Globalization and Economic Development

Running head: GLOBALIZATION AND ECONOMIC DEVELOPMENT
Globalization and Economic Development
Name of the Student:
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Author Note

1
GLOBALIZATION AND ECONOMIC DEVELOPMENT
1. In what ways do you think globalization drives economic development? Please
explain why and support your responses with clear references to the relevant
literature and the provision of detailed practical examples.
Globalization and interconnectedness of states are multidimensional in nature.
They are defined in terms of economic terms as it has opened way to carry out trade and
commerce between nations. The aspects which is related to economic globalization
include flow of goods and services (Pawel 2019). It has also given way to the flow of
capital and information which adds to the economy of a nation greatly. The flow and
exchange of goods and services require conditions for such trades. Organization of such
exchanges and processes impact a country’s economy which can be evident in the GDP.
The second wave of Globalization which can be seen continuing even to this day has
acted as the catalyst and helped in the process of growth in terms of international trade.
The contemporary picture of nations are different, liberal and not centered on the idea of
nationalism (Van den Berg 2016). More than 60% of the services and goods which are
produced are also shipped across the globe from one nation to another. This has only
been possible because of globalization. Thus, globalization has been the reason for
convenience to the nations to meet the demand of things which are scarce as well as
supply the products which are surplus. This trade and exchange of goods and services can
be beneficial for a country’s economy when traded with another for mutual interest
(Samimi and Jenatabadi 2014). Countries now have trade agreements which help in
meeting the needs and demands which are unavailable and often inadequate as resources
for the nations.