The last century has shown a never before seen rise in globalization. From an economic standpoint, there has been a drastic increase in exchange of goods, services and data between countries. Countries are making constant efforts to further improve their economic growth and to create more opportunities for its citizens.
People are connected to one another in every aspect of their lives. Let it be socially, economically or culturally. The increase in curiosity led to the development of different ways of open communication and growth.
What has led to this growth?
Changes in lifestyles
The ease with which people can now travel across the globe to settle into other developed countries has made alarming cultural and social changes. People are adopting the ways of such countries in their own homeland thus increasing the need to have exchange in goods and services.
Brands of clothing, restaurants, and other recreational activities are now being imported and exported across borders that generate more job opportunities thus increasing revenue. The increase in knowledge of goods eventually leads countries to produce their own such sources of revenue as well.
There are now more and more ways to generate income and to increase trade between countries via the use of various technologies. Social media platforms help people connect with one another across borders which lead to an exchange in ideas.
The most crucial innovation has been that of digital currencies. Two people living at different ends of the earth can trade with one another in digital currencies such as cryptocurrencies. The absence of any governmental regulations and not having to worry about the cross values of currency is the most beneficial aspect. Platforms such as quantum AI help people easily trade in cryptocurrency by just a few clicks online.
Heavy taxes and tariffs are a thing of the past now. With the dawn of economic integrations like the WTO (World Trade Organization), countries are now looking forward to an increase in import and export of goods with more efficiency than before.
This directly impacts the growth in GDP (Gross Domestic Production) of all countries involved, by creating more employment opportunities and flourishing the global market.
Increase in spin-off benefits
The interconnectedness between citizens of different countries has increased the curiosity and interest they take in each other’s cultures and local products. This in effect means that even if countries fail to profit off of their own domestic products, they can much more easily export and gain more profits.
The increase of international demand helps local companies play in the international market and earn more value for their product. A success in the international market directly generates the demand in their own country too eventually since such trades are a complete cycle.
The cross border trade between local and international countries eventually leads to more competition between the two once both study their target market. Foreign companies seek to sell products to countries where the same product might be at a higher cost domestically.
Close observation of the market place by larger corporations leads to them making the same product in much better quality for a significantly lesser price range. This attracts their product getting exported to the domestic market till some other corporation comes up with something bigger.
The increase in connectivity as well as the lack of having good educational opportunities leads to an increase in exchange of students from less developed countries to developed ones. The awareness that comes from being connected to people their age living in much better conditions and getting better education motivates third world students to move abroad.
Majority of students look to explore different horizons and travel to other places for education and social growth. Third world students might find better educational opportunities by applying to universities in developed countries.
This leads to an increase in the economy for the countries receiving such students who invest into their institutes. Moreover such migrants increase the manpower towards building the economy when they choose to work in the local market.
The political climate all over the world changes every once in a while. There is a huge proportion of our globe that continues to live in deplorable conditions caused by the conflicts between countries and sometimes by their leaders themselves.
War torn citizens look to seek refuge in their more stable neighbours or other developed countries. While some criticise immigrants it is undeniable that an increase in manpower leads to a better chance at increasing your market size and thus also benefiting the economy.
There will always be constant and continuing advancements towards an increase in trade between countries all over the globe. More developments and ideas come to light every day that create opportunities for people to benefit off of. These ideas will hopefully help flourish the economy as they have done so far and bring a positive impact globally.