convergence. Retrieved from http://www.economist.com/blogs/buttonwood/2016/11/great-convergence
This article focuses on how global trade has changed over the past 25 years. The article states that the trade’s growth rate became sluggish after 2008. According to the article, various states used to compete for business supremacy before the information technology era. The computer age significantly changed the methods of running businesses making the previous business methods useless. The article finally advises traders to adapt to globalization to survive in the business world.
Donnan, S., & Hornby, L. (2016, October 12). Global trade: Blocking moves. Financial Times. Retrieved from https://www.ft.com/content/02a14cc6-9062-11e6-a72e-b428cb934b78
This article discusses the effects of protectionism on the growth of global trade. The article describes Barriers up form of protectionism and the possible consequences such as the tit-for-tat erection of trade barriers that might result from implementing barriers up. The article further explains how complicated the issue of protectionism has become in the digital age due to changes in government and cooperation trade policies. Finally, the article warns of the danger of governments’ domestic protectionism standards that are a threat to the growth of global trade.
K, S. (2016, October 11). Why is world trade growth slowing? The Economist explains. Retrieved from http://www.economist.com/blogs/economist-explains/2016/10/economist-explains-5
This article focuses on the reasons why the growth of global trade has slowed down over the recent years. According to the article, factors such as China’s entry into the global market, the decreased cost of doing business and the protectionism are the leading causes of the dwindling global trade. To save the global trade growth rate, the article proposes for the global trade policy makers to form and implement trade agreements.
