It is evident, the profits of U.S.-based companies have increased due to globalization and majority of it come from their foreign counterparts. Moreover, globalization has lowered the cost of several goods and services here in the U.S. Likewise, globalization has made it easier to produce more goods and increase services in countries where the costs are lower. Flexible accumulation in the United States has allowed for companies to move their production facilities and activities around the world and even within a nation in search of cheaper labor, and lower taxes, to accumulate as much as profit as possible. This is all fine for the companies and organizations who are gaining money, but not so good for the workers who used to work at these companies before they were offshored and outsourced.
Another problem in China is corruption. According Corruption Perceptions Index (CPI), china stat is positioned 72 among all 179 countries in 2008 (Transaprency.org, 2015). The damage caused by corruption can have serious effects, affecting banking, finance, government procurement, construction and especially for economic development. The year 2008 saw an exponential growth of middle-class and that aggravated the gap between urban and rural population. China changed its approach towards new product; especially form the West, based on new lifestyles and trends.
One of the most important forces that drive globalization is technological development. As technology advanced it gave the means to break the barrier of time and space which in its turn helped the national markets to integrate without difficulties as they could now collect worldwide information. Furthermore communication has become easier as well as faster through internet as it allows messages to be sent and be received at the same time with no delays. Transportation improved and lead to faster traveling as it reduced the time but it increased the efficiency of transferring. “Advocates and critics of globalization basically agree on the big forces behind it: a great freeing up of trade and capital flows; deregulation; the shrinking cost of communication and transportation; an IT revolution that makes it possible for companies to digitize the boundaries between design, manufacturing and marketing and to locate these functions in different places; and the availability of large numbers of workers and engineers in low-wage countries.” (Suzanne Berger 2005
This refers to the integration of “the domestic economies with the world and the inevitable consequential increase in economic interdependence of the countries through trade, financial and investment flows, freer factor movements and exchange of technology and information.” (Ogbabu & Ameh, 2012, p.49). This demonstrates how countries are coming together as one big economy, in order to make trading globally much easier. It builds up economic efficiency, creates jobs, and lowers consumer prices, increases choice and economic transfer’s functions. “Using
Some important benefits of International Trade 1. Outspread sales possibilities of the existing products – having an international trade supports the traders to have an extended consumers from overseas. Especially these days, the use of internet aids link both companies and possible clients to have an arrangement that results to an extended sales from a current products. 2. Preserve cost competitiveness in your domestic market and increase efficiency – Because of global competition, the manufacturers in a country try to produce superior quality goods and at the least possible cost.
Positive influence: (1) economic globalization effective use of resources around the world, provide more development opportunities for all countries, also greatly enriched and convenience to People's Daily life. (2) economic globalization makes some countries become more competitive, creative and innovative spirit, so that the country can prosper. (3) globalization means the new economic growth, although during this time there is the risk of growth, but the developed countries and developing countries in growing of national wealth, are the beneficiaries of globalization. (4) due to the international division of labor, worldwide economic globalization makes every nation and national country in economy and technology progress to receive his deserved a chance. (5) economic globalization promoted the coordination and cooperation between countries, especially the powers.6.
I am convinced that globalization provides many benefits for us as individuals but also for every country in the world. Many professionals, economists and politicians align that the process of globalization is a huge benefit for economies worldwide. Through this process different trade markets are getting more competitive but also efficient at the same time. It balances the unequally between different countries and prevent eventually some military conflicts. The Milken Institute’s Globalization of the World Economy reports that even if there are many benefits regarding the globalization, there are still several risks which should not be underestimated by investors or governments.
All of these developments coming from more developed countries greatly improve and enhance people’s daily lives. This results in economic growth and decreases poverty. Undeniably, aspects of globalization such as health, education and communications have greatly improved developing countries. Although many say that Globalization is a positive thing, there are some negative aspects. Developing countries have to face challenges such as environmental deteriorations, instability in commercial and financial markets, and increased injustice across and within nations.
Globalisation is controversial, and comes with both benefits and adverse effects on the nations involved. On the one hand, globalisation increases the number of options and the range of choices for the consumer, leading to competition between businesses, which ultimately leads to an increased quality of produce. Globalisation can also be said to bring employment to poor and developing countries, where labour is often outsourced to due to cheaper labour costs. This allows the citizens of these countries to raise their standards of living. Globalisation