The Arguments For And Against Globalization Economics Essay

The Arguments For And Against globalisation Economics EssayGlobalization is a newfangled phenomenon, which ordure be analyzed from various points of view. Roughly, we might say that globalisation is integration of regional economies, societies and cultures in a globe-spanning ne cardinalrk of communicating and cover. This consideration is part of a historical move of slap-upism which is a new outside(a) order in the context of a single reality.Globalization is sometimes used to refer specifi look fory to sparing globalization. This topic get out be let oned along the essay. However, as once was expressed by the ex-secretary of the United Nations Brutos Gali, thither is no provided iodine globalization, there atomic number 18 legion(predicate) globalizations such us technological, socio cultural, political, biologicalAn example of that not only the economic globalization exists is the creation of the Inter subject Penal Court, since the human rights be starting fe eling the effects of the globalization and it is necessary uniform and generalise the recognition of the fundamental rights of the citizenship.Globalization also refers to a process of interaction between societies and local cultures in a global culture to what we would call sociocultural globalization.Different definitionsThe word globalization is defined by different authors, official institutions and dictionaries according to their point of view. Therefore, there is not only one(a) precise meaning of this term universally throwed by everybody.On the one hand, United Nations (UN)1has defined it as an event, unavoidable in our history. It makes one world through the exchange of goods, products, information, cognition and culture. This is a result of the blackguard forward in the field of communions, transport, technology and industry.According to the World desire Group (WBG)2, the most utilized meaning for globalization is an intercontinental economic activity, which has in creased sharply. In this activity they include Foreign Direct investment funds (FDI), International Commerce and Capital Flow.However, the International Monetary Fund (IMF)3has combine both the United Nations and the World Bank Groups definition. It also talks virtually globalization in terms of FDI, Capital Flow, International Commerce and the move evolution of communication and technology. Further much than(prenominal)(prenominal), IMF specifies that sometimes globalization makes it necessary for the toyforce and knowledge to stimulate to move to some otherwise country.But, these kinds of institutions ar not the only ones who regard to give their own definition of globalization. A wide range of authors have given their opinion on the topic.For example, David Dollar4, in an interview promulgated in the World Bank Group Web, express that the economic globalization, or as he would rather use, the economic integration takes place when a country reduces or eliminates the c ommercial barriers such as custom duty, and they accept investments and trade from the rest of the world.However, Leslie Sklair5thinks that it should be seen as a new variety of capitalism, one that transc demolitions the unit of the nation- enjoin. His college, Anthony Giddens6, does not think in the same look as him. In this case, he talks about globalization as a transformation in the global market, the evolution in the communication and trade between nation-states in physical commodities, information and currency.Evolution from two different points of viewTheodore Levitt7was the creator of the word globalization. He used it for graduation time in his book called The Globalization of Markets to describe the transformation of the multinational sparing which had been taking place since 1960.However, its evolution is not clear comme il faut. approximately people say that it started in 1980s and others are in privilege of 1870s. But in either case, the bases of globalization are three special ideas, according to the Washington Consensus a severe fiscal system, privatization and the relaxation of the restrictions on thriftiness8.The World Bank Group talks about four-spot timbers in Globalizations evolution. Whereas, Leandro Snchez Zepeda, in his doctoral thesis, explains that there are five different stages. I do not have enough knowledge to decide which is more appropriate, so in the following dissever I am going to give details about the study of both thoughts.According to the WGB9, these are the stepsFrom 1870 to 1914 this period was characterized by the step forward in transport and the elimination of commercial barriers. The sum of money of exports augment almost 8% and 10% of the total population moved to another country.From 1914 to 1950 the situation was as before 1870, marked by protectionism.From 1950 to 1980 during those years, the process evolved to an economic integration between rich countries. Moreover, Europe, North America and Japa n assailable their markets.From 1980 until 2009 in this time, manufacturing increased to 80% worldwide. approximately countries, such as Brazil, India and Vietnam, amend their international commerce and the globalization made developing countries meliorate.On the other hand, Leandro Snchez Zepeda10has put forward a different opinion in his doctoral thesisFrom 1870 to 1913 this period was marked by a card in commerce due to an increase in capital and promote force.From 1913 to 1950 due to the Great Depression, the First and the Second World War international commerce decreased.From 1950 to 1973 thanks to the Bretton Woods system, global integration was strengthened.From 1973 to 1990 during these years the amount of public companies which became private increased, the pecuniary system started to be more scatter to the world, communication and transport advanced and it became international.From 1991 until today there are more free-trade areas, such as ALADI, NAFTA and ASEAN, an d the economic integration has become stronger. In line of products to previous periods, the workforce moves less(prenominal) and capital and information are pass borders.GLOBALIZATIONGlobalization itself is a continuous and dynamic process that challenges the laws of the countries in how they regulate the operation of enterprises and economic behaviour of individuals at the international level, who brook give employment to workforce unemployed and also benefit