An Overview on Globalization
It has become a crucial part for global economic growth and development which involves import & export, selling and buying of goods and services between various countries.There has been an increased trend in the world towards globalization with increase in trade between nations, liberalization in business activities as well as simplified import and export procedures.Most importantly people from diverse economies can have access to variety of products & services at cheaper price.
There has been huge discussions and debates going on from academic, political, business and social point of views about it's positive and negative effects.It has different effects on both developing and developed countries.It is a widely accepted fact that technological development and improvement in policies has brought economies of different countries closer.Even today capital and productivity plays a major role in growth of a country.There has been a rapid expansion of technical services through outsourcing.
However, integration between financial markets of different economies has been a challenging factor.Any crisis in one country will affect the financial market of other countries.For example, the collapse of the US sub-prime market in 2007 unleashed an international financial crisis leadind to huge bankruptcies, global credit crunch, rise and fall in oil and commodity prices. Also the Greek government-debt crisis which started on 2009 led to crisis in confidence among their lenders,it's companies went bankrupt, with soaring unemployment and recession.Stock markets have slid and risen in line with speculation due to Greek debt crisis .
Due to technological advances,expansion in telecommunication networks, financial innovations and strict protocols has made overseas trade more effective and efficient. Globalization makes technology innovations flow between countries, so that all countries could reap the benefits of improved technology, by increasing incomes and employment. It has also made migration between countries, increasing labor force mobility. It has spread across the world in such a way that it's presence could be felt everywhere even though some people may not be aware of that.It makes business market more competitive by making firms more efficient.
With increase in globalization across countries it is up to each country and economy to adapt to technological advances and changes that will either affect or benefit the economic development.