Understanding globalization from a global perspectiveThe word "globalization" as defined by the Merriam-Webster dictionary means "the development of an increasingly integrated world economy, marked in particular by free trade, the free movement of capital and the exploitation of cheaper foreign labor markets. Global expansion extends goods and services to a global market, through investment, services and trade. This global force is driven by economic investments in foreign markets. The growth of the factoring business is driven by financial institutions, governments and personal investors seeking profits. The growth of technology and globalization have been seen as both the cause and effect of exponential growth in recent decades. International trade increased twenty-seven times from 1950. In the 1950s, international trade was worth around $100 billion and peaked at over $10 trillion in 2007 (WTO, 2013). Following the collapse of the U.S. stock market in 2008, international trade fell by approximately $2 billion. However, international trade recovered by around 6% until 2011, where it remained stable at around $11.5 billion (WTO, 2013). Over the past two years, this problem has been compounded by struggles within the European Union and China's economic slowdown. However, international trade continues to flourish and propel developed economies to new levels and help developed economies maintain a balanced debt-to-GDP ratio. Capitalizing on trade in a global market increases production levels and decreases costs associated with production. This allows countries and the workforce to channel people and resources more efficiently, allowing them to do the most effective things given...... middle of paper ...... the The sale of goods now affects the exchange rates of money. How does trade affect the value of money? This is directly linked to exchange rates. The exchange rate is the amount of currency that is equivalent to another country's currency. Generally, when the exchange rate depreciates, imports of foreign goods increase. Conversely, when the exchange rate appreciates, imports decrease. The reason is that if a product that once cost $1 and the product increases or decreases in price, the demand for the product fluctuates with the dollar exchange rate. This affects multiple currencies and economies, causing demand for imports and exports to fluctuate. We can now conclude that trade is indeed essential for the expansion and growth of global economies. International trade is good for everyone.