Globalization can be defined as the system of interaction among the countries of the world in order to develop the global economy. It also refers to the integration of economics and societies all over the world (http://hotbabefatchicks.hubpages.com/hub/Definition-of-Globalization). Globalization can be both advantageous and detrimental to developing countries. Some of its advantages are increased external finance, improved technology and political conformism. Disadvantages of globalization include death of small and medium businesses, loss of cultural identity and the effect of foreign policies on domestic economic development.
Globalization, a vital characteristic within the modern economic environment has resulted in a number of changes to countries in terms of economic development. The expression globalization means the mixing of international and local economies into a singular unified economy. Globalization has caused the economy of many countries to rise because of international trade; however, trade could cause the economy of a country to face ups and downs which could have an effect on the working conditions, health of the workers and the quality of life within a nation. In order to discuss globalization it is important to know the meaning of the term “multinational”. Roughly speaking, multinational companies are enterprises with headquarters in one country and affiliates in other small countries with the same types of jobs offered to employers.
The open markets are filled with competitors trying to trade and sell their goods and services. Fair Trade laws are enacted to provide an equal opportunity in the marketplace for developing countries and small producers of goods. To protect their financial economies, .governments intervene by placing huge taxes and quotas on exports, to restricting producers who try to flood the markets with their products. This intervention also helps those producers who are facing unfair trading practices. Companies who provide cheaper made products, can cause a deficit for any country by flooding their economy with these exports.
Free trade enterprise has developed and grown through organizations such as the WTO and NAFTA. The U.S. in order to obtain its free trade desires has implemented a number of policies that can be examined for both their benefits and flaws. Several trade policies exist as options to the United States, among these fair trade and free trade policies dominate the world economic market. In order to achieve economic growth the United States has a duty to maintain a global trade policy that benefits both domestic workers and industry. While free trade gives opportunities to large industries and wealthy corporate investors the American worker suffers job instability and lower wages.
I believe that globalization, rather then harming the nation state is actually facilitating it; the existence of domestic associations can reject or accept any notion of globalization. Globalization has surely made an impact to both developing and developed nations, only causing them to adapt to these circumstances. In “The political economy of Globalization”, Layna Mosely exemplifies the various change and influences made by globalization. Globalization has lifted political boundaries; this is a result of “deliberate decisions by poli... ... middle of paper ... ...balization increases political associations among a wide mixture of corporations and nations. Mosely and Klien discuss the repercussions of globalization and its influence on the nation state; they figuratively agree on the pressure it inflicts.
Below is a list of how international trade assists our nation’s economy according to Ellis (n.d.): • Economists who believe that trade helps our economy grow and raises our national standard of living. • Consumers who find an increasingly wide array of imported goods – often at lower prices than before – in our supermarkets, stores, and malls. • Businesses that see trade as opening up new markets for American goods and services, increasing revenues, profits, and export-related jobs. • Other businesses and workers that see trade competition as a threat to American jobs and livelihoods. (p. 1) This holds true for a lot of countries that also participate in trading internationally and technology, such as the internet, has made these efforts less demanding.
Globalization is the ‘international integration” or ‘de-bordering’ – “a number of highly disparate observations whose regular common denominator is the determination of a profound transformation of the traditional nation-state” (Von Bogdandy 2). Globalization is connecting different people from different cultures and backgrounds together. More and more corporations are entering new foreign markets to sell their products to the native populations. But at the same time globalization is negatively hurting people and countries. Globalization is hurting workers and small countries.