It is a phenomenon wherein businesses expand for the sole motive of profits and to cover a larger market share. On the contrary, cultural imperialism is the imposition of one nation’s culture over another nation. It is a negative way of imposing the thoughts, beliefs, traditions, and language over another nation. Globalization is not the same as cultural imperialism because globalization is the process by firms expand internationally without the intent of hurting local cultures, globalization aims to promote cultures by firms tailoring their products in accordance with local cultures, and cultural imperialism is a negative process by which one nation dominates another nation and imposes its cultures, beliefs, and ideologies over it. Globalization is not the same as cultural imperialism because globalization is the process by which local firms expand their businesses internationally by producing their products in different parts of the world in order to lower their production costs to secure larger profits.
(Koves and Marer, 1991). The introduction of incentives for exports brought China a step closer to trade liberalization as they reduced the biasness for exports. Chinese government effectively managed trade liberalization using 3 mechanisms in order to improve economic performances. Firstly shock effect; pushes most domestic firms to produce at highest potential efficiency under high competitive market. The increasing number of foreign investors in China will have negative impact on the economy without government’s intervention.
Research Question: Does the current Economic Globalization and Interdependence process help or hinder the development of all nations? Theory/Hypothesis/Abstract: Economic globalization is reinforced by the idea that states which integrate with the international economic exchange system will become a more progressive and modernized as a consequence. However this paper will argue that this general perception about development does not take into account that globalization may in fact keep poorer nations weak for the purpose of exploitation. There is a need for the current approach to be adjusted. The international division of labour, class distinction, and the domination of liberal economic theory under the current approach to globalization all serve the interests of the wealthy nations, promoting and supporting dominance and exploitation.
Globalization quickly uses limited resources. Globalization can increase world oil prices. Globalization can move taxation away from companies, and transferred to individual citizens. Globalization ties countries together, so that if one country collapses, other countries will be also leads
Usually, a firm should take into consideration direct cost such as raw materials and indirect cost such as distribution overhead in order to achieve more accurate profit calculations. However, in price determination along with the accounting cost, the economic cost should also be taken into account. Competition: International marketing is much more challenging compared to domestic marketing. In international marketing, exporters compete with international firms that manufacture under different kind of regulations and business environment. In developed countries competition is higher due to the existence of established local companies.
However, with the importation of substituting new forms of dependence will be created, so instead of reliance on importing finished goods, they needed imports of “capital equipment, intermediate product, raw materials and fuel”(Ibid., p.14). This acknowledgement made ECLA change from ‘structuralist’ to ‘dependency’ ideology, drawing on Prebisch’s vision of a world where there exist “a ‘core’ of dominant nations and a ‘periphery’ of dependent ones.” (Ibid., p. 15; Kingstone 2011, p. 32). Dependency theories argue for various and different causes of the (inter-)dependence, but most generally the economic factors play an important role, claiming that when the richer nations’ wealth increased it appeared to be at the expense of the poorer nations (Ibid. ; Billet, 1993, p. 4). It entails a Marxist view of the world as it examines
Increased international trade has brought not only enormous growth but also disruption across the globe. International trade raises incomes, creates jobs, reduces prices, and increases workers’ earning power. However when large economies experience depressions, the world is affected by the effects because the global economy is so interconnected. When trade decreases, jobs and businesses are lost and it would be a serious social problem. In the same way that globalization can be important for international trade; it can also have devastating effects because it affects international trade significantly(‘Trade and Globalization’).
Globalization is marked with increasing economic integration and growing economic interdependence between countries of the world. There is an increased cross border movement of goods, technology, people, information etc. Globalization brings new potentials for development and wealth creation. But there are divergent views on the economic impact of globalization. Few argue that the present model of globalization has increased the problems of unemployment, inequality and poverty, while others contend that globalization helped to reduce these aspects.
Not only that, competition is also reduced due to the elites having so much wealth and power, the smaller firms will be weeded out by the larger firms and monopolies or oligopolies will form, this will cause barriers of entries and increase in prices of products. Financial and government institutions are very important to sustained economic growth, as it can be seen from the above passages, if abused; these institutions can cause large inefficiencies in the market and economy. However, if these institutions are done correctly and power and wealth can
Thus developing countries could suffer reduced inward technology flows at higher prices . According to Oh (2000), “there is concern that the use of Intellectual Property Rights may, in fact, adversely affect the flow of foreign direct investment. Analysis of the use of patents by foreign companies in developing countries has shown that such multinational corporations use patents as a defensive strategy” . It refers to the use of patenting to preserve markets that were once captured through exports and are subsequently threatened by