Category: Economics Essay

Globalization is explained as the increasing unifying the world’s economic order through the reduction of any barriers to trade internationally. The barriers may include import quotas, export fees, and tariffs. The main objective is to accelerate services, goods, and material wealth through various efficiencies attributed to competition, specialization and international relations. It is a process that focuses on lifting the present barriers hindering the progress and development of a given economy. Globalization describes the entire process by which cultures, societies, and regional economies have gradually become integrated through trade, transportation, and communication. In most cases, this term is closely associated with other terms but mostly economic globalization. This is the integration of state (national economies) into the general international economy through migration, trade, capital flows, military presence, the spread of technology, and foreign direct investment. However, globalization has been stereotype recognition for being driven by a collection of biological, economic, socio-cultural, technological, and political factors.

The term has also been used to define the transnational circulation of ideas, popular culture, or languages through acculturation. This paper seeks to lay emphasis on the need for individuals to go global, and the various impacts that the globalization elements have on the trends of daily activities that the individuals have. Globalization has been viewed differently in terms of its impacts or implications in the world and in world affairs. This is due to the fact that its impacts are not one dimensional. They are social, economic and political. Whereas some analysts and scholars argue that it has been central to bringing international development in all those perspectives, others differ and cite the negative implications of this phenomenon. In this essay, I will give the two implications of globalization in a manner of positives and negatives. This is because the truth lies in the visible findings of both schools of thought. The benefits are political, social and economic as follows.

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Broken down into little pieces, globalization has brought economic development in terms of quicker means of conducting business through mobile banking, the use of international courier services to relay information, use of the internet to conduct online business such as those of the stock markets. The improvement of technology has enabled ease of communication between merchants and their customers. It has also enabled the expansion of business enterprises and increasing markets around the globe due to the quick access of information that has enabled advertising services to be possible. This has also increased due to the mobility of financial markets through technological advances. It has also enabled quicker means of communication and provided a global village that exhibits quicker and faster means of sending and receiving information. In conjunction with such developments, it has created a lot of jobs which include interstate and intercontinental connections that have enabled the provision of online jobs to many people in the world. Politically, globalization has enabled democracy through international, continental and regional organizations like the United Nations (U.N), Commonwealth, European Union (E.U) and smaller organizations like the Economic Community of West Africa (ECOWAS).

Through intergovernmental links and organizations, the sustainability of peace and security has been enabled. All these have led to firm bases for the advancement of liberal democratic ideas of free markets, democracy and multi-party politics all around the world. In terms of global tackling of crises, globalization has made it easier for countries to intervene in the affairs of neighboring countries. For instance, the recent wave of political violence in sub-Saharan Africa has been quelled by foreign intervention from states who shared the goodwill of the innocent citizens of the affected countries. This aspect has also enabled the world to act jointly to fight such incidents like terrorism, hunger, natural disasters, and political upheavals.

Socially, globalization has increased social integration among the people around the world. This has been made possible by improvements in the communication links in the globe. Through the internet, social networking sites like facebook, twitter among others have been discovered to keep people in touch with each other. The use of planes and underground trains has enabled people to move in and out of various countries within a short duration of time. This improvement of the transport system has increased not only the mobility of the people but also of goods and services. This has also created job opportunities for the people working in those vessels of transport. Education across various borders has been made possible. For instance, there are various students in Europe who live in one country and study in the other, for instance, student X lives in Holland and studies in Belgium. This is possible due to the presence of electric trains. Globalization has facilitated the concept of outsourcing in various fields of the economy. Work including that of marketing, customer support, software development, insurance, and accounting is outsourced to both developed and developing countries like India and Russia. So, the organization that outsources the factors of production input enjoys the advantage of lower operating costs because the salaries in underdeveloped countries are lower than the ones sourced from developed countries.

The laborers in the developing nations get a source of employment. In the process, the developing nations get access to the rapid advancements in technology. Making the world a global village has eased the need to have all elements for human life development accessible. People and organizations are now in a position of acquiring whatever they need whenever they need it. This is facilitated by the fact that globalization has opened newer avenues of sourcing relevant requirements. It has also contributed to the acquisition of both knowledge and technical equipment necessary for the advancement of the outsourcer. It goes without saying that the interaction has contributed to the growth of various groups and facilitated innovation. Globalization has led to the opening up of these bondages of the organizations always targeting the regions that they are located in as their areas of concentration. This is a positive accelerator of development.There has been intensive criticism that globalization causes poorer countries to suffer disadvantages. Critics further said that, while it is obvious that globalization promotes free trade among nations, there are negative results also because many countries seek to retain their national (state) markets. The major export of underdeveloped countries in most cases is agricultural goods.

Developed countries usually subsidize their agricultural farmers (for instance EU Common Agricultural Policy); this goes a long way in lowering the price for the incapacitated farmer’s crops in the market compared to the fundamental provisions of free trade. The third world economies stand at a risk of insubordination because of the dominance of the developed countries. In trade, most developing countries are seen to produce primary products while developed countries are in the front line offering manufactured and finished products. Unfortunately, despite the farmers (who are from poorer countries) having produced the products, the developed countries are the price makers. This renders the poorer countries poorer and their economy remains undiversified. Critics of globalization have pointed at a new world order that has been created by the developed world. They observe the general use of technology to run most world affairs as a new way the industrialized countries want to control the world. This is the perspective of the anti-imperialist theorists who look at the fact that most of the industrialized countries are the same ones that colonized countries in the 20th century.

To this extent, some of them look at it from the perspective that democratic space has been shrinking due to the domination of world affairs by these countries. This view owes much of its basis on the fact that the United Nations veto powers are solely run the affairs of the world. They have stretched their tentacles in every aspect of world affairs be it political or socio-economic. This view, further suggests that this dominance has led to the unprecedented gap between the rich and the poor. This is generally the inequality that has led to terrorist activities especially due to the rebellion from the third world countries. These countries feel that they are being unfairly exploited and thus there is a need to fight the first world countries.

Globalization creates aggressive competition pressure on companies to lower prices. This poses great benefits to the final consumers. International trade has led to many industries providing a wider range of products to the economy. This has been facilitated by the aspect of competition where many companies have realized that they are not only competing with others from their home states but also those beyond their national boundaries. Competition has led to the diversification of the economies available. The consumers in the countries are now in a position of acquiring commodities at relatively competitive prices and of high quality. Industries have further noted that the production of substandard goods is not an option because consumers are now rational and more informed hence can shift from one brand to another at the slightest provocation of poor quality. Globalization has increased the availability of goods and materials necessary to the individuals.

According to the microeconomic laws of trade, an increase in the supply of a given item leads to lower prices attached to it to attract customers, and the inverse holds true. Customers are bound to getting advantaged due to the variations in price and brands of items. Environmental assessment also ties globalization to the climatic change and the consistent environmental degradation that is ongoing in the world. This has led International Organizations like the U.N to call for international conferences to discuss how countries will reduce the emission of greenhouse gases i