In an effort to regulate and control international economic positions, governments use trade policies to actively gain control over imports and exports. The imports are most affected with the use of trade barriers like tariff and non tariff international trade barriers. With such barriers, trade among nations towards a global economy has been hard to achieve. It is therefore notable to say that reduction and liberalization of trade barriers is very fundamental in driving the world towards a global economy. Courtesy of reduced world trade barriers, it is easier to achieve more and deeper integration between countries, especially developing countries (Norris & Duval, 2016).

With deeper integration, it means that country can exchange and trade in many fronts including goods, services, and even labor. By so doing developing countries with match towards improved skilled labor, technology and enjoy ready markets for their goods and services thus upgrading them towards a global economy. With reduced barriers and international trade barrier’s liberalization, there is more trading across the borders. This translates to reduction of poverty for there is more income from cross-border trading. Trade is quite pivotal in fostering private sector-oriented economic growth and creation of job opportunities (Chalkual, Peng, & Liang, 2013).

With less trade barriers, there is more import-export traffic thus more production of goods and services. Opening up the borders courtesy of reduced trade barrier means a global open market which consequently potentially contributes to the growth of the job market and development of the production in an effort to satisfy the open global market. Reducing the trade barriers and liberalization of trade amounts to an improvement of allocation of resources across sectors and firms thus a significant boost in output and production. With improved output and production, there are lots of returns from trading and this makes a huge contribution to global economy for it fosters improved quality and enhanced variety of the available and intermediate production inputs (Norris & Duval, 2016).

The more productive the sectors and firms, the more the gain in market share, though at the expense of less-productive firms. With reduced trade barriers there is an increase in competition. This helps firms exploit the economies of scale, be more innovative, absorb and embrace foreign technology in production, and improve efficiency. With such factors courtesy of competition, global economy is much near to reach for the world. Through reduced trade barriers it possible to achieve a greater comparative advantage. This includes specializing in goods of lower opportunity instead of financial costs only hence an increase in economic welfare of countries through increased overall global production with many countries entering bilateral trade agreements (Chalkual, Peng, & Liang, 2013).

However, reducing trade barriers is criticized for favoring the more-productive firms at the expense of less-productive firms. This is because the more-productive firms enjoy larger funding and gain larger shares in the market. Developing and infant producers may never thrive under the oppressive competition of the big ‘fishes’ in the global market. Countries with more restricting trade barriers and policies may enjoy better growth towards global economy too. This is because; a free and open trade world may easily lead to structural unemployment in a short run. Also increased dependence on the global market courtesy of reduced trade barriers may further cause instability in the domestic economy of countries. With increased instability, domestic producers and consumers are much likely to suffer from the downturns of a partner economy (Norris & Duval, 2016).

In a nutshell, the reduction and liberalization of world trade barriers are driving the world towards a global economy. Reduced barriers means open trade markets thus more productivity. Reduced barriers mean more and more bilateral trade unions and agreements and thus more trading engagements and traffic. With less world trade barriers, there is more borrowing and sharing of technology, improved production, competition, and innovation. However, it is believed that reduction of trade barriers may come as a disadvantage to developing and infant sector. It may lead to global market flooding and thus death to the domestic markets (Chalkual, Peng, & Liang, 2013).