Essay About Globalization

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Globalization has contributed in important ways to the worldwide growth of economy, politics, technology, social and culture of various countries. Globalization is a relative new term used to describe a very old process. Therefore, globalization is the simply the integration and development of the globe. This short literature consist of three parts; the benefits of globalization, the effects of globalization on government and the people of the pacific and finally the ways in which the adverse effects can be mitigated or solved. I. Benefits of globalization in the Pacific Free Trade: Free trade brings real economic challenges for small pacific island countries. As defined in the Encyclopedia Britannica (2009), ‘free trade’ is the lowering or…show more content…
The establishment of foreign companies can increase a greater opportunity for local people to be employed within their own countries. This also can refer to foreign labor coming to the pacific countries for job. Therefore, in every pacific country, there are always foreigners at least in a particular job of a different kind. II. Adverse effects of globalization process on the Government and people of the Pacific Free Trade: Tariff and Import duties provide large amount of government revenue. Therefore the removal or lowering of basic tariff, import duties and other related taxes has a significant impact on government revenue. However, this forces the government to raise revenue in ways that do not disrupt trade, but to the introduction of new tax regime that is unfavorable to consumers. A good example of this is the proposed introduction of Value Added Tax (VAT) that increases the prices of goods and services as define in the Encyclopedia Britannica, (2009). VAT indiscriminately increases the price of goods, causing the people to be more dependent on cash incomes. As a result, there is an increase in the drift of people to the cities, and associated problems occur such as unemployment and squatting. These issues are more evidential in the Pacific island
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