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Globalization and Technology - Essay Example

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Globalization can be said to be the increasing interconnectedness among countries that is known to impact on the political, social and economic aspect of a country. Globalization has been caused by the reduced barriers between countries thereby allowing world countries to…
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Globalization and Technology
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"Globalization and Technology"

Download file to see previous pages Economic globalization or integration has elicited mixed reactions due to the wide-ranging impacts that it has on the world economy. Despite the known advantages of globalization, this trend has also been opposed due to the negative consequences that it has on the world economy.
Those who have supported economic or financial integration of countries have pointed out the benefits of this trend to support their claims. The first advantage of globalization on the economy is that this trend results in the creation of global markets. Bordo, Taylorand Williamson, says that through the merging of the different world markets, a wider global market has been created (Bordo, Taylor and Williamson 31). Globalization has led to the widening and liberalization of the market. This has occurred through the removal of the trade barriers that historically existed. These trade barriers prevented businesses from operating outside their domestic markets.
Various corporations have exploited the expanded global market through various internalization strategies such as foreign direct investments and through exporting. This has allowed the businesses to increase their income and profits. Globalization has resulted in a much freer trade between the world countries, which has allowed domestic industries to access the international market. The access to the international market has also allowed these local companies to come up with new products and technologies that are needed and acceptable in the global market.
Held however disputes this by indicating that the entry of new companies and businesses to new markets has negatively impacted on the domestic companies (Held 20). When new businesses and multinationals cross the border to exploit the global market, they bring very stiff competition to the local businesses. The competition at times reduces the level of sales of the local and domestic products. This is said to discourage the coming up and growth of the domestic ...Download file to see next pagesRead More
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