Impact Of Globalization On The World Economy

We live in a time of worldwide change. What happens in one part of the world impacts people on the other side of the world. People around the world are influenced by common developments.

I believe globalization is somewhere in between of having a positive or negative impact on the world. Just like the old saying “too much of a good thing can be bad for you” the key to everything in life is balance and excess might harm you. Furthermore, both sides of globalization have compelling arguments on the positive and negative effects of globalization, furthermore different countries and cultures would have different opinions in regards to how they have been affected by globalization. In this assignment I will look at the positive and negative views of globalization to further prove that globalization ultimately falls somewhere in between as being positive or negative.

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).

Certainly, everyone should hear about globalization often from somewhere, but do you know what accurately mean? Globalization is a very serious international issue. Globalization is the “process of interdependence among the international countries and human, not only including the interaction of products, good and services, and outsourcing across the nation, but also including national political, immigration or citizen culture and environment, as well as economic” (Caraaugh, 2012). As we known, globalization influences our life every day. In this paper, I am going to discuss critically globalization economic important effect to people ‘s lives.

Diversification and globalization are important to the wellbeing and financial stability of any country. These traits are valuable to both individual and group strengths. Understanding these modules can affect the way people or corporations manage their business affairs. To understand the importance of both diversification and globalization we must first understand their individual importance. Let’s first look at diversification.

“Globalization refers to all those processes by which the people of the world are incorporated into a single world society, global society.” Definition by Martin AL brow, 1990, a British Sociologist. Globalization helps to under developed countries by increasing their economic. On the other side, researchers and experts are saying that, globalization helps in increasing gap between poor and rich people in all around the world. The impact of the globalization is so wide and board, it is difficult to solve, because every countries of the world are crying to develop their economy by globalization. As a result, the globalization increase the gap between rich and poor because of, improper wage system and insecurity of jobs, multinational companies, environment treaties, and technology.

Globalisation is expressed in transcontinental flows and networks of activity, interaction and power between countries, irrespective of geographic distance. It establishes and maintains economic, political and socio-cultural relations. This interaction helps economies through growth in international trade, investment and capital flows. Some factors that have acted as the driving force of globalisation include technological innovation as it had made transport and communication around the world easier, capitalism and trade have also played an important role in encouraging globalisation. Trade

Globalization involves "shrinking" or reduction of the world as well as an increased consciousness in regards to the world as a whole. Globalization is a term which is used in the description of changes in societies and the economy of the world which results in a dramatic increase in investment, cross border trade s well as cultural exchange. Globalization is dominated by nation states, economies of national and the cultural identities of nations. Globalization creates an interconnected world with a global mass culture which is commonly referred to as a global village (Egnatz, 2011).

Economic globalization refers to the global process of organic economy formed by the world's economic activities beyond national boundaries and through foreign trade, capital flow, technology transfer, service delivery, interdependence, and interconnection. It is a cross-border transregional flow of production factors such as commodities, technologies, information, services, currencies, and people in other words, the world economy is increasingly becoming a tightly integrated whole. Economic globalization is one of the critical characteristics of the contemporary world economy and a significant trend in the world economic development.

Globalization can be defined as the process by which businesses or other organizations develop international influence or start operating on an international scale. (Oxford Dictionaries, 2016)

What impacts on the economy has globalization made around the world? What is the positive in addition to the negative impacts of globalization?

A process known as globalisation links different countries around the world together through different ways such as trade, investment, migration, internet, social media etc. Global trading is a major aspect of globalisation where different countries import and export goods and services with other countries. Globalisation has significantly changed over the past 30 years. Economies of scale has led to an increase in the production of goods, thus, created the need for expansion of markets beyond domestic boundaries. In addition to merchandise, various types of services are rendered to customers globally. This includes IT support, tourism, financial services etc. Globalisation has led to an upsurge in trade, multinational corporations, greater dependence on global economy, and easier movement of capital, goods and services and

Jan Aart Scholte states that ‘Some people have associated globalization with progress, prosperity and peace. For others, however, the word has conjured up deprivation, disaster and doom.’ Globalization is truly a complex phenomenon. It indicates that the world today is getting smaller because people from all around the world are interconnect than before. Globalization is driven by a combination of economic, technological, sociocultural, and political factors. In this paper I will discuss the impact of globalization on society: at social, cultural, economic and political level. (Kivisto) (Viswanathan) (Pacific) (R.)

There is good evidence that globalization has resulted in a considerable increase in world trade over the past 20-30 years. Costa (2008) claims that the globalization makes services, goods, people and ideas move throughout the world more easily. He also maintains that cross-border world trade will play a more and more significant role in global GDP. By 2017, it will approximately occupy 15 percent. Nevertheless, Lin Y. (2006) argues that the globalization also has serious drawbacks. He considers that globalization does harm to both developed and developing countries. Through globalization, few people in developing countries gets benefit. Most of them are still as poor as before because the change of there is so tiny. He also claims that although

Globalisation, a result of social development, can be described as the increase in cross-broader trade and influence on the economic and social behaviour of nation states (David Begg, 2003:272). This process has affected the world widely and deeply, principally in economics, industrial, technological, political and cultural aspects.