Advancements in technology have brought stupendous evolutions and improvements in human life where globalisation is the major one out of all the changes. Do you know the most significant benefit of globalisation that people worldwide can enjoy? Today, almost all the developed countries have huge populations of expatriates migrating from different developing countries. Where globalisation has helped to connect people all over the world, it has made it possible to send money to Gambia and other countries online to family and friends from different countries where you stay, work, and earn. Let’s learn about globalisation, an insight into it and the connection between globalisation and the remittance industry. All of this and a lot more you will learn here. Let’s begin.
Globalisation is simple to define.
Globalisation means the quick movement of goods, services, capital and exchange of human resources, technology, and cultural practices across the world.
Through this practice, interactions between the people of different regions located far away get deeper and distances are squeezed.
Let’s now delve deeper and see the connections between globalisation and the remittance industry.
The history of the remittance system is fascinating.
The phenomenon of remittances is not new to the world. The need for migration has a long history with the need to earn money and move funds from one place to another. In fact, a few countries like Spain, Italy and Ireland depended on their expatriates and the remittances they would send in as far back as the 19th and 20th centuries.
The major shift in the remittance system was witnessed in the early 21st century when credible companies such as ACE Money Transfer made international money transfer easy. For instance, many expatriates from the Gambia were exposed to the best ways to send money to Gambia onine through international money transfer apps.
Evolution of remittance system: from start to now!
The earliest form of remittance is said to have originated in 9th century China. It was known as the ‘flying’ money system. At that time, while travelling, the traders used to guard themselves against robberies by offering vouchers to merchants as proof of payment.
It took a turn in 18th century Russia where money was transferred through the mail. Hawala or Hundi system was practised in the East. And in the US, a telegraph wire system was developed in the early 20th century.
Now, the remittance system has evolved to unique levels that correspond to the expatriates’ fluid and sophisticated monetary needs. It is one of the reasons why the global remittances amount to around $800bn annually.
International economies are uniquely linked with each other.
The importance and significance of international economies cannot be overemphasised. No country can operate in isolation. The exchange of goods, services, technologies, and human resources is necessary for any country to survive. Not every county is equally developed and prosperous. Therefore, the said exchanges are a must.
International economies are linked in the following four ways.
In this, two or more countries engage in the cross-border flow of goods and services pushed by supply and demand.
Two or more countries engage in cross-border flow of capital through the international financial markets and the effects on exchange rates. For example money transfer to Gambia from UK.
International monetary economics
In this, two or more countries engage in the cross-border flow of money and the impact on the economy as a whole and at the macro level.
International political economy
In this, two or more countries engage in studying the impacts of international conflicts, sanctions and a calamity on a global scale.
Remittances are the engine of globalisation: learn how.
The sheer volume of global remittances in the current times is proof of their importance in globalisation. The volume of international remittances was around a staggering $800bn in 2021. And it is estimated to be rising more and more with time.
Remittances are essential for the recipient economy.
The people of underdeveloped countries go to the developed states for better employment opportunities, and they send money online back home after earning. Now, the need to earn in a foreign land serves globalisation, which is already explained above.
Remittances help develop the recipient country.
The money that the expatriates send back helps create investment opportunities, savings, and property purchases in their home country. Expatriates also send back technologies from other countries, which is one of the core features of globalisation.
Remittance can potentially revamp a society.
The flow of remittances helps a society develop since the living standards of the recipients lift from where they were before receiving the remittances.
The best method to send remittances should be chosen with care.
The best method primarily depends on a set of factors. If you are looking for speed, security, access to the service provider, low fees and best exchange rates etc., you need to find an online money transfer service provider that offers all of it under one roof, such as ACE Money Transfer. The company has an immense customer base spanned across 26 sending and more than 100 receiving countries. ACE provides the most convenient, safe, secure, and reliable ways for online money transfer to Gambia from your destination country.