The Pros and Cons of Economic Globalization

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"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...

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...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).

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