Globalization effect of the Economy

Globalization is a mixture of interactions between people and the exchange of goods or integration of foreign ideas to bring everyone closer together. This is accomplished by people, companies and governments of different nations and is driven by international trade. Globalization affects everything. It affects the environment, different cultures, political agendas or ideas, economics and human rights and development on a global scale. While it seems like a modern idea and brand new phenomenon, globalization has been around for quite a while. While globalization seems like it is great and the solution to making the world run like a well oiled machine, it is extremely controversial. Some advocates of globalization argue that globalization allows underdeveloped countries to begin developing and vastly increase their standard of living and increase the country’s wealth. Opponents of globalization see it as a kind of scam coming out of the western world. They feel as if an international free market only benefits western superpowers and western corporations and exploits other governments, and cultures. Globalization is responsible for major increases in worldwide trade and exchanges. These increases are made possible by ever increasingly open and borderless international economies. There has been tremendous growth in trade and exchanges, not only in international trade in goods and services, but also in exchanges of national currency, in capital movements and investments, in technology transfer, people moving through international travel and migration, and in international flows of information and ideas. The rise of the modern world has probably had the largest impact on globalization. Never before has humanity been able to travel so quickly and freely to other countries. We don’t really even need to do that anymore. It used to be impossible to do business or make trades with other nation’s economies without having to travel there. With advancements in communications and technology, these transactions can take place instantly electronically without both parties even having to leave a building, much less cross international borders. It is for reason such as these that the world economy has expanded and will continue to expand due to globalization. As long as globalization continues with the extremely rapid spread of ideas and technology, national economies will continue to come closer together.

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