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.
Thomas Friedman once said, “In Globalization 1.0, which began around 1492, the world went from size large to size medium. In Globalization 2.0, the era that introduced us to multinational companies, it went from size medium to size small. And then, around 2000 came Globalization 3.0, in which the world went from being small to tiny.” By this, Friedman was saying that the expansion of globalization has made the world “smaller”. Within the last fifty years, globalization has completely altered the manner by which nations communicate with one another; making communication between nations instant. Today, foreign economies depend heavily on each other to advance, predict and control capital flow. The benefit of globalization has been far reaching. Economic trends reveal that growth in productivity is more readily evident when countries are producing at their comparative advantage. A nation has a comparative advantage at producing a good or service if they can produce it at lower costs than other nations. In Adam Smith’s book,...
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...global market and fostering economic advancement.
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Globalization has been driven essentially by several minor factors varying from cultural, economic, political and ecological concerns, however, it’s being supported by the two macro factors underlining the trend towards superior globalizations. The two major drivers of globalization are; declining trade and investment barriers and the role of technological change (Hill, Cronk & Wickramsekera 2014). With the incorporation of innovative economic theories, I will discuss the key drivers of globalization since the 1970s. Furthermore, I will demonstrate how these key drivers have changed the nature of international business and determine the outcome.
Multiple technological advances have contributed to the advent of globalization, making it a reality in different ways across the globe, but globalization is sustained, in large part, by its mutually beneficial relationship with the interdependence theory. Globalization’s spread across the globe has not only forced nations to depend on each other or risk being left behind, but it has also effectively discarded the notion that national polities function as bounded or closed systems.
Globalization is an increasingly close international integration of markets for goods, services and factors of production, labor and capital. Right after the World War II, the world has witnessed a spread of markets and multilateral development from which no country can operate independently. This multi-dimensional process has different impacts on different countries, depending on the level of economic development and political influence, and it has both positive and negative consequences for human development.
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.
The interrelation and the integration of people, companies, governments and nations can be described as globalization. Globalization was produced due to international trade and investments with the help of technology. In today’s world, globalization is very essential. The advancements and technology help the process needed it for globalization. Many countries and organizations similarly are affected by this phenomenon, on the other hand, smaller countries have benefit from larger contributors in the world’s market.