The Arguments For And Against Globalization Economics Essay

The Arguments For And Against orbicularization Economics EssayGlobalization is a modern phenomenon, which undersurface be analyze from various points of view. Roughly, we might say that globalization is integration of regional economies, societies and cultures in a globe-spanning network of communication and trade. This term is part of a historical figure out of capitalism which is a new international order in the context of a single humanness.Globalization is sometimes use to refer specifically to frugal globalization. This topic go out be developed along the essay. However, as once was expressed by the ex-secretary of the United Nations Brutos Gali, thither is no only one globalization, there atomic number 18 many globalizations such us technological, sociocultural, political, biologicalAn example of that not only the economic globalization exists is the creation of the International Penal Court, since the human rights atomic number 18 starting feeling the effects of the g lobalization and it is necessary uniform and universalize the recognition of the fundamental rights of the citizenship.Globalization overly refers to a process of interaction among societies and local cultures in a global culture to what we would call sociocultural globalization.Different definitionsThe word globalization is delineate by contrasting authors, official institutions and dictionaries check to their point of view. Therefore, there is not only one precise meaning of this term universally accepted 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, increases, culture, fellowship and culture. This is a result of the step forward in the field of communications, transport, engineering science and industry.According to the World Bank Group (WBG)2, the most utilized meaning for globalization is an intercontinental economic activity, which has increased sharply. In th is activity they include hostile Direct Investment (FDI), International Commerce and Capital Flow.However, the International Monetary Fund (IMF)3has combined both the United Nations and the World Bank Groups definition. It besides negotiation about globalization in terms of FDI, Capital Flow, International Commerce and the surprising evolution of communication and technology. Further more, IMF specifies that sometimes globalization makes it necessary for the workforce and knowledge to discombobulate to move to another country.But, these kinds of institutions are not the only ones who want to give their own definition of globalization. A wide range of authors have habituated their opinion on the topic.For example, David Dollar4, in an interview published in the World Bank Group Web, said that the economic globalization, or as he would rather use, the economic integration takes place when a country reduces or eliminates the commercial 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 phase of capitalism, one that transcends the unit of the nation-state. His college, Anthony Giddens6, does not think in the same way as him. In this case, he negotiation about globalization as a renewing 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 first time in his book called The Globalization of Markets to describe the transformation of the international preservation which had been taking place since 1960.However, its evolution is not clear enough. any(prenominal) people say that it started in 1980s and others are in prefer of 1870s. But in either case, the bases of globalization are three specific ideas, according to the Washington Consensus a severe fiscal s ystem, privatization and the relaxation of the restrictions on economy8.The World Bank Group talks about four steps 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 paragraph I am issue to give details about the development 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 excreting of commercial barriers. The amount of exports augmented 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 Japan opened their markets.From 1980 until 2009 in this time, manufacturing increased to 80% cosm opolitan. Some countries, such as Brazil, India and Vietnam, remedyd their international commerce and the globalization made developing countries improve.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 peak in commerce collectible to an increase in capital and labour force.From 1913 to 1950 callable 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 hidden increased, the financial system started to be more open 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, and the economic integration has become stronger. In contrast to previous periods, the workforce move s less and capital and information are crossing borders.GLOBALIZATIONGlobalization itself is a consecutive 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 can give employment to workforce unemployed and also benefit from remaining 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 concept of democracy. For some, it promises a new era of riches for all, for others, it is the seduction of a consumerism that will bankrupt morally and economically the majority.In favour of globalizationWhy economic globalization is a good system? Advances in communication and shipping technology, combined with free-market ideology, have give n goods, services and capital unprecedented mobility. For example, Northern countries want to open world markets to their goods and take advantage of abundant, cheap 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 mix in by reducing tariffs, privatizing state enterprises and relaxing environmental and labour standards.Globalization is a phenomenon that is merchandiseant to the develop of the economy in every country, due to the universal opening of markets for goods and capital suggests the end of trading blocs, regional treaties and economic independence of countries but also facilitates the ability to solve economic needs that local players have been unable to satisfy. It makes easy the commerce between different countries and decreases the difference between developed and underdeveloped countries.Some factors i n favour of globalization areGlobal economy and market, which can lead to a better utilization of resources.Greater ability to maneuver compared to fluctuations in national economies.New opportunities of develop markets.Using economies of scale, it can reduce cost.International cooperation.Growth and mergers between companies.Privatization of public companies.International financial deregulation.Development of doer 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.Against of globalizationWhen globalization was defined, it tried to minimize the impact of negative points and reinforce positive points.Some factor s against globalization areLack of control over markets and multinational enterprises.Increased economic social and territorial imbalances.Concentration of richness and increased social inequality.Non-fulfilment of nominal labour standards. Full employment, a priority until recently, was postponed. The work has to behave as a commodity, subject to the laws of supply and demand and the output signal needs, without laws that safeguards smooth minimum rights. impairment to the environment.Threat to biodiversity and cultural heritage.Dominance of financial-speculative economy over real economy.Increase exploitation of child 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 globalization. But if we go to Africa, we can see that its people are sinking ever deeper into poverty and degradation of economic, social and political life. There, no one invests and the one thing 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 lower. This has contributed to the deterioration of the middle class, 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 way for the developing world to achieve political, social and rational modernity. Globalization is said to be the best and most effective means for the developing w orld to achieve comprehensive development, because it is the sole way to progress for this world economically. 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 cluster 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 within the country by others imported. This way, domestic manufacturers are affected. However, the elimination 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, glo balization promotes the concentration and the emergence of large multinational companies. The possibility of selling its products worldwide and reduce production costs through exploitation of economies of scale, cause that small businesses reducing their sales potential. This can result in the reduction of global contender 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 costs are lower. As the laws of many countries may increase costs for businesses, they seek 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 higher returns to their shareholders.