In an article (2007), general secretary of Organization for Economic Co-operation and Development, Angel Gurría contended that “Millions are benefiting from globalization but at the same time there 's a feeling something 's wrong with the process”. There is little denying that the dramatic increase in FDI index (Foreign Direct Investment) and the aggressive spread of market economics bring new challenges for developing countries. In other words, the larger globalization’s scale is, the wider the gap between the poor and rich countries becomes. Specifically, rich nations have a tendency to exploit thoroughly natural resources in developing countries such as Africa and outsource with extremely low cost simultaneously. Consequently, the fact that rich ones become richer and poor ones become poorer is unavoidable.
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.
Michael Shapiro, Vice President Weston Premium Woods Inc. 25 Automatic Rd, Brampton Ontario L6S 5N8 Academic Background: Bachelors of Administrative and Commercial Studies, Finance and Economics from Western University, Canada (2000-2003). Work Experience: He is working with the Weston Premium Woods from August 2004 - Present (10 years). He can speak two languages such as English and French. Job responsibilities: He perform all the functions of sales management, sales operations and wholesale operations. He is also involved in the purchasing processes taking place in the industry.
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. The goal of globalization is to meet the need of people thereby increasing their standard of living, freedom and liberty and thereby a prosper life. But today, globalization has increased the gap between rich and poor and has lead to the marginalization of certain sections of the
With the progression of industrial developments, the way of communication and life standards have began to change. Globalization can be perceived the process of political, cultural and economic integration between all countries, which converted the world into a small village. Globalization includes interrelated dimensions as demography, economics, technology, politics, culture and society. After the industrial revolution, globalization went though different stages due to changing needs and developments. Globalization involves profound transformative change and is a central driving force behind changes reshaping the world (Held, 1999).
Furthermore this clarifies the ongoing process through the way countries and people communicate and integrate. In which has caused impacts to the world in numerous of ways i.e. socially, economically and culturally. For instant globalisation is seen as a means for economic development. 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).
Increased inequality Increased inequality means that the existing of income inconsistency between countries across the world. According to King & King (2005:199), globalization might not help in generating more wealth in developed countries, hence the gap between world’s richest and poorest countries still exist as today’s. On the other side, even the developing countries are directly concerned in globalization, their main decisions are still normally left out. As the developed countries are able to influence the economic and social policies in developing countries, hence, they have greater wager in affecting the world economy. 2.
This is what we call as Economic Globalization. Economic Globalization is the increasing economic integration and interdependence of national, regional, and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital (“Economic globalization,” 2016). One country to another will do export and import to fulfill their needs and this leads to the economic policies that both or more countries made. Of course those countries want to get more benefits more than just fulfill their needs, they will make some agreements about trade between them such as, lowering the
The process of globalization includes a number of dynamics which are rapid knowledge developments that make global communications possible, political developments such as the fall of communism, and transportation developments that make traveling faster and more frequent. Market globalization is the decreased in barriers to selling in countries other than the home country. Multinational firms rise because capital is much more mobile than labor. The consumer prices lower and fewer restrictions when crossing borders makes it easier for a company to enter a foreign. So it becomes easier for U.S business to make a better profit then they would in their own country.
Proponents of globalisation insist that developing countries stand to benefit from integration since they develop both socially and economically. Some scholars such as Kiggundu (2002) contend that poor nations become exposed to more opportunities and challenges as they integrate with the rest of the World. Developing nations would then have the chance of improving the lives of their citizens by increasing the nation’s wealth, reducing poverty and improving wages. On the other hand, opponents of this concept maintain that the multinationals from the Western world are the only beneficiaries of globalisation and that the small local firms are disadvantaged (de Soysa and Vadlamannati,