Trade globalization

Trade globalization is a type of economic globalization and a measure (economic indicator) of economic integration. On a national scale, it loosely represents the proportion of all production that crosses the boundaries of a country, as well as the number of jobs in that country dependent upon external trade. On a global scale, it represents the proportion of all world production that is used for imports and exports between countries.

• For an individual country, trade globalization is measured as the proportion of that country's total volume of trade to its
  Gross Domestic Product (GDP):^[1]

• For the world as a whole, trade globalization is the share of total world trade in total world production (GDP), where the sums are taken over all countries:[2]

${\displaystyle {\frac {\sum Exports}{\sum GDP}}}$

Definition

Preyer and Brös provide a simple

Salvatore Babones notes that trade globalization is the indicator of a country's level of globalization most commonly used in empirical literature.^[5] Data for most countries in the modern era are available from the World Bank World Development Indicators database.^[5]

Trend

Chase-Dunn et al. note that there have been cyclical waves of trade globalization, with declines corresponding to wars and economic depressions, and that there has been a steady trend over the centuries for trade globalization to increase.

• Global financial system
• International marketing
• International trade
• Internationalization
• List of economic communities
• List of free trade agreements

References