Globalization The Impacts of Globalized Business Transactions

With a powerful internet regime aiding a voluminous international exchange through an omnipresent availability of data, the world has graduated from the primary obstacles of geography and social boundaries to a higher level thinking of strategies capable of penetrating even the potentially valuable networks born out of the same process. The Positives Effects of Globalized Business The implications of increasingly globalized market transactions are voluminous. In essence, the rather enlarged scope has blurred the distinction between the domestic and the international while seeking to reward players [the small and big moneyed] with larger visions, which is, for sure, every business’ desire (Hax, 75-77). With trade liberalization as the primary engine opening up international markets for the exchange of goods and services in a borderless system, the growing interdependence among the world’s economies via the multinational nature of sourcing, trading, manufacturing, and investment activities has magnified the frequency of cross-border transactions and financing, heightening the intensity of competition. a competition that is large scale and enlightening in character (Hout, 1982). There is no gainsaying that the new generation of national governments is developing a series of ambitious economic policies and economic reforms aimed at integrating themselves within the global economy. More than any other time in history, the advances in communication technologies, the ever-expanding economic growth and wealth across the globe are weakening the boundary walls erected even by the pioneer advocates, thus making the formation of economic trading blocs a viable bargaining chip for the preservation of common interests (Hax, 1989, p. 92). With the development of new technologies, countries have formed irreversible linkages shifting the focus away from the nation-state towards industry oriented specialization. Sagagi (2007) is categorical in his analysis stating that though willingly, countries at different stages of development are grudgingly liberalizing their economies to allow for direct foreign investments and reap from the obvious benefits such as the transfer of technical know-how. Indeed as Ajayi (2003) reports, global trade flows increased 16 fold over the last 50 years, thus bridging the income between the poor and the rich nations.