As a result of globalization the close relation and interdependence among the country has formed
Answers
Human interdependence and globalization have had both positive and negative effects on economics, societies and politics. Let's examine some of these effects.
Economics
Competition is a positive effect. Domestic companies compete with foreign firms, often raising their standards. Foreign businesses often bring innovations and new approaches, trying to capture the consumer. This dynamic usually increases the quality of products and services and makes them more affordable. For example, American oil companies operate in many developing nations and have formed alliances with local capitals, bringing technology, employment and making huge investments.
Most nations have opened to international trade, creating a global market and directing investments into the developing countries. Companies from industrialized nations look for new markets and possibilities and sometimes open operations in new countries, bringing investments and employment.
Globalization also affects employment. Jobs are generated in new areas, but are sometimes lost elsewhere. Imagine you own a company with 100 workers and decide to relocate to Thailand, where labor costs are lower. There you hire 150 workers, which means 150 new positions for Thailand, but back home 100 people just became unemployed. The world has 50 more people earning wages, but there were also losers in this process.