Economic Globalization

That this was also the decade in which globalization came into full swing is more than a minor inconvenience for its advocates” (Rodrick). If globalization is supposed to present an advantage to developing countries, why have there been so many setbacks? Indeed, both sides will have its winners and losers regardless of which side of the development coin they live on, but for the most part globalization has lifted millions out of poverty, improved the standard of living, and increased life expectancy rates all while keeping developed nations relatively competitive to their developing counterparts. Globalization’s value is that it seeks to create an economic equilibrium in the world, where parties are free from barriers and can benefit from one another through a more efficient allocation of resources. This allows all participating nations to contribute to an integrated economy and where all nations willing to embrace globalization have the potential to benefit. Regardless, the path to successful integration to the global economy has not always been easy. There is contention towards globalization as some argue that it is detrimental to developed nations, while many developing countries that were forced to hastily open up their markets and integrate failed. However, if implemented properly, globalization has proven that it can benefit all parties involved and that the potential gains outweigh the losses.

The term globalization can be defined as a process by which societies, regional economies and cultures have been integrated via a global network of transportation, communication and trade. It has both positive and negative impacts in all the areas that it touches on be it economical, social, technology, cultural, political, environment, health or any other. Globalization started to have an impact on businesses world wide in the eighteenth century since that time marks the merging of modernity and globalization. However, in the modern sence, globalization kicked off after the end of Second World War since its during that time that leaders felt the urge to break down the borders

Globalization is one of the most discussed and controversial terms in modern history, while many people believe free trade drive global economic growth, create jobs, and lower prices for consumers. Contrary, others argue global cooperation mainly abuse, underpaid their employees lastly benefits from tax havens. Regardless of someone’s personal view, globalization is an ancient and profound system based on international strategies of which economic, political, and sociocultural relations are interconnected across long geographical boundaries. This Integration occurs as technological advances simplify and facilitated the trading of goods and services, the flow of capital, and migration of people across the globe. Lughod Provides a comparative

Globalization is difficult to simply define due to the variety of changing definitions that have been established over previous decades. Hamilton and Webster (2012) suggest that globalization is the connection between nations, defining globalization as a process in which barriers are reduced in order to encourage exchanges between countries. This view proposes that globalization refers very much so to the trade barriers and the improved communications between countries in order to ensure the world is unified. Globalization increases economic activity across the world and opens up markets for foreign investment.

The second topic in the inequality debate is about inequality between nations. This argument discusses whether globalization is responsible for widening the average income gap between rich and poor nations. When inspecting the average incomes of rich and poor nations, the widening income gap does not occur everywhere. Overall, the debate of inequality between nations results show that developing nations working towards globalization and can possibly grow faster than developed nations. Nations that fail to make their way into the global market may become worse off.

If we want to fully understand the importance of globalization and its effects on the world’s economy and society now and its potential for the future, it is vital that we study its past and how it has originated. The history of Globalization is broad and diverse therefore it is only possible to outline some of the main areas. Globalization isn’t just a modern day phenomenon. Trading activities date from the very earliest of civilizations, but it was the Middle Ages in Europe that initiated systematic cross-border trading operations carried out by institutions of a private corporate nature. By the end of the 14th century it is estimated that there were as many as 150 Italian banking companies already operating multinationally. (Dunning, 1993) This is not exactly globalization, it is however international trade. International trade is one of the main concepts behind globalization.

Economic globalization has been a crucial role and a very commonly discussed issue in today’s world. As explained in the book “International Business”, the term economic globalization means increasing economic interdependence of national, regional and local economies across the world through acceleration of cross-border movements of goods, services, technology, and capital (Joshi). Many people’s first impression of economic globalization would be the significant economic growth and higher living standards it creates, especially in East Asian developing countries. Recently, a heated conversation about economic globalization centers around its effectiveness in reducing worldwide poverty. Economic globalization has shown an unprecedented

Globalization is known to be found almost in all countries all over the world. The definition of globalization is quite easy to understand, it is the process of integration and co-operation between different countries. So, how does globalization influence labor market? Although there are some benefits of globalization in several areas like culture and business, it has a negative impact on labor market. Serious consequences of trade liberalization, fast expanding of technology at factories and plants all around the world and growing gap between manufacturing-producing countries and agricultural-producing countries are known to be three major ways globalization affects labor market.

