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The impact of economic globalisation
The impact of economic globalisation
Impact of globalisation
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The ILO/WTO Joint Report on Informal Employment: What It Says and What Role the WTO Should Play in Addressing Informality
The World Trade Organization (WTO) and the International Labor Organization (ILO) prepared a report on the convergence of globalized trade and informal economies in developing countries (WTO: Press release, 2009). They point out that while globalization of trade has reduced poverty and increased incomes, even in the informal economy, it has not improved the work environment, job security, or social, benefits for those in the informal sector. Furthermore, because of poor access to institutions such as banking, property rights protection, and government programs, entrepreneurship, risk taking, and expansion for firms in the informal economy are limited. Thus, apparent that the informal economy has negative effects on workers and firms, they similarly find it has negative influences on the country.
They find that a high rate of informality in a developing economy restricts capacity to profit from global trade, however they point out the evidence of a causal effects from informality are not well documented (Bacchetta, Ernst, & Bustamante, 2009). Moreover, high informality within a country makes it more susceptible to economic shocks. The authors find such countries “suffer more frequently from shocks and experience lower sustainable growth” (WTO: Press release, 2009, para. 9). Furthermore, governments suffer from a loss of tax revenue while still having to provide basic infrastructure used by the informal market.
Opening to international trade also has an impact on informality. The researchers found that initially upon opening their borders to international trade, countries experienced an increase in informa...
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...chen, D. (201). Toward a research agenda on the informal economy. Academy of Management Perspectives, 26(3), 1-11.
Chowdhury, H. (2005). Informal economy, governance, and corruption. Phillippine JOurnal of Development, 32(2), 103-134. Retrieved from http://search.proquest.com/docview/205850359?accountid=38569
McGahan, A. (2012, August). Challenges of the informal economy for the field of management. Academy of Management Perspectives, 26(3), 12-21.
Trebilock, M., Howe, R., & Eliason, A. (2013). The Regulation of International Trade. New York, NY: Routledge.
Webb, J., Tihanyi, L., Ireland, D., & Sirmon, D. (2000). You say illegal, I say legitimate: Entrepreneurship in the informal economy. Acadey of Management Review, 34(3), 492-510.
WTO: Press release. (2009, October 12). Retrieved from World Trade Organization: http://www.wto.org/english/news_e/pres09_e/pr574_e.htm
Office of Industries, U.S. International Trade Commission.(2009).Export controls: an overview of their use, economic effects, and treatment in the global trading system. Retrieved from United States International Trade Commission http://www.usitc.gov/publications/332/working_papers/ID-23.pdf
Lora Jo Foo. “The Yale Law Journal”, Vol. 103, No. 8, Symposium: The Informal Economy
Bentley, J., & Ziegler, H. (2008). Trade and encounters a global perspective on the past. (4th ed., Vol. 1, pp. 182-401). New York: McGraw-Hill.
O'Toole, J., & Vogel, D. (2011). Two and a Half Cheers for Conscious Capitalism. California Management Review, 53(3), 60-76.
Even in a world focused on the benefits free trade and aimed at achieving the goal of free trade, states are protectionist by nature. Unfortunately, the design of the international system allows for stronger nations to be more protectionist, leaving the weaker states even more vulnerable. A study that is more intensive than a critical commentary should be devoted to analyzing the impact of free trade on developing nations. I was limited to the readings and prior knowledge, and thus couldn’t provide a sufficient analysis on the fair treatment of developing nations. I was skeptical of the one reading that focused on fairness of international institutions because of the statistics that indicate these nations have not done well in recent decades. I would like to look into this more given more time and resources.
Roberts, Russell. (2006). The Choice: A Fable of Free Trade and Protectionism. New Jersey: Prentice Hall.
