It is the advantages of Globalization which act to bring about economic welfare on international levels, thereby benefiting the worldwide population.
Mentioned below, are the advantages of Globalization which facilitate the development of world economies immensely:
- Free movement of capitals offers access to the foreign investments to many countries like the United States of America.
- The worldwide commercial market becomes so flexible due to the advent of Globalization, that transactions of the international companies are not restricted to geographical borders of the countries.
- Globalization enhances the flow of capital, permitting the investors to invest on the untapped resources of the developing countries.
- Globalization of the mass media has reduced the global space substantially, keeping the people informed about all latest international happenings through different television channels.
- Improvement in global communication networks leads to easy flow of important information not only to individuals but at company levels as well.
- The democratic thoughts are rapidly spread among countries across the world, owing to Globalization.
- Globalization stresses on increasing mutual dependence among all the nation-states across the world.
- Globalization lessens the possibilities of warfare among developed countries to considerable extents.
- The developed countries display a tendency for working towards protecting their surrounding environments to large extents.
- Globalization enhances free international trades among countries across the world.
- The total output levels of a country increase when productions become competition-oriented. This means that to compete with the existing world market, the products must be of best qualities and they also improve the lifestyle of the overall population.
- Cheap imports and extensive competition on international level keep a check on the prices leading to lower inflation rates, which occasionally interrupt the economic growth and development of a nation.
- Economic Globalization ushers in the concept of Open Economy, where there is an extensive promotion of technological growth and inventions. This requires new topics and concepts to be imported from abroad.
- Employments in the export-oriented industries generally pay its employees approximately 15% more than the import-oriented jobs in a country.
- One of the positive effects of Globalization is the smooth and speedy transportation of people and commodities to different corners of the world.
- Globalization reduces cultural blockages and differences among nations, by encouraging fellow-feeling and mutual compassion.