Institution of Affiliation
Over the past decades, globalization has considered to be comprehensive processes, which have led to interaction among people, companies and entire governments of the world. The effect of globalization has been made possible by overall growth of investment, exchange of technology and international trade which is currently being practiced. Therefore, there have been thorough changes of environmental conditions and cultural practices among the people of various countries. It should be noted that globalization has contributed to modern impacts in human life as individuals are able to move from one region to another with more ease compared to previous years. In the recent research, implications of globalization have contributed towards economic growth and overall attraction of investors to various countries of the world (Lemert, 2016).
The paper will discuss and evaluate the effect of globalization to economic growth across the world and market efficiency.
Benefits of Globalization to Economic Growth
According to most economists of the world argue that globalization have contributed to overall growth of economies across the world. Through globalization, market accessibility has been made possible thus increasing competition for goods and services being provided in modern world. in recent past, due to the effects of globalization there have been limited military conflicts as experienced previously and equal spread of wealth among nations of the world that are being used currently to meet the desires and requirements of individuals involved. However, some individuals in the modern life have considered that the effects of globalization are short-term in nature and have problem associated with exploration of available resources. Therefore, the governments and investors should world towards solving the problems driven as a result of globalization to enable ordinary citizens to embrace the role of current globalization. Some of the benefits that may be associated with globalization may include technological innovation being experienced in the world and direct foreign investment (Todaro & Smith, 2009).
In a well structured view of globalization there is adequate change on economies of scale where large companies and corporations are able to realize their potential to promote economic growth of respective countries. Moreover, there will be overall reduction on the cost of production and prices of the commodities being produced by various companies to meet the market requirements and expectations. The short-come to this effect is that small business will be highly being affected and limit their growth to meet the expectation of the world standards. Thus, regulations and restrictions ought to be practiced in order to allow the domestic industries with aim of safeguarding the existing internal market (Kundu & Munjal, 2017).
Despite, the benefits of globalization in the modern world, the development have led to comprehensive interdependence between various countries and nations which have led to global economic instability. Apparently, some developing nations are rising alarm that the trend will affect sovereignty of their nations. This is contributed by excessive interference from external nations which are considered to have ill intentions to their developmental progress. It should be noted that globalization can be structured to work unfairly towards developed countries and individuals. The associated outcome will be unequal distribution of resources both at domestic and international standards thus, paving way for potential rise of conflicts.
Kundu, S., & Munjal, S. (2017). Human Capital and Innovation: Examining the Role of Globalization. London: Palgrave Macmillan UK.
Lemert, C. C. (2016). Globalization. Taylor and Francis.
Todaro, M. P., & Smith, S. C. (2009). Economic development. Boston: Pearson Addison Wesley.
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