The recent advancement in Asian economy is really transforming the world and the notion that globalization only makes the rich richer and the poor poorer is disputable according to Wolf. He supports international economic integration as the reason behind success of many countries. However, Wolf says that different countries success is not attributed to full adoption of the neo liberal policies rather by instituting their own policies intended to enter market economy. He further argues that growth weighting distribution amongst nations by population shows that the most important things is the people but not countries themselves thus making it important only to consider income distribution alone. Inequality changes amongst world individuals are contributed by changes in the relative wealth of countries such that if the performance is low, the decline in inequality also changes. However, it should be noted that most countries have not fully benefited from globalization especially in Africa, Asia and Latin America countries (Wolf, 2004). The rapid growth of economies brought about by globalization has immensely reduced the level of poverty especially in east of Asia but went up in Eastern Europe, central Asia and sub-Saharan Africa. There was also general increase of life expectancy in developing countries though the growth was challenged by the AIDS epidemic and malaria. Moreover, globalization has reduced infant mortality and boosted literacy level in developing countries and the world as a whole. There has also been recommendable increase in food production thus lowering undernourishment issues globally. Finally, Wolf has noted that child labor has tremendously reduced because most parents have opted to taking their children to school (Wolf, 2004). Concepts Central to the Argument One of the most important arguments that has dominated the text is that globalization has negatively affected economies of most countries. This is very wrong and I really concur with Wolf that globalization has instead boosted the economy of a good number of countries especially in Asia. The author has noted India and China as some of the beneficiaries of globalization. However, their success is attributed to the policies of individual countries towards globalization (Wolf, 2004). Countries have worked hard by adopting policies that can see them succeed in the wider market that has been brought about by globalization. The effect of globalization is therefore very intense and has positively developed most of the world economies especially countries that were once considered poor. Living standards and income per capita has greatly increased in most of the countries that took advantage of globalization. Nevertheless, some countries have not experienced the benefits of globalization because they have not changed their policies to properly fit in the international market (Wolf, 2004). Moreover, criteria used in measuring economic progress by World Bank are clearly unsatisfactory. The method of measuring economic progress and income per capita as used by world ban is not the best. Wolf argued that population of a country does not reflect failure or difficulty in economic progress by highlighting India and China which are the most populated countries yet making positive economic progress. Average incomes of the world cannot be weighted by population and accurate results be found (Wolf, 2004). This is because even amongst the less and densely
How Globalization Benefits America's Economy Name Subject Date Summary of Author’s Argument The author believes that economic challenges such as poverty experienced in many countries around the world are something that can be turned around by instituting good policies…
This is from his book at http://africanliberty.org/pdf/GLOBAL%20CAPITALISM.pdf But the page is xiv, as I stated before. The citation is from introduction. Wolf in “Why Globalization Works” (2005) is even more radical and argues that “the market is the most powerful institution for raising living standards ever invented indeed there are no rivals.
Globalization provides greater opportunities to regions and countries to conduct the trade and economic activities more effectively. The bargaining power of trade blocs (group of countries on a particular region) is more than the bargaining power of an individual country which forced different countries to form different regional trade blocs to increase their competitive power and bargaining power.
When it first appears in the world, globalization was welcomed with suspicious eyes by many of the countries, especially the communist countries like China, Cuba etc. These countries thought that the capitalist countries had a hidden agenda in introducing globalization.
Four to five billion people joined the global market economy when the Soviet Union fell apart, and China merged with the global trading system (Eckes, 2011, p.viii). This turn of events in history led to the epoch of deregulated capitalism spearheaded by one powerful nation, and that is the United States (Eckes, 2011, p.viii).
The colonizers euphemistically described the process as an effort to disseminate civilization or Christianity, but the real objective, according to Thurow & Lessard (2002), was to exploit the untapped resources of poorer countries so the richer countries can enhance their wealth.
Secondly, government, due to its magnitude and influence, is considered as better placed to solve the core problems an economic system has to solve i.e. what to produce, how to produce, whom to produce etc. however, an element of central planning within mixed economies does not ensure proper and efficient utilization of resources of the economy therefore mixed economies have the biggest drawback of not allocating resources in the most efficient way.
The benefits of globalization can be enjoyed by any organization and vice versa. The major factor for utilizing the benefits of globalization is a proactive approach. Who ever plans before the situation arises takes the major benefits. This can be clearly explained by saying that planning ahead is the best thing to do.
Consumers are able to access an ever-growing basket of goods and services. Countries, companies and individuals are increasingly beginning to take into account what is happening across the world, rather than in only the country in which they are based. In short, globalization is affecting a vast section of the society, whether people realize it or not.
A set of "New Rules for the Game" was seen necessary as a prescription to the growing problems in globalization.
According to Yergin, the era of globalization began at the end of the Cold War and Gulf crisis, and era "of a world being tied together by flow of investment, of trade, of ideas, of culture, of people traveling all the time." In the United States, one of the most pertinent evidences of globalization is the establishment of a trade union between the US, Canada and US or the NAFTA.
For the past 50 years — and this is seen in statements by the World Bank and others — the world has seen more poverty than ever and the situation is worse." (http://www.idealswork.com/interview/roddick/roddick3.asp)
Professor Richard Haines who is South
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