Globalization and International Trade

International trade is the most fundamental mechanism of globalization — the cross-border exchange of goods and services that integrates national economies. Trade liberalization through WTO agreements has been the primary policy driver of economic globalization since 1947.

What Is the Relationship Between Globalization and International Trade? International trade is both a cause and a consequence of globalization. It is the most fundamental mechanism through which national economies become integrated — and it is the expansion of trade that most people mean when they refer to economic globalization. How International Trade Drives Globalization When countries trade, they become economically interdependent. Producers in one country depend on customers in another. Con