Benefits Of Economic Globalization On South Africa Essay

That this was also the decade in which globalization came into full swing is more than a minor inconvenience for its advocates” (Rodrick). If globalization is supposed to present an advantage to developing countries, why have there been so many setbacks? Indeed, both sides will have its winners and losers regardless of which side of the development coin they live on, but for the most part globalization has lifted millions out of poverty, improved the standard of living, and increased life expectancy rates all while keeping developed nations relatively competitive to their developing counterparts. Globalization’s value is that it seeks to create an economic equilibrium in the world, where parties are free from barriers and can benefit from one another through a more efficient allocation of resources. This allows all participating nations to contribute to an integrated economy and where all nations willing to embrace globalization have the potential to benefit. Regardless, the path to successful integration to the global economy has not always been easy. There is contention towards globalization as some argue that it is detrimental to developed nations, while many developing countries that were forced to hastily open up their markets and integrate failed. However, if implemented properly, globalization has proven that it can benefit all parties involved and that the potential gains outweigh the losses.

Historically, the South African economy has been largely unstable mostly due to political issues. Although, considering its counterparts, South Africa shows the most promise for economic development and growth (Jordaan, 2010 pg.5). In 1990 South Africa entered the global market after overcoming major political issues such as apartheid. Many economists agree that the changes the South African government has made to be able to compete globally, are for the better (Wessel, 2007). In the article “CAPITAL: Globalization Brings South

When comparing the struggling American economy of the 1930’s to that present-day South Africa, there are clear similarities. Firstly, the unemployment rates in both cases are strikingly high when compared to the countries’ international contemporaries. By 1930, The United States had an unemployment rate of approximately 25% (Minsky & Kaufman, 2008), almost equivalent to South Africa’s current unemployment rate of approximately

American and Native Americans felt that they were being denied economic independence and democratic self-government during the 19th century, because at the peak of western expansion and industrialization the government was manipulated by big corporations. The government needed money to fulfill this ‘destiny’ so big companies such as the railroads and the mining companies would pay out the government to establish their businesses. Many small local businesses were wiped out by these large and well-funded business. Many groups of people were affected by industrialization. Native Americans were forced to move out of their lands and assimilate to the U.S. government’s demands. In the South African Americans were strategically forced in to a certain type of slavery called sharecropping. As industrialization arouse, so did flocks of farmers and immigrants moved into the big cities to work in factories. The working class worked long hours in unsafe conditions at corporate facilities, they were treated as a number that could be replace the next day.

Throughout the 18th and 19th century, Europe underwent an Industrial Revolution. People began relying heavily on machines. Various countries required resources for their industrial lifestyle, and thus they enforced a policy of imperialism. Imperialism is when a country politically, economically, and socially stronger takes control over a weaker country and utilizes the resources from that country. However, many countries abused their power during imperialism. European nations are guilty of abuse of power in the Congo, India, and South Africa.

The county of South Africa is an economically flourishing country and probably the most advanced country on the continent of Africa. However the entire continent of Africa is probably the most undeveloped part of the world. Why is South Africa so different from the rest of its continent? Karen Politis Virk explains that it is because of South Africa’s developed economy and diverse population (Virk 40). South Africa has three main ethnic groups: African, Afrikaners, and the mixed race. The Afrikaners and mixed races have many roots to Europe and Asia giving the nation even more diversity and a culture melting pot. This set the nation apart from the rest of the African nation in which the majority of the residents are of native African

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).

Frequently, people are unclear of exactly what Globalization means. Globalization is the tendency of the world's economies to act as a single interdependent economy. It can be described as the increased movement of people, knowledge, ideas, goods and money across national borders to make the world more unified in a sense. Globalization is often thought of in economic terms but as we know there are other components with this idea like, economics, and cultures. There is a huge debate of whether or not globalization is positive or negative.

People around the world are more connected to each other than ever before. Information and money flow quicker than ever. Products produced in one part of a country are available to the rest of the world. It is much easier for people to travel, communicate and do business internationally. This whole phenomenon has been called globalization. Spurred on in the past by merchants, explorers, colonialists and internationalists, globalization has in more recent times been increasing rapidly due to improvements in communications, information and transport technology. It has also been encouraged by trade liberalization and financial market deregulation.

Aspects of Globalisation The Organisation for Economic Cooperation and Development (OECD) defined globalisation as, 'The geographical dispersion of industrial and service activities (for example, research and development, sourcing of inputs, production and distribution and the cross border networking of companies (for example through joint ventures and the sharing of assets) Economic activity is becoming organised on a global scale giving a new international division of labour, with production, investment patterns and movements and technology transfers all becoming global. In this strategy, activities are established in many sites spread over the world, based on a country's comparative

“Globalization is not just one impact of the new technologies that are reshaping the economies of the third millennium” (Thurow 19-31). When speaking of globalization, most people will not have a complete understanding as of what it actually means or what aspects of the world it affects. Globalization promotes free trade and creates jobs. The capital markets attract investors, resort cheap labor, and leads to job losses in some areas of higher wage. While all of this is happening, the world economy is being effected: economically, culturally, socially, and politically.

“It has been said that arguing against globalization is like arguing against the laws of gravity” (Kofi Annan, Former Secretary General of the United Nations). Globalization has had and will continue to have a lasting impact on our modern every-day lives. While some United States citizens may not even be able to locate Beijing, China on a map, they sure do purchase many goods that were made there.

South Africa is integrated highly into the world economy. South Africa is the strongest African economy and has attained positions like being a member of G8 .All these are as a result of globalization. Globalization has had an impact on the economy, the government and social nature resulting to some effects. The paper will look at how globalization has affected South Africa under several categories. It will also give an explanation on the actions of successful global business leaders on improving conditions that have been worsened by globalization.

Globalization is the process of increased interconnectedness among the countries most in the most known popular areas of economics, politics, social, and culture. All of these areas are key aspects of each country and what makes them individualized. Globalization allows for countries to be able to be individuals without the conflict of their differences because of the power used to work as a whole globe. Globalization is a positive thing for the entire world, it allows for lots of development in our world by the connection there is between all of the countries interdependence on each other. The different points of globalization claim that it will lead to convergence of income, access to knowledge and technology, consumption power, living standards, and political ideas.

• Primary commodities have fallen in price, or stayed steady, while commodities they need has increased, e.g. oil