Economic Impact of Globalization - Essay Example

IMPACT OF GLOBALIZATION Name: Course: Tutor: Institution: City, State: Date: Question 1: Contrary to much popular thinking, globalization is not killing the state; it is underlining its fundamental importance to political and economic life in the 21stcentury. Critically evaluate this claim. Globalization has been in existence for a long period of time. It can be defined as the development of interconnected business network and economies worldwide. It has lead to the creation of a worldwide network which has linked markets in all the global nations. The chief contributing factors which have facilitated this process are improved mobile technological advancement and internet accessibility (Beans 2001, pg.1). There exist varied reasons which have prompted the popularity of globalization; they have led to both economical and political progression to countries which have embraced the process. Despite the positive attributes of globalization, there have been claims that it is detrimental to political and financial status of involved nations. Evaluation of the effects of globalization on involved countries will provide substantial evidence of its positive nature as well as shed light to the illegitimacy of these negative claims. Introduction Progression of globalization has brought about both political and economical interdependence of many developing countries. Despite the fact that this issue has been subjected to rigorous debate, it has remained relevant to global development. Prior to further expounding on the issue, the definition should be understood to ensure easier interpretation. Many parties have joined the band wagon supporting globalization. They are non-governmental organizations, multi-corporations as well as international establishments and thus the implementation of globalization has greatly affected their decision making owing to the chain reaction catalyzed throughout the system. The main aspects which will be focused on are economics and politics to further elaborate on the effects globalization has had on them and determine whether the process is forthcoming or otherwise. Economic Impact of Globalization A nation’s financial system determines its development and it sustenance in the global economy. The government is responsible for devising effectual strategies which can be implemented to better the state of the economy. Merging of economies has been one of the suggested methods brought about by globalization (Donovan 2003, pg. 23). This has allowed nations to have a free flowing income capital as the global market provides a wide range of marketing venues for their services and products. Developing countries are empowered by this process as it promotes foreign investment (Beans 2001, pg.1). The benefits of foreign investments are varied. Some of these benefits include increased job opportunities translating to increased rate of employment which offers a great boost to the economy by increasing the government revenue from taxes (Donovan 2003, pg. 34). In addition, the Gross Domestic Product has also impacted by globalization. This is through offering the developing country various venues to export their goods and product. It is through this global markets that nations are able compete on at international level without any limiting factors such as geographical barriers amongst others. These channels have created opportunities which mainly have focused on disbursing skills and technologies from various parts of the globe. The aforementioned benefits cannot be overlooked as they play a great role in developing individual country’s economies thus also influencing the global financial status. 1. Wealth Equality throughout the World Through the provision of employment opportunities, globalization has equalized wealth contribution throughout the globe. Countries which offer proof of this advancement are China and India which have promoted and embraced globalization since its inception. The process focuses on an internal business framework of each trade and products it provides further promoting entrepreneurship. This means that people have been able to establish business empires and provide basic necessities to their relatives and family members. People from impoverished countries are now able to live a sustainable lifestyle. 2. Stabilization of Security It is evident that globalization has a great impact on the economy of a nation. This impact further enhances the global security thus preventing attacks resulting from conflict between competing countries. Despite the prevalence of violence in the world today, globalization has played a role in solving issues between nations thus preventing warfare which is detrimental and wastes resources which can be used to develop and secure a nation’s economy. 3. Increase in Effective Markets Nations always strive to establish effective markets. Such markets translate to creation of seller and buyer equality which is a positive and expected outcome for an economy to thrive. Globalization provides the necessary mechanisms which facilitates this balance. This is through the availability of international suppliers who aim at selling raw materials at reduced prices thus lowering the price of the final product but still guaranteeing high quality (Mehlika 2013, pg 4). The manufacturers greatly gain from this as an affordable high quality product creates increased demand. Another aspect of these global markets is the provision of procurement and outsourcing options (Mehlika 2013, pg 5). The international communication ties established through globalization, countries are able to seek for inexpensive labour from developing countries by providing employment