Implications Of Globalization

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Globalization refers to the widening set of interdependent relationships among people from different parts of a world that happens to be divided into nations. The term sometimes refers to the elimination of barriers to international movements of goods, services, capital, technology, and people that influence the integration of world economies (John D.Daniels, 2015). Although integrating a global economy is nothing new, but the modern implications in global business are stranger and bigger than ever before (Gemma, 2014). Thus, globalization can brings up some beneficial for the world in every aspects. However, globalization also brings up some negative effect on the business around the world. The purpose of doing this assignment is to discuss…show more content…
For example, the apparels manufactured in countries such as Vietnam and Bangladesh and the smartphones and televisions manufactured in China have increased available to the population of the developed countries (Sakir, 2014). The manufacture of these goods and services in low wages developing countries reduce the manufacturing costs and prices of these goods and services to their consumers. Then, the consumers will enjoy a wide variety of goods and services at low prices that may have improved their standard of living. Others than that, some countries throughout the world have implemented universal health care which insures that all citizens of the country can get access to basic health care when necessary (Griswold, 2000). If a person cannot afford the health insurance, health clinics often offer basic services at lower prices. Furthermore, globalization facilitates the spread of modern medicine which has helped to extend life expectancy and lower the infant mortality in rich and poor countries. On average, life expectancy in developing countries raised from 55 years in 1970 to 65 years in 1997 thus life expectancy has actually fallen in thirty three LDCs since 1990 in large part because of AIDS epidemics while the infant mortality rates in Asia and sub-Saharan Africa have declined by about 10 per cent since 1990 (Griswold,…show more content…
For a developed country, the development of business and income levels leads to the important of globalization. In 1995, the foreign direct investment by 10 major developed countries such as G7, Switzerland, Sweden and the Netherlands took up 85.1% of the total value of foreign direct investment in the whole world (Shangquan, 2000). Globalization creates new opportunities for some country's economics. When foreign investors come over to invest in that country and bring over foreign capital, it will increase the economy’s growth so that the economics condition of that country will improve. Sony Corporation can sell its TV and game consoles with the same ease in New York as in Tokyo. Same going to Intel, Apple, and Cisco also sell their high tech gear with the same ease in Tokyo as in New York (Mourdoukoutas, 2011). The efficiency and opportunity open market is created. Globalization helps solving the poverty problem in poor countries' economies. Export growth and foreign investment have reduced poverty. Poverty has fallen in regions where exports or foreign investment is growing. In Mexico, the poor in the most globalized regions have weathered macroeconomic crises better than their more isolated neighbours. In India, opening up to foreign investment has been associated with a decline in poverty (Harrison, 2006).Throughout the economic of the Globalization, government of the developing nations will use the
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