Globalization
Economic globalization is the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through trade and financial flows. The term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders. There are also broader cultural, political and environmental dimensions of globalization that are not covered here.
At its most basic, there is nothing mysterious about globalization. The term has come into common usage since the 1980s, reflecting technological advances that have made it easier and quicker to complete international transactions both trade and financial flows. It refers to an extension beyond national borders of the same market forces that have operated for centuries at all levels of human economic activity village markets, urban industries, or financial centers.
Markets promote efficiency through competition and the division of labor the specialization that allows people and economies to focus on what they do best. Global markets offer greater opportunity for people to tap into more and larger markets around the world. It means that they can have access to more capital flows, technology, cheaper imports, and larger export markets. But markets do not necessarily ensure that the benefits of increased efficiency are shared by all. Countries must be prepared to embrace the policies needed, and in the case of the poorest countries may need the support of the international community as they do so.
Globalization had affected many things in a country, especially the country's culture, political, and economic lives. At first, the effect of globalization influences a country's internal and external policies. Generally globalization affects external policies in positive ways. For instance, the government of a country improves solutions for global problems, puts more money in international programs and tries to be more pacifistic in its international policies. But then globalization can affect internal policies in negative ways. For example, a country's government can be less interested in its citizens than it was before.
Globalization also causes negative situations in ...
This is a preview of the whole essay
Globalization had affected many things in a country, especially the country's culture, political, and economic lives. At first, the effect of globalization influences a country's internal and external policies. Generally globalization affects external policies in positive ways. For instance, the government of a country improves solutions for global problems, puts more money in international programs and tries to be more pacifistic in its international policies. But then globalization can affect internal policies in negative ways. For example, a country's government can be less interested in its citizens than it was before.
Globalization also causes negative situations in a country's economic life. According to studies on different regions of the world, high inflation and its result, high prices, appear. Next high interest rates appear. Because of these factors, a country increases its importation and decreases its exportation. After all these events the devaluation of a country's currency occurs and small commercial companies and small enterprises are bankrupted. Other companies, which aren't bankrupted but are in difficult situations, have to dismiss workers because of the typical negative chain reaction of globalization effects.
The second challenge of globalization is to allay the fear that the growth it brings is inherently destabilizing. The Asian crisis, threatening some of the most formidable economic competitors in the world, amplifies these fears. Nevertheless, the costs of being left behind by globalization are usually much greater than the losses caused by instability.
Although globalization has increase the standard of living for many people but if had also made life more difficult for those dislocated by change and it threatens to leave part of the world behind. It is no coincidence that the disappointing economic performance in much of Sub-Saharan Africa reflects a failure to integrate into the world economy and, thus, to trade successfully and attract investment.
As a result of both positive and negative effects of globalization on the political and economic life of one country, a country's culture is affected both in positive and negative ways. In positive ways, people of a country will know more information about other countries' cultures, and citizens of the country will have mutual habits, feelings and ideas with other countries' societies. Because of these events, it will be easy to have new friends from other countries. Because of bad cultural habits and customs of other countries' dominant cultures, degradation occurs within the original culture and causes social problems like conflicts between people who accept new cultural life styles and who those do not accept new cultural life styles.
It is believe that globalization depends absolutely and totally on a level playing field. If you don't have a level playing field, globalization makes the rich richer and the poor people's children die.
As globalization has progressed, living conditions (particularly when measured by broader indicators of well being) have improved significantly in virtually all countries. However, the strongest gains have been made by the advanced countries and only some of the developing countries.
Globalization drives third world countries into poverty; they are not capable to compete with multinational firms without technology facilities. They could not afford to update their technology therefore they are forced to do their business locally and they could not grow and reach their full potential. Due to the invention of internet and telephone, businesses transaction can be made immediately while poorer countries that are insufficient seem only limited to their local markets. As the use of automobiles and airplanes spread throughout the world, the poorer countries will still need to use standard horses and buggies since that the price of the automobiles and airplanes are too high.
That the income gap between high-income and low-income countries has grown wider is a matter for concern. And the number of the world's citizens in abject poverty is deeply disturbing. But it is wrong to jump to the conclusion that globalization has caused the divergence, or that nothing can be done to improve the situation. To the contrary: low-income countries have not been able to integrate with the global economy as quickly as others, partly because of their chosen policies and partly because of factors outside their control. No country, least of all the poorest, can afford to remain isolated from the world economy. Every country should seek to reduce poverty. The international community should endeavor by strengthening the international financial system, through trade, and through aid to help the poorest countries integrate into the world economy, grow more rapidly, and reduce poverty. That is the way to ensure all people in all countries have access to the benefits of globalization.
