What is globalization?
Globalization is the process by which businesses and organizations develop market influences in international locations in order to scale. Globalization is the distribution of products, technology, information, and jobs across national borders and foreign countries.
Globalization describes an interdependence of nations around the globe fostered through free trade. An advantage of globalization is that it can raise the standard of living in low income and underdeveloped countries by providing job opportunity, modernization, and improved access to goods and services.
A primary disadvantage is that it can destroy job opportunities in more developed and high-wage countries as the production of goods moves across borders. The growth of globalization is often determined by applying world trade as a percentage of gross domestic product. The larger the amount of globalization, the greater the amount of globalization will exist.
Factors that drive globalization include technological enhancements, transportation movements, lower wages and lower raw materials, and less regulation on trade:
You might also be interested in...
What does the slang term “suicide pill” mean in finance?
If a company is on the verge of being acquired by another company, and they don’t want to be acquired, then they might take a suicide pill. There is no concrete way to commit financial suicide. Basically, any extreme action by the company to prevent being acquired would be considered financial suicide. Examples include taking […]
What is the personal holding company tax?
Personal holding companies that are required to pay personal holding tax will be subject to an additional 20% tax on personal holding income. Personal holding corporations will be subject to a penalty tax if they meet certain criteria: Criteria #1: Over 50% of the value of the outstanding stock should be owned by five or […]
How to calculate the accumulated earnings tax for corporations?
The accumulated earnings tax is a 20% tax that will be applied to C corporation’s taxable income. The accumulated earnings tax is considered a penalty tax to those C corporations that have accumulated over $250,000 in earnings ($150,000 for PSC corporations) and if that excess amount has not been distributed to shareholders in the form […]