What he means is that if globalization flourishes it will ameliorate us with larger markets for manufacturers and improved alternatives for users and if it does not then it will devour us all.
The fact of globalization has interested many economists in the past and continues to do so in the present as well. Globalization has many proportions like political, cultural, and economic. Of all the dimensions of globalization economic globalization has attracted many economists, researchers and scholars. This paper attempts to discover the costs of globalization and its benefits. This objective is achieved by formulating a hypothesis and then proving it.
According to Hill (2002), globalization indicates a position whereby national economies integrate into an independent universal economic system. It gives a chance to develop further than the domestic markets and provides for a larger level of economies of scale in manufacture and sales. Adam Smith had opined that the level of specialization depends on the dimension of the market. Globalization is directly connected to economic development, which is connected to the expansion of international trade (Van Den Berg, 2001).
Maneuvered by the self-established development of world-wide markets and technological advancement, globalization inevitably ruins all antecedently accomplished hierarchic structures. Part played by the nation-state in this circumstance is also extensively losing ground. Multinational corporations rivet huge resources, and become the core bearers of economic action on a global degree. This makes a global refinement in which the market is merged on the global level. The major parts in the economic process are the multinational companies. The role of national states is adorned by the international institutes. International corporate has basic control on the economy and symbolizes natural reaction to the "borderless" financial system which is qualified by homogenous user perceptiveness. These companies gang out national patterns of economy as appropriate units of economic action (Ohmae, 1990).
Potter (2002:192) explains economic globalization as "an economy where distance has become less important to economic activities, so that large countries sub-contract to branch plants in far distant regions, effectively operating within a 'borderless' world". On the other hand Inoguchi (2001) sought to distinguish between intercontinental and worldwide economy. International economy indicates significance of national economies functioning as units under the states of a country due to the international economy concerned actions.
The economic globalization boomed in 1990s and numerous instances can be brought to authenticate this disagreement (Papers4you.com, 2006). For example Western European combination was the first and initial step taken towards economic