Globalization



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Globalization

Introduction

It is the process of the cultural, economic and the political unification and the integration. Globalization is fundamentally the process of the converting the world markets to the single market without having the barriers for the investment flow and the trade. The concept of globalization has been emerged after the cold war which has increased the specialization and the need of the trade. As an outcome of the globalization, there are many business people, economists and the politicians had found that there is a need to change and adopt the new policies which is known as Golden Straight Jacket. It consists of the guidelines which businesses and the state should follow in order to have successful in a unified business.

The term globalization generally refers to the globally distributing the goods and services through the reduction of the trade barriers. Previously, the ancestors had used the trade routes that the sugar, silk, rice, cotton that were the products that were produced in the Silk Road and the triangular trade route. In this route, all such products were produced because of having the specialization and trading in order to obtain the low cost of goods and products. Nowadays the globalization is much more widespread, and also the business can achieve the growth and work independently for their governance. There is also a cost benefit related with the reduction in the labor cost or the cost of the raw materials or for the cost to trade. Globalization has also many benefits such as the consumers that allow the large amount of the goods that are being offered at the low or the cheap price. Instead of that there are also the disadvantages that are related with the globalization.

Discussion

Benefits

The globalization leads to the improvement in the efficiency and the gain in the economic welfare. Due to the globalization, there is an enhancement in the trade as the countries specialize in the areas of the competitive edge. It creates the deep relationship between business across borders and also encourages the manufacturers and consumers for the having the benefits of the economies of scale. For consumers, the globalization increases the decision of buying goods and services and also gains from the rapid pace of the innovation which drives the dynamic efficiency of the benefits (DeSombre, 2006).

Disadvantages

Because of the globalization the rich is becoming richer, ...