Introduction: Globalization Economic system of the world is moving towards unification, and this process is called as globalization. This unificationhas been achieved basically by the removal of certain trade barriers like quotas, export fees and certain tariffs. This has been done in persuasion of improved efficiency in international relations, benefit sharing and specialization. It is an impact of globalization that today we see a lot of foreigners working in our country offices while a lot of our nationals are working in other countries in important places. Due to the increased globalization, the benefit of innovative technologies reaches every country of the world very quickly even if the country is technically backward.
Globalization has also resulted in the success of food chains like McDonalds, KFC, Pepsi and Coke. There have been some positive and some negative impacts of globalization however (Croucher, 2004). International theories of Globalization Globalization is considered by some as a very positive trend towards which our economic systems have been moving steadily for past few decades. On the other hand, there are people who think that globalization has caused a lot of problem for certain countries and economic aspects.
The biggest advantage of globalization has been the expansion of market. Global market is bigger than any country’s local market and thus the chances of making more profit through business ventures are now very much possible. According to the globalization theory, international terms have improved since the trend of globalization has become popular. One economic reason of this factor is that now all countries are economically interdependent (Croucher, 2004). By being interdependent, it becomes important that all countries maintain cordial relationships with the other countries, meaning globalization leads to lesser wars.
The followers of this theory debate that globalization has led to the benefit of both developing and developed countries. The counter globalization theory says that globalization has in fact created such an environment that the international relationships have suffered a backward fall. The followers of this theory think that even the intra-national situation has worsened due to globalization. These people think that globalization has allowed the developed nations to exploit the developing ones, and that’s why there have been certain attempts towards anti-globalization as well (Jagdish, 2004).
Major Drivers of Globalization The most important drivers of Globalization are: 1. Economic benefits (Examples: a. Chinese Labor is cheap, while American designing is advanced. Together these nations are ruling the furniture market. b. UK still is one of the greatest exports of clothing, while all raw cotton is imported from developing countries. c. Bigger markets for products made in developing countries. 2. Drug control (Examples: a. Being in close coordination with each other, nations now can stop or reduce drugs smuggling. b.
With a combined focus on drug trafficking, countries have figured out how to reduce its production. c. Better medical treatment of addicts. 3. Jobs (Examples: a. More jobs. b. Better pay. c. More variety/fields) (Rodrick, 2001) Effects of globalization These are 4 important effects of globalization: 1. Better medical facilities for people in all parts of the world 2. Food sharing 3. Economic improvement in developing countries due to more jobs 4. Technical innovations spread fast now (Rodrick, 2001) References: Croucher, S (2004). Globalization and Belonging: The Politics of Identity in a Changing World. Rowman & Littlefield. Jagdish, S. (2004). In Defense of Globalization.
Oxford, New York: Oxford University Press. Rodrick, D. (2001) The Globalization Paradox: Democracy and the future of the World Economy. W.W. Norton and Company.