Globalization, communication and technology progress

Especially in times of globalization, it is more common for a commercial network. The term globalization, the process of expanding global networking in almost every part is meant, as for example in the market economy, politics, culture, environment, communication, etc. The global relations emerge at the level of individuals, societies, institutions and States. One of the most important cause of globalization, technological progress, especially in terms of communication and transportation technologies and the liberalization of world trade. Globalization is often associated with the processes of denationalization, ie the loss of power and importance of the nation state.

Globalization and the growth of world trade

The signs of economic globalization and thus for the emergence of network trade are: the growth of world trade, the increase in foreign investment, the increase in global joint ventures, the increase in the number of transnational corporations, the globalization of financial markets and the unequal distribution of global resources. The globalization occurred because modern industries need for specialized, high-quality goods, larger markets than domestic markets. These markets exist primarily in other industrialized countries. Therefore, developed countries often use for the opening of markets.

Globalization and economic growth

But the emerging countries have a large interest in open markets, and so they catch up with the world economy to achieve economic growth and a degree of prosperity. The much poorer countries such as Africa in the globalization process generally not considered because they hardly attract economically attractive to foreign investors. Most companies producing so-called world as a global player and can save labor costs or capital taxes. Many are moving their jobs to low wage countries, which in turn has serious negative consequences on their own labor markets.