WHAT ARE THE ADVANTAGES OF GLOBALIZATION?

Globalization can be defined to as the growing connectivity of economies, cultures, and communities
around the world as a result of technology, cross-border trade in goods and services, and flows of
capital, people, and information. National Geographic defines globalization as to ‘a term used to explain
how technology and trade have increased global connectivity and interdependence.’ One of the effects
of globalization is that it promotes and increases interactions between different regions and populations
around the globe.

The interdependence of the global economy has been growing for a while. The trend of globalization
has, however, increased in recent decades. There are many reasons for this, but some of the most
significant ones are improved trade, increasing labor and capital mobility, and improved technology.
According to The Economics Help Blog one of the main causes for globalization is improved transport
making global travel easier. For example, there has been a rapid growth in air travel, enabling greater
movement of people and goods across the globe. Improved technology, which makes it easier to
communicate and share information around the world. For example, you want to work on improving a
certain website. There, bids for the right to offer a service can be made by citizens of any nation. It
indicates that because labor costs are often cheaper in the Indian subcontinent, I can frequently find
people to execute a project for a reasonable price. The internet, this enables firms to communicate on a
global level, this may overcome managerial diseconomies of scale. The firm may be able to get cheaper
supplies by dealing with a wider choice of firms. Consumers are also able to order more goods online.

As we know, globalization has many advantages to the world, such as: Access to new markets, you
naturally develop your products and services in new ways by entering new markets. One of the biggest
benefits of globalization is this. Businesses frequently need to modify their offers when entering new
markets in order to satisfy regional market growth. Markets all around the world are now more
interconnected, and there is better communication and understanding of economic prospects in distant
parts of the world as a result of globalization. More investors now have remote access to new markets
and investment opportunities than ever before. According to the BrandFord Jacobs blog, another
benefit of expanding your business into the global market is that you could find lower costs to produce
your product. Doing this will also increase your competition, increasing prices overall. The lower costs
will also help people in developing countries find better solutions and products for less money.

Another advantage of globalization is increasing global cooperation. According to PNAS, globalization

makes issues like overexploitation of natural resources and human-caused global warming which impact
everyone and call for widespread human cooperation more severe. Global cooperation is very
important, let’s say, for example a company that operates in a single country has access to a market
measured in the millions, while companies operating on a global scale can reach billions of potential
customers. Successful navigation in multiple national markets provides a much broader customer base
from which you can generate business.
Lastly, globalization can benefit us by spreading technology. Globalization boosts technological
development. Globalization allows countries to gain easier access to foreign knowledge. It also enhances
international competition. Technology has changed not only how we produce and connect, but also
allows more humans to create and test new objects and ideas, reducing the costs and risks of
innovation, and product development, also in developing countries. But it's also a cause of globalization
because new technologies like the internet and cell phones make it easier to conduct cross-border trade
and interactions. Similarly, technologies that have made air flight more efficient have helped increase
the flow of people around the world.

China and globalization are no strangers. As the process has been going on for a while, it is important for
any company trying to enter China to mix a global strategy with a business approach. There are more
opportunities for businesses to enter the Chinese market as the global economy turns its attention to
China. In other words, China's economic growth is already being impacted by globalization. China is
quickly emerging as the new leader in trade, economic cooperation, and globalization. China has reaped
huge benefits from integration by transforming itself into a global manufacturing hub.

Globalization has also helped the US in many different ways. According to the article written by Forbes,
in addition to escaping the oppression of unionism and government restriction, Americans and other
free-world residents also started to enjoy improved standards of living and had more options for what
they could buy and how much it would cost. Indeed, more product options at consistently lower prices is
the greatest significant benefit of globalization for all Americans, particularly those with the lowest
incomes. That is true for the majority of economic sectors. Because there are still local big businesses
where cozy connections between big labor and big government have evaded globalization, like the cable
person, the electricity guy, the smartphone service provider, and many more. There are still few options
and growing costs in such categories for Americans. Most significantly, globalization helped America
keep the top spot in innovation. Anti-globalists frequently overlook the fact that popular products like
Nike Snickers and Apple's smartphones and iPads are designed in the United States, even though they
are manufactured in China or other parts of Asia. As a result, these products create well-paying jobs for
American workers and considerable profits for American investors.

By advancing external globalization through increased trade and exporting foreign direct investment,
Japan has achieved economic development. According to World Insights’ article, the Japanese
companies that entered Asia divided their production systems into processes and tasks and established
plants in nations where they could carry out these tasks most effectively. These companies produced
electric and electronic equipment as well as transportation machinery with many parts. This tells us that
globalization can provide the nation with machines and vehicles.

Concluding the report I may say that globalization is a helpful matter that can change a nation in many
ways. Most of the sources I collected information from were blogs and articles, the information both
lies on reliable and not so reliable because information from blogs may not be as accurate but either
way it seemed genuine. The sources were sort of biased implementing that globalization benefits us
mostly in an economic way, I feel like they should state something different as in globalization can also
benefit you because you can now access new cultures.
References:

 https://www.atlanticcouncil.org/in-depth-research-reports/report/china-and-the-new-
globalization/
 https://youmatter.world/en/definition/definitions-globalization-definition-benefits-effects-
examples/
 https://www.forbes.com/sites/panosmourdoukoutas/2017/01/03/globalization-has-done-
many-great-things-for-americans/?sh=1ece039e583d

-ADIA ODIT,
FORM 2S