Globalization, Laws and Market

Why are many governments in today’s world liberalizing cross-border movements of goods, services, and resources?

In the past, all countries around the world had restricted the movement of people, services, and goods across their borders but today these restrictions have been reduced due to the idea of open economies. These open economies allow for a a higher level of efficiency for businesses to compete with foreign companies which grants the idea of globalization to expand. Globalization is all about deepening the relationship and broadening interdependence among people from different countries. In the business world, globalization creates opportunities (as well as threats) for people, companies, and countries to engage in a number of diverse foreign environments. The cooperation between countries and companies grows through international organizations, treaties, and consultations.

Globalization between countries covers many different aspects of the way people, companies, and governments connect around the world. While it does have a connection to businesses (including production, communication, and technology) it also applies to economic and cultural activities and to the push to create a global free market for goods and services (Smith & Doyle, 2002). This transition is more than likely due to the change in the role of government within the economy. The government itself transitioned to now be a place for private economic activity, rather than taking control over economic situations like it has in the past. This is essentially a transition from a nation state to multinational corporations.

There are many advantages for businesses and countries to cross-boarders and globalize with other countries. One of the major reasons, a...

... middle of paper ...

...conomic systems, 2011). For example, in Sweden, the government plays the major economic role, the social activity is greater, taxes are higher, and the distribution of wealth and income is more equal. They have benefited from a strong work ethic and higher levels of trust, and while taxes there are second highest in the world, taxes for the wealthy and and not-so-wealthy are not that high (Clinch, 2012). While in Great Britain where the private sector is more important, have fewer free goods and services, with lower taxes and an uneven distribution of wealth and income. In these mixed economies, it is unlikely to have a completely even mix because of a inclination in one direction or the other. The mixed economy would allow not only the freedom that sellers and buyers want, but the regulations through the government that are needed to keep things from falling asleep.