Globalization

Globalization

  • Submitted By: wjack96
  • Date Submitted: 01/20/2014 6:09 AM
  • Category: Business
  • Words: 1647
  • Page: 7
  • Views: 1

Wesley Jackson 12/1/13
Economics Paper #3 Period 4



Globalization is the worldwide movement toward economic, financial, trade, and communications integration. Globalization implies the opening of local and nationalistic perspectives to a broader outlook of a connected and interdependent world with free transfer of capital, goods, and services across national frontiers (businessdictionary) However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or fragile economies. Globalization has helped companies increase in revenue and sales per year mainly because more people now have access to stores that are now convenient to get to. Globalization is one of the most important issues in the current economical cycle. Even though at the any moment it cannot ensure the achievement of worldwide economical equilibrium, or full environmental protection, its positive effects mainly regarding the trading development and the access to new markets are undeniable. In respect with the disadvantages of this process, the issue is not the globalization itself, but the modality in which actions are taken in pursuit of globalization. The most important positive aspects are the opportunity for rather poor countries to develop in an extremely rapid rhythm due to access to new technologies, products and information, direct investments and loans, high mobility of all production factors. Globalization leads to increased competition. This competition can be related to product and service cost and price, target market, technological adaptation, quick response, quick production by companies etc. When a company produces with less cost and sells cheaper, it is able to increase its market share. Customers have a large amount of choices in the market and it affects their behaviors. They want to acquire goods and services quickly and in a more efficient way than before. They also expect high quality and low prices. All these...

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