Globalization has in the recent past grown tremendously raising a lot of concern regarding its effects on the different aspects of the world economy. The term globalization is used to mean the expansion of global scale, global linkages and also increased consciousness of the global growth thus leading to a consolidated form of a world society. In the past, the term globalization was usually used while referring to international trade and while this phrase is still commonly used to refer to trade, it has broadened to encompass other global issues. Globalization has been received by different sectors with different reactions. While it cannot be denied that globalization is growing at a very high rate, the effects of this growth spark different or divergent reaction all over the world. Globalization is rooted on one aspect which is trade liberalization (Global Policy Forum, 2009).
Trade is a major driver of globalization, through trade goods and services are produced in one part of the world and later traded off in a completely different part of the world. For several years trade between countries has always been done but due to globalization the level and amount of goods traded in the international arena has increased dramatically. Technology is also another driver of globalization, as a result of technology free enterprises diffusion has been accelerated via new ways of communication and transport. Numerous opportunities are coming up thanks to advancements in computer and other forms of technology. The removal of various barriers of investment and trade in several countries has also become a major driver of globalization. People from allover the worlds are able to trade and invest in many parts of the world without being treated as foreigners and thus being taxed highly (Global Policy Forum, 2009).
The trade theory as shown in the Richardson model is a traditional theory of trade that is applicable in globalization; the model suggests that everyone is capable of benefiting as a result of international trade. The factor model is yet another traditional theory that supports globalization. The model was specifically designed to illustrate trade effects in an economy where a single production factor is specific to a single industry (Bangkoklogistics.com, 2007).
Bangkoklogistics.com. (2007): Traditional International Trade Theories, Retrieved on 24th September 2009 from,
Global Policy Forum (2009): Globalization, Retrieved on 24th September 2009 from,