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It comes with a cost-benefit package (Faux, 2007).
The export and the import of the nation get affected due to globalization. So, the policies previously formulated e.g. in United States hampered export. It affected the currency value of the country, the value of goods and services with job losses. The trade practice gets affected if globalization is not in the favor of the domestic country. Some restrictions are required so as to prevent the middle and the small class of the businesses to bear the heat of globalization (Imade, 2003).
The products and the services sold in the global market generate foreign currency. The products and services that are availed in the domestic country of the globalized world helps in the flow of currency from own economy to the other economy. So, the balance of payment gets affected. The balance of payment shows a negative balance which implies the country is facing problem in terms of international trade. The balance of payment should be always positive or equal vent in nature so as to minimize the risk of currency value in the world economy.
Globalization also gives an opportunity of Foreign Direct Investments (FDI), which means inflow of foreign currencies for investment purposes through companies within the domestic country which also increases the economic strength of the nation. But also as it is foreign money, the return related to it would also be transferred to the foreign investor. Ultimately, the big corporate gets the advantage of foreign currency and grows further (Heakal, 2010).
Both the transacting parties can gain absolute advantage from globalization. Specialization in terms of technology or labour gives opportunity to produce goods or services at a low cost and gets them exported. The imported goods or services come at a low cost in comparison to its manufacturing cost in the country. By this way, it is expected that the values of goods and services comes at a cheap rate. But if the policy is formulated is in
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Globalization leads to drastic changes in social conditions of millions of world’s residents, expressing itself both in constant shifts in global production and the disruption of ‘usual’ cultural conventions. That is why it is necessary to analyze the problem of globalization, so that the overcoming of its drawbacks may be possible.
Moreover, there are assumptions that the economic globalization or integration of nationally based economics to form a single international economy via foreign direct investment, trade or capital flow or technology spread (Appadurai, 2000; Garrett, 2000).
Today’s information advances and the globalized economy have deeply and permanently reshaped the economic, educational, political, and social setting of the world. The once limited, slow, and conservative tempo of societal transformation has now become borderless, fast, and far-reaching.
Although the term ‘globalization’ is commonly used in lieu of the term ‘economic globalization’, it has a wider meaning and application in the modern world which covers socio-political and cultural globalization. It is fundamental to have a clear and specific definition of globalization in order to improve sustainable explanations, precise evaluations and effective policies of the same.
This paper explores concepts of globalizations and economic systems. Concept of globalization One of the fundamental concepts of globalization is its interconnectivity of different aspects across the globe, a feature that identifies shared characteristics that are transferred across developed international networks.
Globalization is simply an international process which arises from interchanging of products, ideas, world views and many other aspects of culture. This process has an effect on the culture, on the environment, on the political system, on the prosperity and development of the economy and also on the well being in the societies around the whole world (Globalization101, 2012).
The layman's perception is predominantly confined to economic aspects of globalization, which is a very narrow perspective and is mostly confined to a mere expansion of trade and investments. However, the process of globalization has much wider implications that go beyond the mere internationalization of markets.
It impacts the general environment and culture in different countries, the processes of trade effect culture and the processes themselves get affected by culture and adapt. (Levin Institute, 2014) Globalization
For instance, globalization is essential for organizations because it enhances cultural integration and appreciation. This arises when students or workers admitted embrace different cultural backgrounds and they can freely share and
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