Global marketing discussion.
150 words discussion.
Background: Some economists have brought attention to the importance of the role of geography in international trade. For example, the dramatic rise in trade between the US and Mexico is attributed primarily to wage differences between the two countries and the geographic proximity, which allows for the relative cheap movement of goods by train from Mexico to any corner of the US within 3 to 4 days. However, advocates of globalization claim that the role of geography in international trade is limited and is declining constantly. They contend that direct transportation costs as a % of the total value of goods for most goods is low and is declining. Furthermore, it is not actual transportation costs, but the coordination of managerial resources and information that is the key to savings through global logistics. This reduces the role of geography in international trade to a minimal level.
Either argue in favor of the importance of geography in international trade or argue for the declining role of geography.