Whereas the globalization of business is centered around the diminution of international trade regulations as well as tariffs, taxes, and other impediments that suppresses global trade, economic globalization is the process of increasing economic integration between countries, leading to the emergence of a global marketplace or a single world market. Depending on the paradigm, economic globalization can be viewed as either a positive or a negative phenomenon.
Economic globalization comprises: Globalization of production; which refers to the obtention of goods and services from a particular source from different locations around the globe to benefit from difference in cost and quality. Likewise, it also comprises globalization of markets; which is defined as the union of different and separate markets into a massive global marketplace. Economic globalization also includes competition, technology, and corporations and industries.
Current globalization trends can be largely accounted for by developed economies integrating with less developed economies by means of foreign direct investment, the reduction of trade barriers as well as other economic reforms, and, in many cases, immigration. more apparently, before the phase of Globalization, United States of America was a dominant country which held the essential economic power in world export. But after the advent of globalization, Germany, Japan, South Korea and China have significantly become serious counterparts by challenging the position of America.
Globalization and its Impacts on the World Economic Development . Albeit some countries in the world are for the idea that one country can economically dominate others and govern the entire world, now the institutions like United Nations Organization, International Monetary Fund, World Trade Organization and World Bank are considerably share the economic power and monitoring the balance of power distribution by regulating the relationship between different countries and governing issues of Justice, Human relations or political factors. Globalization and its Impacts on the World Economic Development .
International standards have made trade in goods and services more efficient. An example of such standard is the intermodal container. Containerization dramatically reduced transport of its costs, supported the post-war boom in international trade, and was a major element in globalization. International Organization for Standardization is an international standard-setting body composed of representatives from various national standards organizations.
A multinational corporation or worldwide enterprise[66] is an organization that owns or controls production of goods or services in one or more countries other than their home country. It can also be referred as an international corporation, a transnational corporation, or a stateless corporation.
A free-trade area is the region encompassing a trade bloc whose member countries have signed a free-trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers – import quotas and tariffs – and to increase trade of goods and services with each other. If people are also free to move between the countries, in addition to a free-trade agreement, it would also be considered an open border.
Arguably the most significant free-trade area in the world is the European Union, a politico-economic union of 28 member states that are primarily located in Europe. The EU has developed European Single Market through a standardised system of laws that apply in all member states. EU policies aim to ensure the free movement of people, goods, services, and capital within the internal market,
Trade facilitation looks at how procedures and controls governing the movement of goods across national borders can be improved to reduce associated cost burdens and maximise efficiency while safeguarding legitimate regulatory objectives.
Global trade in services is also significant. For example, in India, business process outsourcing has been described as the "primary engine of the country's development over the next few decades, contributing broadly to GDP growth, employment growth, and poverty alleviation".
William I. Robinson's theoretical approach to globalization is a critique of Wallerstein's World Systems Theory. He believes that the global capital experienced today is due to a new and distinct form of globalization which began in the 1980s. Robinson argues not only are economic activities expanded across national boundaries but also there is a transnational fragmentation of these activities. One important aspect of Robinson's globalization theory is that production of goods are increasingly global. This means that one pair of shoes can be produced by six different countries, each contributing to a part of the production process.
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