Globalization is the growing interdependence of the world’s economies, populations, cultures, border trading in goods and services, the flow of investment people, and information. Many countries have built economic partnerships over many centuries. However, Globalization came into existence after the war in the early 1990s. Though Globalization has benefited the world, it harms specific groups.
Through Globalization, many corporations have gained competitive advantages on multiple fronts. It happens due to reducing costs by manufacturing abroad and buying raw materials more cheaply because of the reduction of tariffs. Also, due to this, these corporations have gained millions of new consumers.
Some of the Advantages of Globalization are
- It represents a trend toward the development of a single-world culture.
- It will help in interacting with various populations.
- Globalization helps represent the exchange of values, ideas, and other talents among different cultures.
- It has also helped create new jobs with the help of cross-border flow of capital, labor, goods, and services.
It is a crucial process since it is the most potent system affecting the modern world, and the impact is so huge that it is now challenging to make sense of the world without understanding Globalization.
It is about interconnecting the world. Many countries nowadays are more connected to each other than ever because of shipping, international trade, the Internet, and more. International supply chains have become much more popular because of it, which has increased the global market. It will help in producing and selling goods for cheap prices.
As we know, multinational companies are the largest and most successful corporations in the world. They were this popular because they had a complex network of trade routes, telecommunications infrastructure, and international legal agreements.
Well, you need to remember that Globalization is not all good. It can have some negative impact on some of the countries, leading to economic downturn.
