Describe Globalization by Referring to the Main Concepts/ Topics
1. Describe globalization by referring to the main concepts/ topics.
Globalization is a process that seeks to centralize economic, political, technological and societal forces in order to maximize profit and political power to global banks, global corporations and the elitists who run them. Globalization is set against national Sovereignty, closed borders, trade tariffs and anything that would restrict its goals and methods used to achieve them. Globalization promotes regional and global government where global corporations and their elite control the policies and directives of individual governments.
The video emphasizes that in the era of globalization, it took not only technological or scientific breakthroughs, but also the revolution of ideas regarding world economics.
Businesses began to spread over different economies to get the benefit of factors of production, technological advancement and infrastructure facilities, and to grab the opportunity to buy from cheapest market and sell to costliest market.
This helped people learn new skills, techniques and cultures, which ultimately increased their productivity. Hence increasing the willingness of employers to pay them more.
The Great Depression in the 1930’s saw many economies getting adversely affected which ultimately resulted in unemployment, recession and high debt. During that period institutions such as the IMF (International Monetary Fund) and the World Bank became the drivers of Globalization. Primary role of both IMF and World Bank was to promote global financial stability.
Globalization also had counter effects especially with the emerging markets. The inflow of foreign money in Thailand caused increased infrastructure and investments, which had a negative impact over the economy, as banking system was not up to the date. But otherwise, It led to various new opportunities for startups, laws related to business and immigration laws were also made less complex thereby accelerating the interconnection between the various economies.
2. Pros and Cons of Globalization
Pros
Variety of Goods and Services increases:
With trade policies like NAFTA, the ease of countries importing and exporting goods and services, provides consumers with a larger variety of products.
Relaxation of government controls:
Markets are controlled by the forces of demand and supply, and less by the government regulations to promote freer trade and hence economic growth
New Technology and Innovations:
Developing countries such as India, China, and Mexico benefit from the new technology and innovations of the developed countries to boost their productivity
Ease