The world is a global village. This is a phrase you must have had thrown around during business discussions. Those who say this are most likely referring to how small the world has become due to globalization which has removed boundaries to trade and communication between people in different countries.
Globalization a process where people, companies, and governments from different nations interact and integrate through international trade and investments has effects on the environment, culture, political systems, economic development and on the human physical well-being in societies around the world. Through the Internet, media, planes, international business and embassies we are now more connected to each other than ever before .
Due to globalization someone in China can easily communicate and sell their products to an individual the US. The rise of globalization is largely attributed to major changes in the telecommunications and transportation industries. Globalization today allows for goods to be made and sold all over the world. Companies to establish and compete for customers in many countries for example fast food chains are opening outlets every day around the world. Also, companies can operate where production costs are cheapest due to globalization. And it's not only products globalization also makes it possible to get services from around the word e.g. via the internet a US-based company can hire an accountant in India to do its taxes.
Globalization is not only about trade there is also the cultural aspect to it. Through it, different cultures meet and people get to know and understand the various ways of life and accept them. Now that you know what globalization is let's get into its impact
POSITIVE IMPACTS OF GLOBALIZATION
Gives access to a larger market - through globalization countries and companies have access to a bigger consumer ba se. Inste ad of only selling products in their country a business can expand to other regions boosting sales and in the process mak ing more money.
Provides cheaper goods for consumers - because of globalization a lot of companies are moving to areas where their cost of production is low they, in turn, offer cheaper products because they are not expensive to make hence lower prices for consumers.
