In business economics, the term is used to refer almost exclusively to the global effects of international trade and capital flows, and particularly to the effects of liberalization and deregulation of trade and investment, which in turn is often referred to as as "free trade" (in English: free trade).
Etymologically, certain authors consider the term globalization to be more appropriate in Spanish, a Gallicism derived from the French word mondialisation, instead of globalization, an anglicism from the English globalization, since in Spanish "global" is not equivalent to "worldwide", as it does in English.
Factors driving its development:
- Opening of markets
- Development of means of communication and transport, especially the Internet.
- Growth and mergers between companies.
- Privatization of public companies.
- International financial deregulation.
Potential Benefits:
- Global economy and market, which can lead to a better use of resources.
- Universal access to culture and science.
- Greater scientific-technical development.
- Greater ability to maneuver in the face of fluctuations in national economies.
- International cooperation.
- Global system for the protection of human rights.
Risks:
- Lack of control over markets and multinational companies (governance).
- Increase in economic, social and territorial imbalances.
- Concentration of wealth and increased social inequality.
- Failure to comply with minimum labor standards (precarious employment).
- Damage to the environment.
- Threat to biological and cultural diversity.
- Increased risk of transmission and spread of infectious diseases.
- Predominance of the financial-speculative economy over the real economy.
Energy and public service
Due to their limited IT budget, unpredictable market prices and the challenge of managing aging infrastructure, companies in the energy and utility sectors are always looking to improve their operational efficiency.
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Financial services
Financial service providers focus their efforts on growing revenues through increased customer focus, reducing costs through better operational efficiency, and establishing strong risk management and compliance structures.
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