...Introduction Globalization generally refers to the worldwide idea of economic, technological, cultural and political exchanges enhanced by the modern transport, communication and legal infrastructure. The political choice to open links and borders in international finance and trade makes it easy for globalization to happen. This means that human beings are continuously interacting with each other across the globe politically, economically and culturally. Economic globalization refers to the process of increasing the economic integration between two or more countries which leads to the emergence of a worldwide marketplace or a single global market. The international Monetary Fund defines globalization as “the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, freer international capital flows, and more rapid and widespread diffusion of technology”. At the same time, the International Forum on Globalization defines globalization as “the present worldwide drive toward a globalized economic system dominated by supranational corporate trade and banking institutions that are not accountable to democratic processes or national governments.” The two definitions vary and so depending on the paradigm, the aspect of globalization can be seen as both positive and negative effects. Nonetheless, globalization has cultural, political and technological factors that are closely intertwined. All these...
Words: 2076 - Pages: 9
...Over time, globalization has contributed to the economical aspects of Global North and Global South. While every country in the world hopes to economically benefit from globalization, the Global South wasn’t getting there. Economic globalization has helped integrate many countries into the global trade market. Countries in the Global North such as China and India have benefitted greatly by opening up their trade market. This provided people with job opportunities and higher incomes. But while the countries of the Global North continue to economically increase of because of trade market, the demand for imports and exports from the Global South become inevitable. As the Global North demand for more resources from the Global South, countries of the Global South don’t benefit from the situation. Countries such as Africa and Uganda have their resources exploited and continue to suffer from economic globalization. Within decades, globalization has continuously benefited the Global North. Countries such as China and India are great examples. Meredith, Hoppough, and Basu all explained the prosperity that the people have received from globalization. Economic globalization allowed China and India to create more business while providing more job opportunities for many people with the idea of higher wages. However, poverty rates continued to decline. According to Meredith and Hoppough, over 200 million people in China escaped poverty in the 1990s due to globalization. But not only did...
Words: 699 - Pages: 3
...“Economic Globalization” Economic globalization is an irreversible reality. To attempt to stall it or to roll it back would be as futile as trying to roll back the industrial revolution or information technology inventions. In terms of the historic evolution of the socio-economic system and its broader social civilization, it is an inevitable phase in the ever-advancing civilization on earth. In its current form, however, it is unsustainable. It is evidently defective, it has no built-in corrective mechanisms, and it needs to be saved from itself. The phenomenon has been in the making for centuries. More specifically, technological inventions in the field of communication, transportation and information management have accelerated its pace, propelling it into a tremendous force with incredible capacity to speed up development, or if left ungoverned, giving it a ferocious destructive capacity. Positive Outcomes: 1. Acceleration of development process or welfare improvement: What the industrialized countries took 150 years to bring about, the East Asian countries achieved in just over 25 years. 2. Technological advancements have made it possible to further shorten this considerably. 3. Knowledge dissemination has created awareness, consciousness, and hence empowerment unparalleled in the past. The very rising grass roots opposition to the negative by products of globalization is an evidence of the positive force that economic globalization has created. 4. The capacity to...
Words: 884 - Pages: 4
...Will political globalization inevitably follow economic globalization? BY Gonçalo Jóia Martins Student number 12859 Abstract: The essay intends to prove that political globalization and a system of global governance is inevitable. First, it starts by showing how economic globalization led countries to be more dependent on each other than ever. This is demonstrated by the growing cross-border interdependence due to economic trade and also by the proliferation of global players that require global cooperation between nations. Those factors inevitably lead to the necessity of global institutions of governance. The thesis is supported by answering to the Rodrick Trilemma using the influence of important globalization actors like multinational companies that help to shape the society towards a global mentality what will also push for political globalization. I end up concluding that although difficult political globalization is feasible and if taken into account all the factors I mention it will inevitably happen. Submitted to Professor Miguel Homem Ferreira of Tutorial Class TAB29 on 19/03/2015 10 years ago in China Yan Xuetong gave a lecture about globalization to a group of college sophomores for about 3 hours. At the end, before he took questions, he asked to the group of students: “What does globalization mean”? Someone answered "free trade". He laughed, saying that was the typical American answer. He then proceeded to explain that what globalization really means...
