The effects of Globalization are manifold, affecting various aspects of the world economy to bring about overall financial betterment.
The effects of Globalization exert intense influence on the financial condition as well as the industrial sector of a particular nation. Globalization gives birth to markets based on industrial productions across the world. This in turn, widens the access to a diverse variety of foreign commodities for consumption of the customers, owing to the marketing strategies undertaken by different corporations.
In the world economic arena, Globalization facilitates the formation of a common worldwide market, on the basis of the liberal exchange of both cash and kinds.
As far as Political Globalization is concerned, it helps in the formation of a world government to normalize the existing interactions among countries. It also ensures the rights emerging out of Economic and Social Globalizations.
Promotion of liberal trading activities is perhaps the greatest contribution of Globalization, acting as a boon to the world economy. Following are the advantages enjoyed by countries engaged in mutual free trades:
Considerable reduction in the cost of transportation, especially with the development of containerization with respect to overseas ocean shipments
Decrease or abolition of control over capital and the capital market
Formation of free zones for carrying out commercial activities, against payment of little or no tariffs at all
Decrease, abolition or synchronization of subsidies in domestic trades
Decrease or abolition of every kind of tariffsHowever, the concept of free trade emerging from Globalization suffers from limitations as well:
Restrictions imposed on the supernatural identification of intellectual properties. This means that the patents granted by a particular nation will by recognized in another country.
Synchronization of intellectual asset laws across most states are subject to additional restrictions.
Amid concern that last week's trade talks would end in failure and render the World Trade Organisation obsolete, member countries finally reached a global trade reform deal Saturday – the first in the WTO’s 18-year history. But while there was a lot of back patting, what the group actually accomplished is up for debate.
The WTO Multilateral Trade Negotiations in Bali almost failed. By negotiating for one day beyond the scheduled conference time, 159 exhausted nations finally concluded an agreement.
Nouriel Roubini, a.k.a. “Doctor Doom”, is chairman of Roubini Global Economics and professor of economics at New York University’s Stern School of Business. Roubini has been consistently cited as one of the world’s top global thinkers. This year, he was voted as the most influential economist in the world by Forbes magazine.
Eric J. Gleacher Distinguished Service Professor of Finance at the Booth School of Business at the University of Chicago. IMF’s Chief Economist from September 2003 to January 2007. Inaugural recipient of the Fischer Black Prize.
CEO and co-CIO of PIMCO. Served as President and CEO of the Harvard Management Company for 2 years, while also working at the IMF for 15 years. In 2008, his book "When Markets Collide", won the Financial Times award for Business Book of The Year in addition to being named as the one of the best business books of all time by The Independent.
Andrea Edwards has worked in marketing and communications all over the globe for 20 years, and is now focused on her passion – writing. A gifted communicator, strategist, writer and avid blogger, Andrea is Managing Director of SAJE, a digital communications agency, and The Writers Shop – a regional collaboration between the best business writers in Asia Pacific