The term ‘globalisation’ refers to the development of the world which has become increasingly unified in aspects such as economies, societies, and cultures as a result of the international trade, communication, immigration and transportation (Financial Times n.d.). According to Moore (2003), globalisation is not a new phenomenon, it has started since long before the Britain ruled the waves. Globalisation was focused on the economic section in the past, however, it has recently broadened to a larger range of areas such as culture, media, technology, socio-cultural, political, and biological factors (Financial Times n.d.). Since the past, trading of goods and services, knowledge and cultures have already existed, but the refined technologies at present have increased the exchange speed much faster than ever (Global Education n.d.). This global process has brought some enormous effects economically, socially and politically both between and within nations. There has been much debate in recent times about that globalisation causes only an increase in economic inequalities, however, this essay will demonstrate that globalisation also creates positive and beneficial consequences both between and within nations.
Firstly, globalisation creates greater free trade. Free trade is defined as a structure of transaction among countries where no exclusive tax is charged on imported goods (Merriam-Webster n.d.). According to the World Trade Organization (n.d.), free trade empowers economic growth. One of the positive effects of free trade is that it allows a country to specialise in producing a few types of goods where that country have a comparative advantage. Therefore, the country can produce that few types of goods at a lower opportunity cost (Economic Help 2012). What is more, when nations specialise in producing certain types of goods, consumers can receive lower prices and