A free trade zone (FTZ), also known as an export processing zone (EPZ), is a product of globalization. An FTZ is a specially designated area for export-oriented foreign direct investment…

The globalization of industries and intense competitive environments have induced some firms to undertake global account management (GAM), a systematic, firm-wide process that suppliers use to identify, develop, and retain their most important customers in global business-to-business markets. When they expand internationally, firms often use global sourcing and expect suppliers to provide goods and services worldwide with consistent quality, efficiently, and at harmonized prices.

The most well-known index for globalization is the KOF index. The KOF Index of Globalization was introduced in 2002 by the KOF Swiss Economic Institute and the index was published by Axel Dreher and his team. The overall index measures the economic, social, and political dimensions of globalization.

Globalization is the ever-increasing process of integration of local and regional markets into one unitary market of products, services and capital. The main results of this process have been an increase in the interdependence of traditionally national markets on the macroeconomic level and the internationalization of corporate processes, especially production, distribution, and marketing, as well as the adoption of international business strategies on the microeconomic level.

Human beings are the building blocks of society. The societies agglomerate to make states. And then the nations are formed. The economy of a nation is the indicator of its prosperity.

Author argues that to make the Malaysian and Indonesian economies attractive, local governments have to offer very high protections to companies, to encourage them to remain in the local economy. But this step is temporary, and it is just a postponement of problems at next level; the incapability of local firms to upgrade their technological know-how to compete in the world market. If these protections are not followed by subsequent freeing of market constraints to encourage competition, the countries in the region may face a high possibility of “deindustrialization”.

The author poses three questions on how fair trade relates to free trade.

The International Securities Exchange (ISE) has issued a proposal for reform to the the U.S. securities markets. See a high-level summary of the proposal here.

Trade is critical to the global economy.

London G-20 commitments will be a challenge to live up to for the U.S.