The State University Of New York - 1732 Words

Introduction The State University of New York (2014) provides and clear and accurate description of globalization: â€Å"Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world† (The State University of New York, 2014, para 1). Global economics affects the decisions of firms, governments, and individuals in the United State in many different ways. The World Trade Organization manages the rules and trade between nations and has a significant impact on intellectual property rights. Intellectual property rights refer creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce (World Intellectual Property Organization, 2014). The purpose of this paper is to compare and contrast free trade and protectionist theories, analyze how the global environment functions on a micro and macro level within the context of the World Trade Organization, analyze the two-level game theory and how organizations make financial decisions in a globalized environment, and determine which parties benefit from either increasing or decreasing trade restriction. 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