Globalization Is Not New A Phenomenon Economics Essay

sphericalisation Is Not New A Phenomenon political economy Essay globalisation is not new a phenomenon, for thousands of years plurality acting on their own and later corporations used to buy and parcel out products and services (trade) to each former(a) on lands, shores and seas at salient distances, great example is the famous Silk Road across Central Asia that connected chinaw atomic number 18 and Europe during the Middle Ages.Under the term of globalisation political scientists pass on the process of interaction and consolidation amongst the great deal, companies and governments of different nations, a process which is dictated by international trade and investment and aided through media and ultramodern technologies. This process influences directly or indirectly the surround, culture, political system, frugal victimization and prosperity of e in truth(prenominal) human nation and every single person in the world.There are different types of globalisation or com bine of these types. To understand collapse the purposes and procedures that took place in each circumstance, we admit to dismember each type separately.Financial Globalization/IntegrationFinancial Globalization is the process through which financial foodstuffs in an economy become lots(prenominal) closely integrated (related) with those in former(a) economies or those in the watch of the world through the financial flows.Types of integrationIntegration of the public orbit based on borrowing. There are two types the issuance of unknown currency debt, and the issuance of the local currency debtIntegration based on foreign direct investment, which is direct investment into the production or craft in one awkward by a company from other awkwardIntegration of the corporate domain where the investors buy or shell out the stocks and bonds of other countries business firm in domesticated asset marketThe integration of the Banking sector through the interbank market, banks quarter borrow or lend temporarilyEconomic Globalization internationalistic economy improved due to the assemble of globalisation. Many countries remove their b arrangements or create trade agreements in order to growth the inflow of trade as the consequence markets become much than efficient, productive, competitive and cooperative. Examples of economic globalization are NAFTA, EU and MNCs.Technological GlobalizationNew and advanced technologies take part in making globalization possible, using airplanes, satellites, telephones, televisions and computers it is possible to transfer information from one place to another, with greater efficiency and effectiveness which characterizes the modern world. In this way not be inclines technologies are being transferred, but at the kindred cadence people are satisfactory obtain information, knowledge and skills.Political Globalization sparing and ethnical globalization has as a consequence countries to become more interconnected p olitically. Regular movement of people, currency and information creates a con work of fortunes but also misfortunes, such as crime, for that reason in 2002 the International Criminal Court was established to fight those sorts of problems. Other political issues that have been discussed on global bases are that of global climate change, the terrorism, drug vocation etc.Cultural GlobalizationToday the easement of expansion of conventional customs has brought Globalization of cultures, where people from different parts of the world can get closer to each other much easier. The symbol of the cultural globalization is the well known American fast food strand McDonalds, it has more than 31,000 restaurants in 118 countries. Some menu products, such as the monstrous Mac, are the same all over the world. Other menu products whitethorn be special(prenominal) to a particular region. McDonalds in Japan features a green-tea flavored milkshake. At McDonalds in Uruguay, a McHuevo is a bur ger topped with a hot up egg. Globalization has brought McDonalds billions of customers-consumers worldwide. Other cultural trends that someone can find familiar in many countries are the music, clothes, film industries etc.Ecological GlobalizationEcological Globalization refers to the collective impact that the diverse processes of Globalization have on the health of the natural systems. referable to Globalization people, money, ideas and pollution give way at high speeds and rates in every corner of the world. To reference book these issues, from capital of Sweden Declaration 1972-till date, lots of discussions have taken place of the necessarily and strategies for the protection of ecology and environment on a Global level. The UN Conferences from Stockholm proclaimed certain fundamental principles of international environmental law, such as Polluter Pays Principle, Precautionary Principle, Sustain fitted Development, Inter timesal Equity and responsibility, Common but te ll apart responsibilities, Rights of individuals, equality of access to procedures and non-discrimination in environmental matters etc. These principles have been proclaimed after extensive investigations done by experts in their fields.Sociological GlobalizationThe term social globalization refers to the impact of the globalization on the lifespan and work of people, their families and their societies. Important issues like utilisement, working conditions, income and social protection are often raised and connected with this part of globalization.PRO ET CONTRASo far, we examined the types of global integrated nations, it means that every union ( implyd two or more nations) whitethorn follow some of these specific patterns separately, or may include all the assortment of Globalizations types, it all depends on the contracts between the members. From now on, we entrust examine the avails and disfavours that union members enjoy during the process of Globalization.2.1 AdvantagesFr ee Trade is a way of easier exchange of goods and services. The basis of the trade agreement is the elimination of minute and export borders, through the drop-off of any levies, duties, taxes, subsidies and quotas. The absence or reduction of some or all of those factors, usually leads to a significant increase of exchange of goods and services between the member states.Another fundamental make of the trade agreement is