01:52 GMT +325 September 2018
Listen Live
    The World Bank Group building is seen at the start of the Annual Fall meetings of the International Monetary Fund (IMF) and World Bank on October 10, 2008 in Washington, DC.

    Globalization Report Identifies Key Geographic Trade Centers

    © AFP 2018 / TIM SLOAN
    Business
    Get short URL
    0 22

    The United States, Asia and Europe were three production centers in the global value chain for bulk trade of parts, a report said on Monday.

    China and Germany, both main beneficiaries of globalization, are likely to find common ground at the upcoming G20 Summit in Hamburg despite massive anti-globalization protesters flooding the streets of the German port city, experts told Sputnik on Friday.
    © Sputnik / Press-service of the President of the Russian Federation
    Released by the World Bank, the World Trade Organization and the Organization for Economic Co-operation and Development, the report aimed to provide solutions to uneven distribution under economic globalization, as well as to provide suggestions for developing countries to benefit from globalization.

    The Chinese mainland, Japan and South Korea were deeply involved, along with Germany, the report said.

    The report said geological location was a crucial factor in the big role those countries played in the global value chain.

    All the developing economic entities, apart from the Chinese mainland, were on the outskirts of the three centers. And they tended to establish trade with the center most close to them geologically, according to the report.

    However many developing economies barely participated in the global production network or value chain, including countries in Africa, which are far from any of the centers above, it said.

    Trading cost, instead of tax, was the biggest barrier for developing economies to participate in the value chain, the report said.

    Transportation expenses, insurance premium and other charges related with cross-border business were higher than any existing import tariff, it said.

    This article was first published in China Daily.

    Related:

    Syrian Conflict Causing More Damage to Economy Than Infrastructure - World Bank
    World Bank Forecasts 2.9% Growth for Arab Gulf States by 2019
    World Bank Announces $520Mln Afghanistan Financing Package
    Russia Never Viewed AIIB as Alternative for IMF, World Bank – First Deputy PM
    Tags:
    globalization, Organization for Economic Co-operation and Development (OECD), World Bank, World Trade Organization (WTO), Germany, China, Japan, South Korea
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment