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Advantages of Globalization

Benazir Marjan intends to use her business knowledge in the practical field through this article.

advantages-of-globalization

Advantages of Globalization

Twenty first century holds a dynamic business world, where it has introduced globalization before us. Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. It is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology and flows of investment, people and information. Economic globalization is a historical process, the result of human innovation and technological progress. It refers to the increasing integration of the economies around the world, particularly through the movement of goods, services and capital across borders.

There is no question that globalization has been a good thing for many developing countries who now have access to our markets and can export cheap goods. It has also been good for multi-national corporations.

Pros of Globalization:

1. Globalization ensures economic growth. It allows the world’s most powerful economies and governments to collaborate to achieve great things. This process frequently strives to make the world a better place, whether we are creating space stations that circle our globe, sending missions to the moon, or inventing affordable solutions to combat famine. The cost of these vast initiatives is frequently too high for a single country to bear alone. Humanity can use its diversity to solve any challenge if it works together in a cooperative spirit.
Globalization enables in accessing to labor, jobs, resources and ability for nations to “specialize”.
2. Globalization increases cross-border investment. At the macroeconomic level, this international investment has been shown to enhance welfare on both sides of the equation. The country that’s the source of the capital benefits because it can often earn a higher return from abroad than domestically. The country that receives the inflow of capital benefits because, that capital contributes to investment and therefore, to productivity.

3. Globalization creates the opportunity and desire for prosperous nations to help countries struggling with serious issues like; unemployment, disease and natural disaster.
4. Globalization always provides better services to us. Through the technological advancement our services like water supply, mobile networking, internet, electricity supply, and any other services have been easier and better than before.

5. Due to globalization, there is now a world wide market for companies and consumers who have access to products of different countries. Today’s easy access to internet through out the globe is also the result of globalization.
6. The integration of economies as the key process of globalization enables countries to fight against poverty and improve the standard of living of the people.
7. Globalization enables development of infrastructure of any country. Due to the technological advancement and its transfer through out the globe helps to improve country’s infrastructure. Countries are more enabling to deliver their services to people. Development of infrastructure means over all development of respective countries.
8. Through globalization countries can build foreign exchange reserves owing to international financial flow.
9. Globalization ensures contribution of every country to the world GDP growth.

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10. Globalization has introduced more influx of information between two countries, which do not have anything in common between them.
11. It enables cultural intermingling and each country is learning more about other cultures.
12. Due to sharing of financial interests, corporations and governments are trying to sort out ecological problems for each other.
13. Socially, people became more open and tolerant towards each other and people who live in the other part of the world are entertained in a more friendly way.
14. In some cases, competition between countries is supposed to drive price down due to globalization.

15. Most people can see speedy travels, mass communications, and quick dissemination of information through the internet as benefits of globalization.
16. Labor can move from country to country to market their skills. They become more effective and efficient due to their affairs in multiple countries. It benefits the company in the long run. As employees get more skilled, they become strong asset for a company over the time.
17. Companies get the opportunity to earn good reputation due to globalization even in another country.
18. Companies and employees need to keep themselves updated about what is going on through the world, as they need to work outside of their own country. This need turns themselves as more knowledgeable and sophisticated over the time.

Finally, even though sometimes hard time and challenges may appear, still globalization empowers us with enormous opportunities and benefits in the business world. Today’s modern world is the result of globalization. It has given a new shape to the world where we can enjoy each and every benefit of it. Companies need to understand well about these and move on by taking proper advantages of globalization. Thus it would come to an worthy structure in this century.

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2022 Benazir Marjan

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