Globalization between domestic matters and global affairs become increasingly

Globalization is the most popular
mechanism in today’s world economy. Globalization referred to a process by
which merge an individual national economy into an interdependent and
integrated global economic system. The whole world is becoming a small village
due to the globalization process. The development in transportation and
telecommunications technology brings a world in which barriers to cross-border
trade and investment are declining and perceived distance is shrinking.

Globalization implies integration
of economies and societies across the globe with the assist of technology,
trade and capital. It basically refers to a process that enables people, goods,
information, norms, practices and institutions to transcend national
jurisdictions through markets, technologies, interests and information flows.

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Globalization is characterized by
four types of changes. First, it involves a stretching of social, political and
economic activities across frontiers, regions and continents. Second, it is
marked by the growing magnitude of interconnectedness and flows of trade,
investment, finance, migration, culture, etc. Third, it can be linked to a
speeding up of global interactions and processes. And fourth, the effects of
distant events can be highly significant elsewhere and specific local
developments can have considerable global consequences. Thus, the boundaries
between domestic matters and global affairs become increasingly fluid.

Globalization, in short, is the
widening, intensifying and growing impact of worldwide interconnectedness. It
causes an expansion in the volume and variety of cross border transactions in
goods and services. Globalization is a long-term process of change. It has
economic, political and cultural dimensions, all of which can have a social
impact. The different dimensions of the process are interrelated and mutually
reinforcing. There are, undoubtedly, significant potential benefits of
globalization. Openness to foreign direct investment (FDI) can contribute to
growth by stimulating domestic investment, improving efficiency and
productivity, or by increasing the knowledge applied to production. Increased
access to the domestic financial system by foreign banks may raise the
efficiency of the banking process thereby lowering the cost of investment and
raising growth rates. Trade openness may facilitate the acquisition of new
inputs, less expensive or higher-quality intermediate goods and improved
technologies that enhance the overall productivity of the economy. 

Conversely, the process of
globalization entails significant risks and potentially large economic and
social challenges, particularly to the developing countries. Openness to global
capital markets has brought greater volatility in domestic financial markets,
particularly in countries whose financial systems were weak to begin with and
whose economic policies lacked credibility. Similarly, trade liberalization has
led in some countries to reduced demand for unskilled labor, lower real wages,
job losses and income declines which have often resulted in higher poverty
rates. As a result, there have been growing concerns about the negative effects
of globalization, and an increasingly polarized debate on the dilemma of the world’s
poorest.  It is very clear that the
phenomenon of globalization has come to stay. In fact, globalization has been
described as a fast-moving train that waits for nobody. Intended passengers
either jump onto it or risk of being left behind. Like every journey, every
passenger must be prepared to board at the right station, with the necessary
kits and with a clear knowledge or vision of his destination. There are obvious
indications that Bangladesh is ill prepared to start this journey and cope with
the developments. Apart from the fact that most developing countries lack the
basic infrastructure to embark on industrialization drives, the inability to
make sound economic policies, unpredictability of changes in laws and pervasive
corruption are critical obstacles to development. Therefore, one of the
greatest challenges faced by Bangladesh in this century is how to strengthen
its participation in the global economy in a manner that will bring widespread
and sustainable benefits to its people. Motivation and Significance of the
Research The motivation that I have for this research is based on the fact that
I am a Bangladeshi who has seen and experienced the impacts of globalization
phenomenon on business sectors of Bangladesh. I take great interest in
globalization issues and because of my interest; personally, I could see the
views of other countries regarding globalization and its use in economic
development. I have also marked how these countries use globalization to their
advantage. Having compared the socio-political and economic environment of
Bangladesh and the countries visited, I am now in a position to understand the
likely effects of globalization on the business sectors of Bangladesh. I would
like to take this opportunity to do the research based on my experience and
understanding of the subject from my reading.