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Globalization and Economic Growth

 

            Globalization is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. (Wild & Wild, 2014, pg. 7) Through this process, countries are given the benefits of reaching new countries and new markets and expanding their economy through the increase of production. By sending their product overseas, companies can reach untapped markets and generate new revenue for themselves. Because of this increased production and new surpluses of revenue, jobs are created, there is more opportunity for wealth for all people, and smaller countries that have uncommon resources can compete with larger companies on a global market. .
             Through globalization, countries are gained access to a product they may not have access to in their domestic economy. For example, a country that would not be able to grow pineapples would have access to them through globalization. This would force places such as Hawaii whom can grow pineapples to increase their production of pineapples. Not only would this generate more revenue for the economy, it would cause an increase in jobs in their home. Also, as more companies shift their products overseas to be made, there are an increase of jobs in developing countries. For example, Mumbai's population increased to 19 million in 2007 from 10.8 million in 1985. (Glaeser, 2009) With these new jobs, standards of life are increasing and wealth is being spread from the richest to the poorest. .
             These new jobs produce more economic equality throughout each individual nation, between nations, and globally. As new jobs are created, the working class benefits from new factories to go gain income for their families. Developing countries that are increasing globalization are extending life expectancies and improving their education system. Countries that open their borders to globalization experience rises in GDP per capita.


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