Explain how globalization has caused some goods to be cheaper.
Explain how globalization has caused some goods to be cheaper.
Globalization is the process where the economies of various countries in the world become more and more connected to one another. In a globalized economy, people from one country can buy goods quite easily from other countries. Nowadays, people in one country can even buy services from other countries (because of the internet a company can have accountants in India, for example, do its taxes).
The main advantage (economists say) is that people get more goods and services for a cheaper price. Instead of having to buy something made in America, I can buy the same thing made in China, but cheaper. That’s good for me. we can also say globalization helps countries like China get richer and eventually that will mean they’ll buy more stuff from us (like computer programs and movies and such). So due to the globalization we can buy one particular kind of goods made in one country in same price in another country or cheaper price if there is perfect competition. Since, globalization made the easy available of goods all over the world due to which the price of goods are not expensive. As globalization has also affected the determinants of supply like factor cost, technology, profitability of alternative pursuits, expectations, and number of sellers. By which there is change in demand and price of goods.