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Globalization (How Do We Respond to Tensions Arising From the Economic…
Globalization
How Do We Respond to Tensions Arising From the Economic Impact of Globalization
Countries
a countries economy depends on different economic activities such as agriculture, tourism, trade and investments. When a country is doing economically well, it produces more jobs for its citizens.
Benefits
A country can benefit from the increased trade, as it would mean increased tax revenue and jobs, which could be used for building infrastructure and bringing in more goods for its citizens.
Another way a country could benefit from globalization is by foreign trade. This money could be used to further develop the country and enhance businesses , thereby attracting more and more foreign investors
Thirdly, FTAs only help boost trade between countries benefiting both countries, without either facing hindrances or tariffs.
Drawbacks
Due to the fact that other countries with larger populations have lower production can costs, and with FTAs, those countries can sell the same things, but for cheaper, and hence make local business bankrupt
The fact that countries are so interconnected and interdependent, that if one major countries economy fails, the entire worlds economy may fail. Case in point: 2008 Global Financial Crisis.
Companies
A Global Economy
As we globalize more and more, our economies become more and more interconnected with the world. Let's see the impact and tensions caused by this.
People
what does it mean to live in a globalized world?
what is globalization?
a process through which ideas and activities of people in different parts of the world become interconnected. These interconnections can lead to interdependent relationships between developments in the world and developments in a country
driving forces of globalization
Growth of MNC's
MNC's are businesses with economic activity in more than 1 country
as more and more MNC's become bigger and bigger, hence they increase global interconnections, relationships and international trade
benefits
providing employment
higher wages
new technologies and expertise
increase interconnections, relations and trade
Advances in Technology
advancements in technologies, namely communication, has improved the exchange of information around the world (via the internet and mobile communication)
The phone, for instance, has been a key factor for communication over the years,, with over 2.2 billion people using them globally
Developments in Transportation
Faster, bigger and cheaper methods of transport have been developed. These improvements helped in the transportation of many goods and people around the world.
examples
passenger planes
modern-day cars
container ships