Impact Of Globalization On The Global Economy

1. In order to identify the three types of nations discussed in the texbook, I would like to first start by defining what the world system theory is. “The modern world system is a capitalist global economy which contains multiple states and a single dominant international division of labor” (Doob, 2008). This definition helps us understand that the economy is not scattered accross the globe equally between all countries, instead only a few countries are posses a sucessful industrial, economical, and ploitical history. Being born and raised in Albania, and moving here to the US only 3 years ago has given me the opportunity to view these concepts clearly.

The impact that globalization has and will have on the U.S economy continues to be one of the most debated economic issues of our times. Many people believe that due to the international trade there are less jobs and lower wages for people. International trade is important to the America economy, and to the economy of the world as whole, because neither the United States nor any other country in the world has everything that its people need and want. Globalization and international trade, come with a brighter view of the international trade and it has positive impact on economic growth of the United States.

Although there is no single theory to explain the spatial organisation of production regions in the world economy, we continue to see core-periphery patterns and concentrations of activities in specific areas despite powerful forces of globalisation expanding markets and integrating economies. This has created a huge globally expansive network of information, capital and technical flows across regions facilitated through market liberalization, border reductions between countries and the erosion of particular places. The presence of economies of scale, scope and agglomeration play significant roles in explaining the concentration and development of economic activity in particular areas. These forces of concentration and dispersal even in the context of the expanding territorial scope of global capitalism, still remain powerful and we continue to observe the importance of place under globalisation (Massey 1984).

Throughout the global economy, many countries and nations continued to share their investment to promote their economic growth to modernize their industries, but some nations viewed the idea of globalization negatively due to employment disparity and cultural deterioration. The term, globalization has defined a process that businesses or other organizations developing international influence or start operating on an international scale. Many Eastern Asian countries like China, Japan, South Korea, Thailand, and Taiwan have been greatly impacted by globalization from the worldwide investment like technologies to increase their economic growth and the free trade impacted many Eastern Asian countries, but most Asian countries viewed also globalization negatively due to creating their own economic system, the shift of power in the economy, and the emergence of Western-dominated culture in Asian traditional culture.

Financial theory in most of the situations supports the positive effect of globalization and openness in trade for developing nation’s economic growth, whereas some theorists disagree to the long term gains of liberalization in trade on country’s economy.

Globalization is important to understand in order to determine what worked in the past and can be successful again in the future. Our many cultures, ideals and growing technology form together to create an extremely global world. We use products that were made on the other side of the world, and are taxed on practically everything. Whether the effects of our global society is good or bad, there’s no doubt that the world is constantly changing and impacting our livelihoods, so we must adapt accordingly in order to succeed.

Globalisation could be defined as the growth to a global or worldwide scale. Globalisation has brought a wave of improvement and development in technology and knowledge, also bought a change to the world. Many fields of knowledge have been affected, the new technologies have been built and have been shown to the public. As in the other fields, finance is impacted. For example, financial markets have been established in many counties, local companies have become the international companies, well - known banks have been known in many countries and so on. Financial advances have also changed the way of international trade, making transaction in international trade is more convenient and comfortable than in the past. Buyers and sellers can make a payment although they are not in the same country, money is transferred cross country in a short time. So, in the international trade context, there are four different ways to transfer money from the buyer to the seller as advance payment, letters of credit, draft and open account, and in the different methods have their own risks. So, this essay will evaluate the potential risks which could occur and will look at what situations is each method commonly used.

Globalisation is disputably the most vital factor currently shaping the world economy. Although it is not a new phenomenon (waves of globalisation can be traced back to the 1800s) the changes it is bringing about now occur far more rapidly, spread more widely and have a much greater business, economic and social impact than ever before.

