Benefits of Globalization Essay

Since the 20th century, people have become globalization in their social life. The actions of people and the view of the city are almost the same with other countries. Globalization is not the fashionable word in the world, it is an important word of human economics. There have some economic professions said it could be dangerous of the transaction in different countries, such as global economic crisis. However, globalization has some positive points that it makes people’s lives become better. Even though it has some negative effects on the human such as air pollution, but it also has many positive effects. Nowadays, not only the government, but also people are enjoying globalization in economics, immigration, and knowledge.

Globalization is difficult to simply define due to the variety of changing definitions that have been established over previous decades. Hamilton and Webster (2012) suggest that globalization is the connection between nations, defining globalization as a process in which barriers are reduced in order to encourage exchanges between countries. This view proposes that globalization refers very much so to the trade barriers and the improved communications between countries in order to ensure the world is unified. Globalization increases economic activity across the world and opens up markets for foreign investment.

There are many benefits from globalization. One benefit is more efficient markets, efficient markets means supply and demand. Efficient markets cause the economy to multiply, in a world like ours if the economy is increasing, every thing that is connected to it benefits. Another advantage of globalization is new solutions, globalization permits significant procedure to occur more efficiently and important ideas to become reality. It also allow use, the human race to push forward. On the other hand, the disadvantages of globalization are that someone always has to lose, and that the home team loses. Someone invariably has to lose since globalization is fundamentally a

The process of globalization has numerous significant effects on countries, organizations, and individuals. These effects can be observed in the quality of products, in their prices, but also in their availability. Because of globalization, numerous companies prefer to expand their business on international level. Some of them outsource some of their processes and activities to cheaper destinations that allow them to reduce their investments.

Globalization has shrunk the world. People can now have access to any market or any product they want very easily. We can buy Japan made camera without actually going to Japan, we can eat Iranian food in our university campus in Kuala Lumpur, can find coke and Mc D at any corner of the world, China can sell its products at very cheap price to consumers all over the world, Paris can get consumer for their fashion trend even outside their country.

Frequently, people are unclear of exactly what Globalization means. Globalization is the tendency of the world's economies to act as a single interdependent economy. It can be described as the increased movement of people, knowledge, ideas, goods and money across national borders to make the world more unified in a sense. Globalization is often thought of in economic terms but as we know there are other components with this idea like, economics, and cultures. There is a huge debate of whether or not globalization is positive or negative.

FDI allows the home country to invest into the host country to produce, advertise, and distribute products, in order to upsurge their market share and provides a long-term investment and enhancement. (Moosa, 2002)

Globalization offers industries many ways to increase their profits. Since businesses and corporations have access to a wider range of potential clients, they have a chance to increase profits. Global competition also

     The benefits of globalization for third world countries are tremendously unprecedented. Relieving individuals of the horrendous living standards of third world countries, outsourcing has helped creates jobs in places where families are clueless about where their next meal is coming from.

People around the world are more connected to each other than ever before. Information and money flow quicker than ever. Products produced in one part of a country are available to the rest of the world. It is much easier for people to travel, communicate and do business internationally. This whole phenomenon has been called globalization. Spurred on in the past by merchants, explorers, colonialists and internationalists, globalization has in more recent times been increasing rapidly due to improvements in communications, information and transport technology. It has also been encouraged by trade liberalization and financial market deregulation.

Nations can also benefit culturally from globalization. By immersing, themselves in other cultures people gain a better sense of the world. Globalization does not just deal with the economy and business but also involves the cultural aspects as well. The world is diverse that there are many people who do not know or understand why certain ethnic groups practice or believe in certain customs and religions. With globalization people learn about these different cultures to try and understand the traditions and customs that are unlike their own. Globalization connects the world by a common thread of knowledge so we can understand one another and appreciate differences and not be sheltered from the outside world.

“Globalization is not just one impact of the new technologies that are reshaping the economies of the third millennium” (Thurow 19-31). When speaking of globalization, most people will not have a complete understanding as of what it actually means or what aspects of the world it affects. Globalization promotes free trade and creates jobs. The capital markets attract investors, resort cheap labor, and leads to job losses in some areas of higher wage. While all of this is happening, the world economy is being effected: economically, culturally, socially, and politically.

In 1977 Swedish researchers at Uppsala University came up with a model/theory how businesses should grow their activities in foreign market, this model explains that companies should select an entry mode by taking into consideration their own resources and exploring costs, and risks based on market nature. (Johanson and Vahnle, 2009) Researchers at Uppsala University in their empirical study found that Swedish firms mostly started their process of internationalization by exporting, initially companies had agents that represented them in foreign market, but these firms exported in countries that had little differentiation in culture, language and political systems from their home country, this was labeled in their model as physically close countries. Uppsala Model considers two types of knowledge objective and experience based knowledge, the model describes that after first entrance in foreign market businesses understands how to work in external country, and later they step by step increase level of internationalization to physically distant countries. (Johanson and Vahnle, 2009) But, can Uppsala model be applied to services? This model was mainly reliable for manufacturing industries; a paper with contrary arguments was published in 2008, providing two variables; environment-related and service specific, to question whether Uppsala model can be used for service

Why do we need to study some scientific principles that were invented by foreign scientists？ Why do we want to study abroad to learn more culture from different countries？ That’s all because of the globalization. Globalization is a process of interaction and comprehensiveness among the people, companies, governments that from different countries. This process has make changes on many things, like: the environment, culture, economic development, political systems, societal problems… All the things have two sides, globalization also has advantages and disadvantages.

Continuing on with the positive economic effects of globalization, the economy puts forward a net benefit to the individual economies around the world. It does so by making the markets more efficient, increasing the competition, as well as spreading wealth around the world on a more equal playing field so that all countries have some kind of reward. This makes all countries want to strive to do well and for their superiors to do well also. International trade benefits us by having foods all year round, cheaper products, and allows countries to focus on their strengths and trade for the things they can’t make cost effectively on their own.