The advantages of international relations

Globalization is one of the most pressing challenges in today's economy.Even though it cannot yet
guarantee global economic balance, but there are few things that have a positive impact in it such
as on trading development and access to new markets.Concerning the drawbacks of this process,
the issue is not globalisation itself, but the manner in which actions are conducted in favour of
globalisation.

The main positive aspects of globalization are, globalization contributes to the specialization and the
international division of labor. In its conditions, resources and resources are more effectively
distributed. Other than that , globalization can save on scale of production, which leads to lower
costs and lower prices, that is, to economic growth. Globalization involves free trade on a mutually
beneficial basis, which satisfies all parties,bution among countries. It is also contributes to the
intensification of international competition, and can lead to perfect competition. Globalization can
lead to increased productivity as a result of rationalization of production at the global level and the
spread of advanced technologies. Next, globalization enables countries to mobilize a significant
amount of financial resources, as investors can use wider financial instruments in an increasing
number of markets and creates a serious basis for solving general problems of mankind, first of all,
ecological. In other words, globalization promotes international cooperation, freely divides
information and technologies, coordinates its efforts to address the serious problems of humanity.

The most significant and indisputable benefits include relatively poor countries to develop at an
extraordinary rate due to access to new technologies, products and information, direct investment
and loans, and the great mobility of all elements of production. The largest advantage has been
documented in nations with a net factor of production on productivity level to other countries,
particularly capital, who are able to acquire a high degree of efficiency in most areas at a low
cost.Globalization provided these countries with access to new markets, increased export volume,
and the occurrence of favourable conditions for drawing international capital.

Globalization has demonstrated, particularly in recent years, that it cannot be achieved through total
freedom of action for economic entities; however, the role of the state in economic activity, as well
as in the implementation of economic development, has a series of beneficial consequences on a
social level, which is eventually reflected in an increase in the population's standard of living.

The process of globalization has developed gradually, based on three phase, especially in the second
half of the 21st century :

- Internationalization of trade becomes free and available uncontrolled policy. In the 50s there was a
rhythm of growth trade which has become higher than production.

- Trans-nationalization of capital flows, which started with the 80s had developed in a more cautious
rhythm than international trade.

- The emergence of the information society and globalization information flow, more alert than
commercial flows and capital flows.

Even if it is based on the same principles, globalisation has had distinct effects in different parts of
the world, which are also a result of the varying ways of organisation in national enterprises, as well
as the different levels of debts and taxes they must pay. Trade unions play a vital part in the
organisational and functional structure of national enterprises, which are stronger in some regions,
such as Latin America, than in Asian countries.
The multinational corporations directly involved in the globalisation process should promote,
alongside the idea of competition, the idea of collaboration for the aim of reaching the general
interest; they must operate in the consumer's interest, but for the benefit of the global organisation.
Companies must or can participate in a variety of ways in community life.

- The corporation conducts its own basic activities based on the principles of fair competition,
interacts with its suppliers and beneficiaries, and pays taxes to the state.

- The company considers the repercussions of its activities on the environment and other economic
entities, and it strives to minimise the negative effects; in this way, the corporation demonstrates its
accountability to others, the environment, and society in general.

-The corporation actively participates in the resolution of problems encountered as a result of the
proper conduct of economic activity and of society.

The company's goals are determined by its resources. It has been observed that there is a tendency
for production activities to be concentrated in regions where scale economies can provide the
greatest benefits, accounting activities to be concentrated in regions where companies have greater
advantages in terms of fiscal obligations, and scientific research activities to be concentrated in
regions where highly qualified human resources with high potential exist.

The global advancement of technique and technology, as well as the increased availability of
countries to new knowledge, entail an expansion of the means by which international trade contacts
are conducted. The development also causes a shift in tactics and the effects of worldwide
competition on businesses. Thus, small and medium-sized businesses may compete on equal footing
with larger corporations, thanks to electronic trade, which provides a number of benefits, including:

- The ability to compete with large corporations by removing many of the typical barriers to market
entry, such as those associated with the incorporation and operation of a virtual company as
opposed to a physical one, storage costs as a result of reducing the time required for registering and
delivering orders, distribution costs, and salaries.

- Maintaining constant touch with clients and improving communication with them by presenting
information on the company website, i.e. non-stop processing of orders, without paying additional
wages to personnel and without requiring clients to rely solely on the company's working schedule.

- Relatively easy access to external markets with few investments, due to the elimination of location
and time constraints, as well as lower expenses for speedy contact with business partners in any
region of the world.

- Expansion of direct marketing opportunities through the use of information stored in data bases,
allowing offers to be modified based on the preferences of each client.

