Political Implications Of Globalization

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Globalization: a complex and controversial phenomenon that has faded the economic state boundaries inevitably in the past decades mostly due to technological advancements. The phenomenon is usually referred to consist of four waves. The fourth and most resent wave started around year 2000 and was a follow- up to the third wave, starting from the early 1980s, where companies started to outsource production to developing countries. The fourth wave is mostly consisting of China’s rise to be one of the most favored production sites and hence, changing the economy and the political hegemony of the United States. The globalization has increased hugely during the third and fourth waves and national economies in the world have increased co-operation and thus, the world has been integrating into one immense economy system. This has been followed by the debate on the consequences and they have been widely discussed and evaluated in the global political arena.
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On one hand globalization has had a positive impact on the world economy and the arguments for globalization are not hard to find among scholars and economists. Some of the benefits include increased free movement of labor and international capital flows, which have allowed investors to access foreign markets in vastly developing countries, especially in East Asia. In addition, it has also allowed specialization of countries making them more efficient, and multinational companies to reduce production costs improving their economies of scale. The concept of free trade has experienced an enormous development in the world economy and multinational corporations have risen to lead the business world. This has in turn allowed the consumers in the western world to benefit from lower prices and greater variety of
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