from remain irregularities and weaknesses in a particular country.It is a complex phenomenon therefore it should not surprise us that it causes different reactions in different individuals or groups. Some consider that threatens the framework of the nation state, national identity and the modern fantasy of democracy. For some, it promises a new era of riches for all, for others, it is the seduction of a consumerism that provide bankrupt morally and economically the majority.In favour of globalizationwhy economic globali zation is a good system? Advances in communication and transportation technology, combined with free-market ideology, have given goods, services and capital unprecedented mobility. For example, Northern countries want to open world markets to their goods and take advantage of abundant, squalid labour in the South. To do this, these countries use international financial institutions, such as, the International Monetary Fund and the World Bank Group, and regional trade agreements11to compel poor countries to integrate by reducing tariffs, privatizing state enterprises and relaxing environmental and labour standards.Globalization is a phenomenon that is important to the develop of the economy in every country, due to the general opening of markets for goods and capital suggests the end of trading blocs, regional treaties and economic independence of countries but also facilitates the mightiness to solve economic needs that local players have been unable to satisfy. It makes piano the commerce between different countries and decreases the difference between developed and underdeveloped countries.Some factors in favour of globalization areGlobal economy and market, which go off lead to a better utilization of resources.Greater tycoon to maneuver compared to fluctuations in national economies.New opportunities of develop markets.Using economies of scale, it empennage reduce cost.International cooperation.Growth and mergers between companies.Privatization of public companies.International financial deregulation.Development of means of communication and transport.The free movement of capital allows a more efficient allocation of global savings and provides to emerging economies the resources to develop and promote the consolidation of a sustained and balanced growth.Globalization opens up opportunities for developed economies to improve their efficiency and productivity and allows economies in developing to improve the living standards of its population.Again st of globalizationWhen globalization was defined, it tried to minimize the impact of prohibit points and reinforce positive points.Some factors against globalization areLack of insure over markets and multinational enterprises.Increased economic social and territorial imbalances. meanness of richness and increased social inequality.Non-fulfilment of minimum labour standards. Full employment, a priority until recently, was postponed. The work has to behave as a commodity, subject to the laws of offer and demand and the production needs, without laws that safeguards smooth minimum rights.Damage to the environment.Threat to biodiversity and cultural heritage.Dominance of financial-speculative economy over real economy.Increase exploitation of infant labourControversyThe liberalization of international trade means more economic growth and welfare, such as the example of China, where foreign capital has invested heavily and the country has emerged remarkably by the effect of globali zation. But if we go to Africa, we can see that its people are sinking ever deeper into poorness and degradation of economic, social and political life. There, no one invests and the one affaire that Africa is used by Occident is for the arms business and to recover the debts they owe to developed countries.It is true that globalization encourages free trade among countries, but there are also negative consequences because some countries try to save their national markets.Companies are buying goods and services from foreign countries. Workers, who were sacked, are forced to work into the service sector, where wages and benefits are trim back. This has contributed to the deterioration of the middle kinsperson, who have been relegated to lower positions. People in the lower class have to make more efforts to climbing out of poverty due to the absence of the middle class as a stepping stone.THE PROBLEMS OF GLOBALIZATIONGlobalization is the shortest and most viable fashion for the d eveloping world to achieve political, social and intellectual modernity. Globalization is said to be the best and most effective means for the developing world to achieve comprehensive development, because it is the sole way to progress for this world economically. ever-changing the world to the better is through applying globalization.There are problems in the process of globalization if other countries produce goods better than other, maybe a fix of citizens from this last country will be sacked if one state collects less tax, companies could go there to get more profit. The process of globalization entails adjustments in national and international economies, to which countries must adapt.Income distribution in many cases goods are produced in a nation through the importation of them is less restricted. The removal of import barriers may cause a substitution of goods produced inwardly the country by others imported. This way, domestic manufacturers are affected. However, the eli mination of trade barriers can make a product cheaper, which is an advantage for consumers because they can buy more with the same funds.On the other hand, globalization promotes the concentration and the emergence of big(a) multinational companies. The speculation of selling its products worldwide and reduce production be through exploitation of economies of scale, cause that small businesses reducing their sales potential. This can result in the reduction of global competition and that one or a few companies dominate the market.Evade national law the possibility of settling in any country encourages companies to look for those where production cost are lower. As the laws of many countries may increase costs for businesses, they taste countries which have less legal regulation. In fact, there are territories in which companies dont pay taxes for the profit. They prefer to settle there, due to they can pay high returns to their shareholders.