ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Global expansion is taking operations into a new, overseas market. Companies establish a legal presence in the new country through a foreign subsidiary or one of the agile methods that we will explain later in this article.

Detailed explanation-2: -Trade contributes to global efficiency. When a country opens up to trade, capital and labor shift toward industries in which they are used more efficiently. That movement provides society a higher level of economic welfare.

Detailed explanation-3: -Economic growth is the main channel through which globalization can affect poverty. What researchers have found is that, in general, when countries open up to trade, they tend to grow faster and living standards tend to increase. The usual argument goes that the benefits of this higher growth trickle down to the poor.

Detailed explanation-4: -Mainly, two fundamental causes underpin the globalization of both productions and markets. These forces are trade and investment obstacles and technical innovation. The growth of world trade by eliminating or reducing trade obstacles, such as import taxes, is a crucial feature of globalization.