The expansion of the global market
The expansion of the global market implies that economies around the world are becoming more interdependent and interrelated. Similar items are consumed globally by consumers, and the global sharing of technology advancements and ideas fosters global economic progress. It is fueled by the expanding commercial borders, global cash flows, and widespread technological adoption.
Expansion of global commerce
Due to an increase in the output ratio, the expansion of global commerce shows globalization. As the market expands and demand rises as a result, more products are produced, which boosts overall production of goods and services. This is evidenced by an increase of 11% in the last fifty years of the ratio of proportion output (Williamson, 2017).
Foreign Direct Investments and globalization
The increase of Foreign Direct Investments highlights globalization. Globalization has enabled both private and cooperative investors to have access and invest directly in the developing countries. These have promoted economic growth in these countries, hence elevating development. Investments by foreigners in the developing countries have increased from about 2.2 billion to 155 billion (Williamson, 2017).
Integration of the interstate capital market
Integration of the interstate capital market has led to the increment of foreign exchange across the exchange markets. This makes trade among different countries easy hence promoting economy. Development of technology is another example of how globalization has impacted the globe. It has led to the reduction of production, communication, and transportation cost enabling globalization (Marius-Răzvan Surugiua, 2015). Technology has resulted in the making of similar goods in most parts of the world caused by increased consumption of the same. The technology used in production is consistent and similar to all location of production hence production of the same commodities globally (Yevgeniy Goryakin, 2015).
Role of communication in globalization
Another globalization aspect entails communication. The accessibility to reliable, rapid, and cheap communication allows easy access to services and products (Mourdoukoutas, 2015). It also enables the incorporation of the global capital market, facilitating the flow of money among different countries, hence promoting economic growth. Communication helps in fostering global cooperation enabling them to operate and achieve their efficiency in various locations from their head offices.
Bibliography
Marius-RăzvanSurugiua, and Camelia Surugiu, 2015. International Trade, Globalization and Economic Interdependence between European Countries: Implications for Businesses and Marketing Framework. Procedia Economics and Finance, Volume 32, pp. 131-138.
Mourdoukoutas, P., 2015. Globalization’s Biggest Threats, slow world economic growth. [Online] Available at: https://www.forbes.com/sites/panosmourdoukoutas/2015/01/21/globalizations-biggest-threat-slow-world-economic-growth/#112be9894716[Accessed 28 August 2017].
Williamson, J., 2017. Globalization: The Concept, Causes, and Consequences. [Online] Available at: https://piie.com/commentary/speeches-papers/globalization-concept-causes-and-consequences[Accessed 28 August 2017].
Yevgeniy Goryakin, Tim Lobstein, W. Philip T. James, and Marc Suhrckeb, 2015. The impact of economic, political and social globalization on overweight and obesity in the 56 low and middle income countries. [Online] Available at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4416723/[Accessed 28 August 2017].
