The Process of Economic Globalization Nowadays - Coursework Example

Globalization It is rather obvious that living in a social environment should be considered to be an irreplaceable prerequisite for the development of the inner potential of a human being. Indeed, by far the majority of the abilities which are considered to be characteristic to the mankind could have developed primarily due to coexistence of people. For example, the very ability of generating verbal interaction was conditioned by the necessity to coordinate actions to hunt a game. Nevertheless, one should also point out that just like people experienced personal growth, the society in general also evolved. That is why it would not be a mistake to note the two parallel evolutions; however, while the former is considered to have stopped, the latter one which deals with the society in a broad sense go ones. With this regard, one might note that the process of economic globalization is a valid reflection of the fact that communities all over the world have reached a completely new level. This paper will argue that the process of economic globalization should continue and base this claim on a careful examination of different factors such as peculiarities of modern trade, the current state of global finances, the trends in migration, the opportunities of development; the paper will also present an objective account of advantages and disadvantages of economic globalization, analyzing it from the point of view of countries which are likely to benefit from it and of those the economies of which might be damaged by the above mentioned process. To begin with, it would be rather advantageous to examine the peculiarities of modern trade. Thus, one would make no mistake that the contemporary economic world features one undisputable leader when it comes to exporting one’s good to other countries. Indeed, if one takes a look at the global interdependence of the countries, one will be able to see that the majority of states have deep economic connection with the partners from their region. Nevertheless, China is the country that has economic relationship with literary the entire world (Chenand and Yao 169). It is obvious that the goods which are manufactured in this country can be found on almost every market on the planet as they are cheap, of moderate quality and they pose a great alternative to other, more expensive competitors. Keeping this in mind, one might argue that in the future the global economic interdependence is likely to deepen as the major players of it, namely those how have greatest benefits, will not be willing to lose their leading places and will try to ensure that economic globalization continues. In addition to that, one should also note that the above mentioned process has gained a significant momentum; so, even if the opponents of it will be willing to stop it, they are likely to experience a vacuum of goods of a particular niche, the one that was successfully filled up by the Chinese goods. One would make no mistake pointing that the processes that happen in the modern trade define the future of economic globalization for a considerable number of decades the world has been experiencing great increase in GDP and everyone is interesting in following the path that has brought such wonderful results. If one carries out a careful examination of the world of finances, one will be able to note that it holds certain implications with regard to whether economic globalization should continue. It is beyond any doubt that one of the institutions that is highly interested in this process is the World Bank. Indeed, this global financial institution has been issuing a considerable amount of money to different countries all over the world so that they would use it to develop their economies and deepen the cooperation with their economic partners (Collier 111). As a result, this created a system when the World Bank would issue more and more money, making a profound impact on the economies. It would not be an exaggeration to point out that some countries have become largely dependant on this money. This means that the only suitable way to prevent the collapse of the system and make sure that it works properly is to carry out the process of globalization and increase the global cooperation. Similar to the situation that was descried above, the World Bank as well as other financial institutions are deeply interested in the development of economic globalization as this would mean that their activity has brought up positive impact on the world. The notion of migration is the one that should also be taken into account while considering the future of economic globalization. In order to develop a correct understanding one should analyze several aspects of it. First of all, it is clear that the current level of development of technology and transportation has enabled people to move around the globe easily and be active in different countries, not limiting the application of their abilities with one particular region (Suryadinata 2). Keeping in mind that the technology will only develop further, one might point out that economic globalization will be inevitable to a certain extent as there would be no reason not to follow this path as the conventional perception of time and space will be adjusted by the ability of the people to move. Secondly, one should also regard the shift in the public opinion that encourages people to explore the world and find a suitable job even though it may located in a different country. Indeed, nowadays the migration processes have been extremely intense with people seeking new opportunities in other countries. What is more important is that this has had a profound impact on the legal systems of the latter and so working as an immigrant now has a detailed framework that people might follow. This means that there are all the necessary conditions present for the process of economic globalization to continue in the foreseeable future. That is why the inertia of it will contribute to the fact that this process will largely determine the pattern of global interaction for many centuries. Another point that should be