The term globalization is synonymous with international trade and integration of economies through multi-national agreements. According to the Merriam-Webster Dictionary (2013) globalization is defined as “the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets”. Although many disagree as to origin of the idea of globalization, it’s been prevalent in shaping the world economy since the 19th century. O’Rourke and Williamson (1999) note how this ideology has indeed driven international economic policy since the 1980s, as the influence and power of multi-national companies grew exponentially along with the spread of capitalism throughout the world. European and U.S. economies have drastically been influenced by globalization. David (2001) illustrates how the global economy expanded after the North American Trade Agreement (NAFTA) took effect, ushering in an era of trade liberalization, forever reshaping the U.S. economy. The integration of new markets allowed for increased flows of trade of goods and services, but also created new opportunities for immigrants and jobs. Additionally, Hopkins (2002) states that proponents of capitalism and free trade, see globalization as positive force in spreading the ideals of democracy, particularly to nations oppressed by communistic regimes. Zurn (2010) provides a prime example of the sociopolitical changes that stemmed from the emerging global market is the fall of the Berlin wall in 1989 and the dissolution of the Soviet Union in 1991. Although economic globalization has helped international markets to experience dynamic growth, the most recent financial crisis of 2008 has hind... ... middle of paper ... ...he disadvantaged. Governments can and should put in place minimum wage legislation, encourage tax incentives for corporations that invest in infrastructure and improvements in public services, as well as prosecute corporations and officials that subject workers to deplorable working conditions. I agree with Stiglitz (2006) assertion that “the most influential aspect of globalization is the interdependence of market systems around the world”. Trade connects the entire world. It is this economic integration that makes equitable and sustainable approach to trade a necessity. Globalization influences economic, political and cultural processes. It has exposed new societies to the ideals of democracy, free trade, and capitalism. While there are many risks, it is a global responsibility to sustain market liberalization, and ensure it is an equitable solution for all.
Globalization admittedly has several benefits that the author acknowledges including integrating global business communities and economies, reducing poverty, reducing trade barriers, providing poorer countries with much needed foreign aid, as well as reducing the isolation of developing countries. However, with major meetings of the IMF, the World Bank, and the WTO becoming scenes of conflict and rioting, Stiglitz attempts to explain why globalization has become so
Globalization is defined as an interconnected web of contacts that expand across the globe. Globalization has become the easiest way to understand and communicate with the business world. This process allows companies from different nations to have very few issues working together when it's easy to connect, communicate and transport goods (Schultz, 2013). Globalization has had many influences on our nation. Some were probably good and some were not so good. The Clinton administration represented it very energetically, it was the source that drove Clinton's expansion of fiber optic lines across the globe. Not everyone felt that this was a good idea. Protestors of globalization rallied outside a WTO meeting and put a halt to the meeting. Being
Globalization perpetuates economic interdependence between countries. Through the increasing volume of goods and services transferred across borders, globalization has created international capital flow and boosted the rapid diffusion of technology. According to Dr. Ismail Shariff, “globalization is the worldwide process of homogenizing prices, products, wages, rates of interest and profit.” Three forces control the manner by which globalization furthers developments. These factors include the role of human migration, international trade, and integration of financial markets. By discussing the pros and cons of globalization, a correlation between these factors reveal the intertwined web known as world trade.
Stiglitz, Joseph E. Making Globalization Work. New York: Norton & Company, Inc., 2007. Kindle ebook file.
(Bilton et al 1996:5) The process of globalization has certainly had many changing effects to the world we live in; it has also changed the way many factors operate. Globalization is said "to have transformed the structure and scale of human relationships that social, cultural, political, and economic processes now operate at a global scale with a consequent reduction in the significance of other geographical scales. "(The Dictionary of human geography 2004:315) Globalization has had both positive and negative effects on a local, national, international and global level. Globalization often brings benefits at one level which cause negative effects at another, these results and the scale at which they manifest are often uncertain and unpredictable.
Corporations around the world have now set up their production process in different countries around the world, different components of products are produced in different countries and then the final version of product in a different country while the original company originates from a different place. AS now corporations are no longer limited to producing within their home countries they now either directly or indirectly through contractors, employ people around the world in all aspects of production and distribution. In this context, labor is flexible in that a corporation can draw from an entire globe’s worth of workers, and can relocate production to areas where labor is much cheaper or more skilled. Wealth now held by many corporations
Just imagine waking up in squalor, a once prominent society, now a desolate wasteland. All because foreign interest has raped your land of its natural resources and you seen not a cent in profit. Although, globalization is unifying the worlds developed nations and is bringing commerce to nations that have struggle in past years. True, globalization has many positive effects but do the pros outweigh the cons. In this essay I will discuss Globalization ruining the integrity of many countries and also is forcing many undeveloped nations into a bind, and is causing economic distress on some developed nations. Also, due to economic globalization the nations of the world are diluting their culture, sovereignty, natural resources, safety and political system. My goal is not to change your way of thought, but only to enlighten you of the negatives of global economic expansion.
