What types of changes can we observe following the globalization of the economy? Were these changes...

Question

Question

What types of changes can we observe following the globalization of the economy? Were these changes good or bad?

Answer 1

Answer #1

The changes observed due to globalization is that :

the foreign direct investment has increases which has led to a higher growth in the economy.
It has promoted efficiency in the markets by encouraging more competition among the firms.
The distribution of wealth has been on an equal basis.
There has been an improvement in technology due to the benefits of globalization.
It has helped large companies to realize the benefits of economies of scale which has resulted in the reduction of costs and prices and result in further support of economic growth.

The negative effects of globalization is :

There has been an inter dependence among the nations due to globalization, so local fluctuations can impact a large number of countries dependent on them.
Sometimes, the benefits of globalization cab be unfairly distributed, with bias towards the richer nations and richer people leading to an unequal wealth distribution.

Answer 2

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