“Globalization is not just one impact of the new technologies that are reshaping the economies of the third millennium” (Thurow 19-31). When speaking of globalization, most people will not have a complete understanding as of what it actually means or what aspects of the world it affects. Globalization promotes free trade and creates jobs. The capital markets attract investors, resort cheap labor, and leads to job losses in some areas of higher wage. While all of this is happening, the world economy is being effected: economically, culturally, socially, and politically.

Today whatever people want can be bought with the help of the improvement of trading system. Begins with the Silk Road now the world has an extremely large way for exchanging and that is called organization. Globalization is a process by which the words are integrated into a single institute and play a role. It is claimed that globalization encourage productivity, cultural assortment and cash flow into the developing countries; however, there are some disadvantages of globalization that should not be overlooked: such as, unemployment, social degeneration and difficulty of competition.

It can be argued that economic globalization may or may not be an irreversible trend. There are several significant effects of economic globalization. There is statistical evidence for positive financial effects as well as proposals that there is a power imbalance between developing and developed countries in the global economy. Furthermore, economic globalization has an impact on world cultures.

Broadly speaking, the term ‘globalization’ means integration of economies and societies through cross country flows of information, ideas, technologies, goods, services, capital, finance and people. Cross border integration can have several dimensions – cultural, social, political and economic. In fact, some people fear cultural and social integration even more than economic integration. The fear of “cultural hegemony” haunts many. Limiting ourselves to economic integration, one can see this happen through the three channels of (a) trade in goods and services, (b) movement of capital and (c) flow of finance. Besides, there is also the channel through movement of people.

For many of the world’s population, the growing integration of the global economy has provided the opportunity for substantial income growth. This is reflected not only in higher incomes, but also in the improved availability of better quality and increasingly differentiated final products. However, at the same time, globalization has had its dark side. There has been an increasing tendency towards growing equalization within and between countries and a stubborn incidence in the absolute levels of poverty, not just in poor countries. These positive and negative attributes of globalization have been experienced at a number of different levels – the individual, the household, the firm, the town, the region, the sector and the nation. The distributional pattern emerging in recent decades of globalization is thus simultaneously heterogeneous and complex.

It is usual today to hear of economic globalization referred to as an immensely valuable and modern process. The implication is that, as nations more fully engage in interactive trade and financial cooperation, benefits accrue to virtually all as the markets inevitably expand. Importantly connected to such a viewpoint is the perception that the expansion of the global economy must produce desirable results for those nations in various stages of development; in plain terms, the interaction on the global scale must both infuse such countries with capital and significantly promote the internal growth necessary for them to engage more fully in the international currents of finance. To some extent, there is validity to this; global integration does encourage accelerated development, and particularly in regard to trade. At the same time, there is as yet no conclusive evidence that the integration of developing countries into the global economy uniformly produces benefits for those countries. The research thus far indicates that individual national variables, as will be discussed, are critical factors, and that trade openness may be more advantageous than financial openness (Presad et al 8). As the following will investigate and affirm, the unique characters of developing nations themselves potently affect how integration into international markets goes to their further development. Ultimately, while such integration is seen to yield important benefits to the countries

Economic globalization refers to interdependence of economies around the world as a result of flow of Capital, Labor, Natural Resources, and Technology across borders. The development of communication and transportation technologies coupled with digitization of all processes is resulting in fast expansion and integration of market economies. Globalization of the financial sector has become the most rapidly developing and most influential aspect of economic globalization. The Multinational corporations (MNCs) have become the main carriers of economic globalization. They are globally organizing production and allocating resources according to the principle of profit maximization. Their global expansions are reshaping macroeconomic mechanisms of the operation of the world economies. Globalization has positive and negative impact on developed and developing countries however the loss of lower skilled job in developed countries is sensitive impact however there are overall positive impact in the world.