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Running Head: GLOBALIZATION

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Globalization and its Impacts

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GLOBALIZATION
Topic 1: Globalization and its Impacts
Meaning of Globalization
Globalization is first of all the process via which governments and companies, as well as
people, integrate and interact on a worldwide basis. It represents the global integration of
cultures, information technology, investment and international trade. It is usually driven by
policies developed by many countries which are meant to open up doors for both international
and domestic economies with the aim of boosting the living standards as well as enhancing the
development in places where people are poor and living under low living standards.
Globalization, therefore, affects every state and nation around the world and it is through it that
technology and trade are expanding on an international basis.
Factors facilitating Globalization

There are major factors that facilitate globalization. One of them is the structural changes
due to the significant improvements that have been done in communication technologies,
information, and transport (Nelly, 2018). These changes have been stimulated by more
innovation in the technology sector as well as faster and cheaper modes of transportation. For
example; the containerization process in most countries has led to the reduction in shipping
charges and hence people are more willing to import and export products on an international
basis hence promoting trade and globalization kicks in. The other factor is changes in the tastes
and preferences of most individuals hence opening their eyes for more varieties and choices of
services and goods. This way, they are able to think beyond their local or domestic markets and
are able to venture abroad to bring in the new products that they need or their customers need
and hence facilitating globalization.
The other factor facilitating globalization is the growth of multinational companies.
These companies have strong growth strategies which are based on global and international
expansion and when this happens, they are able to impact positively on those social classes
growing below the middle-class levels and this way globalization is enabled. The other factor is
changes in most government policies in that most government policies in the recent past have
been based on trade barriers as well as protection. This way, it facilitates easy trading on an
international basis and hence enabling global-based information sharing and trade which is
globalization in the making. The other factor is the economies of scale where most industries
have seen in increased minimum efficient scale (MES) within the recent past (Justin, 2018). This
means that the domestic markets are insufficient for the selling of goods and services and
therefore the expansion of the same is necessary and due to this, the industries are forced to
export the goods and services internationally so as to reduce the MES and hence promoting
globalization.

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GLOBALIZATION
Advantages of Gl...