DEFINATION increasing integration of national economies that is
DEFINATION OF ECONOMIC GLOBALIZATION: Economic globalization is the term used to define the increasing integration of national economies that is occurring in association with modern technology and trade liberalization. With the helps of modern inventions, technology, communication and transportation such as Internet, mobile phones and airplanes, the world is becoming smaller. Countries and regions formerly separated be geography and forms of technology.
Many multinational companies are successfully developing and the international trade is growing at a much faster rate than world economic output of goods and services.THE PROS OF ECONOMIC GLOBALIZATION: There are many reasons for societies to join in the expanse of globalization. Productivity grows more quickly when countries produce good and service in which they have a comparative advantage, and for many people in the developing world, such as Vietnam, working in factory is a far better option than staying down on the farm and growing rice. Besides that, people prefer export jobs because the payment is much higher than other jobs. Thus, it can be said that, because of globalization, living standard can go up faster.Moreover, an open economy enhances innovation with fresh ideas from abroad and global competition and cheap imports can keep a lid on price so inflation is less likely to derail economic growth.
Unfettered capital flows also give the US access to foreign investment and keep interest rate slow. Besides that, globalization is also a mechanism for societies to express their strengths and assuage their weaknesses. It creates opportunities for societies to export their traditional culture to the world and everybody can exchange opinions, ideas and communicate in a variety of fastest and cheapest ways.
For example, the Internet is one of the most efficient ways to advertise your country’s unique landscapes and culture over the world; consequently, the development of tourism is growing faster than ever before. CONS OF ECONOMIC GLOBALIZATION: Because of the development of global companies, most of the workers want a job in these companies due to the high salary. But, millions of workers have lost their jobs due to import or production shifts abroad. This leads to a new fear among the employees – the fear of losing their jobs. It’s because f either the pay-cut demands from employers or the threat of other competitive co-workers.
Gradually, the competitive pressure can lead to unfair working condition, which consequently leads to job loss. Most of those who lost their jobs are often forced to be cheap labor for manufacturing companies or the factories in which the welfare of employers has very low quality. Global labor market reforms have led to a ‘casualization’ of the workforce, with a decline in full-time permanent jobs. The resulting loss of income and associated insecurity reduces the standard of living of the affected workers and their families.
It’s argued that, economic globalization makes the rich richer while making the non-rich poorer. According to a journalist: “It’s wonderful for managers and investors, but hell on workers and nature. ” (The Cons of Globalization, An Essay Against Globalization. Panda Online.
Dec 25, 2004). The western countries have pushed poor countries to eliminate trade barriers, but keep up their own barriers, preventing developing countries from exporting their agricultural products and so depriving them of desperately needed export income.In some countries, some regions may gain at the expense of other regions, which could become areas of social and economic deprivation. As the national economic grows, the nation may be richer but relative poverty could increase, leading to a range of social problems such as depression, ill health and alienation fro society – all which involve some economic cost as well as social cost. As result from economic globalization, inequality worsens both internationally and within countries.Many anti-globalizations protest that, globalization is another form of “Americanization”.
Since the US is one of the most powerful countries all over the world, with the help of global trade and modern technology, the cultural products of American is dominating the world culture. For example, nowadays, we can see the teenagers idolizing the US movie stars and famous singers. We watch US movies, sing US songs, and mimic the fashion style from America. Globalization opponents believe that, we are losing our own traditional culture and replacing it with American culture.