Introduction
Globalization is the process of international incorporation arising from commercial transaction such as private and governmental sales, investment, logistic and transportation. After the world war two the global institutions manages to lower the barriers to cross- border trade. The technological change especially in communication, information processing transportation technologies.
Benefits of Globalization
The increase in cross border trade has given the consumers and the producers the wider choice of low cost goods. After the world war two when the global institutions lowered the barriers of trade the business were able to market and sell their products internationally.
In the developing world the increase in competition,
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The shift of service work-the low cost of offshore workers has enticed corporations to move production to foreign countries.
Challenges of Globalization
The benefits of globalization is not universal. The richer are getting richer and the poor are getting poorer.
Outsourcing- while it provides jobs to population in the country, takes the job from another country, leaving many without opportunities.
Although different cultures are able to interact and share their ideas and innovation, everything is beginning to meld, and becomes a loss of tradition and culture.
There may be a greater chance of disease spread. Globalization has also led to incursion of diseases especially deadly ones like HIV/AIDS spread by travelers in some cases, to the most remote regions in the world.
There is little international regulations- the challenge that is facing the developing world is to design policies so as to maximize the potential benefit. Government regulations on foreign investment can have a major impact on trade flows. That is why we need improved international rules on investment.
Economic growth-there has been continued improvement in overall growth performance.
The exploitation of foreign impoverished
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World Trade Organization is responsible for the policing of the world trade and the World Bank is set up to promote the economic development. The international institutions are created to restore the benefits of global integration. The role of the international monetary fund focuses on the functioning of the monetary system and on promoting sound macroeconomics policies as a precondition for sustained economic growth (Brenton woods institutions).
The international institutions were created to create benefits for the developing countries but some scholars argued that these institutions have (a) minimal impact on the developing countries.(b) that they capture by the powerful developed countries(c) they capture by private producers and investors and (d) internal dysfunction and failure accountability.
(a) Minimal impact- it is argued that the Institutions have a minimal impact on globalization in the developing countries.it is further argued that the developing countries are increasingly exposed to the world economy because of the changes in policies, technological innovation, decreased communications and transportation. The global institutions were intended to manage the process of integrating the developing economies into the word
Our global world is becoming more connected as we become integrated politically, socially and even economically. Due to the Bretton Woods agreement, different countries have been economically dependent on each other in fear of war to erupt. From then on, different organizations and policies tied more countries into being economic globalized. This economic globalization has then given us many opportunities in trade and more access to natural resources in other countries. Unfortunately, there are some negative effects that are brought to less developed countries.
In the 1960’s American Companies started offshoring job positions to Asian countries, and Hispanic countries. American Companies started offshoring American Jobs because their business was more profitable in other countries, so in order for the companies to be closer to those countries American Companies started hiring employees in those countries. Furthermore, as American companies realized how much money they could save by offshoring jobs to other countries with low income they started offshoring more jobs with the purpose of saving money. As American companies offshored white and blue collar positions, their profit incremented and they were able to invest more money in their products. The objectives of this report are the following:
With all the positive sides of globalization, there are just as many downsides and bad things that come along with it. One of the biggest downsides to globalization is that it makes the rich, even more rich, and the poor even poorer. This is because of the fact the rich find ways to get what they want made to be produced at a cheaper price, thus increasing their profits on the product. Another downside is that some large corporations and companies can be exempt from paying taxes in some countries (Collins, 2015). The benefit of not being required to pay taxes goes back to the rich becoming richer. I personally think the biggest con in the globalization of the economy is that some countries that are undeveloped cannot afford to pay some prices that big corporations set on their goods. For instance, many of the people living in Japan have small family farms, and they do not want to compete with the large American agricultural giants who mass-produce their goods using machines rather than everything by hand (Wright, 2015).
The discernments provided in this book by a distinguished ‘insider’ is manna for economists, investment banks, governments of both developing and developed countries and just about anybody who wants to learn and understand economic development, the politics of international business and globalization, and public policy formulation with regards to globalization and liberalization. The author provides a holistic view of all aspects of globalization – the good, the bad, and the ugly. International organizations and business practitioners in particular will be wise to glean valuable insights from this book.
Companies are relocated some or all of their workforce to other countries where labor and material are cheaper. This has been bad for America, but the American companies are using it as a way of making more money by reducing their overhead. For America it is bad, because of the loss of jobs for people and loss of taxes paid by the company to the government.
Increased global trade has intensified competition in amongst businesses all over the world. Finding and capitalizing on the most efficient sources of finance, trade and production is what gives a business or even a country a competitive edge over other international entities. Corporations have reacted by targeting the labor market and reducing money being spent on labor intensive activities. This led to a series of global events and trends ranging from downsizing of labor forces to outsourcing manufacturing activities to developing countries with lower wages and even automating processes through technological advancements to minimize use of labor. Global economic changes caused countries to shift away from the Industrial Age activities of manufacturing which was predominantly unionized.
Large corporations seeking the extra dollar to pocket are willing to spend whatever it takes to reduce the cost of production and increase profit margins. Doing whatever it takes in some instances can help men moving operations overseas to developing countries who are glad to be working. These developing countries unemployment rates are extremely high, so any job that pays is great to have. Americans lose jobs to foreign workers because the American economy is one of the largest in the world and its citizens enjoy great standards of living, when juxtaposed with a city of the same size in Taiwan. Labor costs play a huge and crucial role in corporations, which in turn pay the profits to the corporate giants who run, manage, and own the businesses.
(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.
Globalization is an overwhelming trend. It is no doubt that there are many positives rise out of globalization, but equally some serious negatives brought from this trend, such as gradual disappearance of ethnic identity (Buckley, 1998). This essay is going to address some positive effects of globalization generally, and then it will focus on impacts of this trend on developing countries.
Now, before I bash globalization it is some positive I would like to discuss. Globalization is great for the American economy; we can supply the world with our goods and services, which in turn can possible, relieve the deficit we’re in. “Homegrown industries see trade barriers fall and have access to a much wider international market. The growth this generates allows companies to develop new technologies and produce new products and services.” (Buzzle) Also, globalization leads to better relations between countries when they create trade agreements. Globalization does not drain every under-developed company but brings a new era of economic change and the hope of being a world super power to certain nations. “Economic globalization gives governments of developing nation’s access to foreign lending. These funds are used on infrastructure including roads, health car...
The term ‘Globalization’ refers to is the integration of economies, industries, markets, cultures and policy-making round the globe. It explains a progression by which both national and regional economies, societies, and cultures have become incorporated through the universal system of commerce, communication, migration and transportation.
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.
Globalization is associated with bringing together world economies and cultures. Globalization is a controvertible conception. This allows powerful corporation change local enterprises and in the future make the gaps big between, rich people and poor people. The benefits of an international market to integrated where labour, ideas, capital and goods can be free and to promote the economic development all of the levels in the society. Globalization is a process to interact and integrate among companies, people and the governments of other nations. Globalization is process which international organization, corporations, individuals and communities has become more interconnected with politics, cultures and the earths environment. “It is characterized
Globalization is the connection of different parts of the world. Globalization results in the expansion of international, cultural, economic, and political activities. As people, ideas, knowledge, and goods move easily around the globe, the experiences of people around the world become more similar. (“Definition of Globalization“, n.d., ¶ 1)
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.