ipl-logo

The Major Causes Of Globalization

1401 Words6 Pages

What is Globalisation?
Globalisation is an age old process, the result of innovation which has lead to such a huge technological progress. It’s a base on which economies of the world interact and integrate through movement of goods, services and even capital exchange. It also includes movement of labor, knowledge, skills and culture across international borders. It’s about decreasing the distance (shrinking) of communication between world economies, making products or services in one country available with ease and a mutual benefit to another country. “Although in its simplistic sense globalization refers to the widening, deepening and speeding up of global interconnection, such a definition begs further elaboration. ... Globalization can …show more content…

Industrialisation allowed production of common goods using economies of scale and tremendous population growth created a healthy demand for commodities. The core element for globalisations existence is the expansion of world trade through eradicating or reducing trade obstruction such as import tariffs. The higher the import, the consumer is offered a wider variety of goods at a relatively reduced price. This in turn increases and strengthens the power of the domestic industries to be a part of the race. To increase a country’s economic growth exports play a very vitol role. This is more in the case of developing countries who want to entry the world, increase national competiveness; promote job creation as the industries sell beyond the borders. Trade promotes economic resilience and flexibity, as higher imports helps to offset domestic supplies shock. Higher levels of imports helps to invite foreign investment which would be a major source of employment for local agents and also lead to development of technology thus promoting higher …show more content…

Global Markets – it’s a place where markets around the world mergeand become one huge center (Hill, 2009). With the developments of worldwide markets change the financial exercises of trade of products and trusts. Evacuation of Cross-Border Trades hindrances has made establishment of Global Markets more practical.
2. International Institution – institution such as United Nations organisations, World Trade organisation support world powers that basically dictate the entire world, regulate relations between different countries based on criminal justice human or political factors(IMF,2005). Main objective of WTO is to organise, enrol different economies around the world. IMF main objective is to regularise the monetary funds around the world.
3. World Trade – the main leader of world export was the united states of America till the occurrence of globalization. Major developed currently such as Germany, china, japan, united kingdom have played a very dominant role in trade.
4. Foreign direct investment – FDI is when an organisation is controlling or structuring a new osubsidary in a new country. They are normal conducted when the financial power of the organisation are strong enough to control the host country of the

Show More
Related

  • Ap World Trade Dbq Essay

    790 Words  | 4 Pages

    For any country that wants to survive in the toughest of times, they need to have good trading capabilities. Very few countries are able to sustain themselves without indulging in intensive trade with other countries. Trading has been considered a good thing in the past, but with the changing world, there are doubts about the benefits of trading. There are some factors that lead to the development of trade networks between countries. When people started to settle in larger towns, the idea that you had to produce absolutely everything for survival, began to fade.

    Read More

  • Ledcs Face Along With The Advancement Of Globalization

    982 Words  | 4 Pages

    The development of free trade has become more controversial since the end of the Second World War due to rising openness to other countries and cultures. In terms of trade, globalization refers to 'as increasingly borderless trade that develops between countries and territories or countries and countries' (Archana, 2015). Along with the growing inter-connectedness of the world, the liberalization of trade policies has favored globalization amongst many countries and has led to an introduction of new agreements such as trade blocs in which several countries make an agreement to eliminate protectionist measures such as tariffs and quotas to facilitate the flow of goods and services. Easier transportation of goods and services across borders has reduced unnecessary costs which made the cost of goods themselves cheaper and more accessible. NAFTA is a good example of the situation where several countries agree to a partnership that makes imports and exports less costly.

    Read More

  • George Washington's Use Of National Isolationism

    1244 Words  | 5 Pages

    I. Global trade has interconnected the US to regions of the globe as never before. Throughout the world, situations occur that the United States government has to decide if it is in our national interest to intervene with military force. The common basis of national interest can run a gamut including: protecting access to natural resources, protecting allied countries, protecting US friendly national leaders, protecting American citizens and overthrowing tyrants. The United States, tends to portray itself as a neutral “peace

    Read More

  • The Impact Of Globalization On Apple

    1025 Words  | 5 Pages

    Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. The most common example of globalization might be Ebay or Amazon. Nowadays flows of goods and services are not only cheap and fast, but reliable and secure.

