Sample Article Review on Forces of growth in international trade

Forces of growth in international trade


This paper will analyze forces that drive international trade. It will focus on three different types of forces that are significant to the growth of the international trade, namely economic liberalization, economic integration, and technological advancement. Primary findings in this paper suggest that these forces have significant roles to play in international trade

What are the forces that drive growth in international trade?


International trade is more concerned with the exchange of goods across international borders. Primarily, concepts of international trade are centered on exports and imports trade. There are many factors that drive growth in international trade; these range from economic liberalization, integration, development in technology and information technology.

Economic liberalization

In their article, Economic and social impacts of trade liberalization, Diane and Carlos (2007) contend, economic liberalization can result to increase in welfare which comes from improved allocation of the domestic resources. The authors explain that restrictions on imports have the capability of bias by raising importable goods prices that are relative to the exportable goods (Tussi & Aggio, 2007). Eradication of this kind of bias promotes the shift of different resources, for example, production in import substitute and export oriented goods; this is significant as it generates growth from the short term to the medium term. By adopting free market policies, it becomes possible to promote greater scales of interactions and enhance free movement of goods between different countries.

Reducing tariffs and non-tariff barriers is significant as it helps in the removal of some circumstances that could hinder growth (Tussi & Aggio, 2007). Many countries around the world have come up with ways of stimulating international trade; they do this through export subsidies. Effective economic policies have also been significant in driving growth of international trade; this is because they encourage the free movement of goods and services from one point to the other.

Economic integration

In his article, factors driving global economic integration, Michael Mussa (2000) contend that the world economic integration is not new; he explains that communication plus trade was evident in distant civilizations (Mussa, 2000). The concept of economic integration has significantly helped in enhancing trade liberalization in many parts of the world (Mussa, 2000). By observing regional trade, it is evidently clear that countries have formed economic bodies that assist them in widening their scope in the international markets. Through the bodies, many countries around the world have been able to access the preferential treatment for certain products. A good example of trade bodies include the common market for eastern and Southern Africa COMESA, this body promotes regional and economic integration through the process of trade and investments (Mussa, 2000).


Raymond Vernon (2009) defines technology as an element in growth and change. Through technology, many emerging industries have been able to eradicate some of the challenges that are associated with the disparities in different countries around the world effectively. For example, advancements in technological innovations in the transport industry have helped to ease international travel by making it easy to ship goods from one point to the other (Vernon, 2009).



Many forces have motivated growth of international trade; these forces include economic liberalization, economic integration, and advancement of technology. Economic liberalization through policies has motivated the growth of free trade; through free trade, people can freely move goods from one point to another. Economic integration has led to formation of regional bodies that widen a country’s scope in the international market. Technology has enabled standardization of products, and technological innovation in different sectors like the transport industry makes it easy to manufacture and move goods from one point to the other.


Mussa, M. (2000). Factors driving economic intergration. Global Economic Intergration: Opportunities and Challenges , 9-55.

Tussi, D., & Aggio, C. (2007). Economic and social impacts of trade liberalization. Retrieved 5 25, 2015, from UNCTAD report: http://www. unctad. info/upload/TAB/docs/TechCooperation/fullreport-version14nov-p106-119. pdf

Vernon, R. (2009). The Technology Factor in International Trade. National Bureau of Economic research , 1-5.