Globalization isn 't a thorough new thought. As demonstrated with the aid of the historical affirmations, humans from out of date situations used to transport from their mom land to change elements of the arena trying to find sustenance, shield, affirmation from trademark catastrophes, commercial enterprise and for an unrivaled residing. This movement constantly integrated a blending of traditions, life and societies. As indicated via Economists, in modern time, Globalization simply began whilst the Multi country wide associations generally from the western international left their breaking factors and began to work worldwide. those made international locations depend on much less made countries for unrefined substances, unassuming works and market for their inventory and things.
Furthermore, Szlajfer & Chmielewska-Szlajfer (2012) adds that another method of economic nationalism to keep its own factories active consisted of interrupting competitive imports making use of the old standby of protective tariffs. However, these tariffs were not always sufficient and in many countries, quotas or quantitative restrictions were adopted. Therefore, governments stated that not only items that entered the country had to pay a high customs tax, but also a certain quantity limit had to be imposed (Szlajfer & Chmielewska-Szlajfer, 2012). Essentially, anything above this quantity limit could not be introduced in the country. Martinez-Diaz (2009) adds that both importers and exporters worked, at an increasing rate, with government licenses to make sure the foreign trade of a country was centrally planned and managed.
President Roosevelt also intervened in the stock market by regulating stock trading, so that the Stock Market Crash would never happen again. Ultimately Roosevelt's decision to intervene during this crisis was the key reason that the United States were able to recover from The Great Depression.The policies implemented created modern liberalism within the United States. Therefore it is evident that governments providing a social safety net for citizens can be beneficial to the quality of life of its
Economic Globalization and the Fears of the Small Many authors consider the economic globalization as the pillar of the entire phenomenon over which other components are built. Although the globalization has many complex and very dynamic processes, the particular process that involves strengthening and expanding the relations between the national economies is the key factor to support the globalization in its other domains (Pogge, 2007). The fear of the developing countries that the process of globalization jeopardizes their economic development and that they can end up in some new neocolonialism stems from the fact they are not able to compete effectively on equal basis with the countries of the developed part of the world. Although the technological change creates many opportunities, in order to take any advantage of them, the developing countries have to be able to cope with the competition from the developed economies, stress Alvarez at al. (2009).
Financial Crisis It must be mentioned that financial crisis is an element that can be found in both waves of globalization, it is not, in fact, a newly developed symptom. Trade, Investment, Migration and Factor Prices The trade flows of two periods also saw an important change. Transport costs fall quickly in the first wave allowing a step forward in the development of trade and internal national development. The lower transportation costs continued in the second wave, with the addition that also communication costs fell sharply. Tariffs were high at the end of the first wave, but both waves were characterized by a low rate at the beginning.
As globalization has increased so has trade and FDI. These changes have resulted in the reduction of barriers between countries and a growing change of the power structure of the international system. Multi National Enterprises (MNE’s) and other companies have been able to remove some of the power from the governments and gain more influence in how the world works. With how things stand in some countries today it is possible for a foreign company to sue its host country if that country adds governmental regulations like environmental restrictions that end up decreasing the companies’ profits. This ability by these companies is a fairly new idea and continues to change.
Political globalization on a narrower end, defines the increasing inclination towards multilateralism and emergence of non-governmental state actors, which have direct influence over the state. (V.M., Moghadam). A state is as the ruling of a sovereign territory. In my opinion, I believe that the state is indeed entering a period of decline, due to non-state actors such as violent non-state actors and multinational corporations. Globalization has affected social, economic, technological, and political factors immensely, leading to a proliferation in non-state actors.
“New Markets” is the fourth good reason that made him stand with globalization, he says that due to globalization, markets are being invested in different countries in the world, and attracting customers to their good products and reasonable prices. He adds that this is increasing the economic position of the country. “Employment Opportunities” is the fifth good reason the made him stand with globalization, he says that according to what is happening due to the fourth reason in which new markets are being invested in different countries, unemployed people in the labor force are finding jobs, thus, unemployment rate is decreasing. Reason number six is “Quality Products”. Burande says that globalization is causing high competition in the market.
“Information technology has been one of the leading drivers of globalization.” Explain the role of the technological environment on the process of the globalization. Technology being the main causation of globalization has caused incredible changes to the regular lives of individuals, the nature as well as the manner in which operations are conducted in business organizations to become simpler, quicker, convenient and definitely more agreeable. Despite the improvement of our lives and psyches, these comfortable supports lead to a tendency where we become over-dependent on it. Yet the positive impacts of the advancements in technology overweigh the negative impacts. Globalization is a process that encompasses the causes, course, and consequences of transnational and transcultural integration of human and non-human activities (wh.agh.edu.pl, 2015).
Proponents of globalisation advocate that globalisation has led to economic growth and development leading to better living standards worldwide and benefiting the whole of human kind. This has not been entirely true, some countries have benefitted more than others, there have been visible signs of economic unevenness despite the promises of globalisation. Economists advocate for global economic convergence, that poor countries will soon catch up to the rich developed world. This paper attempts to discuss causes of this economic unevenness focusing on the international institutions that influence the process of globalisation and this has made global economic convergence nearly impossible. KEY WORDS : global economic convergence, economic unevenness,