Words: 2610 - Pages: 11
...Economic Globalization Economic Globalization Introduction: Economic globalization can be defined as the process of increasing economic integration between two countries, leading to the emergence of a global marketplace or a single world market. It reflects the continuing expansion and mixing of market frontiers, and is an irreversible trend for the economic development of the world. Companies use globalization to place factories for their products or factories to produce materials needed to complete the finished product, in underdeveloped or poverty stricken countries in order to make a cheaper final product. Though the negative effects of economic globalization are easily seen from the lower and middle classes of America, the positive effects of this process greatly outweigh the negative. Body: I. Pros of Economic Globalization A. Growth of underdeveloped countries Productivity grows more quickly when countries produce goods and services in which they have a comparative advantage. Living standards can go up faster. As the liquidity of capital increases, developed countries can invest in developing ones. Local consumer products are exported to other countries. * * Economic globalization greatly improves the living quality of underdeveloped countries by having parent companies place factories on their land. These countries have a comparative advantage, or the ability to produce goods at a lower price than another country, and so there is more money...
Words: 918 - Pages: 4
...The Impact of the Economic Globalization on Urban and Rural Spaces The world is experiencing the largest wave of urban growth in history. For the first time ever, more than half of the world’s population lives in cities. This rapid urbanization trend is fueled by globalization and should concern all of us because it will continue to effect the way we live for many years to come. In order to survive in the globalizing world we need to become educated of the global economy and figure out how to benefit from it. With this in mind we first need to understand how the globalizing economy impacts cities and rural places worldwide. Many cites around the globe are continuing to expand and integrate themselves into the global economy. Likewise, processes related to economic globalization continue to extend and affect even the remotest rural places. Thus, challenging the distinction between urban and rural spaces. To understand how the globalization economy impacts cities we need to be familiar with the economic globalization. This term refers to the process which integrates economies between cities which has lead to the emergence of a global market. In other words it’s the rapid increase of interdependence between national economies worldwide facilitated by the increasing movement of goods, services, technology and capital internationally. The new global economy calls for highly specialized markets and firms which are concentrated in global cities. This makes cities places...
Words: 889 - Pages: 4
...ECO 550: Managerial Economics and Globalization Assignment 3 Instructor: Dr. A. A. Boakye Due By: 08/08/2011 Candidate’s Name-Andre Stevenson INSTRUCTIONS: Answer ALL the questions in PART I and PART II Part 1 (40 points) 1. The WXY Corporation has fixed costs of $50. Its total variable costs (TVC) vary with output as shown in the following table. Refer to the table. The average total cost of 4 units of output is A. $27.50 B. $40.00 C. $52.50 D. $210.00 2. to scale as it increases its output over any reasonable range. If it increases all its inputs by 10%, its Suppose a particular firm exhibits constant returns A. total cost will increase by less than 10% B. average total cost will increase by 10% C. output will increase by 10% D. long run average cost curve will shift to the right by 10% 3. The distinguishing feature of the short run is that: A. at least one input is fixed B. output is fixed C. input prices are variable D. technology is variable 4. If marginal product is positive but falling A. marginal cost must also be falling B. average product must be falling C. total product is increasing at a decreasing rate D. total product is falling 5. Which one of the following short-run cost curves would not be affected by an increase in the wage paid to a firm's labor? A. Average variable cost B. Average fixed cost C. Average total cost D. Marginal cost 6. To the economist, total cost includes: A. explicit and...
Words: 1007 - Pages: 5
...Eitan Kremer Ms. Todaro CWG4U April 22nd 2013 Economic Globalization Diminishes Poverty One of the most important trends found within economic globalization is a system of free trade. In a free trade system, countries are able to import goods from other nations at a significantly cheaper price and as a result of this, tariffs are reduced and trade overall increases simply because it is very convenient. This allows a country to provide goods to consumers at a relatively low cost. If it costs a nation more to bring in necessities such as food, the goods must be sold at a higher cost in order for a profit to be made which makes it more difficult for families to purchase things essential to their daily lives. Without trade barriers, families are able to purchase more of the necessities at a lower cost. Canada, Mexico, and the United States signed the North American Free Trade Agreement in January of 1994 and as a result of this, millions of dollars worth of basic goods such as food and hygienic products are moved freely from nation to nation every single day. This provides millions of people with the necessities they require for daily life at a fraction of the cost compared to trading with tariffs. However, many Far Periphery and Near Core countries simply cannot afford the additional taxes placed on essential commodities. As a result of this, countries such as Uganda and Zimbabwe tend to exclude themselves from purchasing goods from countries that may charge them additional...
