The Importance Of Globalization

Globalization is an imperishable way to face the world’s countries economic development with the considering facts of higher living standards, financial stability, and economic growth. Each country can achieve the main focus point of reaching their economic development although each country’s way of getting there will be different. This is due to having different political systems and whether or not if it’s a national economy. For example, comparing China to Malaysia is considerably because China has a high growth rate over the past couple of decades while Malaysia have experience a low growth rate. There are different ways that countries follow to build their prosperity. This includes the following: spread of technology, foreign investment, market economy, and strong institutions. All countries are incorporated together because they are integrated with the global economy.

Economic globalization is a process that involves technological progress and human innovation. Globalization can be referred to by the increasing level of integration throughout different economies by using services, capital over the borders, and goods. Globalization can also be considered as political, environmental, and cultural across the border. There are many different examples on how capital, people, and goods have integrated to be internationally globalized. Trade has significantly increased over the years, which made it more valuable, from GDP 42.1 percent in 1980 that increased to 62.1 percent in 2007. The foreign direct investment world GDP percentage in 1980 was 6.5 percent which increased to 31.8 percent in 2006. The worlds GDP was 10 percent in 1980 but increased to 48 percent for the stock of international claims. Foreign workers had a dramatic i...

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...ts purpose. The political reform is put into action to establish a medium between the rich and the poor which will also allow it to follow the checks and balances rule. Even though these reforms might seem legit they are still not enough for China. This will be a more independent market if China gets directly involve with the reforms for the development of globalization. If China decides to make their global economy stronger this will put them in a position where they are stable and a healthier economy.

The economy has begun to become more involve in learning how to globalize themselves not only is China doing it but the United States, Malaysia, and etcetera. Therefore if the world decides to hop on board and everyone gets involved with globalization then it will put everyone in a better position. People who are in a financial situation this will favor their being.