Question

Question 2 Explain the evolution of international trade from "interational economy" to "global economy." Illustrate your explanation with one example, TTI 3020 TEE 5.

Answer 1

International trade is the exchange of capital goodle and Servius accross biter international borders or teritories in most bountries auch trade represents a GDP Significant share of GDP. .' International trache has a rich history Starting with barter System being replaced by Mercantilism in the 16th and 6th lentung The 18th Century Saw the shift towards liberalism. Trache has grown remarkably over the last century. The integration of national economy into a global economic System has been one of the most development Prestment of the 19th centing. This process of integration offen offen often Glled Globalization, has meterialized remarkable growth in trade between Countries есолому Over the last loeople of centuries the world economy has experienced sustained poschine economic growth. So looking at the trade relating to change in app offer another interesting Perspective. In today due to global economic e seg steroanner Countries exchange not only final Scanned with

also but intermediate inputs . A Most developing nations Saw the benefit - of becoming linked to the global economy The global movement towards more morkest friendly economic System is the major outcome of the end of the Coldwas. The growth of globa globalization is linked economic development with trende on international trade and participation in global value chain and International financial Market 1 Examples for the effect of globalization include The ability to travel and experience other places and bathore Culture - Countries which which have a rich to technology will sell them to countries which lack them ! - Sale of natural resources on from one country to another. Scanned with CamScanner