The world economy may be unsteady while shifting from globalization to Localisation. Globalization has been depending on the businesses or trade, development of the multi-national companies, migration for employers, and constant increase of the capital flow. Entirely shifting of globalization to localization can be risky at the early stage in the world economy as it will lead to a sudden steep fall or crisis in the world economy.
To understand the risk factors it is important to understand the advantages and disadvantages of both Globalization to Localisation.
Main benefits of globalization for a country and impact on the world economy are as follows:
The first benefits of globalization are free to trade, trading between the countries involves exchanging of products and goods at low prices with the higher opportunity of increasing business in the country.
Localization initiates on the community growth, by selling and production at the local sectors. No exchanging of goods or products leads to slow growth of but it will lead to stable growth. No worries of steep fall of the economic growth contrary to the world economy. Increase in revenue with the local business improvement to gain stability in the world economy but once again the process is slow compared to globalization.
Business and production in the economy
The major benefit of globalization is the production of specialized products on a higher scale. Lack of space and labor limits the production consistent with high demand. Land, industries, and labor, the entire equipment scale can be increased with production in different parts of the world.
You can easily assume that the cost of production to low selling prices to the consumers.
While here a drawback in localization is observed when the production is entirely localized. As the scale of production cannot be increased even when it emerges high demand for the specialized production of a product. Localization to production and demand hampers the developing world economy.
Cultural diversity
Globalization abruptly reduces cultural diversity, but mainly on the intention of economic growth prior importance is mostly compromised. The local businesses in the world economy sustain the benefit of cultural diversity.
Localization interprets for translation
The translation is a process to streamline country businesses which require to follow certain processes. When we look at the translation of the country, different prospects are perpetuated. The specialized product that is manufactured for a specific target, which has an increased demand globally without any extension of production, addressed to local productions.
Localization is an independent originating process but revenue earnings at the early stages momentum of economic growth cannot be assumed to be equal to globalization.
Generalized system of preferences (GSP) striking on globalization has exempted exported goods from India. After which about trade relationship between India and the USA bonded to a $ 142 billion trading relationship. About $54 billion of goods were exported to the US in the year 2018 while Goods from the US of $33 billion was imported to India.
But 2020 year has been worse when globalization initially requires to strengthen the roots of the economy by localization to escalate the world economy.
