The Influence of Trade in Globalization and Integration

¶ … WORLD TRADE MAKE THE WORLD SMALLER/DIVIDE THE GLOBE? Does World Trade Make the World Smaller by Bringing People Closer Together, or Divide the Globe by Creating Winners and Losers? World trade is the exchange of goods, capital, and services across international borders without any restrictions. Every person or corporate body has a right to practice trade in any part of the world so long as the traders conform to the laws and regulations in various countries they are practicing the trade.

It is true that world trade is making the world smaller by bringing people closer together because no one is restricted from trading with anyone in any country all over the world (Topik & Pomeranz, 2014). However, traders interact on a daily basis or even frequently through exchanges of goods and services for money and the exchange of ideas on how to improve their particular trading activities. Traders are coming closer together but it is not necessarily in contact together physically, but through exchanges of goods and services through other means.

Currently in the digital era, transport and communication have been enhanced to an extent that a trader order for goods and receive them within the shortest time possible without physically traveling to the origin of the goods. World trade has brought such traders closer through modern trade and communications means (Peters, 2016). For instance, some traders might be trading for a long time with good trade relations without knowing each other physically.

Besides, the trade has not only brought people together but also create trustworthy among the people participating in the trade. A trader can order the goods from another country and pay for them with maximum trust that he/she will receive the goods on time and in good condition. It is bringing people together closer because the traders would spend more time traveling between different countries to go and order goods physically wasting more time and resources (Bernhofenet al., 2016).

The current communication through the internet, mobile devices, and other means has made world trade simple, bring people trading closer, and enhanced the relationship between people from different language groups, tribes, origins, and religions. World trade has not divided the globe by creating winner and losers. When anyone is entering into a trade or starting a business, he/she two options at the end of a given period.

The options are making either a profit or loss, which translate to a win when one makes a profit, and a loss when one makes a loss (Nurdianto & Resosudarmo, 2016). It is not necessary for those in a trade to make profits always: sometimes, they can make losses due to unavoidable circumstances in the trade sector. Those who make losses at a point help them to identify their weaknesses and reconsider changing tactics and consulting from experts or those making profits in trade.

It is obvious that those who are working with other people in trade through seeking ideas and opinions succeed as compared to those working individually without consulting when faced with problems. It is important to have winners and losers in the trade sector because they will consult one another as partners on how to tackle the changes they are facing in trade.

The looser will seek help from another trader who has won or has been successful, and he/she will not make the same mistakes and lose but win like others. It would be difficult for the traders to solve problems or address their weaknesses when all of them are making losses or becoming losers in trade. Those who are winning will maintain their spirit and help those losing while those losing will seek help and win in future (Drache et al., 2016). World trade is making the world smaller,.