Increased integration of global economies has enhanced trade relations. The evolution of free trade has enhanced local production of diverse goods in different countries. Globalization has offered countries an opportunity concentrating in specialized productions. Liberal markets foster free exchange of goods and services, which is beneficial to economies. According to Bardhan (2006), Economists support the idea of globalization by arguing that the practice invites mutual benefit to economies by promoting sustainable trade relations. However, globalization is detrimental because it results to increased market competition due to internationalization of events (Ritzer, 2010).
There are different costs and benefits of globalization. Internationalization of business procedures results to stiff rivalries, as many countries become manufactures. Competitions enhance production of high quality products, which is beneficial. For example, the practice benefits consumers who get the advantage of consuming good products at lower prices (Balonze, 2005). Essentially, globalization creates free and fair-trading between different countries. It also offers the consumers with a chance to have a range of products to enjoy at fair prices. Furthermore, there is efficiency in delivering of goods, products and services to customers in relationship to creating and maintaining good relationships. There is also an advantage of voluntary trade because it motivates traders to seek market and improve their standards.
There are trade barriers imposed by government on the trading of goods and services on international grounds. These barriers include restriction of importation of goods, services and tariffs. Others barriers include prohibition of foreign countries to hold title deeds for a land which could be used to build a company and corruption. These barriers may affect business relationships considerably. A positive effect of globalization includes offering a country a chance of consuming and promote its products to the locals (Balonze, 2005). Lastly, developing countries grow poorly due to stiff competitions from developed and economically stable countries.
References
Balonze, J. M. (2005). Debating globalization: International perspectives on the global
Bardhan, P. K. (2006). Globalization and egalitarian redistribution. Princeton: Princeton
economic and social order. Bruxelles: Editions Biliki.
Ritzer, G. (2010). Globalization: A basic text. Malden, MA: Wiley-Blackwell.
Univiversity. Press
