How Global Trade Impacts Global Economy

Globalization is a topic, which is more or less discussed worldwide as it affects probably everybody, no matter if people want it or not. This paper describes the basics of globalization (mainly defined as mobility of various aspects like people, capital, goods and information) as well as some effects on nations. Depend on the evidence of WTO, world merchandise trade volume is forecast to grow 3,6% in 2017, placed within a range from 3,2% to 3,9%, accompanied by global GDP growth of 2,8% at market exchange rates. However, trade growth was becoming more synchronized across regions than it had been for many years, which could make the current trend self-reinforcing, as said Roberto Azevedo (WTO Director-General, 2017). International trades creates profits for participants involved, however it has a negative impact on the income distribution what means that not all people can benefit from it. This means that inequality of welfare spreading and household income distribution creates the growth of poverty.