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Sabrhea Nano

ROLE OF LIQUIDITY IN THE GLOBALIZATION IN THE CONTEMPORARY WORLD

Updated: Mar 13, 2022

The contemporary world is the world in which we now live, a world in which many types of improvements occur in numerous areas such as economics, politics, society, and technology. The contemporary world, according to Freeman-Pedia, is a constantly shifting blend of social and political changes. While religious, political, and ethnic disputes persist, the world is currently experiencing one of the most tranquil periods in its history. With all of these changes aimed at improving inter-country communication for economic, political, and social reasons, the metaphor of liquidity will emerge. Liquidity is a globalization metaphor that alludes to the rising ease of movement of goods, information, and places in today's world.



People, forces, and industries all across the world have become more flexible as a result of the increase of global liquidity or globalization, according to Raza (2020). They have the power to shape their life according to their desires and the current state of the world since they are more mobile, which allows them to communicate, travel, and adjust to changes more quickly. The high liquidity in today's world, according to this concept, indicates that anything in the globe can circulate freely. Trading and commerce are considerably more liberated in an economic sense as long as both countries benefit from the trade. Because a country's general finances are also based on trading, the inflow of funds based on this trading system is critical. Financial globalization, according to Haüsler (2002), has helped national economies as well as investors and savers. Certain practices in finance foster saving and investment, which improves economic well-being by facilitating genuine economic activity and growth. With all of this imposed sustainability and productivity from having a solid trading and marketing relationship with other countries, a competitive economy is formed.


Another part is politics, in which these various types of organizations come together to achieve a common purpose. Political globalization, according to Lutkevich (2021), refers to national policies that link countries together politically, economically, and culturally. The communication held between leaders in their various countries for goals of support and development from each other's country affected politics. On the other hand, according to Edexcel, the social side of globalization relates to the interchange of ideas and information between and through different countries (2021). Music, films, novels, videos, and other forms that may be disseminated internationally are examples of this knowledge. But, if it weren't for the existence of technology, none of these components would flow as smoothly as they do now. I believe that the presence of technology is what made liquidity really possible and overt in terms of globalization. Technology has played an increasingly important role in our daily lives as it has made our lives easier and more convenient. According to Lamba and Malhotra (2009), technology has aided people in overcoming major barriers to globalization and international trade, such as trade barriers, a lack of universal ethical standards, transportation costs, and information exchange delays, resulting in a shift in the market environment. Because of the internet, where the majority of people in the globe spend their time nowadays, the flow of exchange has become more fluid and easy as a result of technology. This paved the door for the exchange of information about people's cultures and beliefs, as well as the promotion of open-mindedness toward certain countries.



Finally, in today's world; the contemporary world, liquidity is overt and highly visible. It perfectly represents the global flow of things and information, allowing freedom of communication between countries and easy access to knowledge all over the world. With this liquidity continuing for future generations, many aspects of the world will undoubtedly be part of future globalization, hopefully shaping the world into a better place.



REFERENCES:

  • Edexcel (2021) Types of Globalization. Retrieved on March 11, 2022, from https://www.tutor2u.net/politics/reference/types-of-globalisation#:~:text=Social%20globalisation%20refers%20to%20the,films%2C%20books%20and%20TV%20series.

  • FreeMan (2022) The Contemporary World –Freemanpedia. Retrieved on March 11, 2022, from https://www.freeman-pedia.com/today#:~:text=The%20contemporary%20world%20is%20an,the%20history%20of%20the%20planet.

  • Haüsler, G. (2022) Finance and Development. Retrieved on March 11, 2022, from https://www.imf.org/external/pubs/ft/fandd/2002/03/hausler.htm

  • Lamba, T. and Malhotra, H. (2009) Role of Technology in Globalization with Reference to Business Continuity | Lamba | Global Journal of Enterprise Information System. Retrieved on March 11, 2022, from https://www.informaticsjournals.com/index.php/gjeis/article/view/2956#:~:text=Technology%20has%20helped%20us%20in,thereby%20changing%20the%20market%20place.

  • Lutkevich, B. (2021) What is Globalization? Globalization Explained. Retrieved on March 11, 2022, from https://www.techtarget.com/searchcio/definition/globalization

  • Raza, L. (2020). Understanding Globalization and Beuman's Liquidity. Retrieved on March 10, 2022, from https://runwaypakistan.com/understanding-globalization-and-baumans-liquidity/#:~:text=With%20the%20rise%20of%20global,and%20the%20world%20right%20now.


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