Globalization is the trend of investment funds and companies to move beyond national and domestic markets into other markets around the world, thereby increasing the interconnection of the planet. Globalization has had the effect of increasing global trade and cultural exchange.
Proponents of globalization say that it assists developing countries catch up to industrialized countries much quicker through improved employment and technological improvements; critics of globalization say that it disturbs national sovereignty and allows rich nations to send domestic jobs overseas where labor is significantly cheaper.
Globalization can be used to describe the recent integration of national markets, businesses, cultures and government policies around the world. This integration has happened through increases from the technical skills and efficiency of world commerce, communication and transport. Mostly, globalization refers to the economic integration of the international markets, but it’s also utilized to refer to the socio-cultural integration that’s been caused by the growth of the net.
Public policy and technology are the two primary driving factors behind current globalization. Recent implementations of government policy, both nationally and internationally, have opened economic boundaries for countries throughout the world. Over the last twenty years, world governments have incorporated a free-market financial system into fiscal policies, monetary policies and trade agreements. This evolution of financial systems has sparked national production capacity and opened nations to increased financial opportunities overseas. World governments now concentrate on decreasing barriers to trade and actively promote global commerce concerning investments, goods and services.
Technology has also been a significant reason behind its growth in globalization. Advancements in information technology (IT) and the flow of data across boundaries have enabled individuals to take charge of their financial lives. Technology has helped people become more educated about economic trends and enables people to move financial assets and take advantage of investment opportunities. Technology has increased the capacity to communicate globally, closing the gap between different cultures.
At first glance, globalization is an wonderful development. People who don’t believe in globalization, however, cite the fact that it’s benefited corporations in the Western world in the damage of developing economies, cultures and individuals. These critics actively work to strengthen domestic markets at the cost of free trade.