The last century has been marked by an unprecedented acceleration of globalization. From an economic point of view, there has been a drastic increase in the exchange of goods, services and data between countries. Countries are making constant efforts to further improve their economic growth and create more opportunities for their citizens.
People are connected to each other in all aspects of their lives. Whether socially, economically or culturally. The increase in curiosity has led to the development of different means of open communication and growth.
What led to this growth?
Changes in lifestyles
The ease with which people can now travel around the world to settle in other developed countries has resulted in alarming cultural and social changes. People adopt the habits of these countries in their own homeland, thus increasing the need to exchange goods and services.
Brands of clothing, restaurants and other recreational activities are now imported and exported across borders, which generates more employment opportunities, thus increasing incomes. The increase in knowledge of goods ultimately leads countries to produce their own sources of income as well.
Today there are more and more ways to generate income and increase trade between countries through the use of various technologies. Social media platforms help people connect with each other across borders, which leads to an exchange of ideas.
The most crucial innovation has been digital currencies. Two people living on different ends of the earth can trade digital currencies such as cryptocurrencies with each other. The lack of government regulation and not having to worry about currency cross values is the most beneficial aspect. Platforms such as Quantum ai help people easily trade cryptocurrency with just a few clicks online.
Heavy taxes and tariffs are a thing of the past. With the dawn of economic integrations like the World Trade Organization (WTO), countries are now eagerly awaiting increased imports and exports of goods more efficiently than ever before.
This has a direct impact on the growth of GDP (gross domestic production) of all the countries concerned, by creating more jobs and making the world market prosperous.
Increase in derived benefits
The interdependence between citizens of different countries has increased their curiosity and interest in each other’s local cultures and products. This in effect means that even if countries fail to profit from their own domestic products, they can export much more easily and make more profits.
The increase in international demand helps local companies to play in the international market and gain more value for their product. A success in the international market also directly generates demand in their own country eventually, because such exchanges are a complete cycle.
The cross-border trade between local and international countries ultimately leads to more competition between the two once both study their target market. Foreign companies seek to sell products to countries where the same product might be more expensive domestically.
The close observation of the market by large companies leads them to manufacture the same product in a much better quality for a significantly lower price range. It attracts their exported product to the domestic market until another company comes up with something bigger.
The increase in connectivity as well as the lack of good educational opportunities leads to an increase in the exchange of students from less developed countries to developed countries. The awareness that comes from being connected to people their age living in much better conditions and receiving a better education motivates third world students to move abroad.
The majority of students seek to explore different horizons and travel to other places for education and social growth. Third world students might find better educational opportunities by applying to universities in developed countries.
This leads to increased economy for countries receiving such students who invest in their institutes. In addition, these migrants increase the labor force needed to build the economy when they choose to work in the local market.
Around the world, the political climate changes from time to time. There is a huge proportion of our globe that continues to live in deplorable conditions caused by conflicts between countries and sometimes by their leaders themselves.
War-torn citizens seek refuge with their more stable neighbors or in other developed countries. While some criticize immigrants, it is undeniable that an increase in the workforce leads to a better chance of increasing the size of your market and therefore benefiting the economy as well.
There will always be steady and continuous progress towards increased trade between countries around the world. Every day more and more developments and ideas are emerging which creates opportunities that people can take advantage of. These ideas will hopefully help grow the economy as they have done so far and have a positive impact globally.