Essay On Economic Globalization

We support the statement ‘Monopolies have led to the success of many economies in the world, and therefore, they should be maintained by government if they want their economies to continue enjoying economic growth and prosperity’. This is because monopolies are large in size, they benefit from economies of scale and are able to generate a huge amount of profit- larger than other market structures. With this money, they can invest in research & development, improving their existing products and creating new ones. Moreover, monopolies have a great impact on a country’s economy. Two very large monopolies that positively impacted the United States economy is Standard oil and Steel Company.

and global transportation, thus making it extremely impactful on the world economy. The canal has been extremely important to maritime transportation for the U.S. by providing a shipping route that makes it much easier to move goods from the West Coast to the East Coast. This has allowed the U.S. to move goods within its own country, but has also allowed the East Coat to more easily move goods to their important shipping partners in Western Europe, Eastern Asia, and Australia. The Panama Canal also allows important goods like minerals, grains, food products, and petroleum to be exchanged between the U.S. and other global economies. The Panama Canal overall plays a large part in the world economy, by allowing the exchange of goods from the U.S. to other countries around the world and vice versa.

The next positive aspect which is taken into consideration is that the developing countries now can receive sources of capital, new technologies from developed countries, which is very essential for the growth of a country. And in return, the developing countries let the developed countries’ companies do business in their countries. For instance, you can see McDonald’s store in almost every countries. In general, globalization has benefited both developing and developed nations, and became one of the most important factors that affect a country’s

In modern times communication and the flow of information has become interconnected among different economies and the consequences of economic activities is not restricted to the national economy. (Gooijer, 2007) Therefore, according to the author there is a reason to extend economic order into two new stages namely the European economic order and the global economic order. The first deals with commodification in the European Union and the second deals in increasing attention for the subject of global governance. (Gooijer, 2007) The author stresses that a consequence of these two models of decision making on what, how and for whom of the production and consumption of goods and services will be lifted to a ‘supranational level’. (Gooijer, 2007) Additionally, the decision regarding whether to move to the right or to the left side of the two extremes will no longer be a national economy’s business.

Countries like China, japan and Taiwan has improved their efficiency in production and are able to reduce the price of the product, and India being country with huge consumer base and high Demand has become their prime market. Also the goods produced by Indian manufacturer are being exported to neighbouring countries like Bangladesh; Srilanka, Nepal has made India to focus in Asian countries for their trade. Conclusion India has always followed a development model for its International trade since the liberalization in 1990s.The services sector in India has shown a tremendous growth which can be attributed to ever increasing IT sector in India. Manufacturing sector on the other hand has grown in comparatively slower pace. The overall performance of the Indian manufacturing sector has widespread implications for various aspects of the economy; employment, being one of the chief areas of impact.

During Colonial era, power countries, (UK, USA, France, Germany, other EU countries), have drained their colonies (Africa, Asia, South America) of their resources to fuel up their development. This has led the great advancement of those countries in terms of technology, educational, health, and industrial, making them even more powerful and advanced. Towards late 1960’s most of the colonies have gained their independence. Meanwhile, the great power countries of the world need to carry on building their capital, through favorable trade agreements for cheap raw materials (boundless.com). The rise of globalization was the answer to the ongoing demand of resources (Puig and Ohiocheoya).

With this advancement, goods are able to travel across earth in a matter of days. New transportation technologies have dramatically changed international trade by minimizing opportunity cost when distributing goods which ultimately maximizes profits among businesses all over the world. Most importantly, it allows developing countries benefit from trade, and help contribute at a more cost-efficient

He provides two main economical questions. Questions are ‘How does globalisation have effects on the global market?’ and ‘How does the globalisation benefits or costs from the economic perspective?’. Moreover, he pointed out that there are

Due to globalization, the economic borders between countries have vanished around the world since the 1990s and primarily in developed countries the capital accumulation has risen. Thus, the countries can no longer isolate themselves from the rest of the world. After the large scale globalization, all countries had an effect on each other in political, economic, financial, social, cultural, and many other fields. When regional combinations were getting increasingly common together with globalization, the circulation of capital has drastically increased in synchrony with the increase in capital accumulation (Rubio, 2001). During this process while the free flow of capital has risen, trade has transformed into a more liberalized version and consumer habits have gotten to be like each other.

The two course readings that I have selected for this assignment are “The Political Economy of Globalization by Layna Mosley” and “Making Globalization Work” by Joseph Stiglitz. The title that I have selected for this essay is “Globalization and the end of the nation state” due to the fact that the readings by Layna Mosley and Joseph Stiglitz will help me address the impact of globalization in both the developing and developing nation. For instance, globalization may have a positive impact on a developed nation and can have a negative impact on a developing nation. In the reading “The Political Economy of Globalization” by Layna Mosley it talks about how governments have embraced the neoclassical economic claim that economist openness improved