The Pros and Cons of Economic Globalization

1893 Words4 Pages
bulb-icon

Recommended: Pros and cons of economic globalization

"The globalization of economic affairs evokes both hopes and fears. Some insist that it will divide humankind even further between rich and poor. Others claim that it will assist the spread of economic development". Edward J. O’Boyle (2003:95)

No doubt that Globalization has increased the international flow of trade, capital, information, and people. Businesses are now only a mouse-click away from their customers and competitors throughout the world and it has delivered undeniable wealth and opportunity and created millions of jobs. However, it has some drawbacks as well.

This document investigates the concepts of economic globalization and the knowledge economy. It also explores some of the benefits and drawbacks of the globalization.

Economic globalization

"Globalization is the generalized expansion of international economic activity. It includes increased international trade, growth of international investment (foreign investment) and international migration, and increased creation of technology among countries. Globalization is the increasing world-wide integration of markets for goods, services, labor and capital".

minneapolisfed.org/econed/essay/topics/glossary05.cfm

However in the context of economic globalization, "The problem is to understand the relative importance in the world economy of the economic areas enclosed within national boundaries, the international relationships between these and the global areas where economic agents and markets take on world-wide dimensions" Edward J. O’Boyle (2003). In the 21st century, the new phase of globalization has been consoled through factors such as international politics, science and technology, and economics and finance. For instance, the practice of buying an...

... middle of paper ...

...loped and developing countries. However, the economic globalization should be controlled within a boundary defined by the international community in order to reduce and avoid its disadvantages mainly in terms of human rights.

Referencing and Bibliography

Edward J. O’Boyle, 2003, 'Norms for evaluating economic globalization', International Journal of Social Economics, 30(1/2), pp. 95-115.

http://www.emeraldinsight.com/

Clarke, T, 2001, 'The knowledge economy', Education + Training, 43(4/5), pp. 189 -196

http://www.emeraldinsight.com/

Castells, M 2000, The rise of the network society, 2nd ed., Blackwell Publishing, UK.‘

A truly global economy is said to have emerged, in which distinct national economies and therefore domestic strategies for economic management are irrelevant’ (Hirst,P and Thompson D Globalisation in Question Blackwell 1998).

Show More
Related

  • To what Extent does Globalization Contribute to Sustainable Prosperity?

    1067 Words  | 3 Pages

    Globalization helps many people achieve greatness. But for the majority it brings hardships and struggle. People will be plagued by the effects of globalization and will have a tough time over coming it. We are far from reaching a point where we can say we have sustainable prosperity throughout our world. But before we focus in on sustaining prosperity, we must first reach prosperity and bring it to all corners or the earth.

    Read More

  • Globalization: The Case of Dubai

    1916 Words  | 4 Pages

    “Globalization is not new, though. For thousands of years, people—and, later, corporations—have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages” (What is globalization). For centuries many people and companies had invested in other countries even before the First World War. Globalization is a huge issue, because it affect on all the people around the world. It can affect in several of ideas, cultures, local and regional economics, societies, communication, and trade. Globalization can influence the environment of the people, security, and the exchange of the ideas between the countries. It distribute in a fast way, which emerge of new technologies, rise in free-trade activities, and markets worldwide acceptance.

    Read More

  • The Pros and Cons of Globalization

    2091 Words  | 5 Pages

    (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.

    Read More

  • The Pros and Cons of Globalization and Localization

    981 Words  | 2 Pages

    Most people feel that globalization has great advantages or benefits and that it is the answer to world unity. This is somewhat true. But along with these benefits, there are also quite a few problems or costs which may coexist. One major problem is that it weakens the administrative power of states. First, borders are no longer boundaries, especially with respect to information, the flow of money, and crime. Second, a number of problems can only be discussed in collaboration with other countries. There is also criticism with respect to corruption and lack of integrity. And finally, some may believe that the state is forced to renounce some of the ac...

    Read More

  • Globalization and Energy System in Indonesia

    2356 Words  | 5 Pages

    An outstanding mechanism frequently used to interpret ‘Globalization’ is the ‘World Economy’. Back to the colonial age, the coinstantaneous behaviors of worldwide capitals and energy resources flowed from colonies to western countries has been regarded as the rudiment of the economic geography (Jürgen and Niles, 2005). Nowadays, the global economy was dominated by transnational corporations and banking institutions mostly located in developed countries. However, it is apparently that countries with higher level of comprehensive national strength are eager for a bigger market to dump surplus domestic produce and allocate energy resources in a global scale, thus leads to a world economic integration. This module was supported by several historical globalists (Paul Hirst, Grahame Thompson and Deepak Nayyer) ‘their position is that globalization is nothing new but more fashionable and exaggerate, a tremendous amount of internationalization of money and trade in earlier periods is hardly less than today.’ (Frans J Schuurman 2001:64).

