The Role Of Globalization In An Economic Change Of A Country
Globalization of markets is one of the most interesting improvements of this century. Its impact on economic trades, developments, institutions, and players is intense and wide ranging. It challenges existing rules and behaviour and it requires different mind sets. Yet, it creates opportunities for the prepared participants who can be proactive and visionary.
Globalization offers domestic produces a chance to enhance the business as it provides more opportunities for them. Domestic producers benefit from Globalization as it offers the domestic producers the mechanism to secede from a very limited, narrow and unbalanced national market into larger and more potential and profitable markets around the world. This allows domestic producers to reach new heights and make they product to be made available around the world as well as to increase profitability, standards and economy growth. However, this enables local products and services which produce and provide poor quality services to consumers to be eliminated from the market while enabling open market competitive forces to compel local producers to step up in their fields and make them to move to more productive and refined kinds of production while continuously enhancing the country’s income.
Globalization makes a great advantage for developing countries such as Thailand, Malaysia, Sudan, Japan and etc. It enables developing countries to work with international organizations such as WTO, IMF, World Bank and etc to facilitate greater cooperation and expand access into capital, knowledge, advanced technologies, skills which are essential to enhance the global opportunities. Developing countries might use the opportunity of globalization to increase the chances of major business deals which benefits the country in terms of economic growth, increase in job opportunities as well as increase in imports and exports. This also enables a chance for developing countries to secure major infrastructure projects such as public transportation systems, oil deals and etc with other developing countries in order for an seamless progression towards a better and an well developed country.
Countries with marginal and developing economies will seek for potential development by using globalization as an essential tool as globalization will heightened the levels of global and regional integrations by forcing economically marginal states to fix economies and discontinue hidden regulations, protectionist policies and tariff barriers that have long held back in the entrepreneurial activities in the countries. For example Southeast Asian countries have shown how protected and inefficient markets will eventually pull down the entire economy while retarding the manufacturing process as well as into the other sectors. Globalization offers emerging market economies the tools to liberalize markets through foreign competitions that advance the development and growth of the economy. Foreign investment is a powerful substance for an economic change within developing countries.
Globalization plays a key part in an economic change of a country which is attractive with foreign investment as it helps to force change through the processes which include the elimination of an bureaucratic inefficiency and unresponsiveness, nepotism and corruption. This also helps to displace the economic dominance of hereditary elites who have been in the business for ages while opening up opportunities for newcomers who are disadvantaged groups with limited access to participate in the economy and to grow from a small firm to a big one and to contribute more to the economy globally.
