Skip to main content

Globalization

Globalization is the rapid integration of production and investment decisions across the world by economic agents desirous of taking advantage of the environment where their competitive edge can manifest in high returns. Under globalisation, capital is moved and employed in countries with higher productive investment opportunities. With rapid integration of national economies through globalization, the economic prospects of nations are becoming increasingly determined by factors beyond the scope of domestic economies. This is because national economic development which entails the application of a consistent set of policy measures to raise the level of economic growth and ensure a fair distribution of the proceeds of growth can be undermined by unfavorable developments not only in the domestic economy but also in the development in the trading partners economies and other major economies in the world.
  Globalization therefore imposes discipline on nations if they must survive the competition arising from it. Globalization also shows in the rising share of international trade in world output and the rise in capital mobility which includes direct investment. National economies are becoming more integrated as cross border flows of trade, investment and financial capital show remarkable increases. Under a global setting, consumers buy more foreign foods, firms operate across national borders, savers invest more abroad, thereby increasing the potential to boost productivity living standards of countries.
   An integrated global economy engenders a more effective division of labour among countries and allows firms to exploit bigger economies of scale. That is, globalization of trade and investment increases specialization and efficiency, better quality products at reduced prices, competitiveness, output and technological improvement and improved entrepreneurial skills. It also guarantees consumers satisfaction since the best standards of quality are maintain through specialization and competition. The increase in foreign direct investment flows facilitates the growth in world trade and output by increasing the international mobility of capital and ensuring efficient development and use of technology and other resources in the production process to achieve unit cost. To that extent, globalization is necessary for national economic development, in particular, and crucial for global economic growth in general.

Comments

Popular posts from this blog

Why kids run away

Why Kids Run Away Remember how you felt the last time you got in a big fight with your parents or one of your brothers or sisters? That kind of anger and hurt can be what pushes someone to run away from home.These are problems faced by lots of kids and teens — and there are ways to deal with all of these problems besides running away. Kids who think about running away might not know how to solve tough problems or don't have adults to help them. Sometimes a really big problem can make it seem like running away is the only choice. Unfortunately, the problems kids hope to escape by running away are replaced by other — sometimes even bigger — problems of life on the streets. When you think about running away, you probably imagine that there will be no more rules, no parent to tell you what to do, no more fights. Sounds great and exciting, right? In reality, running away is anything but fun. Kids and teens who run away face new problems like not having any money, food to eat, a s...

THE RIVER CROSSING.

It is no military secret that an opposed river crossing operation is difficult even under ideal conditions. But without adequate standard equipment and with a poor level of training of soldiers and officers, it could become impossible. But the Army Headquarters and Supreme Headquarters had strongly advised against embarking on an opposed river crossing because of inadequacy of equipment and deficiency in the training of troops for such a semi-specialist operation. The Supreme Headquarters had advised on unopposed crossing while the division passed through 1 Division's secure position to capture the town. The Division commander decided to take a grave and calculated risk that could be called bravado. But if the operation had been successful, as it nearly was, it would have been one of the most praiseworthy operations of the entire war. In the end, it failed and the commander had to take the blame for it.     The first landing, in which the Division Commander himself took part,...

How to lose weight

Choose a low-carb diet If you want to lose weight you should start by avoiding sugar and starch (like bread). This is an old idea: For 150 years or more there have been an infinite number of weight-loss diets based on eating fewer carbs. What’s new is that dozens of modern scientific studies have proven that, yes, low carb is the most effective way to lose weight . Obviously, it’s still possible to lose weight on any diet – just eat fewer calories than you burn, right? The problem with this simplistic advice is that it ignores the elephant in the room: Hunger. Most people don’t like to “just eat less”, i.e. being hungry forever. That’s dieting for masochists. Sooner or later a normal person will give up and eat, hence the prevalence of “yo-yo dieting”. The main advantage of the low carb diet is that they cause you to want to eat less . Even without counting calories most overweight people eat far fewer calories on low carb. Sugar and starch may increase your hunger, while avoiding t...