Globalization describes the trends which are perceived to increase communications and connections significantly among people regardless of geography or nationality. The trends are now the source of excitement and incredulity in the economic world as the markets are less segmented by national boundaries T (Yale Center for the Study of Globalization, 2013).here is wider market opportunity for both the seller and the buyer, and also, create an avenue of competition. Nonetheless, globalization affects three types of markets; assets and debts, labor, and services and products
Benefits of Global Partnership
Globalization provides a platform where new ideas, opportunities, and markets fashioned and created that entrepreneurs cannot access in their countries. Consequently, there are some positive effects linked to globalization. Three examples of the positive impact and benefits are; firstly, firms from less industrialized countries access and tap large and more markets around the world. Secondly, there is more access to cheaper imports and more important exports markets, human capital, capital flows, and technology.
Finally, globalization offers opportunities for developing countries to participate in international supply chain and production networks, which are the main outlets for trade(Yale Center for the Study of Globalization, 2013). For instance, East Asian economies describe the benefit and positive effects of globalization on growth in the economy. Also, it reveals that globalization can decrease poverty levels in the world
Limitations of Global Partnership
Conversely, there are limitations on globalization and critics of global economic partnership warn that the growth of the global trade is aggravating income inequities between the developed and developing countries. Also, the international trade is increasable controlled by multinational corporations that strive to maximize profits without considering the needs of the developing countries (Mikesell, 2014). Further, the existence of isolationist policies in the developed countries hinders the developing countries to access to the export markets. Lastly, the volatility and volume of capital flows escalate the dangers of currency crises and banking for the countries that have weak financial institutions.
Latin America is an excellent example illustrating the limitation of global partnership as increased access to world trade affected negatively on the continent. Most governments in Latin America eased and liberalized imports in more regions than other regions, which created economic inequalities.