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

"To what extent is a globalized world of economic benefit?"

Extracts from this document...

Introduction

Globalization "To what extent is a globalized world of economic benefit?" The countries of the world are rapidly becoming more interdependent in a process known as Globalization. This process means that much economic growth comes because of trade between nations; with each specializing in the products they are best at producing. Recent advances in the world of information and communication technology has meant that globalization is truly upon us - more than ever before. Globalization has many advantages and disadvantages. One of the major advantages of globalization is the promotion of economic efficiency in the production of goods and services. For example, it makes economic sense for countries that have a comparative advantage of ease of accessibility to raw materials, to manufacture goods requiring these raw materials and to export the final product. It would be inefficient for another country to import all the raw materials and then manufacture the final product to use. This quest for economic efficiency had led to the rise of huge multinational corporations like Nik´┐Ż. ...read more.

Middle

The major disadvantage of globalisation is the loss of jobs in the developed nations, resulting from "job exports" to developing countries. For example, many Dyson employees have lost their jobs due to the production of vacuum cleaners being relocated to Indonesia. Many employees in UK call centres have also lost jobs because UK companies are increasingly transferring their call centres to India. This leads to unemployment in the developed nations. Many employees also face pay-cut demands from their employers with a threat of exporting jobs if they do not comply. Many others are very anxious about their jobs, as companies are having to face intense competition. This results in companies being forced into becoming more efficient, meaning job exports to places of cheap labour or even job cuts. Many anti-globalization supporters argue that globalization is leading to the rich getting richer and the poor getting poorer. But this increase in the rich-poor divide is being caused, not by globalization, but by international trade barriers and protectionism in areas such as the EU. ...read more.

Conclusion

Most exports also use some imports. To take a simple example, a country might export packaged sugar, but import the packets. Lowering import barriers makes export industries even more efficient and competitive in world markets. Countries that lower trade barriers concentrate their national energies in industries they are good at, where they have an international advantage. Import barriers encourage countries to focus efforts in industries where they do not have any advantage. It leads to wasteful and lazy investment. There is evidence that developing countries that erect barriers to imports have slower growth in incomes than those that are open to trade. Globalization leads to improved efficiency, lower prices, more jobs and improving standards of living in developing economies. But globalization can only be of economic advantage to countries that embrace it with open arms, like China. Globalization can truly make the world a better place to live if trade barriers and protectionism are made a thing of the past and the concept of a global free market economy is adapted in its entirety. Bharat Mittal U6KW Page 1 of 3 ...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

    Discuss the extent to which the fast economic growth of China and growth of ...

    5 star(s)

    Chinese households earning less that US$6000 per year for example will spend almost 100% of their income on basic necessities. It is only after the average household income crosses the US$6000 threshold income that their marginal expenditure quickly shift from basic necessities to discretionary items of high quality, a luxury which most Chinese producers do not qualify.

  2. Discuss Globalization.

    (Scott 97:258) Opponents of globalization argue that it facilitates an increase in the amount of discrimination and other abuses of human rights occurring in public domains. The technical difficulty of regulating the content of messages makes the internet a particularly effective means of misusing freedom of expression.

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

    Special and Differential Treatment for developing countries is recognised in practically every aspect of the new round. WTO members also commit themselves to the objective of ensuring duty-free and quota-free access to goods originating in least developed countries. Lastly, it appears that developing countries will be able to interpret WTO

  2. Comprehensive Anatomy of China

    Thus, Chinese people have historically been very flexible about accepting new ideas and or gods into their dogma. In 1949, when the Communist took control over China, organized religion was officially banned because it was considered to be incompatible with Communism. Atheism is professed by the Chinese communist government today.

  1. Globalisation of GAP

    Examples of franchising would be Mcdonalds who have allowed some of their stores to be franchised. I have found evidence relating to various franchised Gap stores around the world. Gap has entered the franchise industry in order to develop its growth in Asia.

  2. Discuss Globalization.

    Although some commentators have expressed worry that this shift in production will lead to more un-employment and a fall in wages in the industrialised world I do not think this is the case. In fact I believe that although industrialised countries will lose market share in manufactured goods this will be countered by increases demand for more highly skilled labourers.

  1. 'Whether we call it "globalization" or "inter-nationalization", very few people, organizations or states stand ...

    There are hundreds of satellites floating above the earth, each one carrying a huge amount of information. Physical distance is no longer an issue - we are being brought much closer to news/issues/events from around the world - this could be seen as good or bad although for the ones

  2. To what extent has globalisation been benefical to China's economic growth?

    US Economic indicators, 1998-2003 The extent of China's economic growth can be expressed by comparing the figures to other large economies. Changes that took decades to achieve in other countries are occurring in China over the course of just a few years.

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