Economic globalization means the cross-border flow of capital and the continued and increasing expansion of the interstate market borders. It points to the increasing economic interdependence among the countries of the world as a result of the movement of goods and services across the borders of countries. The increasing importance of information related to productive activities is one of the most important driving forces of economic globalization. The rapid development of science and technology in the markets that use these systems, which contributed to the spread of the economy of that country to all parts of the world, and the use of this cross-border economic information in the development of industries in all the world's factories.
Implications of Economic Globalization:
It can be said that economic globalization is a direct foreign investment that promotes technology transfer and restructures the growth of global companies that transfer their investments from one country to another. Globalization stimulates the development of technology, which contributes to improving GDP and increasing product efficiency. Globalization contributes to significant savings in costs and prices, contributing to the growth of the economy, but it may also have a negative impact on small local firms that are trying to compete.
Factors Affecting Economic Globalization:
Freedom of investment: The ability to control capital, without any obstacles to prevent it.
Industrial proliferation: It is the spread of companies among the countries of the world, whatever the state that follows them.
The rise of the telecommunications and information sectors is the development that keeps pace with communications by providing modern means of Internet connection.
The development of the pattern of consumption: is the change in the method of consumption, it was based in the past on the purchase of the market from the domestic, and with the emergence of globalization it is possible to get the consumer of the commodity he wants from the global market.