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The Benefits of Globalization


            Being a core factor for economic improvement in the 21st century, globalization cannot be and should not be stopped. In particular, globalization opens doors for countries in world trade, communication technology and tourism. For the past fifty years, international trade and investment has been the main driving force behind world economic growth, with an ever increase amount of goods being traded since 1950s. Research has shown that countries that are proactive in world trade tend to fare better than those that are not. As a matter of fact, China's growth in income from $1,460 a head in 1980 to $4120 by 1999 is mainly due to willingness to open to world trade. Another example will be Australia. Open trade has helped its exports to grow by three and a half times over the past twenty years.
             In addition to national economics benefits, the flexibility of world trade allows countries to channel their national energies in industries that they are good at. This creates an international advantage and puts the countries at a better competitive edge. With the advance of the communication technologies into the 21st century, internet provides communication around the world. Internet has also push up sales of companies that provide online shopping. This type of trade is generally known as E-Commerce. A survey has showed that more than 740,000 Australian shopped online within the span of 12 months to February 2000. Physical inspection of goods before any transactions is now a thing of the past, as customers can now view the goods online. This put companies with poor geographical location in advantage. For example, a western Australian wine manufacturer, located some 400 kilometers south of Perth, who may once struggle to promote its wine due to its poor geographical location, can now market itself across the globe. .
             Globalization also has a positive impact on the tourism industry. An article (SULISTYAWATI, 2002) reported that there was a significant increase in the number of tourists visiting Tenganan from 1994 to 1996.


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