After the fall of the ISI standard, many questions began to arise in regards to how Latin American countries should move forward in its development, improve growth, and create jobs. From around the 1930s until the 1980s after many Latin American countries became independent, they wanted to have economic success and become somewhat economically independent and self-sustaining. Initially these countries thought that the best way to move forward with was Import Substitution Industrialization (ISI). However, when the 1980s came around these counties realized that ISI was not the best policy for the economy or the future. ISI lead inefficient industries because they were not exposed to international competition, the focus was not on the rural sector and lead to impoverishing the local producers, and the extreme protectionist ideals did more harm than good. The issue that has to be resolved as Latin America moves forward pertains to unemployment and the job market; many countries are trying to fix the issues that surround the job market and define who are the people that actually have jobs so that those that do not can learn what they need to in order to become employed.
Velasquez, James. “Minimum Wage Debate: How Sweatshops Are Actually Good for the Poor.” Policy Mic. N.p., 9 June 2012. Web. 7 Feb. 2014. .
Monetary and fiscal policy and their applications to the third world countries with a huge informal sector
These results change or modify political organizations to be suitable for the needs of global capital. Regions and nations are encouraged to import and export of goods from other parts of the world rather than supplying or manufacturing them in their own homeland. Thus, seeking expensive manufactured supplies or goods from third world countries to import them to the first world corporation’s injunction with the free trade zones of globalization (Ravelli and Webber, 2015). These negotiations raises new organizations, for example, the World Trade Organization (WTO) to aid and supervise both countries to for a legalized trade. However, Neoliberalism amplifies the negative aspects of globalization’s effect on the economy. For example, deregulation, decrease of government benefits, and tax modifications (Bunjun, 2014). Nevertheless, relating these negative aspects to the documentary Made in L.A. (Carracedo, 2007) which is the main issue of increased risk of employment for both the first world and third world countries. In regards to, a switch from full time stable and secure jobs to part time unstable and insecure jobs. This reduces career growth for many employees, which they recognize, and thus switch jobs – where as they may not fit as well (Bunjun, 2014). As a result, globalization causes market inefficiency via labor market segregation and exploitation, unemployment and underemployment, unequal access to employment (Bunjun,
Business anthropology is a practice or inquiry within the business field that is based on substantive knowledge or methodology, anthropological epistemology, or a blend of these (Jordan, 89). In the beginning of the twentieth century, as a discipline, business anthropology was reinvigorated and fully supported by the business interests in America to build up as an experientially founded social science that could offer a scientific source for social welfare (Kuklick, 134). To some extent, because of this inspiration, the problem-solving and research interests of the American anthropologists in the business field concentrated predominantly on manufacturing efficiency, and they were formed by the customs and conducts of other disciplines, for instance industrial psychology, by means of the Human Relations school. Moreover, following the Second World War, anthropological exploration of industries turned out to be more intellectually independent and split into more than a few literary streams, together with neo-Marxian methods and industria...
Mitchener, Kris, J. "Politics and trade: evidence from the age of imperialism." Voxeu.org. CEPR, 11 April 2008. Web. 30 November 2013.
After the failed International Trade Organization, Rodrik discusses the Bretton Woods Agreement, the transition from the General Agreement on Tariffs and T...
...liberalisations have had adverse consequences for some – including the poorest people – but should we automatically condemn trade initiatives because it means that one person loses or is pushed into poverty? The identification of hardship arising from a generally desirable policy reform should stimulate the search for complementary policies to minimise the adverse consequences and reduce the hurt that they unintentionally cause (Winters, 2002). ‘No country has successfully developed its economy by turning its back on international trade and long-term foreign investment’; although trade alone may not offer a solution for poverty reduction, the OECD and DFID have recently published reports identifying that combining aid and trade initiatives and encouraging the integration of trade and aid could progressively and sustainably alleviate poverty (OEDC, 2009; DFID, 2005).
50). The book also states that instances such as entrepreneurship leads to a struggling growth because these entrepreneurs will risk money investments where corrupt officials interfere, leaving their investments to struggle. Corrupt officials are also less likely to initiate projects that will help the greater good and public welfare of some of these African countries, but instead only interfere in ones that will benefit them as a leader. They deal with bribes and diverting funds, resulting in the countries inability to grow. If this corruption furthers on, then this will continually be a consistent struggle for Africa as it lessens their progression to a stronger