Question

   The overall growth of global trade has more than doubled since 2000. Why? What has been the most important factor prompting this growth. Is this rate of growth likely to continue in the future? Why or why not?

Answer 1

There are a number of reasons for this growth. Some of it can be explained by population growth and improved education systems in developing countries. Capital for development has become more widely available from private and public sources. There is also more acceptance of products manufactured in other countries. But probably the most important reasons are trade agreements and lower tariffs on imported products that have been greatly expanded because of the recognition of how important global trade can be to economic development and the health and welfare of the citizens of the country. One of the biggest challenges to the progress that has been made in promoting global trade is the political instability and terrorism that has developed some areas of the world such as Africa and parts of the Middle East. These factors undermine these benefits that can accrue from the growth in global trade. One can argue that the growth will continue because of the economic and political forces at work in the global economy, but there will be ups and downs or bumps along the road because of human error and greed.