Describe How Globalization Has Affected The World Economy
Describe how globalization has affected the world economy and how it has
Globalization has profoundly transformed the world economy by increasing interconnectedness, enhancing trade, and fostering global supply chains. This phenomenon has led to rapid economic growth in many regions, expansion of markets, and increased access to technology and innovation. However, it has also contributed to economic disparities, job displacement, and vulnerabilities to global financial shocks. The integration of economies has facilitated capital flows, migration, and cultural exchange, shaping the economic landscape of countries worldwide. In particular, globalization has enabled developing nations to participate more actively in international trade and investment, thereby promoting economic development and poverty reduction (Krugman, Obstfeld, & Melitz, 2015).
In my home country, Mongolia, globalization has significantly impacted the economy through increased foreign trade, investment, and tourism. Mongolia's rich mineral resources have attracted foreign investors, making the mining sector a critical driver of economic growth. The country's integration into global markets has facilitated economic diversification but also exposed it to global commodity price fluctuations, impacting economic stability (Bayar, 2018). Furthermore, globalization has contributed to the expansion of telecommunications and internet access, improving communication and business opportunities. Yet, Mongolia faces challenges such as economic dependency on resource exports and income inequality, which are exacerbated by global economic shifts. Overall, globalization has presented opportunities for economic growth while posing risks that require strategic management (Mongolian Government, 2020).
References
- Bayar, T. (2018). Mongolia’s economic development and the impact of globalization. Asia-Pacific Journal of Business Administration, 10(2), 124-138. https://doi.org/10.1108/APJBA-06-2017-0050
- Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2015). International Economics: Theory and Policy. Pearson Education.
- Mongolian Government. (2020). Mongolia: National Development Strategy. https://www.mn.gov.mn