GLOBALIZATION: THE ECONOMIC CONSEQUENCES OF A CONNECTED WORLD

globalization= the spread of products, technology, information, and jobs across nations, but more specifically, an interdependence of nations around the globe effective through free trade.

Globalization is a social, cultural, political, and legal phenomenon, and through it countries can reduce costs by manufacturing abroad, buying raw materials for less, and most importantly, they gain access to millions of new consumers around the world. It presents interaction between different populations, an exchange of ideas,values, ideas amongst various cultures, and most important of all, prove that global collaboration is of great importance, especially by shifting more attention towards intergovernmental organizations such as the UN (United Nations), WTO (World Trade Organization) & WBG (World Bank Group), and more alike.

A little bit about the past. Globalization is not new. I mean, since the start of civilization, people have traded goods with their neighbors. As cultures advanced, they were able to travel farther to trade their own goods for desirable products found elsewhere.

The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. For more than 1,500 years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away.

Governments worldwide have integrated a free market economic system through fiscal policies and trade agreements over the last 20 years. The core of most trade agreements is the removal or reduction of tariffs. This evolution of economic systems has increased industrialisation and financial opportunities in many nations. Governments now focus on removing barriers to trade and promoting international commerce.

Naturally, like everything else in the world, it has Pros and Cons,and these are a few:

PROs:

• A larger market for goods and services

• Cheaper consumer prices

• Outsourcing can benefit both domestic firms and foreign labor

• Increased standard of living

CONs:

• Concentrates wealth in richer countries

• Some poorer countries can be left behind

• Poorer countries can be exploited of their labor and physical & intellectual resources

In essence, globalization is about the world becoming increasingly interconnected. Countries today are more connected than ever before, due to factors such as air travel, containerized sea shipping, international trade agreements and legal treaties, and the internet. In the world of business, globalization is associated with trends such as outsourcing, free trade, and international supply chains. Globalization is important as it increases the size of the global market, and allows more and different goods to be produced and sold for cheaper prices.

Hope you enjoyed this article and found it helpful, see you 😁💸