Globalization Advantages And Disadvantages

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In the modern world today, activities are becoming faster, closer, and easier than they had ever been. At the tip of your fingers, people are able to exchange information almost instantly. Not only is the rate of information becoming faster, but also the rate of exchange of goods, services, and money. So how once a separate world consisting of different nations with different cultures becoming hurled into one large body? This pulling together of the world is known by most as globalization. The term ‘globalization’ has long been a buzzword of the last two decades in all kinds of fields not only in economic. This is not only because people claimed that it symbolizes the evolution of the world societies, but also the conflict between the pro-globalists…show more content…
Privatization means to transfer the ownership and management of firms from public sector to the private sector., where the government monopolies are replaced with the competitive marketplace. This could help improving the efficiency of the firms as to have them leave the safe zones and acquire greater expertise to compete globally. To illustrate, a state owned firm doesn’t have the pressure to be subject to a takeover since there are no shareholders. On the other hand, a private firm has to perform efficiently or else it will take over by the shareholders. It also helps increasing foreign investment on that country since it is free from the government regulation. Productivity will be raised with a higher capital in that firm. The other way used by the countries is trade liberalization. It refers to the relaxation of government restrictions in trading between countries. Thus, to liberalize trade, the government will removed the import tariffs, subsidies and other restrictions on the business commerce between countries. In India, the fruits or liberalization reached their peak in 2007 which has recorded its highest GDP growth rate of 9% and eventually became the second fastest growing economy in the world, next to China. In this case, specialization occurs in each countries where the country will just produce the goods and service they do best. Hence, it leads to higher productivity and economic interdependence between countries. Furthermore, opening up their economies to the global economy has been essential in enabling many developing countries to develop competitive advantages in the manufacture of certain
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