Global economic equality is slowly gaining leverage as an essential in international trade. Ideally, global trade is often promoted in various parts of the globe owing to the benefits that economies experience from investing in offshore markets. However, global trade is always approached from one dimension. For example, most of the theories, practices, and concepts of trade are influenced by western traders who for a long time have dominated the various dynamics of trade. In turn, investors in such countries gain more compared to their counterparts in other continents. The paper offers an analysis on the cause and effect of global economic trade and its implication of the world as a whole.
Notably, global trade is one of the most important aspects of economic, political, environmental, and social-cultural growth. If anything, global trade enhances the way in which individuals, communities, and economies derive ideas which promote a more productive lifestyle. To add on, global trade is expected to improve the quality of life if applied well. Hence, leaders across the globe are encouraging the growth of global trade in different sectors. As mentioned earlier, global trade may favor the culture and business practices of specific regions. This results in inequality and inequity in terms of the distribution of resources, opportunities, and power.
Currently, the world is experiencing a shift in events in that more continents are influencing important aspects of trade such as cost of production, consumer awareness, and quality management, which all determine the way in which the market progresses during trade. In the past, most of the investment opportunities were determined by countries in the west such as the United Kingdom, the United States, Canada, Germany, and France. Some of the opportunities that they derived from this advantage were translated to political and economic growth. To add on, western countries have used this to their advantage by incorporating their social-cultural norms on their peers during interaction.
This showcase the cause and effect of global economic equality given that countries which tend to invest the most in global trade have a better chance in passing their policies. For instance, the United States has managed to create alliances with countries in the Middle East which is rich in oil. This is a direct effect of their ability to form and define trade routes within new territories. On the other hand, countries which are located in regions such as Africa, South America, and Asia which are said to have the richest reserves. Despite this, their inability to cultivate their resources into viable products results in extensive poverty in different parts of the regions. In essence, this can be treated as a direct effect of the inequality created by western countries which have controlled trade routed from the time of the Trans Saharan and Transatlantic trade.
Over the years, more countries in Asia, Sub Sahara, and South America have been applying their influence in business in regions across the globe. For instance, countries such as Brazil and India continued to showcase their economic prowess owing to their investment in both education and a well and able workforce. The country that has showcased a dramatic transformation in the last thirty years is China. The country has risen to become the second largest economy in the world after the United States. As such, more ideas on trade, production, distribution, logistics, and architecture are being determined by business leaders in the region. This is a direct effect of the incorporation of policies which advocate for equality on global trade by the country and its allies.
Global economic equality is gaining the respect of countries which in the past did not advocate for equal distribution of resources. For instance, currently, countries which are located in Africa such as South Africa, Nigeria, Kenya, and Botswana are making alliances with China which is highly skilled in engineering and construction. As such, international trade has been redefined to accommodate more countries which in the past did not have economic prowess when entering a new market. Hence, the more leaders realize the essentiality of equality in global trade, the more new territories which have a chance to improve their societies through trade.
Lastly, the question as to whether a shift in power causes a direct influence on the way in which countries invest continues to be investigated. This is because there are other factors such as government policy, diplomacy, democracy, and capitalism which have advocated for integration. Currently, the United States and China are competing for the position of world economic leaders owing to their development in various aspects of trade and development. While some economists believe that the United States will continue to be the leader of the free world, others beg to differ stating that the shift in power will result in a new dynamic which will favor the growth of countries which in the past did not have economic leeway. Hence, it is vital to have a comprehensive understanding of how countries can experience global economic equality while maintaining good relations with their peers.
