Question

Discuss globalization as a flat world. And, are there barriers to be addressed? Give examples, and cases.  

Answer 1

Globalization:- Globalization is the integration of the world economies. Globalization has integrated the major economies of world by reducing the barriers between them. Globalization has turned the whole world as global village. It has facilitated the free flow of goods and services between the countries. The countries are open to the world. The globalization has facilitated the foreign direct investment between countries. The countries have gained by this process that is globalization. Globalization has also impacted few other countries. Globalization has reduced the trade barriers such as Voluntary exchange restraints, quotas, tariffs and subsides. The globalization has also created an atmosphere of peace and security. The countries are engaged on free flow of technology, investment, education , health and other important sectors.

Globalization has connected the whole world. Globalization has resulted in greater interconnectedness among markets around the world and increased communication and awareness of business opportunities in the far corners of the globe. More investors can access new investment opportunities and study new markets at a greater distance than before. Potential risks and profit opportunities are within easier reach thanks to improved communications technology.
Products and services previously available within one country are made available to new markets outside the country due to globalization. In addition, countries with positive relations between them are able to increasingly unify their economies through increased investment and trade.

Globalization has increased the competition among nation's. Companies are broadening their target area, expanding from local areas and home countries to the rest of the world. Suddenly, some companies are fighting strong competition from outside their home country. This forced them to source materials and outsource labor from other countries. This story of ‘sourcing and outsourcing’ turned many companies into global ones, actively seeking for production locations and partners for new ventures. Globalization has facilitated this and made the transition to global markets easier.

The trade barriers such as quotas, tariffs, subsidies, embargo, voluntary export restraints and anti dumping duties a reduced to a greater extent by globalization. We know that these trade barriers cause a limited choice of products and, therefore, would force customers to pay higher prices and accept inferior quality. With increased international trade and global capital flows, critics argue that income disparities between the rich and poor are exacerbated, and industrialized nations grow in power at the expense of under-capitalized countries. The globalization has paved the way to reduce these restrictions to the lowest possible level.

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