Globalization
Globalization is the increase in the interdependence of global economies. This interdependence is made possible by the technological advances, and the flow of capital internationally. Globalization has both negative and positive effects on the economy of a given country. The following paragraphs discuss the impact of globalization on the landscape of a country’s economics
One of the main advantages of globalization to a given nation is the increase of financial opportunities. An economy that is not globalized depends wholly on domestic investors to finance certain economic ventures. However, with a globalized economy, an individual can seek investors from any country. This characteristic of a globalized economy offers a nation more opportunities compared to an economy that depends only on local investors. A globalized market is, therefore, likely to advance faster than a local non-globalized economy.
One of the adverse effects of globalization in a given economy is job insecurity. People from developing countries where the unemployment rates are high offer cheaper labor compared to those from developed nations. Globalization enables organizations to outsource work from these developing nations. This is because these people are willing to deliver the same amount of output with prices as low as half the regular price a company was paying the native workers. The local personnel, therefore, face unfair competition from the developing countries.
Transport of goods and services from one point of a market to another is the backbone of economic growth. Without transportation, an economy cannot develop since the products need to get to their destination. This section of the paper seeks to outline how transport affects economic growth.
The main advantage of good transportation infrastructure is productivity. When there is an improvement in transportation structure, there is increased access to markets by customers and the companies. People are also able to access jobs, services, and goods easily. This increase in productivity is due to the reduced amount of time traveling to the places of work (for a worker) or the destination of a particular product. Good transport infrastructure brings the job market nearer to the workers and thus increase their efficiency. The overall effect of this is increased productivity of the workers and hence the company.
In conclusion, it is evident that globalization is advantageous to a nation despite the challenges that come along with it. The problem of labor market competition is easy to eradicate by prohibiting the importing of foreign cheaper labor. Transport, as discussed above, plays a critical role in improving the growth of an economy. It is therefore vital to have good infrastructure in a country to enable seamless economic advancement.