January 10, 2011
Professor Jing Liu
Globalization can be viewed as one of the major influences for the world’s progressions over the past centuries. It is comprehended that globalization has the potential to make countries and societies richer via free trading or little trade barriers providing knowledge and information to people around the world. Others perceive globalization negatively and view it as a major factor to exploit the poor while the rich gets richer around the world. Ultimately, international trade has brought global integration with the desire of a free global market with little trade barriers granting competition across borders. This paper will describe in depth the definition of globalization; identify the associated challenges and the opportunities that lead the world to continue to develop. Definition
As a general definition Globalization is define by the dictionary as the “the process enabling financial and investment markets to operate internationally, largely as a result of deregulation and improved communications” (Globalization, n.d.). Basically, businesses in domestics and national markets will investment their funds in international markets around the world. Their interconnectedness of diverse markets will increase international trade, economic power and cultural exchange with a minimum of trade barriers. Banking dictionaries interprets the definition of globalization as “interdependence of buyers and sellers of financial instruments in financial centers around the world” (Globalization, 2006). Globalization has created a high demand for international banking. Banks around the world have facilitated foreign businesses with alternative to cash management payment. Today, business has the facility to exchange payments with banking documents such as Letter of Credits which secures payment in exchange of goods minimizing risk of lost. Technology also plays an imperative role in the...