mentioned while considering the issue of economic globalization is the notion of development. Indeed, it would not be an exaggeration to note that these two phenomena are linked directly. On the one hand, economic globalization is largely responsible for the development of economy in terms of Gross Domestic Product and availability of different goods on the domestic market (Henry and Springborg 18). In addition to that, this process attracts more money that is circulating in the economy and might be regarded as a secure source of income for the state. That is why the way economic globalization contributes to the development of a country is absolutely clear. Nevertheless, the latter can also have a profound impact on the former. Thus, it has been noted that the countries that have introduced innovations into their social life and have opened borders in order to facilitate a more fruitful cooperation with the foreign partners become one of the most active proponents of economic globalization. Indeed, it would not be an exaggeration to argue that participation in this process might reflect the level of development of a country. This may be supported by the evidence that reflects that most globalized countries: it appears that states with liberal approach towards social life are at the top of the list and those countries which are known to be quite conservative and resistible to change are at the bottom of the list. That is why it is quite understandable that as more countries in the world develop, there will be more proponents of economic globalization. There is no doubt in the fact that the process of economic globalization is a rather controversial one which means that there are different points of view on the effect that it has on the world. In order to develop a correct as well as objective understanding of this phenomenon one should take into the account different interpretations of it. To begin with, it would be logical to analyze the advantageous aspects of the process in question. Thus, one of the most obvious as well as indisputable positive effects that economic globalization has on communities all around the world is the increase of variety of goods that are available for consumption. Indeed, as new products enter global markets people are able to enjoy goods and services that might make their life easier and more enjoyable (Arnold 778). If one takes a look at this from a different perspective, one will note that people will be able to widen their outlook and consume products of a better quality. It is quite obvious that this is likely to have a positive impact on their lives and will deepen the communication between the countries all over the world. What is more important is that the above mentioned variety of goods is likely to stimulate the domestic producers to manufacture products that will of equal or better quality in order to take an active part in the competition. That is why an increase in the variety of goods should be considered to be one of the positive consequences that the process of economic globalization brings. Another point which should be analyzed in great detail when it comes to naming the benefits of economic globalization is gradual decrease in the cost per unit. Indeed, this can be explained rather simply: as large companies move their production into the territories where the cost of labor is lower and as the means of transportation allow one to move more good per unit of time, a company will spend less on producing a single unit that before (Bhavnani 3). As a result, the effectiveness of production will increase and the company might direct the extra money into innovations and research. What is more important is that consequence of economic globalization will also have a positive impact on the lives of the ordinary people. Thus, as has already been mentioned, if the companies spend less production of a single unit, the price that they would charge will be less. In other words, as economic globalization progresses the prices are likely go down if only the government is able control the inflation. Therefore, ordinary people should also be active proponents of globalization as it will allow them to enjoy goods of great quality at possibly lower price. One should also note that the regular consumers will be able to enjoy extra money that they would safe. This is likely to have a positive impact on their lives in many different areas. So, as it can be easily understood, another positive aspect of economic globalization, namely a decrease in prices should also be taken into account. Finally, there is one more point that a researcher should articulate while considering the positive impact of economic globalization; it is primary focused on the spread of technology. Indeed, the above mentioned process largely relies on the increased effectiveness of production that is achieved primarily by introduction of new technologies (Bella 24). In other words if a company decides to build a factory overseas, it is not profitable for it to equip it with old machinery as this is likely to negate the reduction of costs that is conditioned by cheap labor. This means that it will use up to date technologies. This means that the newly hired employees will gain experience of working with modern technology. In addition to that, there are numerous instances when building a factory also involved improvement of the infrastructure around it. Indeed, the definition of high technology might vary in different parts of the world, as there may be areas that would view an asphalted road as a valuable contribution to the local infrastructure. Therefore, one should note that economic globalization is able to have a constructive impact on the environment as well which will contribute to the quality of life of the people. It is particularly important to keep in mind that the process in question exposes problems that exist in different parts of the globe and might require a different solution in each case. However, if one wants to develop an objective view on the process of economic globalization, one should also take into the account the criticism that is usually expressed while analyzing it. To begin