Economic Globalization Effects and its Studies

Agostini Marisa^*
*Correspondence: Agostini Marisa, Department of Business Economics and Management, University of Venice, Dorsoduro, Italy, Email:

Introduction

The process of globalisation is how concepts, information, expertise, goods, and services go across national and international borders. The phrase is used in the business world to refer to linked economies characterised by free trade, the free movement of capital, and simple access to foreign resources, especially labour markets, in order to maximise profits and benefit for the general welfare. Countries specialise in the goods and services where they have a competitive advantage in a economy. This typically refers to what they can produce and supply more cost-effectively than rival nations while using less resources. In theory, if every nation focuses on what it does best, global production should be more efficient, prices should be lower, economic growth should be widespread, and every should profit.

Description

Economic globalisation is fuelled by policies that support free trade, open borders, and international cooperation. They give companies access to less expensive labour markets, cheaper raw material and component markets, and larger, expanding global markets in which to sell their products. Globalization is not brand-new. Since the dawn of civilisation, neighbours have been exchanging products. As cultures developed, they gained the ability to travel further to exchange their own items for valuable ones obtained from other cultures. An early example of globalisation is the Silk Road, a network of ancient trade routes that connected traded silk and spices for glass and manufactured products for more than helping to create a global economy in which were accustomed to imports. Globalization took place on a large scale after colonisation of the New World; the broad exchange of plants, animals, foods, civilizations, and ideas became commonplace [1].

Because of the quickening pace of communication and transportation improvements, globalisation has accelerated recently. Businesses can now find investment opportunities because to communication advancements. Information technology advancements allow for immediate communication and a quick transfer of financial assets across international borders. Globalization is also aided by improved domestic fiscal regulations and trade agreements among nations. Globalization is also facilitated by political and economic stability [2].

Businesses benefit from globalization's ability to access raw commodities at lower prices, giving them a competitive edge. Organizations can benefit from cheaper labour costs in developing nations as a result of globalisation, while simultaneously utilising the technical know-how and experience of more advanced economies. Due to globalisation, various components of a product may be produced in various parts of the world. The automotive industry, for instance, uses globalisation extensively because various car parts may be produced in many nations. Even seemingly straightforward goods like cotton T-shirts can be produced [3].

Services are also impacted by globalisation. Because of reduced labour costs, automakers moved their operations there as part of the Free Trade Agreement. The end consequence is greater employment in nations where it is necessary, which can boost the economy and raise living standards excellent illustration of a nation that has greatly profited from globalisation. Another instance is where the rise in rice prices brought many impoverished rice farmers out of poverty as a result of globalisation. More children of lowincome families emerged as the level of living rose [4].

These kinds of transactions undoubtedly picked up speed during the Age of Exploration when adventurers looking for new sea routes to spices and silks instead ran into the. Once more, technology was crucial to the maritime trading routes between ancient and recently discovered continents. The development of the magnetic compass and new ship designs were crucial to the explorers' success. Were sent on ships bringing plants, animals, and silver between the Old and New Worlds, expanding trade and intellectual interchange to a hitherto disconnected region of the world. On this increased access to world information to increase their productivity and potential for creativity. It is discovered that knowledge transfers from the significantly increase productivity and domestic innovation in both advanced and emerging market economies. For instance, assuming the amount of domestic research and development is held constant; an increase in knowledge flows from the is connected on average with an increase in patenting activity by the recipient country-sector. And this influence has grown stronger over time, particularly for emerging market economies [5].

Conclusion

The benefits of globalisation are not universal. Any change involves winners and losers, and those who reside in areas where jobs have been outsourced to other countries frequently lose out. In practise, this means that workers in developed countries must compete for jobs with workers in lowercost markets; unions and workers may not be able to defend against the threat of corporations that offer employees the choice between receiving lower pay and losing their jobs to a supplier in a labour market with lower wages. During the Age of Revolution, when concepts of liberty, equality, and fraternity spread like wildfire from beyond, the network of globalisation continued to widen. It was propelled by the development of industries, trains, steamboats, vehicles, and aeroplanes.

Acknowledgement

None.

Conflict of Interest

There are no conflicts of interest by author.

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