Global Business and Cultural Perception
Global business is prevalent in the economy nowadays, and many companies choose to work as international firms. This is the reason why cultural perception is being improved, and people can communicate more with each other. What is more, global businesses encourage the interchange of original ideas (Grossman, 2013). The administrations of various companies work on obtaining full recognition across the global market. Consumers favor purchasing from corporations that operate in large areas because they meet many of their quality and variety requirements. Different countries' governments also communicate to establish conducive environments for developing international economic connections. The worldwide market has changed the lives of many people all over the world through the improved goods and services available (Loconto, 2010). In this paper, we shall examine the role that global market plays in the economy considering the resources and technological difference.
Impact on Poverty Levels and Job Creation
The participation of many countries, especially the developing nations has resulted in a decline in the poverty levels across the world. According to the World Bank report, the developing states contribute up to 48 percent of the total world trade from the previous 33 percent ten years ago (Grimes, 2912). As such, it is seen that the nations are playing a significant role in interacting with the others with the aim of reducing or eliminating poverty. Additionally, the number of citizens living in extreme poverty has been reduced adequately due to the growth of the global market (Hill, 2008). As such, the report suggests that the number of people living in poverty across the world is less than one billion. The international trade also facilitates the creation of quality jobs especially in the developing countries, increases the production level, and stimulates economic growth.
Creating Policies for Shared Economic Prosperity
The effective elimination of poverty and boost the shared economic prosperity among the world population requires that benefits of the trade be extended to the most vulnerable communities. As such, the governments, the private companies, and the international community must work together to create the enabling policies and programs (Hill, 2008). Furthermore, the institutions will have to provide financial support to reduce the cost of trade and promote a transparent environment for international commerce. If the necessary support is not offered to the extremely poor in the societies, they will not benefit from the economic gains, and hence poverty level will remain high.
Technological Developments and Infrastructure
The global market has an impact on the technological developments in some countries. Since the states trade internationally, they tend to produce what is easy for them in large quantities and buy the rest products from other nations. Therefore, the technological developments are different in specific countries depending on their line of specialization. Every state is investing in developing the technologies depending on the products they manufacture (Grimes, 2012). As such, the technological differences arise in the nations. However, the entire world is experiencing advancement in technology in its line of production. Additionally, the infrastructure development is witnessed across the globe as every nation uses it to export its products and import other goods from other countries. Therefore, global market facilitates the technological development in all countries involved in the trade.
The Role of Global Market in Economic Growth
The global market plays a critical role in enhancing the growth of the economy. The trade is witnessed in all the parts of the world as nations sell their products and other resources to overseas countries thus widening the market. International trade is vital in the eradication of poverty and as well as enhancing technological advancement (Grossman, 2013). As such, the international community in collaboration with the governments of respective countries should array the plans to facilitate the progress of the trade, as it is beneficial to all the countries.
References
Grimes, K. M., & Milgram, B. L. (Eds.). (2012). Artisans and cooperatives: Developing alternate trade for the global economy. University of Arizona Press.
Grossman, G. M., & Helpman, E. (2013). Innovation and growth in the global economy. MIT press.
Hill, C. (2008). International business: Competing in the global market place. Strategic Direction, 24(9).
Loconto, A., & Busch, L. (2010). Standards, techno-economic networks, and playing fields: Performing the global market economy. Review of International Political Economy, 17(3), 507-536.
