Benefits and risks associated with globalization.

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Benefits and risks associated with globalization.

By Łukasz 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." Economist David Henderson of the Melbourne Business School expands the definition into five related but distinct parts:

*the increasing tendency for firms to think, plan, operate, and invest for the future with reference to markets and opportunities across the world as a whole;

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*the growing ease and cheapness of international communications, with the Internet the leading aspect;

*the trend toward closer international economic integration, resulting in the diminished importance of political boundaries. This trend is fueled partly by the first two trends, but even more powerfully by official policies aimed at trade and investment liberalization;

* the apparently growing significance of issues and problems extending beyond national boundaries and the resulting impetus to deal with them through some form of internationally concerted action; and

* the tendency toward uniformity (or "harmonization"), by which norms, standards, rules, and practices are defined ...

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