Globalization is an important factor within the types of economic systems that exist today , and in fact has been a part of it for a long time.
More than a century ago there were silk routes that transported the best merchandise of these fabrics around all of Europe, and even the world, in order to make quality clothes for the inhabitants of a certain region.
This transport was carried out at that time through large ships that were dedicated to moving products around different parts of a continent , and thanks to this, globalization was born.
What is globalization?
This term can be defined as the characteristic that a certain object acquires , which allows it to be recognized around the world and widely requested by its society.
In the economy, globalization refers to the possibility of importing and exporting products of a certain brand, in order to satisfy the needs of buyers, who will be able to acquire said goods through their local currency, working their financial economy properly, such as some people do it through Mooverang.
In this way, each country manages to establish relationships with other geographies that are miles away from themselves, and allows them to mutually benefit.
However, the rise of this trend that has been going on for more than a century, has a number of advantages and disadvantages that are significantly noticeable to the human eye.
What advantages and disadvantages can globalization bring to the economy?
Such factors do not directly influence the world economy, since it is already known that it is the total responsibility of each nation to guarantee the financial stability of itself and of each of its citizens.
However, the benefits or consequences that can be provided by this particular procedure vary according to the place where the economy is being applied , taking into account that in not all countries in the world the same type of management is used.
Advantages of economic globalization
The main reason why this modality of exchange is constantly applied between countries is because of the possibility of promoting the economic development of the region.
Financially speaking, the development of the nation’s economy is classified based on its production and sales capacity ; Due to this, it is common to perceive how developing countries tend to sell raw materials to other clearly developed areas, to benefit from these sales and to guarantee the acquisition of capital.
Likewise, due to the constant demand made to the market (which also has advantages and disadvantages ), each nation can keep in touch with each other to find strategies that guarantee buyer satisfaction.
Disadvantages of economic globalization
The consequence factor that is granted once the countries integrate globalization into their economy, being a very difficult aspect to stop at present, depends directly on the financial development of the country.
In other words, the large companies that work on the basis of the export of products manufacture their patents in underdeveloped countries, due to the significant economic discount that labor represents and the help that this nation grants to generate jobs.
Meanwhile, the opposite occurs in countries whose financial stability is fully developed, since these companies do not show interest in enabling manufacturing spaces within these areas.
Likewise, another negative aspect given by globalization is the loss of culture in those countries where imports from these companies are received, thus causing the decrease in sales of the traditional economy that the society of each nation has.
That is why, despite the fact that globalization turns out to be a positive aspect for different communities located around the world, due to the great benefit that obtaining new products implies, it can also be a significant economic problem that is very difficult to solve
