"Globalization of markets" and "globalization of production."

Sample Solution

  Globalization of Markets: Globalization of markets refers to the increased interconnectedness and integration of various national economies due to the increase in trade, foreign direct investment, capital flows, migration, and technological exchange. It has been facilitated by greater international competition and advances in technology that have reduced transaction costs. The process has

enabled companies to extend their production activities across global borders with ease while allowing consumers access to a wider variety of goods and services at lower prices. This increased connectivity has increased competition among firms worldwide and helped foster economic growth as well as reduce disparities between nations. Globalization of Production: Globalization of production refers to the shifting or relocation of production activities from one country or region to another in order to take advantage of more favourable cost structures such as cheaper labour costs, better infrastructure or less stringent government regulations. This is made possible through improved transportation and communication networks which enable firms to outsource their production activities abroad at minimal costs. This process has allowed many companies around the world to benefit from specialization by focusing on core competencies while taking advantage of low-cost labor in other countries for certain manufacturing processes. However, it can also lead to job losses within developed economies due to this increased competition for jobs globally. Jeffrey Sachs’s conception on geography is that location plays an important role in economic development because regions differ greatly based on natural resources availability, agricultural productivity, climate conditions etc., which determine what kind educational opportunities are available and how they can be utilized effectively for economic success . He believes that education is essential for sustained economic growth since it allows people access knowledge which can help them become productive members within society; this would then spur developments across all sectors leading towards prosperity over time if done properly . Lastly he argues that investing into human capital (education) rather than mere physical capital will yield much greater returns in terms developing nations over time since it increases innovation capacity ,which leads towards higher per capita income levels overtime . In terms intellectual property laws , these are designed mainly protect creators/inventors so they may receive financial incentives stemming from their creations . This encourages individuals create new products ,technologies etc thereby promoting technological progress ; furthermore this legal framework provides protection against unfair exploitation product ideas thus ensuring fair distribution benefits amongst parties involved . One example would patent system whereby inventors secure exclusive use patent rights over existing invention preventing others ripped off idea or replicate without permission For instance Apple Inc was granted exclusive rights its iOS software thus preventing competitors profiting directly off company’s hard work .