Did you know the importance of international trade when we refer to a global economy? Believe it or not, there is a close relationship between globalization and international trade, because thanks to globalization, are achieved exchanged both goods and services between the various regions of the world.
From Internacionalmente.com we want to emphasize an issue that we consider fundamental, no country in the world has all the resources it needs. A global economy allows the exchange of services and goods, which are completely necessary among the various business partners.
What are the advantages and disadvantages of economic globalization?
Below, we present the different advantages and disadvantages of the so-called economic globalization for you to know.
Main advantages of economic globalization
Reduced prices
Undoubtedly, one of the main advantages of international trade in a global world is that it allows greater competition between different companies, reducing the costs necessary for the production of both goods and services. As a result of this, the user gets lower prices.
Generation of direct and indirect jobs
The irruption in the different countries of chains such as, for example, multinationals, favors the creation of a wide variety of direct and indirect jobs.
Increase investment in Research and Development
Generally, a notable impact takes place between the different companies in the different sectors. Due to greater competition among entrepreneurs, it tends to increase investment and this facilitates an increase in the quality of products for the consumer.
Improve the distribution of wealth and access to resources
It is an effective way to distribute wealth, generate skilled jobs and allow a significant portion of the population to access resources that would otherwise be much more difficult.
Some of the most important disadvantages of economic globalization
It can negatively impact the care of the environment
The exploitation of the resources environmental requires regulations that protect the natural environment. On different occasions, said exploitation by both companies and multinational chains, may involve negative impact on nature, the living beings that comprise it and its environment.
Transfer of companies and multinationals to other countries in the world
Economic globalization facilitates the access of companies to different continents and regions of the world. This can be an important disadvantage because sometimes, countries with more advantageous regulations and fiscal regulations can attract companies to these locations.
Economic inequalities
In the case of underdeveloped countries, it can be a disadvantage to take into account. The concentration of wealth in more developed countries can cause an accumulation of this capital and cause wage inequalities between different countries.
Increase in unemployment rates
One of the main criticisms that different experts make to globalization is precisely that it generates an increase in unemployment, especially in the most developed countries. Large multinationals and generally companies is they can move to other regions of the world where wages are lower and the cost of raw materials also.
It's your turn, what is your opinion about international trade in a global world?
From Internacionalmente.com we want to emphasize an issue that we consider fundamental, no country in the world has all the resources it needs. A global economy allows the exchange of services and goods, which are completely necessary among the various business partners.
What are the advantages and disadvantages of economic globalization?
Below, we present the different advantages and disadvantages of the so-called economic globalization for you to know.
Main advantages of economic globalization
Reduced prices
Undoubtedly, one of the main advantages of international trade in a global world is that it allows greater competition between different companies, reducing the costs necessary for the production of both goods and services. As a result of this, the user gets lower prices.
Generation of direct and indirect jobs
The irruption in the different countries of chains such as, for example, multinationals, favors the creation of a wide variety of direct and indirect jobs.
Increase investment in Research and Development
Generally, a notable impact takes place between the different companies in the different sectors. Due to greater competition among entrepreneurs, it tends to increase investment and this facilitates an increase in the quality of products for the consumer.
Improve the distribution of wealth and access to resources
It is an effective way to distribute wealth, generate skilled jobs and allow a significant portion of the population to access resources that would otherwise be much more difficult.
Some of the most important disadvantages of economic globalization
It can negatively impact the care of the environment
The exploitation of the resources environmental requires regulations that protect the natural environment. On different occasions, said exploitation by both companies and multinational chains, may involve negative impact on nature, the living beings that comprise it and its environment.
Transfer of companies and multinationals to other countries in the world
Economic globalization facilitates the access of companies to different continents and regions of the world. This can be an important disadvantage because sometimes, countries with more advantageous regulations and fiscal regulations can attract companies to these locations.
Economic inequalities
In the case of underdeveloped countries, it can be a disadvantage to take into account. The concentration of wealth in more developed countries can cause an accumulation of this capital and cause wage inequalities between different countries.
Increase in unemployment rates
One of the main criticisms that different experts make to globalization is precisely that it generates an increase in unemployment, especially in the most developed countries. Large multinationals and generally companies is they can move to other regions of the world where wages are lower and the cost of raw materials also.
It's your turn, what is your opinion about international trade in a global world?
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