the concept of comparative advantage. According to David Ricardo countries increase their economic well-being if and only if they are specialized in the production of goods at which they are best at and after on exchange the surplusage of production with other goods of other countries. majusculeer Competition due to the ease of free entrance in any member state, at that place is a disposal for private organizations from any field to enter free market, of telephone circuit the purpose behind such action is only to sack more profit, but the whole problem is tha t to be competitive, companies have to reduce their prices to gain more and new customers since the more companies enjoy being in the market the more competitive and effective they have to be, firstly to be able to stay in the market and make sells and secondly to be able to make profit out of the whole process.Free movement of task free movement of labor suck up gives an external support to abundant industrial entities to reach a higher level of efficiency (at littleer costs), it is not a secret that the biggest industrial companies in developed countries employ many foreign workers who are members of less developed states. In this study both parts are in gain the makers maybe because of famine of domestic force or may be because of unwillingness of domestic labor to perform the specific tasks and jobs. On the other hand, labor force from less developed countries because of lower quality of life and maybe very high rate of unemployment are more willing to perform backbreakin g or dirty jobs to cover their basic needs. Both of these phenomena show how important the free movement of labor can be.Increased Economies of Scale as noted before, free trade leads to a comparative advantage (any country specialized at a particular subject at which it is close efficient). It can be also added that the specialization in one sector can lead to a better working mechanism (human/machinery) and master as better efficiency as possible. The result of specialization and better mechanization normally reaches larger productivity with lower costs (economy of scale) because of more effective use of resources.Investments One other very important advantage of globalization is the investment. So when we talk about investment from the financial bear witness of view, we mean the process of placing money into something with the expectation of gaining profit after specific or none specific period of time. Some examples of investment may be some sort of foreign equity, property a nd fixed quest securities. Corporations invest a lot of money into developing countries for personal reasons and very often transfer their production power to those countries. These kinds of actions give a extensive incentive to both of the parties to achieve more profit (tax).2.2 DisadvantagesAs we verbalise before, free trade offers some very good advantages but at the same time there is one very important disadvantage of domestic inefficiency. To be clearer nowadays it is very difficult to create and stick out any new organization, even domestically. Huge international corporations simply do not give a chance to any new firm to operate in their fields, they usually produce products and services at much lower prices and bigger ranges than any new firm is able to. Great example of the kind organization is Microsoft, at the present Microsoft is one of the biggest corporations which specializes in anything that has to do with electronics, computers, hardware, software, electronic games and so on. Generally speaking, in some sectors Microsoft has roughly monopolized the world market and its very difficult for any new and excellent corporation to survive in this kind of competition.Environmental costs there is another big disadvantage of globalization, the increased use of non renewable resources. Due to better and easier ways of communication between states, there is a tendency for more and cheaper resources. Every year millions of tons of raw material (rock-oil, gas, coal) is excavated from the depths of the fu run across and introduced for global consumption while nobody can predict what will be the real cost that people will have to reconcile in near future for such practices.Also one other problem of globalization is that corporations which transfer their operations to places where environmental standards are less strict. For example, this kind of problem is very crude in China where foreign manufacturers that produce and utilize, occasionally follo w practices that harm not only the environment but also the health of their employees.Labor Drain may be the most important problem for the developing and developed countries. As we say before, one of the benefits of globalization is the movement of labor force. Although at first side it may not affect directly if labor leaves one country and migrates to one another, but if think of it thoroughly someone can see that along this labor force may also be voltage or future potential intellects that may alter the world as we know today. As an example, we can mention the U.S.A who spends large amounts of money to gain and keep the most talented scientists from all over the world, its no meeting of minds that they are the biggest military power and invest a lot of money in new technologies.Less Cultural Diversity one other problem of globalization is the global centralization of culture based on western ideology from the very young age. Unfortunately this is the reality, people from ge neration to generation are moving away from their traditional culture. People tend to emulate the behavior, the lifestyle, the way of life of the western civilization. They grow up watching the Simpsons, eating in McDonalds, drinking Coca-Cola, wearing jeans and speaking in English. after(prenominal) few decades, most European citizens will be people with common values, behavior, moral and ideologies.CONCLUSIONSFrom all of the above it can be concluded that globalization can offer many positive trends but at the same time many negatives, in a way it represents the old locution of one coin with two completely different sides. It may parent economies to grow, produce products and services that may have never been available in some parts of the world before, but at the same time it may endorse human exploitation, inequality and environmental unconsciousness.