opportunities. Such activities are prevalent in Asian nations such as Qatar, Dubai and Afghanistan which attest to the economical stability provided through outsourcing and procurement of foreign labour. Political Impact of Globalization Another factor that has been substantially affected by globalization is politics. The ideology of a globalised political system has been quite overwhelming thus soliciting rejection and negative response from most nations all over the world. Globalization of politics can be likened to tribes which consist of different clans but governed by a sole authority. It is through this idea that international organization has been established (Heywood 2011, pg 75). One the main establishment that has gained popularity over the years is the United Nations. It operates to maintain and promote peace in global nations as well as speed up the process of development. There are nations that have been at war since time immemorial. This warfare has destroyed their economic capabilities and crippled their progression. It is such catastrophic effects that United Nations is focused on preventing. Thus, the unification of global nations will not only improve individual countries economically but will also promote peace which is the ultimate goal. Additionally, political globalization is a multifunctional aspect which should be utilized. Through it, nations can solve issues pertaining to crimes, poverty, environment as well as education (Kokemuller 2012, pg 1). Owing to the susceptibility of developing nations, they are mostly affected by the listed issues. Some leaders take advantage of this weakness to oppress and dictate citizens of such nations. Having an international organization which is capable of monitoring such acts and abuse of power has proved to be resourceful and effective (Heywood 2011, pg 89). It allows for alleviation of these problems as well as providing a platform where other nations can offer assistance whether it’s monetary or resources. A globalized political system has done away with the importance of nations states authorities. This means that the international super powers have lesser control over global nations. As mentioned previously this has been through establishment of multi-national organizations such as the United Nations, European Union, the G8, the WTO and the International Criminal Court (Oliviera 2011, pg 1). Through signed compliance agreements, these organizations have functioned to perform national duties which require non-biased decision making and impartial justice. These organizations have also spear-headed humanitarian initiatives which have greatly contributed in uplifting the situation in impoverished and war-torn countries. These actions have prompted the evolution of politics in individual countries by influencing the policies concerned with developmental efforts and humanitarian aid (Oliviera 2011, pg 1). Judging from the deductions made, it is clear to observe that such organizations have encouraged unity and compliance of its regulations which dictates aid should be offered to less-privileged countries. It is through these policies that charities and human philanthropic initiatives have been developed to aid the under-developed nations. Globalization has embraced the idea of political stability under a world government. Nations have illustrated pride in the concept of a democratic rulership bringing into focus elements like tolerance, freedom and liberty (Oliviera 2011, pg 1). This is considered the ultimate factor which promotes global political stability. The United States has played the role of dissolving Asian nations which have thrived on autocracy. In the pretext of oil extraction, the United States took over the control of these countries and incorporated democracy to unify them to the world wide form of governance which is based on social equality. This move validates the importance of globalization as a tool to unify nations through creation of a unified front in aspects such as politics. According to the traditional mode of rulership, politics have been enacted by national governmental systems. Owing to the realization of modern globalization, this aspect has been taken over by international organizations which have affected the process of policy development and the undertaking of governmental roles such as offering aid, establishing a judicial system to deal with crimes committed by leaders as well as maintaining world peace. From the economical aspect, globalization has played a role in promoting investments, labour procurement and international trading improving economies throughout the globe. Judging on the stated facts which are in support of the positive results stemming from globalization, it is certain that the benefits outweigh the negatives. This goes to refute the claim made that globalization is figuratively killing the states. Nations that bear the hope of developing should join in globalization and it is with this change that world peace will be maintained and bring forth positive economic growth. Bibliography Beans, N 2001. The Significance and Implication of Globalization, World Socialist Web Site, viewed 26 September Donovan, J 2003, The impact of globalization and regionalization on the transmission of economic growth from developed countries to less developed countries, Ann Arbor, MI, UMI. Heywood, A 2011, Global politics Houndmills, Basingstoke Hampshire, Palgrave Macmillan. Kokemuller, N 2012. ‘Why Has Globalization Become so Important’, Chron. Mehlika, F 2013. ‘Globalization and Its Economic Social Political and Cultural Impact’, Academa.Edu. Oliviera, T 2011. ‘Globalization: Understanding the Impact of Globalization on our World’, TheOGM. Read More