To what extent have the processes of globalization resulted in a more even distribution of economic activity across the globe?
Globalization is currently a very hot topic and many people have an awful lot to say about the matter, creating different theories and points of view. A definition of globalization could be, ‘The straightforward exchange between core and peripheral areas based upon a broad division of labour, is being transformed into a highly complex, kaleidoscopic structure involving the fragmentation of many production processes and their geographical relocation on a global scale in ways which slice through national boundaries.’ (Dicken ’98). When talking about globalization it is difficult to go straight down one trail of …show more content…
In the past economic activity has been resource driven, whereas as now, due to advances in technology in particular, modern day economic activity is based upon ‘ideas and information rather than material or physical goods.’ (J.Khan notes ’07). This would indicate that knowledge is key and changes in technology mean that a more skilled workforce is needed. Different locations have been better suited to utilise technology over the ages, e.g. the industrial revolution saw the rise of the U.K and Western Europe, and then the introduction of Fordism (mass production) saw the rise of the Far East. On the whole these different periods of development have made a massive difference to the areas affected, it is however still very difficult to definitively state whether or not the distribution of economic activity is more evenly spread or not. It could be suggested that the distribution of economic activity is definitely not even, however over the last few decades it could be put forward that the level of unevenness may have become less great. The argument of globalization causing world economic activity to become more even is hard to fight for when there are statistics like, ‘in the year 2000 the top 1% of the worlds population earned more than the bottom 60%,’ also in world GDP terms, ‘the high income countries account for $37.5tr or 77% but only 15% of the world’s population, the low income countries account for $1.6tr or 3.3% but 37% of the world’s population’,
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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.
Globalization, a contested concept among leading theorists in its definition, chronology, and measurement of effects, is almost certainly of a multidimensional nature if such theorists’ perspectives are all taken equally into consideration. The broad phenomenon of globalization can therefore be scrutinised more closely by separation and analysis of individual dimensions, such as its political, economic, cultural and ecological dimensions. This approach, while allowing for a more focused examination of the causes and effects of globalization within a single dimension, serves to highlight the interconnectedness of each dimension. The following essay will expose the complex interconnection between the political, economic and cultural
Economic inequality among countries has been declining due to the increased inequality within countries. This has been mainly caused by the introduction of globalization, resulting in the decline of production in the developed countries. For instance, in my global issues class, we had to discuss globalization and whether it was a good or bad thing. Whereas, some of us said it was a good thing, few of my classmates stated that globalization is known for making the rich even richer, and increasing uneven economy within
Globalization is the process by which different societies and cultures integrate through a worldwide network of political ideas through transportation, communication, and trade. Generally, globalization has affected many nations in various ways; economically, politically, and socially. It is a term that refers to the fast integration and interdependence of various nations, which shapes the world affairs on a global level. Simply put; globalization is the world coming together. In this essay I will discuss multiple perspectives on globalization through the analysis of these three sources.
During the last decade of the twentieth century, the word ‘globalization’ has become an increasingly prominent feature of political, social, and economic discussion in academic and policymaking circles, as well as in the media. The processes and outcomes of globalization drew attention and debates that had one thing in common. The research shows that nearly everyone agrees that globalization is a trend that is changing the face of the world, and as a result the world society lives in a more ‘globalized’ world. Nearly two and a half decades passed since 1990s, and studies have been conducted to examine the causes and consequences of globalization. Moreover, nearly every person experiences some type of globalization and can testify firsthand the effects it has on their life, society, and the state. The analysis of the effects that globalization dynamics have on the world society indicates that globalization has a significant positive impact via spreading opportunities and wealth across nations, stimulating innovation and productivity, enhancing the economic development of poorer countries, and helping to improve living standards.
Globalization has widened the gap between the rich and poor (DW, 2014). The bargaining power of blue collar workers has been reduced with increased globalization. The biggest increases in wealth have been the United States, Canada, Britain, Japan, and France (Segar, 2007).
The theory of globalization today is a field of intensive debate as the efforts towards defining globalization most often highlight its individual aspects. According to Held and McGrew (1999), “globalisation is an idea whose time has come, yet it lacks precise definition”. Despite the ambiguity of the term “globalisation,” the use of the term, according to Held and McGrew, reflects increased interconnectedness in political, economic and cultural matters across the world creating a shared social space. Given this inter-connectedness, globalisation may be defined as: “a process which embodies a transformation in the spatial organisation of social relations and
However an Article on the website Bloomberg view talks about how Globalization still favors the rich rather than the poor or an equal spread. In a Study McKinsey & Co. management consultancy which studies global flows between countries in 2012 global flows hit 26 trillion which is 36 percent of global domestic product (Globalization Still Favors the Rich). The article also states that only the top ten developed countries received most of the benefits. However the article does say that since the 1990’s that emerging economies account for more of the global shares than ever. Nevertheless the quality and trend of these flows, matters more than their size and these are, for now, in favor of the developed world. (Globalization Still Favors the Rich). The developing countries are having trouble with financing because most of their money is going to the richer countries. Some number would be that in finance, the emerging economies account for 37 percent of global inflows but 38 percent of
Globalization is one of the defining features of the modern world, with t-shirts that are made from cotton grown in texas which is shipped to China and turned into a t-shirt, which is sold to a customer in the United States, which is finally donated to Africa.(Rivoli) The interconnected world has produced massive benefits to many people through cultural, economic, and ideological exchanges, but it has also produced problems, including the domino effect of the 2008 and 2010 crises. Within the international interaction that is one of the main facets of globalization comes the simple issue of who wins and who loses. One of the more interesting parts of this question is has globalization really benefited the advanced industrialized countries who were responsible for its initial expansion.
The concept of globalization is a complex and peculiar one, failing to be definable by a single, precise definition. Centrally, globalization involves information and goods being exchanged amongst different countries. These interactions and interchanges among countries globally over time is due to an increase in communication and transport networks. Globalization is often divided into three main areas being economic globalization, cultural globalization and political globalization. All three are vital areas to one’s life and globalization is said to have a large impact on each. Although globalization is controversial in the aspect that it cannot be declared just how much of an influence the notion has in the world. Political scientists such as Muhammad Ijaz Latif, Anton Pelinka and Martin Wolf all discuss this issue in their respective pieces as well as differing aspects of globalization such as the role the European Union plays in relation to globalization, the different perspectives of globalization and the challenges of the nation-state in regards to globalization.
The process of globalization is a process determined by different countries' need to develop international relationships. These international relationships are intended to provide countries with what they need, while providing what other countries need. Some countries require workforce and have the financial resources it requires, while other countries have this workforce that they can export and need to increase their financial resources.
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.
Globalization became a worldwide phenomenon with the growth of market economy and information technology. With globalization, the operators of companies and enterprises could use resources, management, expertise, information and labour of the entire world to manufacture the goods in the most appropriate areas, and then sell the produce to the areas which require them, to accomplish the most favourable distribution of resources in the world. This caused enterprises and countries to break out the boundaries of the local resources and markets, starting a competition with others in a broader sense to accomplish development. Globalization brings states and regions together by reducing the distances between each other and increasing the degree
Globalization is a process of increasing integration and the result of economic, cultural and political interdependence among countries. Globalization has been a controversial debate, since this phenomenon has affected the world in several ways. Consequently, there are plenty of economic, cultural and political arguments in favor of and against it. Some arguments in favor of globalization are that it promotes democracy, creates jobs (by dividing labor around the world), promotes knowledge and an interconnected world, and makes the world “borderless.” On the other hand, others argue that