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Introduction

Globalization refers to developing combination of social and economic transaction of business person which contributes in the growth of international businesses. The article in mainly based on globalization and impacts over the emerging markets. It has been observed that with the help of globalization still developing countries have managed to improve their economic condition. But, still globalisation has not succeed in enrolling equality among the people who works for it. This article describes about four different aspects of globalisation which affects its growth.

Four main aspect of globalisation

Trade: After globalization, those countries who are still developing have entered into the trading process at international level. This trading ratio is increasing continuously with the development of countries.

Capital movement: Globalisation also increases movement of capital flow among the developing countries. As a result, it has enhanced inflow of money within the country itself and strengthen financial status of company.

Movement of people: Globalisation also impacts over the movement of people. It has been identified that maximum number of migration has emerged in developing countries. This helps people to do job in another country so that they can earn more money for making their life comfortable. It has also enhanced number of job opportunities for talented people as they grab deserving chance for future growth.

Spread of Knowledge: It avails opportunities for the people to share their knowledge at global level. It avails opportunities for the local citizen as with the help foreign direct investment many new project have took place in the country.

Major risks of Globalization

Every change is the combination of many risk which might affect whole country as well as its citizen. These risks influences overall global economy of the country. It has been identified that there are mainly two types of risks that is political and economical. And both of these risks involves many others  factors which are described as below:

Political risk: This type of risk occurs due to instability of government of trading country. Political risk of globalization includes cancellation of licences (export or import), shortage of foreign currencies, ban of import after shipment of goods has been done, War among international countries,when company of importer becomes seize etc. It can be said that if the licence of any trading company is not renewed than it wont be possible for them to do import or export desired goods and services. Political risk might also arise when company of importer is founded as faulty and its local government have seized it. As a result, it directly affects globalization because when company is not allowed to do transactions then they are not able to conduct business activities.  

Economic risk: This kind of risk emerges when exchange rates and other economical instability occurs and affects over an investments especially when it is dealing with the foreign country. As per the study, it has been observed that there are many type of risk which affects over the growth of globalization.

  • Unemployment in country enhances the risk of globalization as people are not getting appropriate job opportunities after foreign direct investments too. It impacts negatively on economic stability as people are not working, they are even not earning money for their basic survival. As a result, it becomes an essential factor of economic risk.
  • Difference between the wages rates of different countries which are working together for mutual profit. It can be said that, it is considered as emerging risk for globalisation which impacts over enhancement of its growth. As, if more than two countries are working together then there are chances that labours who are working for this earns different wages.
  • Another risk of globalization occurs when buyers are not able to repay the due amount even after crossing the limit of payment that is six months. This kind of risk remains forever for those companies who deals at international level. As in many cases amount is not repaid due to uncertain condition unwilling even loyal traders unable complete their transactions.

Emerging Markets

In 1990s emerging market was not in the support of globalisation as according to survey  only two third of respondent thought that investment in the emerging market is beneficial as it will grow in the coming decades. Whereas, remaining three quarter thinks that investment in Eastern and Central Europe is a good option for growth. As per the whole study, it has been found that Brazil, Russia, India and China are considered as fastest growing countries who contributes in economic growth. Emerging markets were initially considered as the growth opportunities for developing countries but still there were some points which can be looked as  difficulty in its own. Some of the major identified are described


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