According to Anthony Giddens, globalization refers to the fact that people are increasingly living in one world where various nation, group and individual are becoming more and more interdependent of each others. Usually globalization is often portray as a economic phenomenon where the transnational corporations(TNCs) whose operations are so massive that it stretches across national borders at the same time influencing economic activities and labor markets. However globalization is not just driven by economic factors, it is also driven by the combination of political, social and cultural factors as well. Over the years globalization enable countries to venture into new markets beyond its border which result in increase in both positive and negative impact on sustainability development. There are many different views of defining sustainability development, according to Bruntland (1986) "Sustainable development" is development that meets the needs of the present without compromising the ability of the future generations to meet their own needs. In other words sustainable development is a path where maximizing human well being for today generations and yet not affecting future generations needs where "needs" refers to three dimension of sustainability of economic, environmental and social factors. In this essay we are going to analyze the impact of globalization on sustainability development, additionally compare and contrast the positive and negative

The impact that globalization provided to the world was a positive effect that expanded the influences from one country to another. Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Similarities on how national markets established themselves in other countries which increases not only international trade but also cultural exchange. This increases cultural trade because it gives countries the ability to be able consume products and take in products that would help their country. A vast of trade networks such as The Silk Road and The Columbian Exchange, became a central origin on how networking began. These trade networks gave the central idea of how regions can work together to trade, such as materials and silk, and can help expand the growth of their knowledge of the things. The significance of this origin established the beneficial things people use in the 21st century, such as, technology, the sharing of knowledge, and the trading process.

Globalization can be defined as an intensive form of worldwide interconnectedness that facilitates the flow of capital, humans, commodities, technology, information, symbols and values due to the advancement worldwide systems of transport and communication. Globalization has created new opportunities for developing countries such as, technology, greater opportunities to access markets, increase in growth and improved living standards. Despite the fact that it has been beneficial for the world economy, it has led to the rise of certain issues in both developed and developing countries. These include environmental degradations, labour exploitations and increase inequity around the world.

What differentiates the depth and pervasiveness of globalisation in this century compared to previous is the acceleration of cultural issues driven by rapidly changing technologies that impact international trade agreements (Vitell, Nwachukwu, Barnes, 1993). Time is literally compressed to a level never before seen before in globalisation of previous centuries, with drastic impacts on international trade and corresponding management practices. Trade is now much more transactionally-driven and more focused on measurable results in near real-time increments. The transition of commerce from being longer in sales and service cycles to being nearly real time today has major implications on cultural boundaries of communication as well (Hofstede, Jonker, Verwaart, 2012). Globalisation is forcing people together into virtual teams from widely divergent cultures, accelerating assimilation and the need to produce results as shared teams quickly (Hofstede, Jonker, Verwaart, 2012). All of these factors combined are also leading to an entirely different series of assumptions as to how globally-based teams are managed and work together, compensating for wide divergences in cultures, values and expectations (Hofstede, McCrae, 2004).

Globalisation has made up enormously over the last half-century after taking place for hundreds of years. Globalisation development of the increasingly interconnected which results massively increased trade and culture exchange. This production has had an increase of goods and services; the biggest companies are now multinational corporations with subsidiaries in many countries (Bbc.co.uk, 2016).

It is without a doubt that the world today has become a “Global village”. Nobody wants to do or wear or even eat something that’s old news, all are out to get the “new” thing in the market. People in every corner of the world have access to similar services and products. Let it be fashion, entertainment of even food. Everybody is adopting similar habits. That’s the power of globalization. Globalization is the process by which the world is interconnected through technology and powerful infrastructure for the purpose of communicating and managing resources. Globalization seems to talk about several vibrant phenomena which ensure two major components. Firstly, they function across national boundaries and secondly, they result in higher incorporation or interdependence of human societies. It is therefore one aspect of development that affects the world in general, from every point of human view. However, this did not happen overnight. Many companies were a part of this process. Unilever being the biggest out of them all. It is one of the strongest and healthiest companies in the world with multiple successful brands. This further allows the company to expand into foreign markets in order to gain access to customers around the world. The strength of the company lies in its key four global brands Dove, Sunsilk, Rexona and Lux.

Globalisation refers to the reduction of manmade barriers to allow for economic integration in trade, investment and financial flows. China, due to globalization has seen increases in economic growth leading it to become the 2nd largest economy in the world based on nominal GDP. Economic growth refers to increases in the productive capacity in an economy over a period of time. It is measured as the percentage increase of real GDP for the current year over the GDP of the previous year. Economic development is a measurement of welfare in a nation indicated by health, education and standard of living. Globalisation has lead china to experience both positive and negative effects in terms of growth which has lead to the implementation of many successful policies to promote economic development but all this has come at the cost of various negative consequences.