Topic > Disadvantages of Economic Globalization - 830

Globalization of markets, globalization of production, and technological progress are three main reasons for promoting globalization (Edgar, n.d.). Market globalization is the merger of several independent national markets into one global market (Hill, Cronk, & Wickramasekera, 2010). The formation of market globalization has led many countries to open their markets and reduce tariffs and trade barriers, so that the product can circulate more easily around the world. For example, China reduced tariffs on imported consumer goods earlier this year, and the Chinese government signed free trade agreements with Australia; the Chinese government wants to promote domestic demand through these policies (Duncan, 2015). Technological progress is an indispensable part of the globalization of the economy. As the rapid development of technology in information dissemination and communication, not only reduces the cost of circulation of goods and creates more export opportunities, but also exploits some new products and services in world markets (Hibbert, 2000). Improved technology creates conditions for the globalization of production, which allows many goods to be produced in different countries. Therefore, some developing countries can benefit from a significant amount of foreign direct investment from developing countries. The foreign company can collaborate with the local company to develop the product, and the multinational companies can exploit the local markets. Therefore, it can be seen that market globalization and production globalization are two major components of the economy