Industrial and Economic Development

It increases stockpiling of raw materials as manufacturers anticipate delays in shipments.

It diminishes the importance of logistics since products are quickly assembled and shipped directly to consumers without the need for warehousing.

It demands reliable and timely delivery of components from suppliers, often resulting in tighter coordination along the supply chain.

It allows firms to negotiate lower costs through bulk purchases given the long-term storage capability afforded by JIT processes.

Lower labor costs

Preferential tax policies in home countries

Increased shipping expenses

Lack of labor force in home countries

Exploitation of natural resources leading to habitat loss and species decline.

Increased wealth leading to investment in local conservation efforts.

Technology transfer from core regions enhancing sustainable resource management.

Diversification of agricultural practices reducing pressure on any single ecosystem.

Trade agreement between

Trade agreement between North Macedonia, Armenia, France, Türkiye, and Azerbaijan

Trade agreement between Mexico, Canada, and the United States

Trade agreement between North Africa and the Americas

They have centralized control while dispersing production globally.

They have led primarily towards self-sufficiency strategies within host countries.

They have encouraged uniform implementation of tariffs worldwide.

They have reduced foreign direct investments into developing countries.

In less developed regions, reliance on primary sector exports can lead to vulnerability against global price fluctuations affecting local employment stability.

In more developed regions, specialization in quaternary sector services results in decreased trade volume and stable employment sectors.

More developed regions often diversify into secondary sector exports decreasing local employment opportunities due to automation.

Less developed regions emphasize tertiary sector exports which insulate them from adverse terms-of-trade shifts enhancing job security.

Trade liberalization leads to universal economic growth and prosperity.

The global capitalist system perpetuates inequality between developed and developing nations causing exploitation of poorer regions by richer ones.

Globalization promotes equal opportunities for all nations.

Developed nations are economically oppressed by developing ones through cheap labor.

Levy taxes on member countries

Provide financial support to member countries

Create economic policies for member countries

Borrow money from countries

Amazon River trade & Sahara desert caravan trade

Roman road system & Inca road system

Medieval European Fairs & Ottoman Empire's trade routes

The Phoenician maritime network & Han Dynasty's Silk Road

Relative equality

Comparative advantage

Total monopoly

Absolute disadvantage