Economics Essay Example | Topics and Well Written Essays - 1000 words - 34

Economics - Essay Example ctive of the essay a detailed elaboration has been presented on the major effectiveness of the liberalization of trade on the level of poverty of nations. With the recent years of globalization, the countries have been able to curtail down borders and accordingly, enhance international trade. This internationalization was initially observed to increase the level of quality living in a nation. Openness and trade liberalization are presently observed to be the key components that lead to the development of an economy. Liberalization of trade is by far identified to be the central source that has been playing a pivotal role to ensure successful economic development. On the contrary, when theorists are elaborating the success of trade for economic development extreme poverty continues to persist1. Globalization has emerged to be the most important factors of the global economy after the Cold War. The globalization has become a defining feature of the global economy in the 21st century and a major source of initiating international integration. However, the world still persists on the basic principles of the national and domestic policies determining the economic affairs of nations. During the last phases of the 20th century, the rapid internationalization became evident with the expansion of the Multinational Corporation (MNC). This forced different national economies to integrate with the international economies globally. Contrarily this even instigated the effect of international economy on the domestic economies of nations2;3. Internationalization of trade has in turn been implying a huge impact on the economic decision making of nations. It has often been observed that the interlinked economic system in this globalized world has often made it difficult for the underdeveloped economy to pace up their growth as well as development with the developed ones. Moreover, the financial crisis experienced in one segment of the global economy creates a huge impact on the