Need an research paper on various dimensions of globalisation for business. Needs to be 7 pages. Please no plagiarism. Trade blocs like ‘European Economic Community’ (ECC) and ‘North American Free Trade Agreement’ (NAFTA) exist because they provide great advantages to the member nations (Prempeh, Mensah & Adjibolosoo, pp. 98-99, 2004). First, large markets created through trading blocs allow production to take place in bulk, which in turn means that firms can take advantage of economies of scale. Second, companies within the trading blocs come closer to each other, which lead to greater competition (Wiarda, pp. 93-98, 2007). Quite understandably, greater competition leads to a higher level of efficiency. Third, when tariffs decrease due to trade blocs, the cost of imports goes down and consumers can purchase products at lower prices. Fourth, an individual country may not enjoy that political and economic authority over the globe but a group of countries certainly can have their voice heard (Rossi, pp. 304-305, 2007). In fact, this remains the biggest possible advantage of trade blocs that they allow the members to become interdependent on each other thus making them less vulnerable to the external shocks. Fifth, trade blocs reduce the transactions costs for all the members thus allowing the trade to happen with lesser monetary and time costs (Ervin & Smith, pp. 185-186, 2008).
Without any doubts, the world is a completely changed place as compared to what it was a century ago. The world has undergone a complete transformation in the 20th century and the same is true for world trade. The balance of trade refers to the total value of exports minus the value of imports of a country during the given year. The balance of world trade in the past century has changed largely. During the early days of the 20th century, most of the countries at that time used to avoid trade deficits and considered it as bad for the economy.