Globalization

Globalization, in the last two decades has advanced radically. Globalization involves the free transfer of goods and services across national borders. It is a process of increasing global connectivity and international interdependence. Confined local and nationalistic perceptions are introduced to the interdependent and interrelated planet. It has been greatly influenced by the advancement in technology, telecommunication and infrastructure. On the economic front globalization consists of two important policies of privatization and deregulation. Governments have let private firms to take over and the free market is allowed to run the economy. One of the main reason being the governments incompetence to face competition. Deregulation suggests easing out strict trade regulations for business. It also allows foreign competition with the main objective being participation of domestic industries in the global market. Opportunities and competition boosts economic growth. However, it includes restricted movement of manual labour and, as opined by some economists it may harm small, weak or feeble economies if applied unsystematically. In today’s times globalization is a powerful phenomenon for this purpose it is important to first understand the meaning of an open and closed economy.

Closed economy traditionally known as autarky which is a state of self sufficiency and independence. An economy or political state which does not work together with other economies of the world and forbids international trade which is export and imports of goods and services is termed as a closed economy. It is considered to be a glitch in the current times as it focuses on economic isolation. It is an economic approach which concentrates only on inward bound transactions. The main motive being all consumer wants and needs with regards to purchase and sale of goods are met within the country. All the possible natural resources, physical and intellectual capabilities of the...