with, one of the most common disadvantageous points of globalization that are frequently mentioned is that it is able to hamper the economic life of less developed countries. Indeed, if one takes a close look at the way the new actors enter the markets, one will be able to notice that they usually conduct a rather aggressive campaign in order to win the hearts of the new consumers. As a result, the companies that have operated on the domestic market for a considerable period of time are pushed away by more successful ones. Even though it is a natural part of every competition; nevertheless, the negative influence that this is able to have on the economy can be avoided in case globalization is stopped. There is one more aspect that should be taken into account: the less developed economies might get used to the funds that are issued by the World Bank and may not be willing to develop domestic production. Since overseas companies may view it as an advantage, they are likely to dominate the market and the economy is likely to collapse. It is obvious that this does not mean that economic globalization is a process that negatively affects the less developed countries; nevertheless, it is quite possible that under certain circumstances the consequences of it might be devastating. Finally, in the course of consideration of the negative influence of economic globalization on the world, one can hardly omit the fact that it holds a potential of creating a platform from development of different epidemics. For example, one is able to take a look at the recent instances of SARS, swine flue and the most dangerous one, Ebola fever. In spite of the fact that the spread of deceases is not directly linked to the notion of economic globalization, the latter holds important implications for the former. Thus, as it has been mentioned earlier, the process in question argues that people will be able to move around the world freely. As a result, the change that a person might contract a disease in a remote part of the world (as it is with Ebola fever) and unknowingly transport it to a different part of the world is rather high. What is more important is that export of different goods that are consumed by the people may also be quite dangerous. One might recall the situation when the meat which was produced in Great Britain was infected and many countries who received it had to get rid of it so that the consumers will not be affected negatively. In spite of the fact that all the rules and regulations might be followed, there is always a possibility that a product might be harmful. Moreover, economic globalization is likely to amplify the negative impact that it is able to have on the people. Another point that should be mentioned is that the progressing economic globalization is a process that can contribute towards increasing the dependence of one country on another and the result would be the lack of balance in the global arena. This can be easily seen on the following example. China is known to export a considerable amount of goods all over the world. Therefore, the countries that it primarily works with will not be willing to have any conflict with it as the former will be able to decrease the amount of good flowing in to the country. As a result, without use of any military forces one particular country has gained a considerable amount of influence over the other one which contradicts with the contemporary spirit of the international law. What is more important is that globalization reflects the new tendency in the development of the world when the countries are gradually shifting from putting emphasis on the use of military force to increasing ones economic potential. Indeed, if one takes a close look at the major proponents of globalizations, one will be able to notice that they are the leading countries of the world. This means that other than possessing a tremendous military potential, they are also able to have a direct impact on the other countries in terms of economic influence. That is why one might conclude that the balance of the world when all the countries are equal is being distorted and is shifting towards the opposite of it. Now, it may be quite suitable to analyze the countries that are likely to benefit from the process of economic globalization. As it has been noted in the beginning of the paper, it is rather understandable that those states that are known to have been involved in the global trade quite actively should be regarded as those that would benefit from it the most. Thus, the country that should be noted in particular is China. Thus, the economy of it has been exporting goods to virtually every country in the world. As a result, the process has had a considerable impact on the structure of economy and the way it is managed domestically. One would make no mistake pointing out that fact that up to a certain extent China might be regarded as a hostage of its success: it was able to develop its social life, based on the achievements of economy; however, is the process of economic globalization is stopped or is reversed, this is likely to have a considerable negative impact. Nevertheless, it is quite improbable that the above mentioned process will stop, so China might rest assured that its future is secured and that it will not have problems. That is one of the main reasons why China was one of the most active proponents of economic globalization. Indeed, this might be regarded as the basis of national security for this country. There is one more particular country that should be mentioned while considering those who will benefit from continuing economic globalization. It is clear that the United States of America is the country that is currently enjoying and is likely to continue to enjoy the advantages that the above mentioned process brings. Leaving aside the discussion of exporting culture and cultural values, one should focus on the fact that dollar is the currency that is widely accepted in the world. In other words, as the economic globalization increases, the United States dollar will be more and more needed. This means that the government of this country will feel the lack of