Globalization can improve or hinder economic outcomes.Give one
example of each.
Globalization is the exchange of
goods,services,information,technology as well as jobs between
various countries of the world.It is considered as a
social,political,legal and legal phenomenon.It describes the
interdependence of various nations encouraged through free
trade.Globalization has lead to economic development in many
countries,and also a lot of firms have managed to gain a
comparative advantage through globalization.However there are many
examples where globalization has improved economic outcomes
Example where globalization can either improve economic outcome.
Globalization is a boon for developing countries.As the developed countries invest in the developing countries,or completely outsource their business.As a result they create job opportunities in the developing countries,job creation leads to raised standard of living for the people and also leads to economic development of the nation as a whole as it benefits from the technological transfer from the developed countries.India is one such country which has largely benifited form business outsourcing,as it has generated a large amount of jobs for people in the country which has a huge population.
Example where globalization can hinder economic outcome.
If we consider the same example used for globalization improving economic outcome,it is also an example where globalization can hinder economic outcome.When a firm in a developed country outsources its business to another country,they take away jobs which would otherwise be available in the home country.It leads to disappearance of industries,which affects the job seeking population of the country.One such example is the U.S,where most of the jobs from the U.S were outsourced to other countries,which had cheap manpower available,like India.
Question 14 Globalization can improve or hinder economic outcomes. Give one example of each. B I...
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