Globalization and International Economic Relations

Globalization refers to the integration among societies and economies across the globe. The process of globalization ensures the integration individual national economies with the global economy.

Globalization has led to social, economic, technical, cultural and ecological interdependence among nations. Globalization has a major impact on the economic scenario of individual countries and the global economy as well. International economic relations have gained paramount importance in the era of globalization. International economic relations undertaken in the light of globalization have led to rapid development and decline in poverty in many developing countries like India and China.

International economic relations play an important role in the growth of economies across the world. For economic relations between nations to be successful, a number of conditions need to be fulfilled. Unrestricted movement of goods and services, flow of capital, mobility of workforce, and reduction of regulatory obstacles need to be ensured for successful economic relations.

Globalization has played an important role in fostering economic relations among nations across the world. In the era of globalization, countries have realized that economic co-operation with other nations is strategically important for the growth of the economy.

The important aspects of globalization and international economic relations are –

Globalization ensures easier movement of goods and services across nations. This is an absolute necessity for fostering international economic relations.

Easier movement of people between countries has also been made possible by globalization which is conductive to international economic relations. This also helps people in one country to migrate to another for employment thereby addressing the problem of unemployment in many countries.

Globalization leads to free trade between countries. Since the early days of globalization numerous bilateral trade agreements have been signed between countries.

Globalization has ensured easier and faster flow of information across geographical boundaries. The success of economic relations is often dependant on information.

Globalization has led to reduction in cultural barriers which has proved to be conductive for economic co-operations among nations.

Movement of capital between countries due to globalization has also played an important role in international economic relations.

Globalization has given rise to several multi-national corporations who undetake economic activity across geographical borders.

Globalization has helped to address environmental issues which are strategic to international economic relations.