Globalization rising status of interconnectedness of trade, investment, finance,

Globalization is the most popular
mechanism in today’s world economy. Globalization referred to a process by which
merge an individual national economy into an interdependent and integrated
global economic system. The whole world is becoming a small village due to the
globalization process. The development in transportation and telecommunications
technology brings a world in which barriers to cross-border trade and
investment are declining and perceived distance is shrinking.

Martin and Sunley (1997)
identified Globalization as a “notion of economic activity that enables a free
flow of capital, trade and information not constrained by national boundaries”
(p. 4). Globalization implies integration of economies and societies across the
globe with the assist of technology, trade and capital. It refers to a process
that enables people to access goods, information, norms, practices and
institutions of other countries through markets, technologies, interests and
information flows.

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Globalization is characterized by
four types of changes. First, it stretches the social, political and economic
activities across different regions and continents. Second, it is distinct by
the rising status of interconnectedness of trade, investment, finance, migration,
culture, etc. Third, it creates global interactions and processes between
different countries. And fourth, the effects of globalization can be highly
significant elsewhere and specific local developments can have considerable
global consequences. Thus, the boundaries between domestic and global affairs
become increasingly smooth.

Globalization is the widening,
intensifying and growing impact of worldwide interconnectedness. It causes an
expansion in the volume and variety of cross border transactions in goods and
services. It has economic, political and cultural dimensions, all of which can
have an economic impact. The different dimensions of the process are
interrelated and mutually emphasizing. There are significant potential benefits
of globalization. Openness to foreign direct investment (FDI) can contribute to
growth by stimulating domestic investment, improving efficiency and
productivity, or by increasing the knowledge applied to production. Increased
access to the domestic financial system by foreign banks may raise the
efficiency of the banking process thereby lowering the cost of investment and
raising growth rates. Trade openness may facilitate the acquisition of new
inputs, less expensive or higher-quality intermediate goods and improved
technologies that enhance the overall productivity of the economy. 

Equally, the process of
globalization involves significant risks and potentially large economic and
social challenges, particularly to the developing countries. Openness to global
capital markets has brought greater impulsiveness in domestic financial
markets, particularly in countries whose financial systems were weak to begin
with and whose economic policies lacked credibility. Similarly, trade
liberalization has led in some countries to reduced demand for unskilled labor,
lower real wages, job losses and income declines which have often resulted in
higher poverty rates. As a result, there have been growing concerns about the
negative effects of globalization.  It is
very clear that the phenomenon of globalization has come to stay. In fact,
globalization has been described as a fast-moving train that waits for nobody. Intended
passengers either jump onto it or risk of being left behind. Like every
journey, every passenger must be prepared to board at the right station, with
the necessary kits and with a clear knowledge or vision of his destination.
There are obvious indications that Bangladesh is ill prepared to start this
journey and cope with the developments. Apart from the fact that most
developing countries lack the basic infrastructure to board on
industrialization drives, the inability to make sound economic policies,
unpredictability of changes in laws and pervasive corruption are critical
obstacles to development. Therefore, one of the greatest challenges faced by
Bangladesh in this century is how to strengthen its participation in the global
economy in a manner that will bring widespread and sustainable benefits to its
people. Motivation and Significance of the Research The motivation that I have
for this research is based on the fact that I am a Bangladeshi who has seen and
experienced the impacts of globalization phenomenon on business sectors of
Bangladesh. I take great interest in globalization issues and because of my
interest; personally, I could see the views of other countries regarding
globalization and its use in economic development. I have also marked how these
countries use globalization to their advantage. Having compared the
socio-political and economic environment of Bangladesh and the countries
visited, I am now in a position to understand the likely effects of
globalization on the business sectors of Bangladesh. I would like to take this
opportunity to do the research based on my experience and understanding of the
subject from my reading.  

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