Definition of Globalization
Globalization simply means the changing of the world from many different economies, cultures, and societies to a single one. It is used to address the political and social changes around the world. Globalization refers to worldwide trade that links economies together in such a way that they are all interdependent.
Benefits of Globalization
1. Availability of goods, which helps in improving the standard of living of the people.
2. Decrease in poverty level around the globe.
3. Democracy becomes the order of the day, countries are now receptive to human rights.
4. It brings about a common language for the world (the English language has become the language of business in the world through the internet, mail, and mass media).
5. It brings about an understanding of cultural differences through trade.
6. It leads to reduction of worldwide inequality due to economy expansion.
7. It leads to complete improvement in the overall performance of countries, an increase in the growth rate of real per capita GDP.
8. Reduction in internal and external imbalances.
9. Liberalization of agricultural marketing and reduction in administrative price controls.
10. Fiscal reform is gaining ground through rationalization of tax system to reduce exemption and enhance administrative efficiency.
Disadvantages of Globalization
1. Uneven gathering of wealth [The rich getting more richer] some poor countries are unable to produce some goods because it can be produce cheaper by the developed countries.
2. Workers in wealthy countries believe that their jobs are heading to poorer countries while workers in poor countries are oppressed because they work for relatively low wages.
3. Environmental damages as a result of technological development.
4. Some countries fear that globalization may destroy their valued cultures and traditions as foreign cultural values are introduced.
5. The neglect of race and ethnicity in account of making of new global order.
Features of Globalization
1. Free access to the market in the world without any physical [Quota] or fiscal [tariff] or any government restriction.
2. Globally standardized products needs to be marketed all over the world.
3. Globalization requires resources such as raw materials, finance, and technology.
4. In globalization there is free mobility of managerial personnel and entrepreneurs.
1. Explain the challenges of globalisation
2. Calculate, based on the data
a. Balance of Trade
b. Invisible Balance
c. Balance on current accounts
d. Balance of payment