BENEFITS OF GLOBALIZATION

Benefits of Globalization In Relation To the Fast Growing Emerging Economies



Table of Contents

Introduction2

Characteristics and Importance of Globalization3

Globalization in Emerging Economies5

Merits of Globalization To the Fast Growing Emerging Economies6

Implications of Globalization on the International Business Economics8

Conclusion10

References12



Benefits of Globalization In Relation To the Fast Growing Emerging Economies

Introduction

The purpose of this assignment is to discuss the characteristics of globalization and evaluate the benefits of globalization in relation to the fast growing emerging economies. Globalization is primarily an economic phenomenon. Globalization refers to the expansion and articulation which are sometimes harmonious, sometimes confrontational towards global trade, interdependent that arise between nations, human activities and political and social systems. Globalization is manifested by the growing interdependence of economies and the expansion of trade and interactions of human. It also refers to the transfer and exchange of goods, labour and knowledge. The genesis of the term explains that this process is most often considered as one aspect of economic globalization, developing exchanges of goods and services which had increased since the late 1980s with the creation of global financial markets worldwide (Haugen, 2010).

Drivers of globalization are deepening based on the growing differentiation of high-end products and semi-products, the development of international transport infrastructure, the trans-nationalization of the economy, the information revolution based on microelectronics. Globalization, on the one hand, enhances centripetal tendencies in the world economy. Close economic interaction contributes to the various countries of similar trends, brings the dynamics of aggregates. On the other hand, globalization in the global economy finances new sources of conflicts and contradictions. The benefits of globalization resulting from the reduction and elimination of barriers between national economies are unevenly distributed. The greatest benefits of globalized liberalization are on developed countries (Miller, 2007).

Characteristics and Importance of Globalization

Globalization can be defined as the growth of the relationship and economic interpenetration between countries. It is embodied in a total increase of flows of capital and labour, goods and services, free flow of information between countries, leading to international integration in the economic, social and cultural spheres. Economic globalization is the creation of a world market in abolishing all tariff barriers to allow free movement of capital: financial, commercial and productive. The main agents or boosters of globalization are banks and multinational corporations. Multinational companies are very large companies that operate in many countries worldwide through its subsidiaries. They are like an octopus that extends its tentacles to several countries. Multinational companies are headquartered in developed countries, which are very powerful and controls virtually the market for top earners. Multinational corporations exploit the cheap labour of developing countries and accordingly move to these countries (Yaprak, 2001).

The globalization of the economy reflects the importance that has been taken by international trade. International trade not only includes trade in goods but also in intangible assets, capital flows and the internationalization of service activities. The development of international trade has experienced a phase of expansion after the end of World War II. This is reflected in particular by the development of international sale ...