The globalization is one of the most important developments in the world economy. The world economy is increasingly globalizing by the growing integration of national economies through trade and investments flow and the multinational firms. In simple words, globalization is nothing but a rule in which any country can carry out their trading activities with any countries all over the world or the expansion of economic activities or business across the political boundaries of countries.
Globalization not only helps in developing the trading activities but also help in improving the lives of people in many ways such as follows:-
Most of the countries have resorted to trade relations with each other in order to boost or improve their economy, leaving behind any bitter past experiences if any. Nations now try to raise capital and fortify their stand in international trade, rather than hosting a war. Thus, globalization has induced international peace and security in a huge way.
Free trade is a policy in which a country does not have to levy taxes, duties, subsidies or quota on the import/export of goods or services from other countries. There are countries that have resolved to free trade in specific regions. This allows consumers to buy goods and services, comparatively at a lower cost.
The opportunities for new markets has increased noticeably. Numerous companies have started investing in different countries and luring customers for their brands. These ever-expanding markets have helped countries to raise capital in terms of foreign domestic investments, thus improving the economy of the country.
Good for Developing Nations–
It is claimed that globalization increases the economic prosperity of developing nations. Developed countries invest in such countries with an aim of capturing new markets, which helps them improve their infrastructure and technologies to international levels. A lot of capital is invested in such projects, which in turn proves fruitful to the economy of the developing nation as well.
The competition among different companies finds place at an international level. It becomes important for the companies to focus on quality goods and services, in order to have a strong foothold in the market. The consumer is benefited in the process, and gets quality products at cheaper rates. He/she also gets the opportunity to select his goods from a large variety available in the market.
Unity in Diversity–
Globalization has helped in bringing about integrity and social understanding everywhere. The dream for a global village becomes realistic after looking at the impact of globalization. It has helped in removing some barriers that had kept the world divided on various grounds. There has been propagation of democratic ideas among countries. Cross-cultural contacts grow and cultural diffusion takes place, which helps in minimizing differences, and promotes companionship.
one of the most advantageous factors of globalization is that it fosters the generation of employment. This happens due to the emergence of new companies and new markets, where lots of skilled and unskilled labor is required. Immigration between countries also increases, providing better opportunities for people all round the world. By providing employment, globalization helps in increasing the standard of living of the people, and reduces poverty.
Knowingly or unknowingly, we are all under the impact of globalization, and more importantly, it has helped in bringing international peace and justice to humankind.