Words: 392 - Pages: 2
...Has Globalization been a Positive or Negative Force? There has always been debate on whether “Globalization” is positive, negative for the economies of the world. Two articles put both of these ideas in perspective for me. The first article was found on respected internet research site buzzle.com, written in 2008 by esteemed author, Prabhakar Pilai entitled: “The negative effects of Globalization”. Education.gov posted an article entitled: “Globalization: Positive or Negative which discussed the positive aspects of Globalization and its relationship to the world economy. Pilai presented the negative side of the fight listing many highly emotional (pathos) arguments such as the exploitation of labor, citing low wages and relaxed safety standards as problems and pollution caused by countries that have lax pollution regulation standards. Education.com took the positive side of the fight using ethos, citing its positive aspects of such as new job and industry creation in developing countries. Obviously these are emotionally charged issues…on both sides of the argument. Even with all of the persuasive negative aspects cited by Pilai, Education.coms’ view by using convincing logos -- is that globalism, if given a chance, will eventually prove to be beneficial carrying many from a life to poverty to prosperity. Pilai begins by listing many the many negative aspects of globalism using both pathos and ethos such as: 1- Developing nations have outsourced manufacturing...
Words: 533 - Pages: 3
...Economic globalization and trade liberalization have released many restrictions in regards to trade. Now, foreign countries can communicate and distribute items very cheaply compared to previous years. Yet, controversial opinions arose and residents have questioned the effects of economic globalization as an advantageous venture. I completely agree with those people. Supporters of economic globalization state that it brings cheaper products and increased availability of diverse products. Because items can be manufactured and produced cheaper in foreign countries, they can be sold cheaper. Because of economic globalization, we can take advantage of this and provide cheaper products to our residents while producing and distributing the products cheaper as well. Furthermore, regarding the increased availability of products, more products become available to us because of our multiple outlets to several foreign countries. That is to say, we can obtain items from not only China and Japan, but from Australia, the Middle East, countries in Africa, and many more. (Maybe add on?) While economic globalization has gained a positive connotation, there are negative aspects that have more strength refuting its so-called progressiveness. These negative aspects include a job loss and an increase dependency on foreign countries. The majority of the items we buy today come from foreign countries and will continue to come from foreign countries. As a result, local monopolies and industries...
Words: 445 - Pages: 2
...Course Managerial Economics and Globalization Follow Below Link to Download Tutorial https://homeworklance.com/downloads/eco-550-entire-course-managerial-economics-globalization/ For More Information Visit Our Website ( https://homeworklance.com/ ) Email us At: Support@homeworklance.com or lancehomework@gmail.com ECO 550 DQ 1: Managerial Economic Decision Making From the e-Activity, assess how business leaders use managerial economics to make business decisions indicating how profits may be impacted. Analyze the principal-agent problem to determine how the relationship could be less adversarial. ECO 550 DQ 2: Fundamental Economic Concepts Pick a recently released good or service. Then, determine the factors that must be evaluated regarding the product’s supply and demand. Analyze how these factors impact the decision to supply the product indicating the significance of each in the decision-making process. ECO 550 DQ 3 From the e-Activity, explain the most important information you would require on which to base sound economic judgments. Explain your rationale. Assess the various forms of organizing and processing information to determine which is the most difficult to get correct. Explain your rationale ECO 550 DQ 4 Analyze the characteristics that make any transaction possible and justify the importance of each of the characteristics.Evaluate the role institutions play in transactions and discuss the likely economic impact if institutions...
Words: 1790 - Pages: 8
...Globalization is a series of social, economical, technological, cultural, and political changes that promote interdependence and growth. Globalization raises the standard of living in developing countries, spreads technological knowledge, and increases political liberation. (Harris 5-23) The main cause of globalization is influence from other, more developed, countries. Globalization is a historical process that results from human innovation and technological progress. The social effects of globalization are clearly illustrated in Peru. Once a third-world country filled with poverty and oppression, Peru is now transitioning into a developed nation. In Peru, globalization has raised the human development index, empowered women, and created a stronger country. (Leon 90-91) One of the benefits of globalization on a social level is an increased Human Development Index. The Human Development Index is a measurement of a country's social, political, and economical growth in comparison to other countries in the world. The Human Development Index rates each country with a score between 0 and 1, with 1 being the most advanced, globalized country. Factors that are involved in determining a country's HDI are gross domestic production per capita, life expectancy at birth, adult literary, and the number of persons enrolled in educational institutions. In 1975, Peru's Human Development Index was a 0.643. By 2003, the Human Development Index had risen more than one tenth to 0.762. The substantial...
