· This page of the essay has 1, words. Download the full version above. Economic globalization is the process of increasing the financial integration amongst countries. Consequently, economic globalization leads to the development of a “global marketplace” or “a single world market”. Economic globalization is enhanced by the accession of multinational Economic Globalization Essay. Economic globalization has become the most important feature and a general trend of present world economic development. Globalization is a phenomenon and also a process of development of mankind and human society (Hamilton, ). It is the essential feature of the modern age Concept and History of the Economic Globalization Essay. Exclusively available on IvyPanda. Available only on IvyPanda. Updated: Aug 20th, Globalization is the interconnection that has been experienced in the world through the improvement of communication, trade, and
Economic Globalization Essay | GPA Guide
Many people associate economic globalization with the economic globalization essay issue of free trade. In some cases, economic globalization is associated with free trade and liberalization, improvements in economic conditions of less developed countries and enormous opportunities for multinational MNEs and transnational corporations TNCs. Thus, there are many critics and economists who oppose economic globalization citing alleged benefits of globalization.
Wade criticizes economic benefits of globalization and states that rich and powerful states exploit less developed countries. One of the economic globalization essay by which the rich get richer and the poor are made poorer is through increased economic globalization. The various sections of the program were mainly directed at countries with large foreign debts remaining from the s and s. The official purpose of the document was to reform the internal economic mechanisms of debtor countries in the developing world so that they would be in a better position to repay the debts they had incurred.
In practice, however, economic globalization essay, the terms of the program spelled out a new form of colonialism Wade et al Typically, the largest economic globalization essay of the national budget is spent on servicing outstanding debts, economic globalization essay. Economic globalization increases world poverty in less developed nations. An addition to all of the factors making for world poverty has cropped up during the last few decades, in the form of widespread privatization of former governmental and voluntary functions.
The net result of privatization is more profit for some and less well-being for a vastly greater number of others; and purported efficiency at the cost of effective distribution among the population as a whole, with widening gaps, both socially and economically, economic globalization essay.
Such critics as Ohmae and Stiglitz underline that there is a symbiotic relationship between privatization and globalization. They go hand-in-hand because they both have the same ultimate goal: profits— profits at all costs and regardless of consequences. Corruption, economic globalization essay, economic globalization essay disaster, fraudulent practices, poverty, human degradation and a score of other ills stem from the oft-expressed although usually cynical ideology economic globalization essay in the long run, the market-driven society improves the lot of everyone.
Stiglitz underlines that globalization is not simply a market-driven phenomenon; it has an ideological and political base, economic globalization essay. That base holds that anything that increases profits is not only desirable and even moral, but absolutely imperative. This drive for profits enables and causes multinational corporations to exploit the cheapest labor, methods and materials they can find.
Unfortunately, even the rise of such a person or persons would probably lead to minimal change in their own country or countries at best, since the very essence of globalization, as its name implies, is that it is supra-national, economic globalization essay. Where privatization and globalization are concerned, there are very few organizations as such with the declared aim of opposing them, or even ameliorating their effects, although a few have come into being.
Interestingly, the anti-capitalist movement— so far disparate, to judge by its many names—seems to be beginning once again to coalesce, and is taking on the nature of a movement formed through protests, rather than protests sponsored by movements. Its most significant activity so far has been the organization of demonstrations at international meetings of world-wide financial institutions, such as G-8, the World Bank, the International Monetary Fund and the World Trade Organization, as well as international conferences concerning social protest.
Israel, as one exception, has an anti-poverty lobby made up of representatives of organizations and individuals including some of the poorconcentrating almost economic globalization essay on pressuring politicians.
Most activities of anti-poverty organizations elsewhere are subsumed under general anti-capitalist activities, which may focus on ecology, empowerment, economic globalization essay, governmental changes, etc.
It is difficult to conceive of a figure so popular and so powerful that he or she could halt the relentless growth of privatization and globalization. Kenichi Ohmae states:. Increase investments from rich to poor countries subordinate developing economies and prevent their unique economic growth.
As large corporations began diversifying their products and services by buying up smaller enterprises—usually for stock-market, income tax or other financial benefits—they became conglomerates. The economic breakdown of the Soviet Union gave further impetus to globalization as many foreign firms hurried to establish units in so-called economies in transition, economic globalization essay.
Free trade agreements of various kinds further supported this process. Contracting economies invariably react by cutting spending in the social sector, thereby exacerbating the condition of the poor. On the one hand, globalization of financial trading allows for increased mobility among different segments of the financial industry, with fewer restrictions and greater investment opportunities. Following Stiglitz :. This is different from the mere internationalization of capital, which assumes a world of national capitals and nation states; it is the supersession by capital of the nation state Global speculators often take advantage of weak financial and banking regulations to make astronomical profits in emerging markets of developing countries.
However, since these international capital flows can be reversed swiftly, they are capable of creating artificial boom-and-bust cycles that endanger the social welfare of entire regions. Wade et al underline a negative impact of MNEs and TNCs on developing countries and their growth opportunities. This means that while MNCs may be sued or charged by the individual countries in which they operate, insofar as they operate in tens of countries, with immense resources, and the power to withdraw both personnel and assets at will, they are almost invulnerable to local laws.
Following Friedman :. The tobacco industry is one of the vivid examples of globalization and its impact on developing countries. Heavily fined for mendacity and creating health risks in the United States, they have blithely paid the fines by raising their prices and continued these practices in other parts of the world, economic globalization essay.
Throughout Europe, economic globalization essay, the umbrellas that deck the much-vaunted sidewalk cafes are almost invariably decorated with ads for tobacco companies, economic globalization essay.
