The globalization debate is often posed in terms of how or how much to raise barriers. We would be better served by focusing on how to reshape the rules and policies to enhance the benefits and reduce the costs of globalization, for both countries and people. As an analogy, think of sea level rise and the choice between building ever higher but brittle seawalls versus enhancing the absorptive capacity of living shorelines. With new producers appearing frequently, there are more people and businesses competing for a share of the global economy. This leads to competitive markets that offer higher quality of goods as well as more affordable prices.
Such loses of efficiency include over paying for resources, such as paying managers salaries higher than needed to secure their services, and excessive waste of resources. ‘X’ inefficiency means that average costs are higher than would be experienced by firms in more competitive markets. Risk bearing economies are often derived by large firms who can bear business risks more effectively than smaller firms. For example, a large record company can more easily bear the risk of a ‘flop’ than a smaller record label. However, economic theory suggests that average costs will eventually rise because of diseconomies of scale.
It paints a rather shallow picture of democracy which most of the superpowers portray. Again, it stands as one of the most significant disadvantages of globalization. The most prominent disadvantage of globalization is that it allows free transfer of companies.
This paper will discuss the benefits and drawbacks from the point of view that globalization made in the developing countries in the three important fields such as economic and trade processes, education and health systems and culture effects. In paragraph one, the benefits and detriment of globalization in the economic and trade processes field will be discussed. Then, in paragraph two, the impact of globalization on education and health systems in both sides will be shown. In the paragraph three, the positives and negatives of globalization on culture will be illustrated. Finally, paragraph four, will deal with conclusion and offer an opinion.
All these countries were members of the European Union, which had to step in to bail out debt-laden nations, which were thereafter known by the acronym PIGS. On one hand, globalization has created new jobs and economic growth through the cross-border flow of goods, capital, and labor. On the other hand, this growth and job creation are not distributed evenly across industries or countries.
However, although globalization has many disadvantages, we believe that globalization has brought the developing countries many more benefits than the detriments. For example, we can see there is more and a biggest opportunity for people in both developed countries and developing countries to sell as many goods to as many people as right now, so we can say this is the golden age for business, commerce and trade. Moreover, they warn that attempts to explain the suffering of women in developing countries in simplistic terms often tend to reproduce a “colonial stance” toward the global South. For instance, as we explained above, Chandra Mohanty sees elements of imperialism in Western feminist scholarship on women in the global South.
Globalization contributed to develop the health and education systems in the developing countries. We can clearly see that education has increased in recent years, because globalization has a catalyst to the jobs that require higher skills set. Health and education are basic objectives to improve any nations, and there are strong relationships between economic growth and health and education systems. Through growth in economic, living standards and life expectancy for the developing nations certainly get better. With more fortunes poor nations are able to supply good health care services and sanitation to their people. In addition, the government of developing countries can provide more money for health and education to the poor, which led to decrease the rates of illiteracy.
Some economists argue globalization helps promote economic growth and increased trading between nations; yet, other experts, as well as the general public, generally see the negatives of globalization as outweighing the benefits. Developed nations benefit under globalization as businesses compete worldwide, and from the ensuing reorganization in production, international trade, and the integration of financial markets. Globalization is important because it is one of the most powerful forces affecting the modern world, so much so that it can be difficult to make sense of the world without understanding globalization.
A world with multiple platforms formed in parallel will be more diverse than a world with only a single platform. The free movement of people, goods, money, and information has promoted greater concentration of economic activities in specific regions of the globe. The US north-eastern parallelogram and the European Blue Banana represent the most notable agglomerations of creative industries. Wuhan is another example, as one of the main manufacturing hubs of China.
- The open system of trade that had dominated the world economy for decades had been damaged by the financial crash and the Sino-American trade war.
- In the case of a mass producer of motor vehicles technical economies are likely because it can employ mass production techniques and benefit from specialisation and the division of labour.
- More broadly, SAPs have contributed to increases in poverty and unemployment in developing countries, placing additional burdens on women within both the household and the public sphere.
Debt forgiveness should be extended, building on the success of the Jubilee Movement. Since the IMF loans primarily benefited foreigners and government officials, he argues it is unjust and onerous that citizens of developing nations be heavily taxed to pay them off. The IMF is pursuing not just the objectives set out in its original mandate, of enhancing global stability and ensuring that there are funds for countries facing a threat of recession to pursue expansionary policies. This means that the IMF has objectives that are often in conflict with each other [206-7]. There have been attempts by fundamentalist forces all over the world to oppose and stop the process of Globalization over past quarter century. Yet, despite differences in political ideologies, the ruling parties have gone ahead with implementation of Globalization policies.
The international political system is comprised of sovereign states, which enjoy a monopoly on political power within their own territories. International treaties govern relations among states; however, states generally cannot legitimately intervene in the domestic affairs of other nations. Thus, when globalisation problems, such as famines, genocides, and civil wars arise, they are seen primarily as security issues for individual states, not matters of justice affecting the global community .