Words: 547 - Pages: 3
...Impact of Economic Globalization on India Sabrina Mallavarapu University of Maryland, College Park Impact of Economic Globalization on India Many people fail to realize that it was only 69 years ago that India gained independence from British rule. India is generally thought of as very poor country but it is because it is still a new country. India has undergone major socio-economic changes since its independence from Great Britain. While India did not fair well under Great Britain’s rule, India benefitted from Britain in terms of creating an infrastructure and industry that is still in use today. While India still has many problems, India has benefitted from economic globalization because it has resulted in major economic growth that led to it having the fastest growing GDP of any nation. With the power of the East India Trading Company, the British already had control of several ports, as the company had been a major presence in India since the 1600s, even with the Mughal Empire ruling India. The British had immense power in India’s economy, creating settlements known as Madras, Bombay, and Calcutta, which are now major modern cities in India. Britain’s military power led to its ability to have a monopoly on trade, but also later establish their rule in India. In the early 1700s, South Asia saw the decline of the Mughal Empire as it weakened from repeated wars, rebellions, and invasions (Embree, 2006). India was fighting the remnants of the Mughal Empire when the...
Words: 1751 - Pages: 8
...Crystal Wilder Emmanuel Chebe ECO :Managerial Economics and Globalization January 23, 2016 I am working for the maker of a leading brand of low-calorie, frozen microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April. My supervisor has asked me to compute the elasticities for each independent variable. QD = -2,000 - 100P + 15A + 25PX + 10I (5,234) (2.29) (525) (1.75) (1.5) R2 = 0.85 n = 120 F = 35.25 Compute the elasticities for each independent variables. Price 1, Quantity 1 QD = QUANTITY DEMANDED P1= Price of product (200 cents) PX = Price of competitor’s product (300 cents) I = per capita income ($5,000) A = monthly advertising expenditures ($675) QD= -2000 – (100*200) + (15*640) + (25*300) + 10(5000) QD = -2000 – (20,000) + (9600) + (7500) + (50,000) QD1 = $45,100 Price 2, Quantity 2 (price has increased by 1%) QD = quantity demanded P2= price of product = 200*(1+.01)= 200*1.01= 202 cents Px= price of competitor’s product = (300 cents) I = per capita income ($5,000) A =monthly advertising expenditures ($675) QD2 = -2000 – (100*202) + (15*640) + (25*300) + 10(5000) QD2= -2000 – 20,200 + 9600 + 7500 + 50,000 QD2=$44,900 COMPUTATION OF ELASTICITY: ED = ((QD2-QD1)/QD1)) / ((P2-P1)/P1) ED= (44,900-45,100)/44,900) / (202-200)/200 ED =0 Determine the implications for each of the computed elasticities for the...
Words: 1023 - Pages: 5
...Key points in whether Globalization is good or bad: ECONOMIC GOOD: -Economic theory of comparative advantage applies, international trade in the long run will make parties better off, developing countries improve their conditions by doing something they do “better” than an industrial nations (so they charge less for the same amount of work done) - Sweatshops are good for third world countries because they provide better wages and working conditions than the alternatives (e.g. prostitution) -Sweatshops are creating jobs for people in developing countries allowing them to have discretionary income - sweatshops are a major source of capital accumulation in a country. -Countries with sweat shops save on cost in production and so have increased capital investments by other countries and trade ports increases which lead to economic success -decrease in unemployment rate in the country that the sweatshops are located BAD -sweat shops create monopolies as small businesses can’t enter due to cost (they can’t get cheaper labour) -sweatshops often don’t pay tax and thus don’t pay for the public services they use for production and distribution and don’t contribute to the country’s revenue. SOCIALLY GOOD - They creates jobs for the unskilled people and people who unable to go to school not wasting mental capital, eliminating unemployment and income being generated. Some communities encourage people to work in a sweatshop. - Sweatshops are good because...
Words: 817 - Pages: 4
