The economy is the largest effect of globalization. The economy is the biggest factor worldwide that has been influenced by globalization.
Explanation:
The Milken Institute’s "Globalization of the World Economy" 2003 has reported many of the advantageous related to globalization while drawing some of the related risks that governments and investors should take into account. The values of this report are still relevant.
Some of the advantageous of globalization are:
• Foreign Direct Investment: Foreign direct investment (FDI) inclines to enhance at a much greater level than the development in world commerce, helping increase technology transfer, industrial reformation, and the development of global companies.
• Technological Innovation: Raised competition from globalization aids stimulate new technology growth, especially with the growth in FDI, which helps recover economic output by making progressions more efficient.
• Economies of Scale: Globalization allows large companies to fulfill economies of scale that demote costs and prices, which in turn helps further economic development, even though this can hurt numerous small businesses trying to compete in a domestic scale.
Some of the disadvantageous of globalization include:
• Interdependence: Globalization runs to the interdependence between countries, which could cause local or global uncertainties if local economic fluctuations end up influencing many countries depending on them.
• National Sovereignty: Many people see the upsurge of nation-states, multinational or global companies, and other international organizations as a danger to sovereignty. Finally, this could cause numerous leaders to become nationalistic or xenophobic.
• Equity Distribution: The advantageous of globalization can be unfairly tilted towards prosperous nations or individuals, generating greater inequalities and running to potential encounters both nationally and internationally as a result.
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Keywords : globalization, economy
Subject : History
Class : 10-12
Sub-Chapter : Globalization
