Economic interdependence, internationalization and globalization #4

Economic interdependence, internationalization and globalization


The third stage, which began in the 1990s, is called the "economy without borders." This metaphor, of course, wants to emphasize the growth of commercial and financial transactions carried out by modern technical means in connection with the revolution in computer science. and telecommunications, which allow for 24/7 exchanges around the world.

Thus, what is called today, most often globalization, represents, on the one hand, a stage at which a real, long-term, positive process of development of the internationalization of economic life or the globalization of economic exchanges and the interdependencies between them has begun. national and state economy, a process that includes not only trade, but also other aspects of economic life.

Internationalization means an increasingly integrated assembly in which the role of nation-States remains important, but in which economic movements are no longer limited to international trade.

Internationalization Rooms:

Foreign countries should offer certain location advantages to motivate a company to invest in its territory.
The company must have strategic competencies or specific ownership advantages to compensate for ignorance of foreign markets.
The company must have the organizational capabilities to make more profit from using its strengths indoors than from the outside, through external market mechanisms such as contracting and licensing.
This process is based on some significant factors: the acceleration of technological change; the multiplication and diversification of economic exchanges; the breakneck speed at which capital moves; the high demands of the global market; the rapid development of management, both in production and in the organization of exchange operations.

On the other hand, globalization is also a process of redistribution of economic power and the strengthening of social differences and differences around the world. Therefore, it has been the subject of fierce theoretical and ideological debates, especially in recent years. As evidenced by these debates, globalization is legitimized by a liberal ideology that sees the market as the only regulator of economic life, both at the national level and on the global economy, expressing and promoting, in particular, the interests of big capital and is critically evaluated by the circle. Exclusive Bonus