From an economics point of view, globalizaiton is the convergence of prices, products, wages, rates of interest and profits. Within this definition, globalization denotes to perfectly competitive economy, the benefits of such an environment are well known, and are summarized briefly in the following section.
Globalization can only be achieved in a competitive environment where labor, product and capital markets will integrate. This will trigger and strengthen worldwide competition thereby improve the living standards of people as discussed below.
• It is known that price in imperfect markets is higher than marginal cost in contrast to perfectly competitive markets, where price is equal to marginal cost. Thus, a perfectly competitive environment achieved through globalization, will lead to a decrease in the input prices, which in return will result on decreased prices of goods and services. Consumers will enjoy lower prices.
• Free flow of labor will eventually lead......
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