The Impacts Of Globalization On The Economy

Globalisation can be visualised as one of the most prominent force influencing the economy of a country. It is viewed as a “whirlwind of relentless and disruptive change which leaves governments helpless and leaves a trail of economic, social cultural and environmental problems in its wake.” The phenomenon of globalisation has given rise to greater competition towards markets and investments. Changes that are sweeping spontaneously across the corporate world have forced businesses and nations to adapt by striving to change old economic practices and traditional behaviours. Industrial development has become a key recourse for underdeveloped economies, in which it must be seen as an essential component of their development process. The task of

But in practical sense globalization is a tier-based circumstance. Across boundaries, unity ushered under the impact of globalization has several attributes - cultural, social, political and economic. As a result quite a few economists considered it as a process of generation of global economy, whereas others talked in terms of political and social globalization, a globalization of idea which resulted in social and technological

The handiness of supplies and services produced by firms motivates the need for wider markets, convenience of markets in turn, provides the force for further production of goods and services. Antagonism among firms to get a significant control of the large global market leads to proficiency and specialization, economies of scale in production, good quality commodities at reduced rates, industrial and administrative improvements. Free flow of information globally leads to higher international substitutability of factors of manufacturing with focus on labour. Organizations and countries try to use the policy of defensive skill-biased innovation to reduce the surpassing of their technology by others as a consequence of the phenomenon of globalisation. Global output of goods and services improvises both the quality and quantity which is expected to appear into higher living standards of the international population. Developed economies are the main factors of globalization as it is regarding the expansion of markets for commodities and services. Underdeveloped nations, which are not quite well equipped to provide commodities and services that can compete with others, are not expected to be interested in market expansion. Inspiration from economic growth analysis depicts that appropriate use of resources, which is a crucial factor for the process of economic growth and development, is