Hence a wider market is necessary for economic development. Smith also believed that foreign trade should be treated the same way as domestic trade, self-regulating without any interference from the government. A policy of ‘laissez faire’ would lead to better outcomes for all countries involved. International trade influences economic growth in so many positive ways that Smith spoke about. Exports adds to the earnings of an economy, and has helped so many developing economies like India and Central Africa.
In other ways, globalization also means the free import of all nations and welcomes foreign investment in the main sectors of the economy. This means that countries become attractive by attracting global capital to the open economy of multinational
I am convinced that globalization provides many benefits for us as individuals but also for every country in the world. Many professionals, economists and politicians align that the process of globalization is a huge benefit for economies worldwide. Through this process different trade markets are getting more competitive but also efficient at the same time. It balances the unequally between different countries and prevent eventually some military conflicts. The Milken Institute’s Globalization of the World Economy reports that even if there are many benefits regarding the globalization, there are still several risks which should not be underestimated by investors or governments.
Also, because of globalization international business grown, improved and removed a lot of obstacles when interacting with international markets. Then again, globalization can likewise be a significantly enhancing process, opening personalities to new thoughts and encounters, and fortifying the finest all-inclusive estimations of mankind. For the culture factor is like a code we as a human being live with. It also includes the arrangement of convictions, good values, conventions, dialect, and laws (or standards of conduct) held in like manner by a country, a group, or other characterized gathering of individuals. Globalization truly can affect anything in life both positively and negatively, but due to globalization people changed or because the culture factor changed or got affected by essence time.
Today, due to cultural globalization, developing countries have a prestigious place in the global economy. Corporations, geared to this new reality, benefit from enormous economies of scale in production and distribution. From the economical point of view, it is a great pleasure for the companies to spread their products all around the world. Cultural globalization has allowed people to be able to attain goods and services that were previously not available. For example, the spread of certain cuisines, such as American fast-food chains, is a positive effect of cultural globalization.
In contemporary society, “globalization” is one of the most common terms on mass media as an issue of great concern for all countries in the world. Virtually, the concept of globalization raises a number of questions and controversial issues. Some experts claim that globalization plays a cardinally important role in creating opportunity for all countries to live in the same roof as Marshall McLuhan called “global village”. However, others assert globalization just exerts a wide range of potentially adverse influences on many countries. To clarify this problem, this essay will endeavour to explore two sides of globalization.
Promotes World Peace- Foreign trade brings countries closer. It facilitates transfer of technology and other assistance from developed countries to developing countries. It brings different countries closer due to economic relations arising out of trade agreements. Thus, foreign trade creates a friendly atmosphere for avoiding wars and conflicts. It promotes world peace as such countries try to maintain friendly relations among themselves.
In addition, free trade encourages developed countries to further increase their production of manufactured goods to sell them to developing countries, resulting in proliferated industrialization and economic growth. This has boosted the gross domestic product of developed countries and increased their purchasing power capita. This money can be spent to further improve the standards of living in developed countries. As well, free trade has escalated the competition amongst countries, which has inspired progress and innovation in various areas, hence providing more job opportunities and reducing unemployment. All of this has brought a lot of benefits and opportunities for developed countries, leading to their further development.
This not only allows them to make maximum profit, but also opens up a global market of people with the higher disposable income to buy more goods and services. The improved communication with the help of latest technology has spread widely throughout the world, allowing international business campaigns to be co-ordinated from a fixed base in the domestic country. The internet and other communication medium have opened up entirely new world of business with endless potential. Globalization has changed the people way of shopping, specially by encouraging online shopping from sites like www.flipkart.com , www.amazon.com etc. These online sites are providing best deals to the consumer with a vast number of variety options from global market .Globalization has intensified the competition in the market with the fact that there are many new competitors across the world in addition to domestic competitors.
Introduction to Globalization. Globalization plays a hugely important role in the development of third world countries. Due to globalization, there has been advances in areas such as telecommunications and transportation, creating new opportunities for developing countries. Such as; technological developments, health systems, education systems, access to developed countries markets, trade with developed countries, access to contraceptives etc. All of these developments coming from more developed countries greatly improve and enhance people’s daily lives.