Globalization: is a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade.
Globalization according to Webster’s Dictionary, means: “to make worldwide in scope or application”. Globalization can be viewed as the integration of inputs and outputs into global markets, sharing of information and knowledge, and promulgation of rules governing such integration
The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.
Overview of the effects of globalization on world trade
From an economic perspective, the primary engine that is driving the complex effects of globalization on trade is liberalization. Globalization emphasizes that trading among member countries that they should open up their markets and that trade in goods and services should be “borderless.”
In Uganda, globalization is illustrated in part by the kind of policy framework that Uganda has pursued over decades. In line with the commitments that Uganda made towards the World Trade Organization (WTO) protocols, Uganda’s broad policy objectives have continued to focus on:
(i) The need to stabilize the economy, partly through restoring Agriculture discipline;
(ii) The liberalization of consumer and producer prices in order to align prices in favor of export-oriented production and import substitution;
(iii) Progressive movement towards a realistic, market-determined exchange rate within a system of restrictions;
(iv) The strengthening of the balance of payments and the normalization of relations with creditors;
(v) The removal of trade restrictions;
(vi) The privatization and rationalization of state enterprises.
Benefits of globalization of
Bibliography: Report: by Edward Mubiru, World Vision International, East Africa Regional Office Report revised November 2003 Ministry of Finance, 2003/04 National Budget, June 2003, Kampala, Uganda