Globalization and Its Challenges

Recent years have had many changes and shifts, one of the largest shifts was towards Globalization. Globalization is the process of economies shifting into the global market. It has the concepts of Comparative and absolute advantage to its support. However with the specialization of labor and technological advancements, globalization has been adopted by many countries alike. This adaptation had not been analyzed, but with the recent events that unfold economically, scholars and economists have started to question the traditional beliefs and theories of globalization. Also as to how do globalization affects the world? The question has been sought to be answered by many modern economists such as the likes of Stieglitz and so forth. Many economists still defend globalization, and the contrary raises questions on the developing or the under developed countries, countries like Uganda or Ethiopia have shown growth and developments but it has been of little significance. The other aspect of the critiques on globalization is that it helps not only the elite but imposes a corporate culture that is trying to be universalized. Organizations that are operating on the global scale such as the IMF or World Bank have policies that imposes its own rights in other economies by persuading them to shift to free liberalized economies. However there are arguments supporting globalization as well as to how a global culture reduces violence and paves way for cultural and ethnic tolerance, allows countries to specialize and etc. Moreover as to whether there is no link between corruption and market system or developmental failure, and that the globalization itself does not have flaws but the way it is implanted is flawed. Such is the case of Globalization as it affects socio-political, ethnic and cultural values and much more. All these aspects are taken into detailed consideration and the discussion is formed

World Policy Journal, 2004

2016

Globalization is a dominant aspect of the modern world system, and it constitutes one of the most powerful forces in determining the future course of the planet. It has various dimensions: economic, social, political, cultural, security, environmental, and many more. The focus of this paper will be on the concept of "globalization" as applied to the world economy. This concept has different interpretations by different schools of thought. Consequently, there are contrasted reactions vis-à-vis globalization, with some seeing it as a serious menace to the world economic system while others praise it as salvation for the world economy. There are three aims for this paper. First, it will clarify the notion of "globalization". Second, it will evaluate the benefits and the adverse effects stemming from globalization according to surveys and literature reviews. Third, it will consider how the cost and dangers incurred from globalization could be offset through wider international cooperation and the establishment of new global institutions. The question at hand here-hinted from the title of this study-, is that there are both positive and negative facets of globalization. Some of its positive features are thanks to the competition that it stirs up between developed and underdeveloped countries. Some of the negative aspects that could potentially lead to conflicts could be mitigated by global cooperation through relaxed policies in favor of the inferior party, or the enacting of new binding laws and statutory bodies. Thus, while globalization can be a trigger of international discords, it can also contribute to their containment.

SSRN Electronic Journal, 2000

The objective of this working paper is to point out major ways of regulating the global economy in order to increase impact of foreign trade, credits and (foreign) investments on economic growth and welfare. Some basic problems that occur in the process of balancing economic development are studied. The nature of economic globaliza tion is determined at the beginning of the article. After this, the role of international trade, foreign direct investments and development assistance is studied. Finally, developmental differences between developed and developing countries are studied and prerequisite conditions for reducing these are presented.

Globalization as a process involves the integration of nations, companies, government entities and the interaction of individual to promote international trade. The impact of globalization is evident on political systems, the economic progress, individual well being, culture and environment existing in different nations across the world. Embracing globalization is an idea meant to bring the world together as a global village as far as doing business is concerned. This means that, trade is possible between countries and continents. However, shortfall regarding the idea of a global economy emerges in terms of competition between developed, emerging and developing economies. In this regard, globalization impacts negatively on developing nations while, the developed nations stand to gain. This paper examines globalization, with a focus on whether the idea is a friend or a foe to emerging and developing nations.

The question whether the Globalization is beneficial for the World or harmful, is still unsolved and very controversial. Besides all of its disadvantages, it is an accepted reality that globalization is expanding very rapidly throughout the world. This paper is an attempt to find out what is the true sense of Globalization? How it is affecting the International Trade, FDI, and Economic Developments of overall word? This paper is mainly focusing on measuring how the Globalization is affecting the fastest growing industries of World.

This paper seeks to examine economic globalization with particular emphasis on its effects and implications on the global South. In doing this, it is first necessary to define the process of economic globalization. This will then be followed by an analysis of the impacts and implications this process has had on the overall global economy, social justice and most importantly on economic development of the global South. Economic globalization is defined to be the intensified interdependency of the global economy owing to; the growth of cross border commerce and transfer of services; international capital flows and the extensive proliferation of technologies (Gao 2000, 3). It is in essence the increasing integration of world economy. According to Mapuva (2010, 392), the most significant characteristics of economic globalization include liberalization of global trade; financial and production activities; flouting of national economic borders as well as how TNCS and international institutions are increasingly becoming powerful. The rise to pre-eminence of multilateral economic and financial institutions like the Bretton Woods institutions; the World Bank, International Monetary Fund and the World Trade Organisation, is perhaps one of the most outstanding outcomes of economic globalisation. These institutions have prescribed the implementation of neo-liberal development policies as prerequisites of economic growth and development, effectively setting these as norms in the global economic system. This has in turn lead to the adoption of liberal trade policies which include free open markets, lower import tariffs, curtailing import quotas; export controls (Soubbotina 2004, 84). Observed increases in international trade, financial flows and foreign direct investment globally are seen to be consequential of liberal trade policies. However, as this paper will show the distribution of the benefits that accrue from economic globalization has been greatly uneven. Most countries that have embraced neo-liberal development policies like those espoused in the Washington Consensus have been adversely affected by them while overall economic globalisation has resulted in the marginalisation of countries in the global South. With a progressively large part of world GDP emanating from trade (Mapuva 2010, 391), trade liberalization policies have served to stimulate expansion in trade and investment (Gao 2000, 2). Gao (2000, 2) refers to how under GATT and WTO frameworks, tariffs and other non-trade barriers have either been eliminated entirely or effectively reduce. For instance, developing countries have seen a reduction in half of the average import tariffs (Soubbotina 2004, 86). Trade liberalization policies have also improved access to international markets (Soubbotina 2004, 85) which has led to specialization of production in those sectors where countries enjoy relative comparative advantage; efficient production has led to reductions in price of goods as well as increased variety in what customers are getting. World exports grew twice as much as Gross National Product between 1965-1999, with the ration of world trade to world GDP reaching about 30%, with an average of 15% in developing countries and 40% in developed countries (Khor 2000, 3; Gao 2000, 5).