Topic > The Importance of Globalization - 1237

The world became a huge production chain where countries relied on each other to produce all the required goods. If one failed, there would be a chain reaction that could collapse the world economy. In The World is Ten Years Old, Friedman describes the 1997 financial crisis as caused by complex economic ties and relationships in which the fall of a local economy would amplify to cause a global catastrophe. (9-10) Globalization has brought unimaginable benefits to people living in developed nations through decreased communication costs, increased trade, and new sources of energy. China's opening to the international market and extreme oil extraction have created the possibility of a production chain that ultimately supports global demand for industrial goods. The economy-driven world has also exploited the slower developing countries, which could hinder their growth which would always be under the influence of the more developed nations. However, globalization has established an invisible connection between all humans on earth, the goods that a person consumes may have traveled across the world, made up of different materials that need to be collected in different countries, produced by different international factories and shipped to citizens' homes. the consumer. Indeed, globalization has created an interconnected and interdependent economy