The Pros And Cons Of Globalization

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Globalization has been around for thousands of years, people used to exchange goods and services through bartering – trading products or services of similar values. With the emergence and adoption of currency, trading and services became more efficient. Subsequently, the developments in transportation and communication revolutionized this exchange, and then came the formation of corporations buying, selling, and transporting commodities to far greater distances around the globe (Globalization101, n.d). Trading is the most visible aspects of globalization, but over the past few years, foreign investment has grown more rapidly than trading and production. International investment includes commercial loans offered by banks to foreign businesses or governments, official flows – development assistance given by developed nations to developing ones, foreign direct investment (FDI) – foreign investors take substantial shares in a foreign entity, and foreign portfolio investment (FPI) – a portfolio of investments in a smaller amount without controlling stake in a foreign entity in the form of stocks or bonds (Globalization101, n.d). None of these would have been possible without the advancement of technology. The advancement in technology, particularly in telecommunications and transportations had substantially improved efficiencies and made it convenient for business owners to cover large distances in short durations. With the widespread and adoption of fax machines, email, and

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