Globalization, love it or hate it, but you can’t escape it. Globalization may be regarded as beneficial from an economic and business point of view, but however cannot be perceived the ditto when examined from the social sciences and humanities side of it. Globalization can be argued as a tool for economic growth, advancement and prosperity through co-operation between the developed and developing countries. The pro-globalization critics argue that the benefits that globalization brings to developing nations surpasses or outcasts the negative impacts caused by globalization and may even go a step further to state that it is the only source of hope for developing nations to prosper and stand out. However, the real question to be asked is as to what extent are the positives argued upon without taking into account the negative aspects of globalization towards developing countries. Moreover, how many developing countries out of many are exactly benefiting or even prospering from globalization is another question to consider. Therefore, my paper will dispute that indeed growth and advancement provided by globalization to developing countries is beneficial in short-term, but in the long-run, it will only bring upon negative impacts and challenges due to the obstacles involved such as exploitation of labour and resources, higher increase in poverty, and effects of multi-national corporations on local businesses and the economy, and to an extent the effects on the developing country itself.
Over the past few decades there have been discourses both in favor and against Globalization’s capacity to guarantee a sustainable future. Authors attest societies and businesses’ inability to account for ecological and environmental limits when dealing with economic growth, examples of this are some of the traditional business metrics used by most global companies, and nations’ measure of wealth (GDP); both sides heavily resting on economic factors, fail to account for societal and environmental concerns (Byrnea & Gloverb, 2002). Other researchers point at the intensive use of resources, especially by global corporations; such as the increasing and careless consumption of fossil fuels, water, precious metals, etc. leading to a rise in GHG (Starke, 2002) (United Nations Development Program (UNDP), 2000). Most fervent opponents go as far as to call ‘sustainable development’ an oxymoron (Ayres, 1995).
Globalization on a broader scale, is an integration act, involving cultural, mental, political as well as economic aspects of a person, among countries. It is mostly limited to, economic integration, associated with movement of people, exchange of technology and information, trade as well as financial flows. . This is practice is clearly miles ahead, as demonstrated by the ever increasing capital flows in the world economy as well as the level of importance, the world economy has. As a result of globalization, tremendous pressure is on the nations to keep up with its demands and this has had a lot of consequences. Some pundits will tell you that these effects are only economic based,
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
Globalization, the acceleration and strengthening of worldwide interactions among people, companies and governments, has taken a huge toll on the world, both culturally and economically. It’s generating a fast-paced, increasingly tied world and also praising individualism. It has been a massive subject of matter amongst scientists, politicians, government bureaucrats and the normal, average human population. Globalization promoted the independence of nations and people, relying on organizations such as the World Bank and also regional organizations such as the BRICs that encourage “a world free of poverty” (World Bank). Despite the fact that critics can argue that globalization is an overall positive trend, globalization has had a rather negative cultural and economic effect such as the gigantic wealth gaps and the widespread of American culture, “Americanization”; globalization had good intentions but bad results.
Sachs also discusses the concept of social progress, which began in the Age of Enlightenment in Europe in the 1700s. The author also stresses the importance of “Enlightened Globalization” in the form of democracies, multilateralism, science and technology, and global economic system to meet the human needs. This requires active participation, cooperation, and innovative nations to sustain the progress. The three efforts which highlighted the rights of the poor and weak population were (i) The end of slavery as a results of independent movements which occurred in many countries concurrently; (ii) The end of colonialism with the notable effort by Mahatma Gandhi who strategized the independence movement by calling for political
The term ‘Globalization’ refers to is the integration of economies, industries, markets, cultures and policy-making round the globe. It explains a progression by which both national and regional economies, societies, and cultures have become incorporated through the universal system of commerce, communication, migration and transportation.
Globalization is the increasing interconnectedness of people, places, and cultures throughout the world today. The effects of this homogenizing process that we call globalization can be seen in all aspects of life. From McDonalds being in almost every country, to the majority of North American clothes being made in periphery countries, to the technological ability that allows us to instantly communicate with people anywhere in the world, the effects are everywhere. Economically today, globalization has had both positive and negative effects around the world, with many similarities to colonization. Globalization has also led to increased poverty amongst the global periphery, and a specific group of winners and losers within this process of globalization.