Question

Minimum of 300 words.

While domestic institutions play an important role in the globalization process, what are some of the fundamental policy measures that those countries need to promote in order to benefit from globalization? How might these policies be implemented and promoted? Lastly, explain in your own words what "globalization" means to you?

Answer 1

Answer-Domestic institutions refers to the set of rules, regulations and mechanisms created by governments and public services to govern the behavior of the citizens/individuals/organisations etc. within the country.

Some of the important domestic policy measures that benefit globalization include-

Implementing economic reforms in global market conditions-The government can introduce new reforms in the trade markets especially in case of removing barriers to trade. Greater integration with the world economy leads to benefit from imports and exports laws and hence globalisation is promoted.

Laws to promote domestic economy-The government can also make new agreements with different countries, anti-trust laws and anti-corruption policies etc. to promote healthy competition in the market. Protecting domestic economy can benefit from globalisation through friendly relation with neighbouring countries.

Above all, I believe that it is important for government of a country should be transparent in all matters and itself be free from corruption and implement the domestic policies in a proper and transparent manner. It should be informed about what is going on in the outside world so that it could benefit from the fruits of globalisation. Before participating in the global economy a country should also try and understand the harmful effects of globalisation as well.

Globalisation is the process of interaction, integration, movement and assimilation of cultures, ways of living, trade, investments, information technology, labour, capital and outsourced manufacturing among people, companies, communities,and governments at the global level. It is a multifaceted as well a complex phenomenon of the integration of local and national economies into a global, unregulated market economy.