Y157 Tma02

What are the issues involved in the development of a global market?

The global market is mat where goods can be imported and exported from and to all around the world.   The idea of a global market is underpinned by the notion of ‘free trade’.   By having free trade a country’s government cannot impose tariffs and duties in goods which are imported and exported from their country (Sherratt et al, 2004).   Also, by having a market founded upon free trade, it is based upon supply and demand.   By using this system the market works far more effectively than if it is controlled by a country’s government.   This concept of trade is behind the policies pursued by the international trade organisation, such as The World Trade Organisation (Sherratt et al, p 24, 2004).   The main players in this culture of supply and demand are the multi-national and trans-national companies.   A multi-national company is one that operates all over the globe and yet retains a Headquarters in a single country.   A trans-national company on the other hand has bases all over the world, and in this sense are the truly global companies (Sherratt et al, p61, 2004).   As a result of this nature of trade many economic commentators use the term globalisation.   By this they mean the “exchange of goods, raw materials, information, people, and money, between parts of the world that have been geographically and culturally separated until now” (Sherratt et al, p60, 2004).  

The supporters of free trade claim that the global market is a reality that benefits the world’s people.   On the other hand, critics of free trade argue that “companies often control the price received for good by their producers” (Sherratt et al, p59, 2004).  

A positive of the global market is the increase in consumer choice.   As more and more people purchase new products, the more new products appear on the supermarket shelves.   Also, if we believe that the products made in different countries are of superior quality to the...