Example Of Economic Globalization

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Ryan Heath EC 2900 March 21, 2018 Economic Globalization The theoretical definition of Globalization defines it as integration of several nations and economies for the purpose of trade, foreign investments and capital migration. The opening up of the economies of several nations, for free trade purposes, supported with technological advancement of the twenty first century were the key supporters for the sudden spurt of Globalization in this modern age (Carr & Chen, 2001). The concept of Globalization is also commonly referred as ‘globality’, which refers to a boundary less, highly connected market place; such a market place which is neither distinguished by time zones, not the national borders of several countries (Pologeorgis,…show more content…
This type of trade is the exchange of goods and services between countries. It allows wealthy countries to use their resources such as labor, technology and capital more efficiently and effectively. This can happen because countries are supplied with different assets and natural resources such as land, labor, capital and technology. Some countries may produce the same good more efficiently and therefore sell it for a less expensive price than other countries. If a country cannot efficiently produce an item, it can obtain the item by trading with another country. This can be a comparative advantage of a country. International trade not only results in increased efficiency but also allows countries to participate in a global economy, encouraging the opportunity of foreign direct investment. This is the amount of money that individuals invest into foreign companies and other assets which leads to growth in employment and revenues and it promotes activity, progress and innovation within an economy and improvements in manufacturing quality for both the…show more content…
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