    Read More

  • Nations Should Promote Globalization, Not Localization

    1779 Words  | 4 Pages

    In today’s continuously changing world, many experts say that globalization is what every business, organization, and nation should seek and welcome as a positive change. However, many people are unaware of the main focus and meaning of Globalization, especially in comparison to Localization. A large number of people believe that globalization is just another common word used to refer to changes and differences that cannot be explained or accounted for. Therefore, many different activities or changes are improperly labeled to be a part of or caused by globalization.

    Read More

  • The Impacts of Globalization on Developing Countries

    1374 Words  | 3 Pages

    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.

    Read More

  • Disadvantages Of Economic Globalization

    830 Words  | 2 Pages

    Economic globalization phenomenon has gradually come into people’s eyesight since the 1980s. According to Gao Shangquan’s article (2000), the economic globalization means that the world economy has become interdependent, cross-border trade and the spread of goods, services, international flows of capital and technology become more efficient. The progress of science and technology is the main driving force of economic globalization. It is undeniable that globalization can help the world economy becomes more prosperous. The promoters of globalization think it has brought more opportunities and development for the world; the advantages of the globalization are far outweighing the disadvantages. However, the globalization is a double-edge

    Read More

  • Core Pillars of Globalization

    970 Words  | 2 Pages

    Growing up in twentieth century, the subject of globalization has drawn numerous supporters and opponents alike. According to the International Monetary Fund (IMF), the core pillars of globalization are movements in trade, capital investments flow, human resources and information knowledge transferred across geographic boundaries. (IMF, 2000) While some view this process as beneficial and needful, others regard it with hostility and even fear.

    Read More

  • The Disadvantages of Globalization

    1583 Words  | 4 Pages

    Globalization is a term that is difficult to define, as it covers many broad topics in the global arena. However, it can typically be attributed to the advancement of economic, social, and cultural interactions among the companies, citizens, organizations, and governments of nations; globalization also focuses on the interactions and integration of countries (The Levin Institute 2012). Many in the Western world promote globalization as a positive concept that allows growth and participation in a global community. Conversely, the negative aspects rarely receive the same level of attention. Globalization appears to be advantageous for the privileged few, but the benefits are unevenly distributed. For example, the three richest people in the world possess assets that exceed the Gross National Product of all of the least developed countries and their 600 million citizens combined (Shawki and D’Amato 2000). Although globalization can provide positive results to some, it can also be a high price to pay for others. Furthermore, for all of those who profit or advance from the actions related to globalization, there are countless others who endure severe adverse effects.

    Read More

  • Argumentative Essay On Globalization

    891 Words  | 2 Pages

    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.

    Read More

  • Advantages And Disadvantages Of Globalization

    1728 Words  | 4 Pages

    The concept of globalization was first introduced by Adam Smith, the father of modern economics in the year 1776 through the book titled, “Wealth of the Nations”, and since then the globalization has been liked yo-yo. Globalization is not a new concept. The word "globalization", which connotes where all the nations join their hands, create a kind of synergy to do business or any commercial, cultural or educational activities, in which every participant nation should beneficiary. Globalization in a nutshell is "one for all and all for no. The purpose behind globalization has been to open the portals for each and every nation in different fields. A nation can buy from other nation and sell to other nation. Globalization can both bring about positive and negative effects to the nation that adopts it. On the positive side, globalization can lead to the generation of numerous employment opportunities. This occurs as multinational companies move their operations into developing countries in search of it’s advantageous work force. This leads to the creation of employment and the generation of income for the host country. Globalization also encourages education. With the globalization of labor and services comes the globalization of education. Globalization also has its negative side that includes an uneven distribution of wealth and disparity within the citizens of the host country who are directly affected by globalization. It is said that the rich are getting richer while the poor are getting poorer. In the real sense, globalization has not been able to reduce poverty. Instead it has led to the accumulation of wealth and power in the hands of a few developed economies. Therefore the gap between the...

    Read More

  • Globalization: We Must Find the Balance Between Benefits and Costs

    1088 Words  | 3 Pages

    Globalization as generally understood involves the increasing interaction of the world's peoples through their national economic systems. Of necessity, these economic systems are reasonably compatible and, in at least some important respects, market oriented.

    Read More

  • Globalization Reflection Essay

    1065 Words  | 3 Pages

    Globalization is a global process that is changing the world. I would also like to discuss what are the benefits and drawbacks of globalization in the world from different perspectives.

    Read More

  • Proponent and Opponents of Globalization

    1294 Words  | 3 Pages

    Many negative and positive thoughts have been given to the process of globalization. The proponents of globalization rather see the benefits of globalization, while the opponents have based their opinions on the disadvantages of globalization.

    Read More

More about The Pros and Cons of Economic Globalization

Open Document