Advantages And Disadvantages Of Global Competition

Countries have different endowments. Differing climates give advantages to the production of different crops. Differing histories and inclinations result in different advantages in finance, skills and manufacturing.

The net worth of the middle class in the economy has been through appreciation in homes and the decline in the housing markets has worsened the inequality between the classes in society .The result of economic inequality is in the public attitudes. Many policies are less popular as they touch the classes in society differently. The "underclass" with a poor net worth and minimal income prospects resent the wealthy. In essence, the economy of the United States has shifted too far in favor of capital through neoliberalism, corporatism and corporacy. Economic inequality is both a cause and effect of political inequality because it is the wealthy class of people that dominate the political landscape. This class is wealthy enough to pay for social amenities such as medical care, education and personal security and they therefore have very little interest in provide aid for such needs and at the same time have the political influence to ensure they do not have to pay for such (Stiglitz

The economic inequality and the politics in America are related. In1970’s, typical male workers earn about 50,000 dollars during typical 1% of male earn about 400,000 dollars. As the time goes in 2010, a male worker earns lesser money than they have earned back then but the typical 1% male earned twice as they have earned before. It is an economic inequality which the rich get richer while the poor get poorer. As people earn less, the lesser product will be sold, and then the companies will downsize, then the tax revenues decrease, then the government cuts programs. Moreover, people will have lesser education, then unemployment will rise. If the economic inequality keep continues the political will fail. I think it is the problem that not all

Economic globalization alludes to the expanding reliance of world economies because of the developing size of cross-outskirt exchange of items and administrations, the stream of universal capital and wide and quick spread of advancements”. (“ http://www.un.org/en/development/desa “). The quick developing importance of data in a wide range of beneficial exercises and marketization are the two noteworthy main thrusts of financial globalization. Economic Globalization is the expansion in exchange and capital exchanges crosswise over national limits. There are the two upsides and downsides of globalization. The advantages incorporate more prominent rivalry, bring down costs, economies of scale. While globalization can likewise abandon a ton because of the pace of the advance, this gives more influence for wealthier and more effective multinationals. They can dodge and sidestep charges while expanding costs on products. A benefit of globalization is about the efficiencies and openings, open markets make. Business can impart productively and successfully with their accomplices, providers, and clients and oversee better their provisions, inventories, and appropriation organize. Neighborhood dealers can pitch products to remove spots/areas at an indistinguishable speed from if they somehow happened to offer in their unique nation. Economic Globalization isn't something that ought to be overlooked, it is possible that it is critical to the achievement of the business. Being able to

This article is useful because it further explains the ricardian model which was one of the first basis of comparative advantage. It shows how the model explains comparative advantage and the benefits of it to growth.

Globalization is simply the process by which people, economies, and governments around the world become increasingly interconnected through the incorporation of economies and societies (Steger, 2010). Examples of major players of the global world include international organizations such as the United Nations and the World Trade Organization (WTO) as well as nongovernmental organizations such as Greenpeace. The international organizations regulate trade between nations by drafting trade agreements and acting as negotiators. Globalization has both advantages and disadvantages. However, the benefits of globalization far outweigh its costs. For instance, Globalization promotes efficiency and productivity, Global institutions manage the settlement of government-to-government disputes and economic gains from globalization have increased access to health care as well as clean water.

Competitiveness is the force needed to win when in competition with other competitors in the same business. Country competitiveness can be defined as the amount of riches a country is able to generate more than its competitors. It can also be said to be the major determinant of the standard of living for a country and also the main its source of income. Productivity is also

Globalization can be defined as ‘international integration’, which can be described as the process by which the people of the world are unified into a single society and functioning together. This process is a combination of economic, technological, and political forces (dictionary.com).

In the article “The Competitive Advantage of Nations” Michael Porter describes a diamond shaped relationship of forces that define a country’s potential for being competitive in a specified industry. The four points on the diamond representing the different forces are: factor conditions; demand conditions; firm strategy, structure and rivalry; and related and supporting industries. According to Porter, the four points apply pressure to each other resulting in a national

Globalization has influenced many in developing their countries into the modern world. The spread of globalization includes economic, social-cultural, and political aspects that either hurt or help a country in that transition. It has created world affairs and integration. In some regions, its integrated with both advantages or disadvantages. In the Middle east, Westernization influenced these three aspects positively. African nations suffered lack of trade and Socialism when the Europeans withdrew from the countries and they gained their own independence. In Indus Valley, the Hindu caste system brought misfortune to people in the Hinduism region.

The Twentieth Century was a period of great change in the world. Throughout it, there were revolutions, world wars, and the rise and fall of empires. Yet still, in part due to the changes, the globe grew closer. Not only were the lives of individuals change but entire countries became interdependent. Some of these processes were positive and others negative but all helped the world to become a global community. During the Twentieth century, the world became much more interconnected. Industrialization, imperialism, and the globalization are the three most important processes that contributed to the formation of the twentieth century.

There have been many different reactions towards Porter’s theory on how nations ought to compete. Some responses were validated while others rebutted his theory. Firstly, the positive response will be discussed before focusing on the criticisms of Porter’s theory. Oz (2002) implemented Porter’s Diamond model to analyse the competitive advantage of five Turkish industries and the outcome was favourable and thus validated Porter’s theory. For example, the uncompetitive Turkish automobile industry resulted in uncompetitive companies, while the presence of demanding buyers and hence intense local rivalry in Turkish construction and leather-clothing industries pushed the companies to innovate and become globally competitive. The Turkish findings by Oz thus validated Porter’s theory that indeed, competitive industries of a nation are inclined to cluster together.

Globalisation is a new trend in the development of the world economy. This means the world economy is being integrated, like the economic policies and systems in various countries are gradually becoming the same. With the development of the globalisation that brings many changes in the world economy, also changed our lifestyle. Meanwhile, the globalisation has also brought the weaknesses and benefit according to the globalisation debate. Due to the wide range of issues covered by globalization-related issues, this article will discuss the shifts of the globalisation, weaknesses and benefits of the globalisation.

Lately, the international financial integration has increased. Over the years, the world economy has witnessed an increase in the number of individuals and businesses using international banking services. In today’s competitive global economy banks have the option to solely service their home market, to export services to foreign markets, or to establish a presence in that market. Essentially, banks have two options of expanding their operations in foreign markets. They can either service foreign clients through their domestic offices or they can establish a presence in the foreign markets. In general, the reasons for bank internationalization in

Global sourcing is the process of sourcing goods from international markets. It aims at efficiencies of the international markets such as labor cost, cheaper raw material procurement, tax break, economic factors, changing technology etc.