In the decades since the Second World War the lifting of trade barriers has resulted in an increase in world trade and investment. This opening up of national economies to international competition and investment is called globalization. Globalization brings with it many benefits, which can be felt not only by the wealthy investors in industrialized countries, but also by underdeveloped countries and their economies.
Firstly, a significant benefit of globalization is that both local and global economic growth is often simulated wherever multinationals establish business. When multinational companies such as Cadbury, Schweppes or Hewlett-Packard establish branches worldwide, the economy benefits from the investment. The number of wealthy investors usually increases with the increasing number of local multinational company branches. In addition, local industries may become more profitable as their export markets expand and there is increasing trade in international markets.
Another advantage of globalization is that it is likely to provide employment opportunities in poorer countries. These opportunities are made available as a result of foreign investment in manufacturing, mining and other industries. For the locally hired employees of these companies, extensive training may be provided to develop their work skills. In addition, the benefit of a regular wage raises living standards for their families.
In conclusion, globalization of trade and investment in developing countries results in stronger domestic economies. It is frequently an effective means of stimulating economic growth, leading to prosperity for poorer countries and their people. Globalization should be encouraged and promoted by governments, multinationals and local communities.
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