The Economic benefits of Globalization
The last fifty years has witnessed a rapid increase in the level of interaction between countries from different continents. This has mostly been facilitated through improved communication facilities and advancement in technology. As such, the world has witnessed alignment in international strategies which are intended at expanding the business operations to a global level, facilitative global communication systems such as the internet and the satellite system, socioeconomic and political developments in all countries around the world. Globalization has had both positive and negative impacts on the economies of different countries around the world. Evidently, the positives outnumbers the negatives owing to the role that globalization plays in the integration and liberalization of markets across the world. This paper is a research proposal on the economic benefits that globalization has on the economies of individual countries.
Globalization has improved the level of competitive positions and at the same time lowered the cost of doing business as companies diverse in the manufacture of different products and services. Globalization is responsible for diversification of resources and development and creation of new business opportunities in societies which were formerly closed to the international world. For instance, many countries in Africa are able to sufficiently meet the needs of its people through importation of finished products from the developed countries in Europe and Asia while companies in these continents are able to get raw materials from Africa to make those products. Globalization is thus responsible for easier movement of raw materials and finished products from one part of the world to the other. Moreover, globalization has allowed the concepts of liberalization of markets and free trade to flourish as countries come to agree on the opening up of their markets for mutual benefits through trading.
Furthermore, globalization is responsible for lower and staple prices of goods as consumers can access a variety of products from different manufacturers across the world almost at the same time. Globalization thus gives the consumers a greater choice on the products and services that they need and in process helps to lower the costs of such products and services. For instance, similar products manufactured in China, Germany, Japan, and United States find their way into the African market and therefore the consumer has a wide variety of choices to make hence a greater bargaining power. Similarly, globalization has brought about diversification and expansion in export markets especially for manufacturers who are manufacturing on the local or domestic markets. In addition, it is noted that globalization has facilitated the implementation of economies of scale in many countries across the world as manufacturers specialize and particular goods and services.
Globalization has also benefited the economies of both developed and developing countries around the world by increasing the standard of living for its citizens by improving infrastructure such as roads, health care, education, and social services, opening up their access to new markets through freer trades between partner countries and removal of trade barriers which can be problematic to homegrown industries. Globalization is also responsible for opening up of job opportunities and therefore reducing the levels of unemployment especially in poor countries where access to jobs can be challenging. This is sometimes facilitated through the influx of foreign companies in local markets and improvement in technology and education levels. It has also facilitated the automation and mechanization of products in sectors such as agriculture leading to not only quality and cheaper product but also high volume of production. In this research, I will interview an economic expert in international business to get a clear view how economies of the world have been impacted through globalization.