Globalisation has arisen as one of the main realities of today and has affected every part of the lives of billions of citizens around the globe. This paper is an effort to examine the different facets of market globalisation, including the explanations for its development, trade blocs, world trade balance, economies of scale, cultural and social change by globalisation and the other dark hand of globalisation.
The trade bloc applies to an arrangement between some nations to eliminate trade controls, tariffs and other obstacles to trade, while at the same time imposing strong trade barriers with other non-Member States. Without any hesitation, trading blocs such as the ‘European Economic Cooperation’ (ECC) and the ‘North American Free Trade Agreement’ (NAFTA) operate because they are of considerable value to member states (Prempeh, Mensah & Adjibolosoo, pp. 98-99, 2004). Second, vast markets provided by trade blocs allow development to take place in bulk, which in turn means that businesses can take advantage of economies of scale. Second, companies within trading blocs are becoming closer to each other, leading to greater competition (Wiarda, pp. 93-98, 2007). More competition, of instance, leads to a higher level of efficiency. Third, when tariffs are reduced thanks to trade blocks, the cost of merchandise is lower and consumers can obtain items at cheaper prices. Fourth, a country may not enjoy the political and economic power all over the globe, yet an alliance of countries will certainly make their existence heard (Rossi, pp. 304-305, 2007). In fact, this remains the greatest potential advantage of trade blocs that cause members to become interdependent, making them less vulnerable to external shocks. Fifthly, exchanging blocs reduce transaction costs for all parties, allowing exchange to take place at lower monetary and time costs (Ervin & Smith, pp. 185-186, 2008).
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