Globalization and the benefits of trade

Globalization involves increasing integration of economies around the world, from the
national to the most local levels, thereby promoting international trade in goods and
services and cross-border movement of information, technology, people, and investments.
This article examines the benefits and costs to the U.S. and other countries.

Since the conclusion of World War II
in 1945, international trade has been
greatly facilitated by agreement among
trading countries on a set of rules for in-
ternational trade, known as the General
Agreement on Tariffs and Trade (GATT).
These rules were developed through a
series of eight “rounds” of international
trade negotiations between 1947 and
1994. Through these negotiations, ex-
port subsidies were banned on everything but agricultural products, and
import tariffs on manufactured goods
were reduced to inconsequential levels. As a result, trade in manufactured
goods has grown rapidly, achieving an
unprecedented level of specialization
and exchange among countries.