ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Globalization and Its Effects on the Economy

Updated on September 22, 2017


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.

Decreased employment

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.

Stabilized security

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.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)