Introduction To Globalization

Introduction to Globalization

Globalization is the result of human being’s advancement in technology over the years, their lust to cross borders and explore the world and their never ending thirst for trade. Globalization basically means international trade, where in countries connect with one another trading their knowledge, innovations, manpower, technology and goods and services. So one can say that this Era which is highly advanced in technology, knowledge and international trade has no borders i.e. “it’s a borderless world”-(Kenichi Ohmae, Former Professor and Dean of UCLA Luskin School of Public Affairs).

Having seen the above statement about globalization, can we agree that:-

• Is globalization inevitable, that it cannot be avoided

Of course! , One of the Example is: - When American investment bank and the Lehmann brothers filed for bankruptcy in September 2008 the whole financial system of the world was at risk and was to collapse because of the interconnected nature of the global economy. US was hit and hit hard, as the crisis started there and what followed was a chain of events effecting both the developed and under-developed countries. As the world says “When USA sneezes, the rest of the world catches cold.” So Globalization was the root factor here, as USA had a huge network with other countries which were also affected by its

I agree to that globalization makes the world unequal, according to Bill Clinton’s earlier statement, globalization aims to benefit all nations as it will give developing nations the chance to interact their economies with that of the world’s thus giving them more productivity and development , but how much is the poor nation really developing . Let’s say for example that all the nations participating in the international trades are gaining out of that said trades, but does each nations gain equally? Which nations gains more? – This is where the inequality lies.

As Lindert, P.H. and J.G. Williamson stated in their working paper series -“The two key components to look at inequality in terms of globalization is –inequality between countries average incomes, and inequalities within the country”. So two factors are the difference between the countries and difference between the nation’s cities or areas. I will now take China as the best example to illustrate the above point. As China is one the leading developing countries in terms of GDP growth per year and has its population as an