Digitization, Liberalization, Consolidation, and Globalization Essay Example

the European Union (EU), which facilitates trade between European nations. As a result, member countries have experienced economic growth. Moreover, within individual nations globally, liberalization has further encouraged interaction by promoting increased engagement in trading activities.

Owing to liberalization, nations have the ability to access commodities that were previously unavailable locally. Additionally, nations with weak economies can benefit from the financial assistance provided through liberalization (Hamelink, 1996). Studies have shown that liberalization promotes the welfare of nations by improving the allocation of local resources. It also eliminates trade barriers within a nation by removing all import restrictions and creating an anti-export bias, thereby encouraging a shift in resources from producing substitutes for imported goods towards producing export-oriented goods.

This leads to the economic stability of nations.

Consolidation

Consolidation fosters the adherence to normative instruments and encourages principles like democracy and transparency in organizations and institutions, thereby enhancing their operational capacity and infrastructure.

From a global perspective, consolidation plays a role in fostering the connections between various governmental and nongovernmental institutions worldwide. Transparency within organizations and institutions, which is associated with consolidation, enables this collaboration. Consequently, global communication and collaboration between nations and organizations are enhanced (Hamelink, 1996). Consolidation also contributes to the development of positive relations among nations. This is because consolidated nations coordinate their activities, leading to synchronized operations. The coming together of nations to engage in activities that support economic and social growth further promotes good relations.

Consolidation of nations leads to enhanced international communication as well as the provision of aid during hardships. This promotes global communication, fostering connections between individuals worldwide.

Due to consolidation, restrictions preventing interaction between people of different nationalities and backgrounds are eliminated.

Without consolidation, good relations between nations are not possible. This can hinder the relations that contribute to economic growth and stability. The reason for this is that some nations are exporters while others are importers. Without consolidation, these reciprocal relationships may fail, leading to economic decline (McCorriston ; Sheldon, 2003).

Globalization

The phenomenon of globalization, which started in the 1980s and matured in the 1990s, played a significant role in connecting countries and revolutionizing people's lives. Advancements in technology were a main catalyst for this transformation, bringing about changes to people's lives and sparking new ideas and perspectives in developed and developing nations (McCorriston ; Sheldon, 2003). Furthermore, global trends have fostered cooperation among nations driven by shared interests, leading to remarkable growth and promotion of global trade.

Globalization has encouraged trade by developing trade networks worldwide, promoting interaction and communication among diverse ethnicities and nationalities. It has also facilitated social growth by fostering interaction through various forms of media, which have been shaped by globalization. Additionally, globalization has facilitated the sharing of experiences among human communities through the global networks established for work and information dissemination. (Hamelink, 1996).

In essence, globalization, resulting from human activity, fosters a deeper cultural understanding and consequently enhances individuals' lives. Furthermore, globalization facilitates the formation of online communities.

Therefore, the evolution has resulted in the creation of new identities, leading to individuals who disregard their nationality and promote world communication. Thus, globalization has effectively promoted global communication and world economies. In summary, digitization, liberalization, consolidation, and globalization have positively transformed the world. However, they have also brought negative consequences including the loss of state sovereignty, the rise of cybercrime, and unfair trade relations. Despite

these drawbacks, these four aspects have greatly benefited the global economic system.