Maintaining societal harmony is critical to the successful implementation of the globalisation

process. In this context, the importance of the state is emphasised once more, as it must actively
participate in the economy, monitor the appropriate conduct of economic activity, minimise
disequilibrium, and achieve economic growth, as well as organise and carry out the production of
public goods and services. Taking into account the unique emphasis on the growth of bilateral trade
relations, governments should take efforts to address market restrictions and failure, which vary
from region to region.
The development and proper operation of global public bodies, which must create strong norms in
the realm of collective economic activity, is critical. Such organisations are obligated to carry out a
number of significant reforms, such as eliminating the disparity between the goals of achieving
global economic stability and liberalising markets and capitals.

However, economic reforms cannot be imposed on countries by these international organisations;

rather, they must be tailored to each country's unique characteristics. The reform's most significant
components should be considered.

- Awareness of the dangers posed by capital market liberalisation, as well as the fact that short-term
capital flows imply an increase in externalities and the existence of costs borne by those who do not
take direct part in transactions (debtors and creditors); such externalities necessitate immediate
intervention from public bodies, particularly through the banking and fiscal systems, with the
international financial institution playing an important role.

- Implementation of changes regarding bankruptcy and loan freezing; when debtors are unable to
repay their loans, bankruptcy proceedings should be commenced immediately, rather than saving
such through IMF assistance.

- Improving the functioning of the financial system, establishing a strong and secure banking system
in both developed and developing countries, enabling for the funding of businesses and the creation
of more jobs; Certain incorrect practises in developed-country banking systems can influence the
possibilities and modalities of obtaining loans in less developed countries; over time, negative effects
have been observed, namely an increase in risk levels and global instability, which has led to an
increase in the attraction for short-term loans.

- Improving risk management methods; one of the most important risk factors is the fluctuation of
the exchange rate between national currencies; at the moment, the developed countries have made
the most progress in risk management, particularly in the area of short-term loans; however, these
countries owe it to contribute to the development of safer capital markets in order to protect the
less developed countries.

- Increased safety in national economic activity; even in industrialised countries, economic

organisations are incapable of lowering dangers in agriculture or in areas where small businesses
operate.

- Improving the modalities of responding in order to overcome economic crises; the interests of
small businesses should be balanced with those of workers who require financing and creditors who
seek an increase in interest rates; and the interests of those who intend to invest externally must be
balanced with those who bring foreign capital into the country.
-Increase of the attention over poverty and unemployment.

Among international institutions, the IMF has had the most difficult task since it has had to
demonstrate its ability to predict an economic catastrophe such as the one in 1929-1933 at any time
by carrying out global collective activities. In order to accomplish so, the organisation implemented
Keynesian ideas in its early years, which state that aggregate demand must be stimulated and
maintained at a level sufficient to support supply. In the globalisation process, the increase of the
aggregate demand worldwide has necessitated even the allowing loans as liquidity for the less
developed countries experiencing a period of it in the economical activity and incapable of raising
their own \saggregate demand. The IMF's economic policy has evolved significantly over time, since
this organisation has proven to be an expert in the free functioning of markets. While the initial
emphasis was on cutting the taxes paid by economic entities, the interest rate, and the increase in
expenses, the IMF has since pushed wholly opposing economic policy initiatives targeted at reducing
deficits. Real estate reforms in agriculture, finance, inflation, macroeconomic stability, the fiscal
imposing system, and institutional reform are among the most essential issues taken into account. It
has been observed that countries with more fast economic growth, such as those in Eastern Asia,
have had greater success in terms of poverty reduction.

The main positive aspects of globalization are, globalization contributes to the specialization and the
international division of labor. In its conditions, resources and resources are more effectively
distributed. Other than that , globalization can save on scale of production, which leads to lower
costs and lower prices, that is, to economic growth. Globalization involves free trade on a mutually
beneficial basis, which satisfies all parties,bution among countries. It is also contributes to the
intensification of international competition, and can lead to perfect competition. Globalization can
lead to increased productivity as a result of rationalization of production at the global level and the
spread of advanced technologies. Next, globalization enables countries to mobilize a significant
amount of financial resources, as investors can use wider financial instruments in an increasing
number of markets and creates a serious basis for solving general problems of mankind, first of all,
ecological. In other words, globalization promotes international cooperation, freely divides
information and technologies, coordinates its efforts to address the serious problems of humanity

REFERENCES :
Nistor, C. (2007). Positive and negative effects of globalization. Universitatii Bucuresti. Analele. Seria
Stiinte Economice si Administrative, 1, 152.