The Changing Global Econ FIANL Essay Example | Topics and Well Written Essays - 4250 words

The Changing Global Econ FIANL - Essay Example The main features of globalization include liberalization, specialization of trade and exchange, increased connectivity, multi-dimensionality and top-down process. Liberalization Globalization is characterized by liberalization; liberalization is the freedom granted to businesspeople and industrialist to establish industries and carry out trading activities within the boundaries of their own countries or abroad. Liberalization involves free exchange of capital, goods, services, and technological advancements between countries and regions. Globalization guarantees increased trans-boundary cultural exchanges resulting from free flow of immigration, more differentiated products, tourism, and economic integration. Specialization of trade and exchange Specialization is the basic way through which trade works to improve people’s lives. International trade takes place because one country can produce what another country cannot produce. Prior to globalization, cross-border business wa s limited because most of the national economies were self-contained entities separated from one another by barriers to international trade and investments. Globalization has enhanced cross border business opportunities and enabled firms to sell what they can produce and buy those commodities they do not have the capacity to produce. Regional and international organizations have been formed to oversee the seamless trade among countries across the world. Member countries have to follow the guidelines provided. Trade and exchange has allowed countries, multinational companies, small companies, large scale and small scale producers to gain economically and small Increased Connectivity Globalization makes it possible for various localities to be connected with the rest of the world through removal of barriers to connectivity. This is achieved through the role of globalization of breaking national boundaries and enhancing the links between one community and another. Globalization creates proper links between countries through international transmission of information, literature, culture, technology, and knowledge. The space age device, the internet, has enhanced communication and knowledge exchange among people from different locations in the world instantly. It has also permitted people to understand the various cultures in the world, making it easy to interact and do business together. Multi-dimensional Process A multi-dimensionality approach to globalization implies that the concept can be looked at from three dimensions: economical, political, cultural, and ideological. Globalization in economic terms means opening up of global markets by enhancing free trade and commerce among countries of the world. Politically, globalization means decentralization of power and functions of state, which grants more rights and freedoms to people through empowerment of the private sector. In cultural terms, globalization refers to the exchange of cultural values among various societies and nations of the world. Ideologically, globalization is the spread of liberalism and capitalism. Top-down Process Globalization origintates from the industrialized world and Multinational Corporations, and spans to less industrialized countries. Technologies, capital, goods, and services are manufactured in industrialized countries and sold to the developing world. It is the responsibility