Essay On Globalization And Liberalization

735 Words3 Pages
The liberalization and globalization of world financial markets since the 1980s can likely be attributed to many factors. They include completed transportation infrastructure, economies of scale, deregulation, macroeconomic conditions, technological innovations, and the competition among financial institutions, multinational companies, and countries.
First of all, the perfected transportation infrastructure leads the costs of ocean shipping have come down. The lower unit costs of transportation in the global economy help make manufacturing more related to export market and make markets more controversial around the world. There has been an increase in minimum efficient scale. If minimum efficient scale rises, the domestic market may consider too small to meet sales demand, which would be spurring mergers and acquisitions to gain economies of scale. Secondly, the deregulation of financial transactions has increased the profitability of enterprises. The
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Much of this due to the development of transportation infrastructure, macroeconomic conditions, and technology that has promoted cross-border trade, both in products and in inputs. Globalization and liberalization are beneficial because it promotes economic growth and living standards. It also encourages global competition, creativity, and innovation. Globalization and liberalization have also promoted global justice for trade, diversity, and social equality. However, when assessing the effectiveness of these factors of promoting global interdependence, we must bear in mind that many of them have their own shortcomings and limitations. Still, globalization and liberalization are accelerating in the 21st century, and as technology becomes cheaper and more advanced, we can only expect the globalization and liberalization process to move forward in the years to
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