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

Globalization Impacts

Extracts from this document...

Introduction

Economic Practice Essay - Globalization "Analyze the impact of globalization on economic growth, quality of life, and external stability of global economies" Globalization is an important characteristic within the contemporary economic environment. The term globalization refers to the integration of local and international economies into a globally unified political economic and cultural order, and is not a singular phenomenon, but a term to describe the forces that transform an economy into one characterized by the embracement of the freer movement of trade, investment, labor and capital. The drive for globalization has resulted in greater economic growth globally, through the opening up of barriers to international trade, yet this increase in world output is often associated with detrimental effects in relation to the stability of a national economy, being susceptible to the ups and downs of the international business cycle and also both positive and negative effects on the standards of living or quality of life with in a nation. The main evidence to suggest the globalization within a nation has been the growth in global markets, changes in global consumption patterns, the establishment of intergovernmental agreements as well as the rise of transnational corporations. Globalization has been essentially driven by the breaking down of economic barriers between nations over recent decades that have resulted in greater worldwide economic growth. ...read more.

Middle

However, the standard of living, or quality of life Is not simply a measure of the level of economic growth or change in real GDP, but it is a measure that takes into account the literary levels, education, health care, technological change and mortality rates. An example of a quality of life indicator is the Human Development Index (HDI) which measures changes in those factors as a result of globalization. Over the last few decades, the HDI of the world's richest countries have increased as a result of globalization, where growth and development has been attributed to these economies through willingness to embrace market liberalization. However, the HDI of the poorer nations have grown at a slower rate to the richer nation's which, as some economists put it, shows that globalization is another word for the continual plundering of the poorer and weaker nations by the rich and powerful economies. It has been strongly argued that the benefits of competition go only to those who can compete, and poor countries have to negotiate on unequal terms. In addition, the forces of globalization take no account for social injustices, with Asian sweat shops being a prime example. ...read more.

Conclusion

While globalization has resulted in aggregate increases in trade, output and investment growth over the past few decades, it is clear that the benefits from this growth have been distributed unequally between different economies. While developing nations are now focusing on manufacturing productions, high income economies are establishing new production patterns and many poor nations are not adapting significantly. Consequently, this has resulted in lagging economic growth rates with in less developed countries, while nations such as the fast growing "Tiger" economies have experienced phenomenal growth rates of close to 9%. The income divide globally, as a result would tend to widen, as richer nations become richer at a faster rate than poor nations. However, a limiting factor towards continuing accelerated growth with in high income nations continues to be the maintenance of an economy's external stability, in particular preventing the blow outs of net foreign debt and equity over the business cycle, which might affect the international confidence in the management of the particular economy. There for globalization on the whole has come as a benefit throughout the world, yet these benefits are still heavily weighed towards the already rich nations, while the developing economies struggle to maintain growth on par with the higher income nations, resulting in the evident contrast in quality of life between there "classes" of nations in the global economy. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Case Studies 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 GCSE Case Studies essays

  1. unit 8 business online p1

    systems, which make use of operations research models to support decision-making it. A framework for the development of small business decision support systems is presented and is applied to inventory management decision support system, which utilizes economic order quantity models.

  2. Managment Essay

    one step to the next in the hierarchy is difficult to define and measure. The second is that although there is evidence that some people pursue these needs, they do not necessarily pursue them in the order that Maslow suggested, and it is unclear whether the 'highest order' needs are innate or learned (Buchanan & Huczynski, 1997, pp.77-8).

  1. Free essay

    Target Markets at Whittlebury Hall Hotel

    The different kinds of life stages would mainly be used by couples with no children, couples with children, middle aged guests with no children and old aged pensioners. This is because they have the right and the correct amount of working income.

  2. This marketing report is going to look at the internal and external analysis of ...

    Customers can choose either summer or winter holidays. The markets have become more segmented and Mark Warner tries to cater for all groups of people. As mentioned above, they offer family holidays, singles' holidays, couple holidays, group holidays and adventure holidays.

  1. Analyze the impact of globalization on the economic development and standard of living in ...

    China also agreed to open its service industries. Foreign investors would be able to own 40% of the shares in commercial companies, to increase to 50% two years after joining WTO. Foreign firms would be able to hold minority shares in securities fund management joint ventures, at 33% initially and increasing to 49% three years after joining.

  2. This GCSE coursework is about setting up a free-range egg unit in the Retford ...

    It would also pose a problem for ensuring the perimeter fencing is secure. Given that the land is currently for rent or sale the owner may choose to sell after the initial rental period and therefore there is a higher risk that a business set up here may have to move on in future.

  1. Essay on Economic Impact of China

    China's large domestic market and efficiency in transport and communication continues to attract investment today. This has lead to China's accumulation of the 2nd highest level of foreign currency reserves in the world. Increased investment also afforded the opportunity for transfer of new technologies that has lead to a more capital intensive economy.

  2. Investigating a business and what business do - London Heathrow Marriott (LHM) and Tescos.

    Whereas LHM are interested into providing a hospitality service. Both businesses deliver activities, which allow them to convey their purpose- without their activities, both LHM and Tesco?s will not work well. Tesco?s retail products and they speak out their mission of being very loyal to their customers, however, LHM run accommodation services and facilities which allow their guests to relax which allows them to reach their purpose.

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