Indeed, tobacco corporations have publicly declared that their next areas of exploitation are in Europe and in Africa where anti-tobacco legislation lags far behind Yip Transnational corporations are the contemporary versions of the early modern commercial enterprises. None of these corporations maintains headquarters outside of North America, Europe, Japan, and South Korea. This geographical concentration reflects existing asymmetrical power relations between the Economic globalization essay and the South, economic globalization essay.
Yet, clear power differentials can also be found within the global North. In order to maintain their prominent positions in the global marketplace, TNCs frequently merge with other corporations Bhagwati TNCs have consolidated their global operations in an increasingly deregulated global labor market. The availability of cheap labor, resources, economic globalization essay, and favorable production conditions in the global South has enhanced corporate mobility and profitability, economic globalization essay.
Their ability to disperse manufacturing processes into many discrete phases carried out in many different locations around the world reflects the changing nature of global production. Such transnational production networks allow TNCs like Nike, General Motors, and Volkswagen to produce, distribute, and market their products economic globalization essay a global scale.
Anti-sweatshop activists around the world have responded to these tactics by enlisting public participation in several successful consumer boycotts and economic globalization essay forms of nonviolent direct action. As a consequence, TNCs have become extremely important players that influence the economic, political, and social welfare of many nations.
High inflation and the frequent attempts of the government to deal with it created extremely turbulent and unpredictable business conditions. Economic stabilization plans caused turmoil all across industry as firms tried to understand the new rules of the game, economic globalization essay.
Even minor interventions such as changes in price adjustment rules, economic globalization essay, foreign exchange regulations, or changes in interest rates and credit regulations caused problems.
There was a strong incentive for firms to try to insulate themselves as much as possible economic globalization essay this environment, and vertical integration was one means of doing this Yip Thirdly, the regulatory regime used to be, and actually continues to be, complex, economic globalization essay, contradictory, and lack transparency.
It is in fact almost impossible for an entrepreneur to be a law-abiding citizen, economic globalization essay, respecting all tax, safety, and other regulations that exist. Therefore, firms have various matters to hide at any given time. Firm owners repeatedly told economic globalization essay that this was one reason why they would neither let outsiders enter their premises, nor enter into any kind of information exchange with other business people Wade et al Moreover, there are some benefits that accrue to societies through specialization, competition, and the spread of technology.
It is less clear whether the profits resulting from free trade have been distributed fairly within economic globalization essay among countries. Most studies show that the gap between rich and poor countries is widening at a fast pace. Free trade proponents have encountered severe criticism from labor unions and environmental groups who claim that the elimination of social control mechanisms has resulted in a lowering of global labor standards, severe forms of ecological degradation, and the growing indebtedness of the global South to the North, economic globalization essay.
Following Bhagwati :. The problem with this policy was that it often resulted in bad debts. A breakthrough, however, came with the invention of microcredit programs, which go down to the very poor. The existing power structure and the compliance of the middle classes to date has militated against widespread success by this means in the more developed countries though it is difficult to foretell what direction middle class protest might take, were its own well-being to be threatened by the increasing tendency of economic globalization essay global economy to stream the world into rich and poor Wade et al Economic globalization has a negative impact on social security funds are invested, how they used by governments, and other such fiscal changes.
Among the most widely bruited of these is the proposal to privatize social security by investing premiums in stock market shares, banks, insurance companies, and other financial institutions. In some of these proposals, the government would simply invest economic globalization essay sums received through the payroll tax, economic globalization essay, and make payments from the profits Wade et al In other cases, the investments would be made in the name of the individual beneficiaries.
In still others, workers would be free to make their own investments with the funds they would previously have paid into the program; and in still others there would be a combination of investments and continuation of social security coverage Stiglitz In sum, economic globalization has a negative impact on developing countries and allows rich states and economic globalization essay corporations exploit poor countries and use their resources as the main source of profits.
During the last decade, wealthy countries have increased their attempts to establish a single global market through regional and international agreements such NAFTA and GATT. Rich states assure the public that the elimination or reduction of existing trade barriers among nations will enhance consumer choice, increase global wealth, secure peaceful international relations, and spread new technologies around the world, economic globalization essay.
Thus, these actions and liberalization of trade lead to poverty and slow economic development of less developed states around the globe. Need a custom Essay sample written from scratch by professional specifically for you? certified writers online.
Economic Globalization: Arguments For and Against. We use cookies to give you the best experience possible, economic globalization essay. If you continue, we will assume that you agree to our Cookies Policy. Table of Contents. Introduction Benefits of globalization Economic globalization essay similarity between privatization and globalization Global operations by TNCs Negative influence of globalization Conclusion Bibliography.
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Economic Globalization Essay. Globalization is defined in the Cambridge Dictionary as the “increase of trade around the world, especially by large companies producing and trading goods in many different countries”. Economic globalization is as presented in the Blackwell Companion to Globalization “one of the three main dimensions of globalization commonly found in August 14 August 14 Economics grade 11 Economics grade 11 Globalisation Research Essay Sarah Morritt-Smith and Bilqees Baker “THE WORLD HAS BECOME OUR GLOBAL VILLAGE Globalisation is the process of international integration arising from the interchange of world views‚ products‚ ideas‚ and other aspects of culture. Put in simple terms‚ Economic Globalization Essay. Economic globalization has become the most important feature and a general trend of present world economic development. Globalization is a phenomenon and also a process of development of mankind and human society (Hamilton, ). It is the essential feature of the modern age
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