Economic Globalization

Globalization refers to the tendency of international trade, investments,

information technology and outsourced manufacturing to weave the
economies of diverse countries together. In business and finance, it primarily
refers to the economic integration of global markets, but the term is also used
to describe socio-cultural integration among countries. Altogether,
globalization has had the effect of markedly increasing both international
trade and cultural exchange.

Globalization has been credited with helping shift wealth to less-developed

countries. However, globalization is also often blamed for the loss of
employment in developed nations, as corporations ship manufacturing facilities
and jobs overseas in order to save costs; critics say it weakens national
sovereignty as well.

1
The economic globalization has provided organizations a competitive
advantage through lower operating costs and the gain of greater numbers
of products, services and consumers. One of the key ways this is done is
through diversification of resources, opening up additional markets and
accessing new raw materials. And indeed, it has brought the entire world
together, with multinational corporations manufacturing, buying and
selling goods across the globe. For example, a car company based in Japan
might have auto parts manufactured in several different developing countries,
then ship the parts to another country for assembly, and then sell the finished
car to nations everywhere.

Globalization is not an entirely new concept – as far back as ancient times,

caravans travelled vast distances to obtain valuables like salt, spices and gold,
then traded or sold them once back in their home countries. With the advent of
the Industrial Revolution in the 19th century, every advance in communication
and transportation helped lessen borders and increase economic ties between
nations. But in the last few decades, globalization has been occurring at an
unprecedented pace and scope.

2
3
https://www.youtube.com/watch?v=ZNejKHKSbl0

https://www.youtube.com/watch?v=zfn0XHCfDHA

Over the past 20 years, various governments around the world have
integrated a free-market economic system into fiscal policies, monetary
policies and trade agreements. This evolution of economic systems has
stimulated domestic production potential and opened countries to increased
financial opportunities abroad. World governments now focus on decreasing
barriers to trade and actively promote international commerce in relation
to investments, goods and services.

Technology has also been a major reason for the growth in globalization.
Advancements in information technology (IT) and the flow of information
across borders have helped people become more informed about economic
trends and investment opportunities, and have made it easier for them to
transfer financial assets and invest abroad. Technology has also increased the
ability to communicate internationally, and made it easier and faster than ever
to do so.

https://www.wto.org/english/res_e/statis_e/statis_maps_e.htm

https://www.wto.org/english/tratop_e/region_e/rta_participation_map_e.htm

4
5
6