How International Trade and its Supporting Institutions have contributed to the Pace of Global Interconnectedness.
International trade occurs when one country or a company form a certain country exchanges its commodities with another country. This involves communication between the citizens of both countries whist bargaining the value of the goods to be traded. This creates a relationship between the people of the two countries, hence making the two nations interconnected. In the world today, millions of different goods are traded to different nations all round the world, every day, spreading new technologies, cultures and inventions to almost every country with human inhabitants. For instance, by trading with European nations, Kenyans have learnt of new technologies, such as the recently released iPad, or the latest Mercedes – Benz, and many Kenyans import these technologies and adapt to them, within days of their release. Kenyans are also able to use computers, (that use Taiwanese chips, and a Korean monitor, assembled by Bangladeshi workers in a Singapore plant) whilst eating Mexican Taco’s, Italian Pizzas, Chinese noodles, Indian Popadums or even American hotdogs , hence being interconnected with almost all nations worldwide.
The creation of trading blocs, such as the EU and NAFTA have also increased the pace of globalization, for a citizen of any EU member state can travel to any other member state without having to pay any form of tax. This brought the Europeans closer to each other, for they began to trade with each other more often. The EU has also increased the pace of global interconnectedness by trading in a variety of goods, and trading with developing nations such as Madagascar and Kenya, hence helping them improve their economies. For instance, Kenya exports around 450,000 tons of fruits and vegetables to the EU, per year, and is the #1 cut-flower exporter in the European region. The EU is Kenya’s #1 trading partner. This proves how European citizens are connected to Kenyan citizens, via trade and consumption of goods, despite being almost half way round the world. It also shows how international trade has sped the process of globalization in the world today
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