Impact of Globalisation on the Functioning of International Trade

A phenomenon of globalization of world economy leads to diminishing of the borders between states. There is an important role of international trade in this process, which appears in much more heterogeneous forms than in the past. While the classical theory of foreign trade basically assumed commodity trade with the final products, due to fragmentation of production chains the major part of trade is performed with intermediate goods and also the trade in services becomes more and more dynamic. Increasing volume of the trade between countries is carried out without changing the ownership of traded goods, and vice versa - changing the ownership of goods without crossing the border of the country. There is important role of multinational enterprises, which are currently behind most of the economic operations. The major implication of these phenomena is increasingly difficult possibility to capture the statistical data correctly and therefore to obtain objective data on the behaviour of the economy for analytical purposes and economic policy.

Keywords: intra-industry trade, Heckscher-Ohlin theory, global value chain, Rotterdam effect