Globalization The expansion of world trade, communication, immigration, capital flows, and multinational business activity has generated a great deal of political controversy in recent years. The campaigns of Ross Perot and of Patrick Buchanan provided the most-publicized outcries against globalization of trade and investment flows, and opposition to trade agreements.
Here are four ways that globalization has had a positive impact on the world economy: More efficient markets Efficient markets should be what every economy strives for. Essentially, the sign of an efficient market is where there is an equilibrium between what buyers are willing to pay for a good or service and what sellers are willing to sell for a good or service.
If you can improve the way you produce a good or service by doing things such as outsourcing certain processes or buying from an overseas supplier that offers discounts, you can then afford to lower your selling price which results in increased demand and affordability.
When businesses started to venture across international borders, what they often did was introduce a new standard into the global marketplace. Consumers then had more options to choose from. With more competitors to fight over market share, each company has to constantly look to improve their goods or services or create more value for their customers.
This means better products and sometimes lower prices, which is always a good thing for buyers. In a weird sort of way, globalization helped heighten world security.
More wealth equality throughout the world Although many Americans contend that their standard of living has gone down because of globalization, the flip side to this is that hundreds of thousands of people around the world now have jobs, have started their own businesses and can provide comfort for their families.
Living in the U. Our standard of living is so high compared to many nations that when we can no longer buy frivolous luxuries, we claim that we are poor.
Globalization may have stopped you from buying another flat screen TV, but it also helped countless people in developing countries put food on their table for their families. There is a silver lining to it all.
Andy Rao is a junior in finance and accounting. Please send comments to news kstatecollegian.4 positive impacts of globalization on world economy.
News; 4 positive impacts of globalization on world economy. By Andy Rao - May 7, Share on Facebook. Tweet on Twitter.
It’s a small world, after all. This saying has never been more true, and if trends continue to develop the way they are, the world may continue to shrink. As the subject of this article pertains to the positive effects of globalization, we will focus on the positive changes it has brought to the world - both economically and culturally, and how it can very well become one of the defining factors of the present century.
Impact Of Globalization On World Business Words | 8 Pages. written in accordance with the impact of globalization on world business was written with reference to a rather generalized research paper on various business cycle synchronizations and financial integrations.
This report explores a range of interlinking questions, starting with what is globalization, what are the effects of globalization in developing countries and developed . With globalization, a company in one country can now sell its products in another country halfway around the world.
Furthermore, it can build stores and factories there, invest in . Additionally, the long-term effects of globalization provide the poor with better standards of living as they gain more access to improved market goods.
When a country opens itself up to the world market, globalization can become a positive mechanism for increasing economic opportunity and unleashing flourishing for the least of these.