Advantages of Globalisation

• Wider Markets: Globalisation offers larger markets to domestic producers. Domestic firms can export their surplus output. They can understand the nature of foreign markets through direct and indirect marketing channels. Domestic firms can realise higher prices from foreign markets. Global operations help to improve public image which is helpful in attracting better talent.

• Rapid Industrialisation: Globalisation helps in the free flow of capital and technology between countries. Global firms can acquire finance at lower cost of capital. Free flows of capital and technology from advanced countries help the developing countries to boost up their industrialisation. Industrialisation of developing countries leads to balanced development of all the countries.

• Greater Specialisation: Globalisation enables the domestic firms to specialise in areas where they enjoy competitive or comparative advantage. By focusing on the functions or products core competence domestic firms can compete successfully in the international markets. Specialisation also helps to save resources and promote exports of the country.

• Competitive Gains: Globalisation increases competition for domestic firms through imports and multinational corporations. Domestic firms learn about new products, new technologies and new management systems. They are under pressure to increase efficiency, introduce innovations and reduce costs. The domestic entrepreneurs who fail to learn who fail to learn from their foreign rivals suffer in the long run.

• Higher Production: Globalisation leads to spread up of manufacturing facilities in different countries. Firms with worldwide contacts can outsource funds, technology, distribution and other functions from anywhere in the world. They can negotiate subcontracting to remain focused on areas of their core competence. International outsourcing and subcontracting help to improve operational efficiency and to reduce costs.

• Price Stabilisation: Globalisation can reduce price differences between countries. Free trade and international completion help to equalise price levels in international markets. Countries with a high degree of globalisation can attract greater foreign investment which supplements domestic funds, brings in foreign exchange and improves balance of payments.

• Increase in Employment and Income: Globalisation creates job opportunities in developing countries and the incomes of people increase due to increased industrilisation.

• Higher Standards of Living: Lower prices, better quality and higher incomes help to enhance consumption and living standards of people particularly in developing countries. Moreover, increased economic development enables the Governments of these countries to provide better welfare facilities like education, health, sanitation, etc. There is all round increase in welfare and prosperity of public.

• International Economic Cooperation: Globalisation improves economic  cooperation between nations in the form of trade agreements, investment treaties, stanedardisation of commercial procedures, avoidance of double taxation, intellectual property protection and so on. International cooperation also helps countries to harmonies their macroeconomic policies for their macroeconomic policies for their mutual benefit.

• World Peace : Globalisation promotes cultural exchange and mutual understanding among different nations. International cooperation and brotherhood contribute to peace and prosperity in the world.