Customer benefited from increased competition by liberalization and globalisation

Introduction:

Liberalization- Liberalization is any process whereby a state lifts restriction on some private individual activities. Liberalization occurs when something which used to be banned is no longer banned, or when government regulations are relaxed. Economic liberalization is the reduction of state involvement in the economy.

Globalization- Globalization is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.

Discussion:

There is strong evidence in many services, not least telecoms, that liberalization leads to lower prices, better quality and wider choice for consumers. Such benefits, in turn, work their way through the economic system and help to improve supply conditions for many other products. Thus, even if some prices rise during liberalization, for example the cost of local calls, this tends to be outweighed by price reductions and quality gains elsewhere. Moreover, governments remain perfectly able under the GATS, even in a fully liberalized environment, to apply universal-service obligations and similar measures on social policy grounds.

Some believe consumers will be negatively affected by globalization with greater economic instability and multiple financial crisis’ while corporations receive record profits. Other experts are of the opinion that globalization will provide customers with more wealth, more goods at lower costs, and will end poverty. Globalization gives customers the advantage of getting the best products at the best prices, per many economists and theorists. Each country, in a global market, manufacturers a product (or products) that they are best and most efficient at producing. Thus, the standard of living in each country is raised due to the positive effects of globalization. According to this perspective, the new global economy will shift millions of people from absolute poverty to the middle class. Another predicted benefit of globalization is that it will increase global salaries of managers and professionals and provide an increased market for international positions.

Consumer access to disposable income will increase demand for technological advancement and new and improved goods. Further, lower prices give consumers the benefit of being able to save money or spend money on things they want instead of only things they need.

Conclusion:

Customers have benefited from increased competition after liberalisation and globalisation as the tariffs on many of the products have decreased drastically due to the increased competition among the companies to sustain in the market. Also, due to globalisation each and every product available across the globe is available at your doorstep in a single click and in real quick time due to increasing demand of the products in quick time and at cheaper prices. So, liberalisation and globalisation has been a benefit to the customers to a great extent.