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GLOBALIZAION: FRIEND OR FOE - Essay Example

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Globalisation is a practice of interacting and mixing among people, companies and governments of different countries whose significant feature is international industrial and financial business structure. The adoption of free market economic systems by many governments has…
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GLOBALIZAION: FRIEND OR FOE

Thus, globalization is a process of interaction and integration among the companies as well as the people of different nations, a process which is mainly process driven by international trade and investment for the benefit of the investor as well as the host country, (Rothenberg 1).
Economic part of globalization is the key because with the whole world becoming a kind of global village, barriers between the countries are broken with integration happening mainly in the economic aspects. From earlier times, many Third World countries including Asian and African countries only indulged in agriculture for their livelihood. However, with the onset of globalization and the opening up their markets as Free Trade regimes, these countries and their governments started to focus on industrial development, by improving their own industries and importantly by facilitating entry of foreign companies. Thus, globalization turned out to be a great boon to these countries. These countries opened up their markets and enticed the foreign companies with a slew of beneficial financial and social schemes. Foreign firms for their part optimally invested tapping the existing cheap labour and other resources, thereby garnering for themselves good profits. Today a company in the US which is in the west approaches a company in India in the east to fulfil its software requirements. Hence an integral part of the business process done by the US firm lies on the other side of the world. This way both the parties get major benefits - good service and lesser costs for US, Indian software professionals get higher salaries. Also, many developing countries are on the path to the top echelons because of globalisation as they were able to manufacture many products and market to the whole world. In China, 30 years after the counter-revolution, a new big bourgeoisie has emerged along with increasing stratification and oppression. In 2004, the ... Read More
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