Whether globalization is a force of good or evil has become a highly contested issue throughout the world. The proliferation of economic globalization has been advocated for with the claim that a greater socioeconomic integration and collaboration among countries will increase the living standards of both the rich and the poor. However, as Stiglitz indicates in the book Making Globalization Work, while it is true that globalization has enormous potential to make the world a better place, what is problematic is the amalgam between politics and economics that has shaped globalization resulting many losers and few winners. This paper will aim to show that on the one hand economic and corporate globalization are not the great evil portrayed by Wayne Ellwood in The No-Nonsense Guide to Gobalization, but neither can globalization and free trade be equated with increased living standards for all. Instead, the potential of globalization must be acknowledged, though one must take into account the negative impact it has had on the world and look for ways in which it can be improved as argued by Joseph Stiglitz.
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.
Globalization, in the business sense, is to make a product or service available in the global market. Any investment that is across national borders is also part of globalization. Many companies in the United States (US) have taken their product, service, or investment opportunities to other countries. This affects the global economy. Just as the economy of the US affects many Americans, the global economy affects the citizens of the world.
Companies become more interested in going global once their value goes a little higher than those of the developing countries. Most of these countries globalises via legitimate causes whilst others are just followers. This gives the reason why some companies become leaders in the global economy with others becoming bankrupt. In fact, there are many other advantages that are enjoyed when a company goes global, such as increase in efficiency, increase in foreign direct investment and increase in national income. However, there are certain disadvantages associated with it such as unemployment and exploit on developing countries; these can be seen in the following paragraphs below.
Proponents of globalization put forward that the benefits of free trade out weigh the costs. International investment and trade have been the machines that drive growth and development... ... middle of paper ... ...developing nations it is the nation's lower standards of labor that make globalization possible and indeed profitable. Allowing a company to pay a laborer a fraction of what his counterpart would be paid in a developed nation. Globalization has a tremendous amount of support as well as a tremendous amount of opposition. While multinational companies tend to push for globalization and therefore higher profit margins, opponents work hard to make sure that developing nations are not taken advantage of in the process.
“Cultures, economies and politics appear to merge across the globe through the rapid exchange of information, ideas and knowledge, and the investment strategies of global corporations” People nevertheless agree that culture and economy are consequences of globalization however; it is questionable as to what drives globalization. I believe it is an intertwined concept, however it is the economy that drives globalization more. “Technology has now created the possibility and even the likelihood of a global culture. The Internet, fax machines, satellites, and cable TV are sweeping away cultural boundaries. Global entertainment companies shape the perceptions and dreams of ordinary citizens, wherever they live.
Prices may be lowered on certain goods as a result of this. Furthermore, Globalization also increases communication between different nations throughout the world, which in turn may create allies or "friends" among other countries in times of crisis. Different nations can work together to enhance the business and general living standards of the society as a whole (Rosenau, World Politics 98/99, pp. 15-16). However, there may be some serious downfalls to Globalization.
• There is a cultural and economic exchange between countries that trade together. • Foreign direct investment is a measure of foreign ownership of productive assets such as factories, mines, land and other natural resources. • It normally improves the balance of payments and trade deficit of a country. • Such trade however not only occurs between industrialized nations but also between developing and emerging economies. • Those businesses that are not competitive in the global village are pushed out of business or forced to fold as globalization favors firms that are strategic and can maintain their competitive advantage and exploit their strengths and opportunities.
(Cavusgil, S et al., 2015) At present trend, Globalisation is one of the most interesting subjects in international business. It has created the big rival in trade and marketing which has been invested huge volume in getting and reaching their profits. In foreign commerce or examples are taken from private individuals or public sectors international business dealings are taking place throughout all persons. I can trust it 's not only imperative but take as a challenge and look at the nation power at the most statics of policies and institutions. (Chris pash.
This interconnectedness with people from all over the world can impact people lives on a daily basis. Globalization allows others to see what is going on different parts of the world, impacts the health of individuals, and changes economies all around the world. Technological advancements have allowed many parts of the world to interconnect. When I turn on the news at night, I’m able to see headlines from around the world. Today, there are still countries whose governments mediate what they are allowed to see from around the world.