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Globalization

Globalization allows countries to specialize in products and services where they have a competitive advantage, theoretically leading to increased efficiency and economic growth. It is driven by policies promoting free trade and international cooperation, facilitated by technological advancements in transportation and telecommunications. However, globalization has both positive effects, such as economic growth and cultural exchange, and negative effects, including economic inequality and environmental degradation.

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14 views2 pages

Globalization

Globalization allows countries to specialize in products and services where they have a competitive advantage, theoretically leading to increased efficiency and economic growth. It is driven by policies promoting free trade and international cooperation, facilitated by technological advancements in transportation and telecommunications. However, globalization has both positive effects, such as economic growth and cultural exchange, and negative effects, including economic inequality and environmental degradation.

Uploaded by

mariafrancisca
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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How globalization works

In a globalized economy, countries specialize in the products and services they have
a competitive advantage in. This generally means what they can produce and
provide most efficiently, with the least amount of resources, at a lower cost than
competing nations. If all countries were specializing in what they do best,
production should be more efficient worldwide, prices lower, economic growth
widespread and all countries benefiting -- in theory.
Policies that promote free trade, open borders and international cooperation drive
economic globalization. They enable international businesses to access lower priced
raw materials and parts, take advantage of lower cost labor markets, and access
larger and growing markets around the world in which to sell their goods and
services.
Money, products, materials, information and people flow more swiftly across
national boundaries than ever. Advances in technology enable and accelerate this
flow and the resulting international interactions and dependencies. These
technological advances have been especially pronounced in transportation and
telecommunications.
Globalization has both positive and negative effects, including economic growth,
environmental degradation, and cultural exchange.
Positive effects
• Economic growth: Globalization has led to economic growth in many
countries.
• Technological advancement: Globalization has spread technology and
innovation.
• Cultural exchange: Globalization has increased opportunities for cultural
exchange.
• Improved living standards: Globalization has improved living standards for
many people.
• Access to new markets: Globalization has given businesses access to new
markets.
• Access to new talent: Globalization has given businesses access to new
talent.
Negative effects
• Economic inequality: Globalization has increased economic inequality, with
jobs moving to lower-wage countries.
• Environmental degradation: Globalization has led to environmental
degradation, including pollution and resource depletion.
• Labor exploitation: Globalization has led to labor exploitation.
• Threats to national sovereignty: Globalization has threatened national
sovereignty.
• Cultural homogenization: Globalization has led to cultural homogenization,
where dominant cultures influence local culture.
• Loss of jobs: Globalization has led to job loss in some countries.
• Increased corruption: Globalization has increased corruption

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