Globalization as an economic movement has significant effect on national and global economies.

It enables the economic integration and interdependence of national, regional, and local economies around the world.

Foreign Direct Investment. Foreign direct investment (“FDI”) tends to increase at a much greater rate that the growth in world trade, helping boost technology transfer, industrial restructuring, and the growth of global companies.
Technological Innovation. Increased competition from globalization helps stimulate new technology development, particularly with the growth in FDI, which helps improve economic output by making processes more efficient.

Economies of Scale. Globalization enables large companies to realize economies of scale that reduce costs and prices, which in turn supports further economic growth, although this can hurt many small businesses attempting to compete domestically.

General Impact of Globalization