Globalization and Its Effects on the Economy
Globalization is the general process of gaining financial, economic and trade within an organization.Globalization involves the following; economy, where it enables the struggling countries to develop in by providing jobs; culture, such as the type of food eaten by different people in different countries; technology where there is use of internet to air news related to the factors identified above like on CNN and other different activities such as olympic games, world cup, tourism and intergovernmental organizations such as the United Nations, thus promoting unity among different areas.
In this paper we will address the issue of how globalization has affected the economy as w a whole. As we all know, economy is a basic factor in each country. And mostly the struggling countries need to work too hard to improve the living standard of every individual. In economy, we look at finances and industries and how they have enhanced the development. Industrial and financial globalization has improved in coming up with new job chances for developing countries and those that are being industrialized.
Increased the standard of living
According to Wolf (2014), economic globalization provides easy access to foreign currency for the developing countries. When the funds are managed on infrastructure such as education, roads, social services and healthcare, it enhances the living styles and standards of the people. And that is if the money is used equitably with a focus of benefiting all citizens.
Access to new markets
Economically, globalization leads to fair and free exchange between nations. To the developing countries, this may bring a large impact on benefiting the nation. Industries grown from home always have a view on the falling of the trade barriers; hence get accessed to international markets that are much wider compared to other nations. And from the growth which is generated from these markets, it enhances new technological development by producing new products and services. According to Andy Wolf (2014) every economy strives for efficient markets. And this is where both the buyers and the sellers are willing to buy and sell goods and services equally. If one is able to improve the marketing strategies through outsourcing or buying at a discount, it’s easy to lower the selling price hence increase the demand of goods.
Widening Disparity in incomes and Increment in Competition
Albrow, and King (1990) states that foreign companies and foreign capital increases employment opportunities while reducing poverty among nations. It also raises the education levels; this is so because developing countries in financial health. And it only affects those who do not take part in the increase of living standards. And Rao(2013) explains that when business begins to grow across international borders, which is brought about by the introduction of new standard products in the global market. It also enables the consumers to have a variety to choose from. With more competitors into place, there is more fighting over market share. And each company has to look for a way to work out and improve their goods and services, or even acquire more skills on how to obtain more valuable goods for their customers. At times, it may end up lowering their product prices for their customers which may be an added advantage to the buyers.
Improvement in technology comes up with new skills to be adhered to which may only involve the skilled labor hence decreasing the employment opportunity since technology requires more skills. Lack of enough infrastructure affect the economy in that people need to be taught on how to , use the new invented machines. Hence improve the globalized economy. Due to lack of enough skills, some services may become strained while trying to handle those under classes.
It is hard to believe, but some countries may end up attacking each other hence becomes so difficult to depend on other country’s economy. In this way, globalization helps to promote world’s security. Globalization has also prevented many conflicts that could have worsened the situation on the countries financial health.