World Wide Market Essay

1962 Words8 Pages
Few causes can unite agriculture corporations, labour unions, and industrial lobbies, but anti-globalization is one of them. Economic globalization is the process of creating one world wide market through freer trade, flow of labour, and flow of capital. It is a phenomenon inseparable from today' economy, and is a trend that will continue for the foreseeable future. There is much discussion in the academic community about the political ramifications of economic globalization. However, I will be solely discussing the economic aspects of globalization and how it effects the prosperity and living standards of people around the world. Though the current international economy faces many challenges, the idea of trade liberalization is…show more content…
Just as it makes little sense to establish tariffs between Toronto and Hamilton, it is unreasonable to presume that dividing the world economy in a similar manner would be beneficial.2 Moreover, larger markets foster competition as firms face additional rivals. Without their previous protections, producers must innovate their way to succeeding in the market.3 Globalization can only advance the world economy by improving efficiency and driving innovation, while self-sufficiency and isolation only create limits to economic growth. Globalization created many benefits to the world economy. The world's most advanced economies owe much of their previous growth to the Bretton Woods system – a series of international institutions that fostered free trade and free flow of capital. The per capital GDP in Western Europe doubled in sixteen years.4 Japan, the greatest success under this world order, experienced an eight fold growth of its economy in only 25 years.5 As the second wave of globalization came about in the 1970s, successes similar came about in the years after. Economies in East Asia opened themselves to international trade and foreign capital. These countries soared by using their comparative advantage in manufacturing to create successful export-oriented economies. From 1965 to 1999, the per capita income of South Koreans and Taiwanese grew nine-fold.6 These countries went from being poor countries to becoming some of the most affluent societies in
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