Impact of globalization on economic stability
Impact of globalization on economic stability Globalization is a fascinating phenomenon that transformed the world in numerous ways. Globalization results in increasing interlinked and mutual reliance of countries in terms of the trade of goods and services, innovation, and information. Globalization has a remarkable impact on the world economy. As stated by the World Bank, the proportion of global trade compared to GDP has increased since 1970. In 1970, the total value of the global merchandise trade was $19.5 trillion. Foreign direct investment (FDI) has also increased, with global FDI flows reaching $1.54 trillion in 2019. Due to its significance, in recent years, Bhutan has taken a step towards globalization as it provides employment opportunities and increased trade which helps to generate revenue. However, it also leads to income inequality and increases in economic imbalances. Globalization plays an important role in creating job opportunities in Bhutan. Technology transfe