Globalization and economic growth are linked through international trade, the mobility of human capital, and the ability to benefit from raw materials and tourism. Globalization has facilitated economic transactions and interdependence between countries, allowing for greater economic progress.
The link between economic growth and globalization arises from the benefits associated with the increase in the rate of globalization in relation to its effect on various economies. Countries can benefit from globalization in many ways, including the expansion of locally produced goods into the international market, the benefits derived from human capital in the people of other countries, and the ability of various countries to benefit from the raw materials of others. villages. In other words, the link between economic growth and globalization stems from the ease of communication and transportation that fosters an interdependence and other forms of economic and social relationships between countries.
Perhaps the most obvious relationship between economic growth and globalization is the role of globalization as a facilitator of international trade. With the advent of globalization, trade between countries is no longer hampered by distance, customs and language. Most people don’t even have to leave their county to do business with parts of other countries, as globalization has made it possible to conduct economic transactions over long distances. One of the ways in which the link between economic growth and globalization can be measured is by assessing the impact of international trade on certain economies. Such economies are heavily dependent on the export of local resources or locally produced goods in other countries.
Another parameter to measure the connection between economic growth and globalization is related to the benefit deriving from the mobility of human capital, which cannot be separated from the individual. For example, an experienced engineer will carry his wealth of knowledge to any country or territory where he resides. Consequently, one of the links between economic growth and globalization is the fact that it has allowed different countries to benefit from human capital in a way that was not possible before the advent of globalization.
A country with an abundance of crude oil can only capitalize on the value of oil on the international market to make economic progress due to globalization. Such a product will not benefit the country economically to the greatest extent possible without the opportunities offered by globalization. Indeed, the structure that has been established in the international market serves as a vehicle for the economic growth of various economies. This relationship between economic growth and globalization is most evident in the area of tourism. The industry is a direct derivative of globalization, which has made possible cheaper transportation and intercommunication between near and far nations.
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