Globalization and Its Effects Essay

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ASSIGNMENT GLOBALIZATION 1. Globalization. Nowadays, it is nothing simpler than connection among people, and we are living in a place that Internet and fast transportation are gradually blurring the boundaries. Politicians, economists and scientists meet together regularly to talk and discuss about the same concerns at global and regional meetings and forums. That makes countries and their people become closer together than ever. That is also the beginning of story of globalization, which refers to processes of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. 2. Benefits, Risks and What should we do? It is quite easy for us to see the benefits of globalization when there is obvious changes occurring around us. First, we have to mention the free trade. Free trade is easily recognizable by the increase in the number of special economic zone, free trade zone or free trade agreements among countries regionally or globally which tries to reduce and eliminate trade barriers like taxes or technical control methods to widen the export market for domestic producer of its country members. Thank to the establishment of European Union or AFTA agreement among ASEAN countries, people living at these place of the world may have greater choice of goods with lower prices as a result. Moreover, free trade can help countries or corporations benefit from economies of scale. This is especially true in industries with high fixed cost, where the expand in scale may lead to the fall in average cost and then the lower prices for customers ultimately. Another factor that result in the lower prices of goods and services is the greater competition that companies may face when they step out of the border and start new business in other countries. This is the key factor that drive the company to cut cost and increase

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