With fewer restrictions on trade, globalization creates opportunities to expand. Businesses find cheaper raw materials and parts, less expensive or more skilled labor and more efficient ways to develop products. More open access changes the way products are developed, supply chains are managed and organizations communicate. It removes the barriers set by geographic constraints, political boundaries and political economies.įor example, globalization enables businesses in one nation to access another nation's resources. Specifically, it changes the nature of economic activity among nations, expanding trade, opening global supply chains and providing access to natural resources and labor markets.Ĭhanging the way trade and financial exchange and interaction occurs among nations also promotes the cultural exchange of ideas. Globalization changes the way nations, businesses and people interact. Automation speeds up processes and supply chains, giving workforces more flexibility and improving output. 3D printing enables digital designs to be sent anywhere and physically printed, making distributed, smaller-scale production near the point of consumption easier. Advances such as automation and 3D printing have reduced geographic constraints in the manufacturing industry. And changes in shipping logistics technology moves raw materials, parts and finished products around the globe more efficiently. Advances in air and fast rail technology have facilitated the movement of people and products. Increased speed and bandwidth are among the benefits of 5G technology. The introduction of 4G and 5G technologies has dramatically increased the speed and responsiveness of mobile and wireless networks. It has contributed to closing the digital divide between more and less advanced countries.Ĭommunication technology. The internet has increased the sharing and flow of information and knowledge, access to ideas and exchange of culture among people of different countries. These technological advances have been especially pronounced in transportation and telecommunications.Īmong the recent technological changes that have played a role in globalization are the following: Advances in technology have enabled and accelerated this flow and the resulting international interactions and dependencies. Money, products, materials, information and people flow more swiftly across national boundaries today than ever. They enable businesses to access lower priced raw materials and parts, take advantage of lower cost labor markets and access larger and growing markets around the world in which to sell their goods and services.
The ordinary world definition free#
Policies that promote free trade, open borders and international cooperation all drive economic globalization. If all countries are specializing in what they do best, production should be more efficient worldwide, prices should be lower, economic growth widespread and all countries should benefit - in theory. This generally means what they can produce and provide most efficiently, with the least amount of resources, at a lower cost than competing nations. In a globalized economy, countries specialize in the products and services they have a competitive advantage in.
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