Economic globalization is the life of the global economy, that is open, without knowing the limits of territorial (regional) between one country with another country. Economic globalization views the world as a whole. Trade and investment side move towards liberalization of trade and investment world as a whole. The causes of economic globalization are as follows:
1. globalization in the field of information and communication between the nations of the world
2. progress of science and technology, particularly in the field of communication and transportation
3. more rapid advancement of international cooperation
Economic globalization is very closely related and are always associated with free trade. Free trade seeks to create a wider trade area and removing barriers that resulted in not smooth international trade.
Trade barriers usually occurs because the export and import tariffs imposed too high so the prices of goods are not competitive. In addition, due to trade policy barriers (eg protection) imposed by certain countries to protect domestic production.
