Globalization refers to the increasing interconnection of national economies across the world, characterized by free trade, investment, and the exchange of technology and information.
How does globalization affect GDP?
Globalization can boost GDP by providing access to larger markets, more diverse goods, and increased capital and labor flows, which can enhance productivity and economic growth.
What is the impact of globalization on labor markets?
Globalization can lead to job creation in sectors that become internationally competitive but may also result in job losses in industries that cannot compete globally.
How does globalization influence international trade?
Globalization significantly increases international trade by reducing trade barriers, encouraging countries to export and import goods and services more freely.
What role do multinational corporations (MNCs) play in globalization?
MNCs drive globalization by operating in multiple countries, facilitating international trade, investment, and spreading technology and innovation globally.
How does globalization affect consumer behavior?
Globalization expands consumer choices by making a wider variety of goods and services available, often at reduced costs due to increased competition and production efficiencies.
What is the 'race to the bottom' in the context of globalization?
The 'race to the bottom' refers to the pressure on countries to lower standards in labor, environmental, and regulations to attract business from multinational corporations.