Question

First, explain the difference between internationalization and globalization. Then, list and describe four measures of how globalization has been facilitated in recent years

Answer 1

Internationalization means increasing significance of international trade including international relations, treaties, and alliances (with other countries). On the other hand, globalization is the economic integration of many or all national economies into one economy that has come into existence with the help of free trade and free capital mobility including uncontrolled or easy migration of the people.

Measures that has facilitated globalization in recent years are as:

• Fast and sustained technological development has resulted in the reduction of the cost of transmitting and communicating information which is a fundamental element behind trade in knowledge products.
• The adjustment of tax systems by the countries to attract foreign direct investment (FDI) is also one of the main drivers of globalization.
• Reduction or elimination of non-tariff barriers (import licensing and foreign exchange controls) as well as tariff barriers (government-imposed restraint on the flow of international goods).
• Improved technology (internet) to communicate and share information easily has overcome managerial diseconomies of scale.