Consequences of Globalization in Economics Essay Example
Consequences of The positive effect in Economics Essay
Effects of Globalization in Economics The term globalization may broadly be defined as a process through which global networking of communication, trade, and transport results in the use of regional economies and cultural societies. The method is the result of a mixture of factors like tradition, technology, politics, and economics. Economic globalization refers to “the integration of national economies into the international economy through trade, foreign immediate investment, capital flows, alpage, and the spread regarding technology” (Bhagwati 5).
This essay discusses the positive and negative effects of globalization in various economies. The process of globalization has various optimistic impacts in both created and developing economies. Industrially, globalization has led to the creation of a global market that has made this simpler to access different items from different economies. Items and services can be exchanged across national boundaries with ease. This has red to an important growth inside industrialization resulting in creation of employment, embrace GDP, in addition to improved living standards internationally.
In the financial industry, globalization has led in order to the integration of monetary markets that have directed to improvements within the accessibility of financial services among different countries. For example, external financial borrowing offers greatly improved. Rapid advancement in countries like Asia and Malaysia has recently been as a result regarding external financial borrowing. Syndication has been a result of elevated flow of communication among remote geographic regions.
It had been made potential by technological advancements inside satellites, fibre-optic communications, mobile phone, and specifically the web. Breakthroughs in communication have substantially improved trading as well as other company activities. For example one can easily buy products and make shipments via the particular internet. Globalization has furthermore had negative effects found in different economies worldwide. Critics argue that globalization has grown inequality between different companies.
For example in industry and culture, unhealthy competition occasioned by globalization has lowered living standards in regions that are not able to adapt to rapid change. This is evidenced when large corporations from developed countries make the most of resource-poor underdeveloped countries in different ways like low wage rate, cheap raw materials, and lack of competition. A good example of this negative consequence is the creation of sweatshops for sport-shoe and designer great manufacturers like Nike (Steger 47).
Inside conclusion, around globalization improves free trade internationally, this has its drawbacks among the poor countries. This is certainly evidenced by the exploitation of workers due in order to the absence of protection from extremely long working hours and unsafe working problems. Globalization has also brought to migration of expatriates from poor countries in order to developed economies leading to a major brain-drain. The method has also led to weak labor unions in exploited countries.
The interconnectedness of economies has led to dependancy in which the fall of one economy influences others in the same way. For example the current Ancient greek language debts have had an effect on the Euro currency thereby affecting the overall economy of other European Union nations. Globalization can as a result be thought to have higher negative consequences than great ones. Works Cited Bhagwati, Jagdish. In Defence of Globalization. Oxford: Oxford University or college Press, 2004. Steger, Manfred. Globalization. Nyc: Sterling Submitting, 2009.