    Read More

  • Pros And Cons Of International Trade

    751 Words  | 4 Pages

    Introductions International trade refers to a country trade goods and services to another country. International trade open up the world potential market to increase producer sales quantity and increase competition on foreign country. apart from these, international trade will create job opportunity and hence reduced unemployment rate as well as positive balance of payment. however, it might bring negative effects to a country as well, therefore, government play an important role in implementing trade restriction on imported goods in order to prevent imported goods destroy the domestic market or at certain extend, monopolize the market. 94 words A ) Discuss the forms of restriction on international trade.

    Read More

  • Case Analysis Of Tesla

    1759 Words  | 8 Pages

    Lastly, the Dutch Ministry of Economic Affairs has established an agency that promotes and facilitates foreign direct investment (FDI) into the Netherlands. The Netherlands Foreign

    Read More

  • The Pros And Cons Of International Trade

    1011 Words  | 5 Pages

    And also, as a result of international trade, the market contains greater competition with more competitive price and cheaper products. This essay will focus on the definition, advantages and consequences of international trade with considerable theories and evidence. First point I want to emphasize is that international trade is the exchange of goods and services between countries. This is the type of world economy and trade, prices, supply and demand, impact which influences world events. Political change in Asia is inclined to lead to increase labor costs, thus increase the production costs of sneaker companies.

    Read More

  • The Causes Of Globalization In Europe In The 20th Century

    1193 Words  | 5 Pages

    This paper briefly analyses the trend in trade over the last century that built the unstable political environment that stemmed the result of the UK elections. Initially, it will describe globalisation in the 20th century proceeding to that of the 21st century. Then, it will deliberate Brexit and the reasons behind it. Concluding by stating that globalisation is a valuable sign of moving forward that should be correctly reinforced globally and accepted by people accordingly.

    Read More

  • Advantages And Disadvantages Of Global Trade And International Trade

    998 Words  | 4 Pages

    International trade is also knows as a globe trade which give the country opportunity to expands their markets for both good and services that otherwise may not have been available in other countries. This type of trade also give advantages for world to rise the economy in term of prices, supply and customer demands, affect and are affected by global events. All of the good and services can be found on international market. International trade will involve two types of process which be export and import. Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade.

    Read More

  • Main Causes And Drivers Of Globalization

    1004 Words  | 5 Pages

    2. Main causes and drivers of globalization The treaty of Westphalia in 1648, has been known to be the beginning of the system of sovereign states. Unlike the previous treaties, the treaty of Westphalia drew up a list of core principles, which re-defined the conception of the state; territories were defined, and the lands uninfringeable. Supremacy of the nation-state became accepted as the norm and hence allowed growth of international relations (Pant, 2011).

    Read More

  • Wto And Globalization Essay

    1014 Words  | 5 Pages

    What can be defined by economic globalisation is the increasing economic integration and interdependence of national, regional and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital. Whereas globalisation is a broad of set of processes concerning multiple networks of economic, political and cultural interchange, contemporary economic globalisation is propelled by the rapid growing significance of information in all types of productive activities and by the developments in science and technology. Some theorist also defined Globalisation as a historical stage of accelerated expansion of market capitalism, like the one experienced in the 19th century with the

    Read More

  • Advantages And Disadvantages Of The G20

    1826 Words  | 8 Pages

    Globalization means that people from. different countries communicate together and work together. The world is becoming globalizing because many people have benefits in globalization. Business men can set up their business in other countries. Also ,we can have better communication with other countries’ people through the widely used language, like English.

    Read More

  • Advantages And Disadvantages Of Globalization In Developing Countries

    1006 Words  | 5 Pages

    Globalization is a process of linking the world through many aspects, from the economic to the culture, the political. in different nations. This process uses to describe the changes in society and in the world economy, by creating a linkage and increasing exchange between individuals, organizations or nations in cultural perspective, economics on global scale (Globalization 101, n.d.). A process of creating many opportunities but also causes many challenges for all the nations in the world, particularly for developing countries. There are so many advantages that globalization brings to developing countries like free trade, technology transfer and reducing unemployment.

    Read More

  • Essay On Causes Of Globalisation

    2111 Words  | 9 Pages

    Globalisation could be defined from a descriptive and prescriptive sphere of the economy. Descriptive, globalisation is views as the fastest growth processes of the world-wide connectivity

    Read More

  • Anti-Globalization

    802 Words  | 4 Pages

    Globalization is the method by which business, corporations, individuals start to operate on an international scale. Globalization has empowered monetary advancement, social and political impact. Though globalization is advantageous to the individuals who have worldwide systems while others are barred. The counter globalization development surveys the importance of globalization.

    Read More

More about The Major Causes Of Globalization

Open Document