Globalization is referred to as the integration of world economies. The concept has been introduced with a key aim to ensure an effective and easy transfer of goods and services across the national borders. It has contributed towards the reduction in the barriers to trade and the related policies at an international level. Globalization has been the key contributor to international trade, as the concept of international trade is referred to the practice of dealing in goods and services between the nations .
IMPACT OF GLOBALIZATION AND INTERNATIONAL TRADE ON NATIONAL ECONOMIES
Focusing towards analyzing the impact of such globalization and international trade on the national economies it can be identified that such practices have contributed towards:
Effective economic growth opportunities: With the integration of world economies, the nations can attract foreign investment, as well as can introduce various technological innovations which can further contribute towards the industrial as well as the personal reconstruction of the lifestyle of the individuals as well as to utilize such investments in the national growth. An effective focus towards the adoption of the concept of international trade will ensure the industrial as well as economic development within the nation .
Opportunities in terms of employment generation: As every underdeveloped or developing country is dealing with a key issue of unemployment, globalization has resulted in providing them with an opportunity to work for any organization across the world. Also, international trade attracts the MNCs to establish within the region which creates job opportunities within the nation and contributes towards reducing poverty and the developmental challenges .However, it can be analyzed that apart from such positive impacts there are certain negative impacts which globalization had on the national economies including:
Challenge for the domestic and the local players: As the international companies enter with the latest technologies and innovative products, resulting in low-cost products and services which becomes a major challenge for the domestic players to deal with in the market.
The exploitation of workers or human resource: In such international trade, the organizations are not limited to a location and can hire workforce from around the world, therefore, they exploit the workforce by paying them less or focusing more towards the customer and market expansion rather than focusing towards the employee benefit and their interests .