Relationship Between Globalization And Economic Development

Globalization’s impact on sustainable prosperity is examined in the source. It does this by asking a question. Also examined is the impact on all people and this would include both developing nations as well as developed nations. The source is also somewhat leading the reader to question the extent of the impact, which implies that there is a positive impact on sustainable prosperity. Also the fact that it states, “for all people” implies that all people benefit. While globalization may contribute to sustainability to a limited extent or in certain circumstances, on the whole, globalization degrades rather than builds sustainable prosperity. This will be explored through looking at globalization’s systems and forces, specifically consumerism, the media and transnational corporations.

The issue of globalization for the people of the United States has been a long and terrifying problem for them. Although other countries many have had issues with this problem it appears the U.S. is still being affected by it to this day. Although not everyone in the United States may have been affected by the issue. Majority of the people (mid class and lower class) have somehow been affected by it or knows someone that has been affect because of it. This issue of globalization has been talked about by politicians so it appears it had to been a major impact to the country. Thus, this issue of globalization has been an issue for the United States for a long-time way before the twentieth centuries. Therefore, this paper will discuss what is globalization and how it has impacted Americans views and how some people’s views changed because of it and finally, what is the impact of communications technology. All these key topics will help with getting a better understanding of what these issue is and how it has affected society today.

With the progression of globalization, commodities can be transferred to all over the world. That people from different countries can purchase the same products is no longer a dream, that also lead to the similarity between countries. Personally, I strongly believe that the development brings more negative influence to local communities than the positive ones.

Developing countries are adversely affected by globalization, especially in economy area. Globalization is a process which the world interconnection keeps increasing so it is possible to trade or exchange cultures conveniently. In the past, it was anticipated to develop a whole of countries’ economy or technology and solve some environmental issues such as air pollution or global warming. Unfortunately, until these days, the result of globalization does not reach 50% of economists’ expectation. The major reason of the evaluation is in spite of the fact that it provides advantages, globalization increase the gap between rich and poor. One of the biggest victims is developing countries. They suffer a great loss from the drawbacks of globalization. These are excessive outflows of brain and money, excessive competition in the world market, and Increase of economic polarization.

Economic development is a new concept that came about in the early twentieth century. Although, theorists argue that Karl Marx has alluded to the concept earlier in 1887 . Historically, the increasing importance of the concept can be traced back to the needs approach of the ILO , World Bank and Amartya Sen’s Capability approach (Sen, 1993). Gerald Meier defines economic development as ‘the process whereby the real per capita income of a country increases over a long period of time - subject to the stipulation that the number below an absolute poverty line does not increase and that the distribution of income does not become more unequal’. Wherein, there is evidently a strong relationship between economic growth and development. This essay analysis the concept of the two terms economic growth and economic development by examining their characteristic approaches. In turn, understanding the relationship between them.

According to Palley (2007), financialization causes economies to slow their growth and become fragile with a very real potential outcome being recession. When the financial sector has more power, it takes precedence over the real sector. It takes money from the real sector and gives it to the financial sector resulting in huge wage disparities and stagnation in the real sector. The effects on those outside of the financial sector have been great. Household debt to income ratios have increased, as have corporate debt to equity ratios

Economic globalization, or the continuous increase of worldwide interconnectedness, has a vast impact on many countries, and among these impacts are economic changes, such as an increased Gross Domestic Product. An increased Gross Domestic Product is often beneficial for states, as it is an indicator of overall income. If overall income is increased due to economic globalization, there will be an increased budget for states to spend on a variety of public services, such as education and healthcare, which would therefore increase the standard of living in that state. Economic globalization has become more evident in an industrialized and technologically advanced international sphere, and this can be exemplified by Poland’s accession into the European Union in 2004, which has resulted in an increased economic welfare. Poland’s surge in economic welfare can be see seen through an increase in Gross Domestic Product, which acts as a reflection of an increase in exported goods, and a lower unemployment rate.

The theoretical framework on the effects of capital market on economic growth dates back to the work of Schumpeter, (1911) which explained that a well developed financial system can facilitate technological innovation and economic growth through the provision of financial services and resources to investors. The above argument of Schumpeter, (1911) was later advanced as the McKinnon-Shaw, (1973) hypothesis, which is a policy analysis tool for developing countries with strong recommendation and high priority on the efficiency of financial systems in facilitating capital accumulation and financial intermediation.

The advent of the internet has allowed for rapid access to world markets. Knowing how to use the internet for globalization activities can be very beneficial for a company. In this dotcom economy, everything can be produced anywhere and sold anywhere. The internet has given many companies a new view on how to handle global business needs.

This thesis investigates the long-run causality direction between financial markets development and economic growth in Croatia, Slovenia, Serbia and China for varying time periods using VAR models and Granger Causality methods. It also explores the interrelationships between variables using the Impulse Response Function. Financial industry consists of two main parts; debt and equity (Krugman and Obstfeld, 2009). These are also called debt and equity markets. Credit markets which are primarily consisted of banks are assumed to provide lending and saving channels for potential individual, private and public investors. Stock markets are the other crucial part of the financial system. These capital markets provide equity and direct form of

It is fair to say that the ones who benefit the most in economic globalization are developed countries whose social productive forces are highly developed ((El-Ojeili, C. & Hayden, P., 2006.). However, it is difficult for developing countries that are relatively

Although the organisational aspects and spatial aspects must also be looked at, the flows of globalisation including economic, environmental, political and cultural change must be looked at in terms of reconstructing places and specific communities (Knox and Marston, 2016). Global networks allow the flows of globalisation to be reconstructed rather than effaced. I will focus on the economic impact of globalisation on the changing process of economic character and development in London and Sydney.

Since the 1990s, the world economy has undergone profound historical changes that focus is reflected in the global economy as a whole, has never been a time like this, the economic development of all countries closely together to form the world economy integration, both in developed and developing countries, or countries with economies in transition, businesses dependent on the world economy is growing, the development of the world economy, is an inevitable result. Economic integration in the world system is highly dependent on individual enterprises, whether a country or a change in the enterprise, will cause a corresponding change in other sectors, resulting directly or indirectly. In every enterprise, it is possible to break through their limitations in the national market size and resource allocation, and a place in the fierce international competition, so that the world economic integration has become the first international development of the power companies

The idea of existence of correlation between financial development and economic growth was developed at the beginning of the last century (Schumpeter, 1912). It implies that well developed financial sector is able to enhance productivity and drive economy through making rational investment decisions and funding entrepreneurial innovative activities.

Capital markets or today commonly known as stock markets have played a lesser role in investigating the role of financial development on economic growth since the researchers have always been more oriented to investigate the effect of banks. This can be explained by the fact that stock markets are a relatively new concept compared to banks. In the last three decades availability of data regarding capital markets and increase in theoretical literature suggests that well functioning stock markets can play an important role in economic development has spured research in this field. Trough instruments like diversification of risk, increased liquidity, corporate due diligence, manager control and collection and processing of important information well-functioning stock markets can spur long-run economic growth by changing levels of technical progress, savings rates and efficiency of economy.