The main reason for this is the change and continuous advancement in technology and especially information technology. Due to information technology and use of internet the world has become a global village. Another important reason for the increased integration of globalization is the advancement in communication, transportation and science. Today, globalization is not just a trend. It is a phenomenon which is not only shaping the global politics but bringing big changes in the democratic environment and economies of the countries.
Many people take globalization as a very positive phenomenon and believe that there are many advantages associated with it. These people say that globalization is increasing the interconnectedness of different nations of the world and this interconnectedness is better for the economy and political situations. Moreover these people also say that globalization is not only helping in developing a better economy but also helps in orienting a global value system. Globalization helps in lowering the trade barriers.
This helps in opening up the world trade, and increases the demand and supply of goods and services. This has impacted the living standards of people all over the world. The standard of living has increased and the income of people has also increased. However, people who oppose globalization, also say that no doubt globalization has increased the living standards of people, but this standard has not risen for everybody. Many people live below the poverty line and the inequality in terms of wealth and income has increased considerably.
However, this is considered as an advantage as this provides and incentive for the third world countries to get developed. For example; when any business or factory starts to operate in these countries, it provides jobs to many people and hence increasing the employment rate. This rate and other factors related to globalization help these nations to enrol themselves in the list of developing nations. Another big advantage due to globalization is the big explosion in service trade which was not possible before. For example; with the advent of internet now many services are provided online also.
Telecommunications, financial services and information technology jobs have been created all over the world and are not affected by different borders pr different countries. This explosion in the service industry has created more jobs also. All this was not possible twenty years ago when the concept of globalization was not fully developed, and as mentioned in the introduction, when globalization was in its early stages. Globalization has been possible due to an increase in the information which in turn was possible due to the advancement in the communication technology.
The advantages of globalization also extend to the capital markets, which have become truly globalized. Developing countries cannot imagine development in the income of its citizens if it does not allow foreign investments. Foreign investments create jobs in a country and increase the employment rate. The companies also benefit, as now they have access to new and bigger markets. The globalization affect also reduces the cultural differences and hence removing the cultural barriers among nations. Below are some of the advantages of globalization.