Advantage Of Globalization Essay

Globalization has develop into the new prime feature of the new millennium. No community, society or country will survive will stay isolated from the forces of globalization.

Globalization is concept that the free movement of products, services and other people across the globe in integrated manner that economic process are often thought of to be the results of the gap of the world economy and therefore related increase in trade between nations. In other words, once countries that were up to now closed to trade and foreign investment open up their economies to the world which resulted in increasing connection and integration of the economies of the globe. It has been proven that countries benefit from removing their own barriers and there

The major advantage of globalization in the context of economy and businesses are firstly cheaper production costs and secondly more consumers or a wider market. Let’s discuss cheaper production costs first, big and even small businesses go to popular destinations like China, India, Brazil, Mexico and eastern European countries. Increased profit is a direct result of lower production costs. This helps businesses gain competitive edge over their counterparts. Secondly, more consumers are available when a business sells its products or services worldwide; this again leads to higher profits. Globalization is in fact all about growing globally, varied resources, diverse benefit – a business that believes in globalization is an unsinkable ship

The risks of acquiring assets have paid very well. Also funds investment have resulted much higher rate of wealth.

Achieving economies of scale- These is easier availability of labour at both skilled and semi skilled levels in these economies who work at lesser salaries in comparison to those in developed countries. This makes possible for corporates to earn more profits by reduced cost of labour.

Globalization when implemented in wrong way can have huge effects on economies

The flow of capital first out of country and then transferring to other country itself possess many risks. Under flexible foreign exchange market these can impose huge fluctuations in world business market.

Corporates have to go by rules of property acquisition, foreign investment policy that is applicable in emerging economies that can sometimes be more tiresome work than it is expected.

International financial arrangements forces developing countries to bear the related to change in foreign currency exchange rates and interest