• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Benefits and risks associated with globalization.

Extracts from this document...

Introduction

Benefits and risks associated with globalization. By Lukasz Niegowski Abstract Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. It has many dimensions: economic, political, social, cultural, environmental, security, and others. The evidence of globalization can be seen everywhere: in the home, in the workplace, in the discount stores, in the newspapers and business journals, in the flow of monthly government statistics, and in academic literature. The focus here will be on the concept of "globalization" as applied to the world economy and political system. This concept is one that has different interpretations to different people. Partly as a result of these different interpretations, there are very different reactions to "globalization," with some seeing it as a serious danger to the world economic and political system while others see it as advancing the world economy and good influencing on nation governments. Saying in a simply way I would like to present benefits and costs of globalization. A short economical definition of globalization is "the growing liberalization of international trade and investment, and the resulting increase in the integration of national economies." ...read more.

Middle

There are at least couple of fundamental blessings of globalization that is really important for the whole world : - Reductions in poverty - Faster economic growth (expansion in international trade) - Growth of the multinationals - Environmental standards - Information flows across nations - Respect for intellectual property rights - Wider variety of Goods and Services have become available at lower prices - Lower-cost and timely access to Information that reduces transaction costs, and accelerates the process of catch up - More choices for development Finance - Lower costs of cross-border trade and spot operations due to a harmonization of Standards - More fertile soil for democracy - Global Corporate Activities connect national economies- consumers and producers alike, create marketing channels, and diffuse technology (technical and managerial) - Improvements in product quality In the other hand there are also negative sides of globalization. In theory globalization can have a positive impact on agricultural growth. In practice globalization benefits those with technology, resources, contacts, information and access to markets. But it has negative impact on the poor. There are always winners and losers. Winners: o The purveyors of globalization o The owners of technology o The owners of skill o The affluent, rich nations of the world. ...read more.

Conclusion

From a political perspective, the most important question is not an abstract discussion of "who benefits the most from globalization", but: "How is globalization perceived by those who live with its effects?". Even if globalization were to be bridging the gap between the rich(est) and the poor(est), we would still have a problem if the poor(est) somehow feel otherwise. We would still have a problem if the poor feel just as powerless, just as marginalized, just as alienated as before. In a world of rising expectations, fueled by CNN and increasingly also by the Internet, perceptions of reality are fast becoming just as important as reality itself. If we believe free markets unleash forces that are destructive to human happiness and must be controlled by active government intervention, we will tend to see globalization as a threat. If we believe that free markets, operating within a rule of law, are essentially self- regulating and lead, in the words of Adam Smith, "as if by an invisible hand" to a greater general prosperity, then we will tend to see globalization as a blessing. 1 1.David Henderson, "The Changing International Economic Order: Rival Visions for the Coming Millennium," Melbourne Business School, 9 Sept. 1999. 2 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Marked by a teacher

    Is Increased globalization a good thing?

    5 star(s)

    It has in one way or another encompassed every sphere of social life. It brings people together as well as promoting higher economic growth and lower cost goods and provides much wider opportunities and choices at the same time. The advocates say globalization brings the first real chance of prosperity

  2. The positive and negative effects of Globalization

    Investment in these areas can have direct positive effects on the population and the local economy. Investments in mining exploration and investment in Africa has doubled between 1990 and 1997 (UN). From a negative point of view investment into these countries does not always go straight into the local economy.

  1. Discuss Globalization.

    The combining of the institutions and practices of democracy with the effective governance of global authorities has being of great importance. For example, the recent Lockerbie bombing trials have taken place in the Netherlands under Scottish law. This could not have occurred without such close links between nations, a benefit of globalization.

  2. Where does the World Trade Organisation fit in the overall scheme of international public ...

    transparent and negative rules for market access, based on MFN and National Treatment, which give reasonably clear direction to dispute settlement. One of the dangers of intrusive and complicated TRIPS-type regulation is that it opens new vistas for judicial activism powered by rich WTO members able to afford armies of high-fee lawyers.

  1. Free essay

    Adam Smith "invisible hands"

    The demand curve for a commodity will shift if the desire and purchasing power of the customers are more or less than before, which known as change in demand. There are several factors that may cause shift, including a change in income, marketing policies, quantity of consumers, price of substitute and complementary products, weather, events and social patterns.

  2. Globalisation of GAP

    Therefore if one market is not doing well for the business other foreign markets could make up for this. Spreading the risk would be very beneficial as the business would not be reliant on one market. Finally, investing in emerging markets businesses would gain the opportunity to sell to people

  1. Free essay

    Globalisation and changing career patterns

    Of course there are still many basic roles available in the UK, but for how much longer? 3.2 Globalisation & IT Careers I have worked in the IT industry since 1994, and have seen vast changes in the way services are delivered.

  2. Porters Five Forces

    I recommend: You can minimize the Threat of New Entrants by creating barriers that prohibit others from entering the market. Affirmative answers to the following questions indicate a strong ability to create those barriers. (If you are entering the market, answer this from the competitors' perspective.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work