How can the government benefit from the opportunities of globalization

March 30, 2021

After analyzing all the factors that can be used in this situation, I have come to a conclusion that if the government invests on ‘Building a new airport or other transport links’ then the country can highly benefit from the opportunities of globalization, as this boosts up the GDP by a large value, increases trade and knowledge of culture, and is the most efficient out of all the factors.

Firstly, improved transportation can result is faster movement of goods and people, and can therefore increase the percentage of trade between countries which, in the end ‘creates wealth’ . An example of this is ‘The Silk Road’. The Silk Road not only improved trade and commerce, but also allowed the sharing of various cultures, and ideas, leading people to invent more things. Building more transport links can reduce the cost of transporting goods and people which will also reduce the overall cost of production, resulting in the availability of cheaper goods and services to the public which improves trade.

Secondly, good transport can widen people’s job search as people can reach out to rural and other secluded areas too, so it benefits low income and low profile people too. Easier transportation means that more people can go abroad and then later on benefit the country with their expertise. Good transportation also encourages firms to shift closer to their supply chain, which then results in increased percentage level of output, employment, income, and increased productivity and performance rate too therefore creating an agglomeration economy. It also allows firms to share their expertise with each other, therefore leading to globalization.

Globalization also occurs when tourism increases; as tourism accounts for almost 3.8% of the world GDP. Improved transport increases tourism as it can reach out to various areas/ localities/ countries allowing people to cross borders a little more easily and freely. In recent years (due to the increase of tourism) studies show that approx. 72 million people were employed in the tourism sector. Other that this, more movement of people allows them to work at different places where local people are unable to do the job .It's also stated in many reliable sources; migrants give us more money than they talk away, so that’s why ‘Improved transport links’ is one of the best options.

Others may argue that this process consumes a lot of time, and I agree, however, this process needs a lot of workers to build an airport, so therefore it also employs people in the mean time. Later on, after the airport/ other transport links are built, it saves people’s time as they have improved transport facilities, so therefore it is a long-run solution.

Finally, the reason I didn’t choose other factors like: ‘improve training in information technology’, was that, there are already a lot of people in the IT field at the present, and if we choose this option, then it may lead to a higher rate of unemployment in the country. Another factor is: ‘allow more people from abroad to live and work here’... I didn't choose this because, if more people migrate, then there will be a lot of unemployment of local people as the demand for jobs are higher that the quantity of jobs provided’. Although these other points (as stated above) are less time consuming, they are not feasible and cannot provide a long-term solution.

Therefore, I conclude that (in my perspective), ‘building new airports and other transport links’ is the best option the government could go for as it is the most economically beneficial, feasible, and the best long term solution for the country.

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