Topic: GlobalizationBefore we identify what is the meaning of economic globalization we have to define first what is globalization and its relation to economic globalization. People use the term globalization when they refer to the process of integrating global economies of nations by freeing unrestricted exchange of goods, services, investments and currencies between countries. Our world today solely depended on globalization because we believe that this principles and process could lead every nation to prosper and become more developed.
Globalization brings about modernization in agriculture, speed up industrialization, innovate urbanization and increase per capita gross domestic product (CADI).
Economic globalization however is one of the developments of globalization in reflecting the world cooperation in achieving economic stability amongst nations. Thus it will appear that economic globalization is an extension of globalization (or otherwise have the same interpretation as globalization itself) by liberalizing businesses and let them seek strong capital to attain the utmost benefits in the world of trade and market globalization.
In other words, this is the market economy of globalization wherein it involves the system of globalization in becoming the system of a free economy.
Every process involve in economic globalization is founded on liberalizing markets to capitalize on other markets. In general, globalization as much as economic globalization brings about positive results to the development of trades and industries on the level of international merchandising.Globalization has been practiced even before the onslaught of World War II due by the movement of trade that started in the industrial revolution. The only thing that moved us forward in achieving the kind of an active and interactive globalization we have today is the introduction or modernization of our technology particularly the Internet.
While globalization introduced most of us to a faster and reliable form of world trading, the positive aspects of economic globalization in general have aided also other nation’s younger economies to participate in the world of globalization. The developing countries have been able to widespread their commodities through market liberalization and free trade. Regardless of any country, even smaller industries capable of producing world class products and services can now participate in the world trading. This is not possible in the past when globalization was restricted in favor only of the multinationals and conduct trades between them.
Thus economic globalization has not only benefited economies in general but the world economy in the promotion of a more efficient global resource distribution and further productivity. The internet is one of the wonders of man that has enabled all of these things possible and us as the active participants of this technology can empower ourselves in attaining fulfilled economic system especially because of trade liberalization. It is foreseen that this mode of globalizing trade will propel us more to achieve an even greater heights into our future with more stabilized economic standard.However, anything that deals with such a global dimension does not always contribute positive things to other people or to other things in one way or another.
For example, economic globalization may seem to uplift us towards a more economic stability but it also prompted an increase in the world’s population because of close interaction of races and populations thus resulting in high demand of resources and continued soaring of prices of food and commodities. This progress can also contribute to pollution, water shortages and poverty around the world. In this case there is now the dark side out of the positive side in a sense that economic challenges can be the major factor toward global challenges which we have to overcome to achieve a sustainable development for the world economy.Take for an example the case of some African countries that have not benefited from the good sides of economic globalization and though in general countries becomes developed, Africa remained poor because it does not have the capability to sustain much as to compete in globalization.
The effect becomes worse for them because they become poorer, useless and more inadequate. As a matter of fact, there are still countries that belong to the third world that still live in absolute poverty affected by infectious diseases and natural disasters brought about by climate change and cannot participate in the globalization at all. The rising of prices in the world market absolutely pin them deeper into poverty therefore economic globalization becomes a global challenge that is connected to poverty and unsustainable economy (Iwatani).Hence economic globalization has also introduced new challenges such as inequality across and within nations, instability of financial markets and deterioration of some governments.
We can also see that although globalization has already been practices years ago and has brought up recovery to world economy, great majority of developing countries remained poor and removed from the process of globalization development. It is true that globalization reduce transaction cost of trans-border movements of capital and goods as well as opening up world trades and advance means of communication. It also encourages population migrations because it increases people’s mobility, transfer of their goods, sharing of capital and ideas. But because of these they also spread out infectious diseases, pollution and the most abhorred of all – terrorism.
Still, poverty remains to be the number one challenges economic globalization must face.Moreover, the potential effect of economic globalization on how it would benefit every country in the long run is still very much positive because it will remain intensifying interdependence with regards to trading of goods and continue to move services and capital on the international level. This will result further into domestic economic development although it will not determine international policies and assure permanent economic conditions with other nations. It is therefore safe to assume that the globalizing economy while it continue to formulates and evaluates domestic policies must not ignore significant actions and reactions that would carry more developments to the rest of the world (Balakrishnan).
Works Cited:Balakrishnan, Chandrasekaran. “Impact of Globalisation on Developing Countries and India ” About.com (2004). April 16, 2009 <http://economics.
“Globalization.” Center for Alternative Development Initiatives (2009). April 16, 2009 <http://www.cadi.
ph/globalization.htm>.Iwatani, Kuniaki. “Combating Global Challenges through the Creation of Markets Supporting Sustainable Development.
” Institute of International Studies and Traning (2001). <http://www.iist.or.jp/wf/magazine/0647/0647_E.html>.
Cite this Economic Globalization
Economic Globalization. (2017, Mar 07). Retrieved from https://graduateway.com/economic-globalization/