Globalization Essay

1222 Words5 Pages
Globalization refers to global economic integration, or economic globalization. Economic globalization, including increases in trade, foreign investment, and migration, is widely agreed to be occurring through a combination of improvements in technology and decreased transportation costs, as well as deliberate policy choices on behalf of many national governments to liberalize their economies and participate in the development of global institutions. Thus, the policy aspect of economic globalization is a cumulative outcome that results from the choices of many individual countries to increase their integration with the global economy. Trade is based on specialization. The logic is clear trade what you make the best and exchange it for what others make the best. Trade competition among countries is much more complicated. Much of it depends on the resources or factors of production available in a certain area or country. In general terms, countries or areas will have a resource focus to their economy and consequently to their exports. A country can be labor intensive, where its competitiveness is based on cheap and available labor. These countries are often poorer and have large populations. Or a country can be capital intensive where its competitiveness is based on the productivity and skill of its labor force with high levels of education and/or available technology and machinery. Or a country can be land intensive, where its competitiveness depends more on an abundance of valuable natural resources such as timber, minerals and farmland. The strongest case for globalisation is the liberal one. It is almost never heard, least of all from governments or businessmen. International economic integration, on the liberal view, is what happens when technology allows people to pursue their own goals and they are given the liberty to do so. If technology advances to the

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