Globalization and International Economics
By Osama Elfeky
There has been a significant restructuring in the international economic system. An understanding of this system has led businessmen like Osama Elfeky to build projects across the world. With globalization playing an important role in this regard, there has been a heavy flow of foreign direct investment as well as innovation in the search for goods and services.
We can only understand the whole picture if we understand the effects that globalization has had in the significant changes that international economics has undergone.
What is Globalization
Globalization refers to the interconnectedness of the economies, cultures, and populations. It is caused by the exchange of goods and services across borders. With an influx of technology, innovations, hospitality and so on, countries have formed partnerships to better facilitate the transition. These agreements shape our everyday lives to a large extent.
With complex, politically charged policies in place to monitor and control globalization, it is crucial to keep track of the policies of international economics and adapt to the changing times to survive in any market that involves some competition. Businessmen like Osama Elfeky have constructed multiple businesses around the world by using this to their advantage.
Advantages of Globalization
Better Prices
With the advent of globalization, most countries are eager to produce what they are best at, using fewer resources. This comparative advantage makes it easier for countries to make efficient production, which makes products affordable for all due to the lower prices brought about by competition. This competition in itself is a product of rapid globalization. This allows all nations to participate, thereby significantly improving the international economy and global markets as well.
How Globalization Affects Pillars of International Economics
Microeconomics and Macroeconomics
Macroeconomics deals with the overall economy, including factors like GDP. It also covers the major policies made by governments to control spending, borrowing and other activities. Microeconomics, on the other hand, looks at very specific markets, in addition to their governing concepts. It also covers the decision making process followed by individuals and organizations, how their resources are allocated and so on. A potential effect of globalization is the reduction of volatility when it comes to macroeconomics. In the long run, in terms of microeconomics, successful companies will be those that can make decisions with globalization in mind.
Osama Elfeky is the only child for a father who was a diplomat (Dr Mohamed Zaky Elfeky). Sam was born in Srilanka and has traveled to plenty of countries and has seen different cultures in his youth. He is fond of traveling and business adventures, and he owns plenty of companies in the US, including multi-state companies, as well several companies in Europe in the hotel business.
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