The term ‘globalization’ is one that is widely used to describe the connections between countries all over the world. A large corporation in Canada could be communicating with a partner in Asia. Businesses can now have branches all over the world and can afford to import many different products due to globalization. Global business has grown over the years as trade barriers have been reduced, communications have become more advanced, and transportation technology is changing by the day. The world would not be what it is today if it were not for the huge advancements in international business.
Trade between countries was once virtually impossible due to astronomically high tariffs that were imposed on imported merchandise. However, after World War II the Western Nations realized that action would have to be taken, thus the General Agreement on Tariffs and Trade (GATT) was formed. GATT laid out the rules for most of world trade and some of the highest growth rates in international commerce existed while the GATT was most active. This agreement formed the first initiative to lower tariff rates and make international trade more feasible. Ultimately, GATT’s initiatives drove fifteen countries all over the world to begin discussing the reduction and binding of customs tariffs and the number gradually grew over the years.1 Almost thirty-four years later, the Uruguay Round initiated the largest improvement in international trade since the GATT. The Uruguay Round was one of the first rounds of negotiations to lower the tariff rates and it originated from the GATT initiatives. The Uruguay Round’s negotiations produced results and tariff rates fell significantly over the years, affecting many different countries around the world.2 Many barriers have been reduced or abolished due to the rounds that stemmed from the GATT and it is a lot more viable for corporations to trade and do business internationally. Due to the hard work over centuries, the world is becoming a more...
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