the currently issues dollar bills and will emit for. This is possible because of the changes in the global financial system. As a result, the United States of America will be able to increase the amount of money that it will be able to use. What is more important is that globalization is likely to boot the business of some of the most successful companies of this country. Indeed, at the present moment the products that are so popular around the world are manufactures in China, but they are designed in the United States. That is why these two countries are likely to benefit the most from discovering new markets for distribution. That is the reason why China and the United States have been advocating the need for economic globalization for a considerable amount of time. However, there is also a backside to the issue of economic globalization that should be reviewed carefully so that the impact that it can have on the world will be perceived in the correct way. Thus, one should point out that different African countries, especially those which are land locked are not likely to benefit from the above mentioned process a lot. Indeed, it would not be an exaggeration to point out that the highly developed countries might view the African continent as a platform that consists of the new markets. In other words, the significance of these countries on the world area may be diminished to destinations of exports which is likely to have a destructive impact on building state identity of this communities. It would not be an exaggeration to point out that the flood of new goods that would enter the economies of these countries might have some positive impact in the short run; however, the domestic companies will find it extremely difficult to compete with powerful overseas corporations and might be pushed out of the niche that they occupied. It is obvious that none of the proponents of globalization is willing to damage the less developed countries; nevertheless since the latter are not able to take an active part in it as producers their role will be limited to consumers. By far, this is not going to contribute to the development of their technologies, making them more dependants on import, dollars and other conditions of the global financial market. Finally, there is a group of countries that are in relative international isolation. That is why there is not doubt that they are likely to become victims of globalizations. Indeed, as the world around them will be uniting at least in terms of economics, they are going to find themselves more and more isolated and away from the major flows of capital or work force. As a result, their economies will deteriorate as the countries that will take part in globalization will be forced to join the restrictive actins against them. That is why the process of economic globalization may be uniting the world, on the one hand, and dividing it, on the other. It would not be a mistake to point out that in the age of globalization the two important areas of social life such as economics and politics are closely connected which provided a basis for achieving some political goals with the help of economic means. Indeed, if the countries that find themselves in international isolation see that there is some kind of a coalition against them, they are likely to feel extremely insecure. What is more important is that they will sure resist any attempts to include them in the process of globalization and will actively oppose it. For example, it is a widely known fact that North Korea has limited access of its citizen to the Internet and the latter is largely regarded as one of the major platforms for development of globalization. Having examined all the evidence that was analyzed in the paragraphs above, one is able to come to a rather logical conclusion: the process of economic globalization should not be stop or reversed, it should be continued as there are all the necessary conditions for it. Thus, the current trends in the trade suggest that more and more countries find it particularly beneficial to import goods that were manufactured overseas. In addition to that, different financial institutions, such as the World Bank, have been following the path of helping the developing countries and increasing the global economic interdependence that it eventually created a mutually beneficial framework that many countries are known to have used. In addition to that, the current level of development of technology and transportation enabled people to move around the globe easily. All this resulted into the development of different communities who are actively engaged in the process of economic globalization. There is no doubt that the process in question holds both advantages and disadvantages. Indeed, they reflect different sides of the economic globalization, so it is rather difficult to state for sure which side dominates. What is more important is that there are countries in the world that may benefit and that may be damaged by the above mentioned process. Thus, those who are on the active opponents of economic globalization are likely to benefit from it whether because they will find new markets to export to or because their currency is widely used. However, there are also countries that not only will not benefit from the process in question, but quite the opposite. Works Cited Arnold, Roger A. Economics. 5th ed. Cincinnati, Ohio: South-Western College Pub., 2001. Print. Bella, Laura. How Globalization Works. New York: Rosen Pub., 2010. Print. Bhavnani, Rikhil. The Missing Globalization Puzzle. Washington, D.C.: International Monetary Fund, 2002. Print. Chen, Jian, and Shujie Yao. Globalization, Competition and Growth in China. London: Routledge, 2006. Print. Collier, Paul. Globalization, Growth, and Poverty Building an Inclusive World Economy. Washington, DC: World Bank ;, 2002. Print. Henry, Clement M., and Robert Springborg. Globalization and the Politics of Development in the Middle East. Cambridge, UK: Cambridge UP, 2001. Print. Suryadinata, Leo. Migration, Indigenization, and Interaction Chinese Overseas and Globalization. Hackensack, NJ: World Scientific, 2011. Print. Read More