Advantages of Globalization

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Globalization can defined as the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure. Globalization has two facets; there are the globalization of markets and the globalization of production. The globalization of markets is merging of historically distinct and separate national markets into one huge global marketplace. It is important to recognize that significant differences still exist among national markets requiring companies to customize market, strategies, product textures, and operating practices to meet the condition in particular markets. The most global markets currently are not markets for consumer product where national differences in tastes and preferences are still often important enough to act as a brake on globalization. The globalization of production is sourcing of goods and service from locations around the globe to take advantage of national differences in the cost and quality of factors of production like land, labor and capital. Early outsourcing efforts were primarily confined to manufacturing enterprising but today more companies are taking advantage of modern communications technology to outsourcing service activities to low-cost producers in other nations.

Globalization can provide more employment to people in a country when companies have foray into the developing countries and hence generated employment for them. Here, we can get high employment than other countries. It has given an opportunity to invest in the emerging markets and explore the talents that they will be used in the future for their own benefit. In developing countries, there is often a lack of labor capital which hinders the...
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