Globalization Essay Example
21st Century in Global Economy
Globalization Essay Introduction
The economy in the 21st century is a substantial and determinant factor for country relations. The States of 21st century specify their specific policies according to their economic advancement. The countries are categorized as developed countries, developing countries and least developed countries. The development level depends on the chase of new economic forces which include globalization, trade liberalization, and the information technology and communication revolution.
Globalization is not a new concept; however, it has become more of an issue in the 21st century. It extinguished the national borders and redefined economic policies. Liberalization in trade is a reason for significant structural change in economic architecture. The information and communication revolution put away the concept of time and place. Three keystones of an economy shaped today’s global finance, trade, and state policies. The structural change in economics is rapid, pervasive and global in the new century, which has not been that much active throughout human history.
Globalization is simply the connection between the world’s different regions. It has always existed throughout history. People have been in interaction with their neighbours. Globalization makes it easier for countries, people, and corporations to cross their boundaries in terms of technology, media, global finance etc. (Principle of Marketing para. 1). Economic globalization is the global integration of economies through trades and investment flow. Globalization establishes an international market flow that ignores national marketing borders. Economic globalization includes internationalization of all economic activities and the development of global economic networks. The economic integration between the countries eliminate the social, cultural borders; thus, a multicultural and multinational workforce is established. Economic growth and development gain speed with the 21st century’s globalization because the opportunity of accessing various markets, following the information technologies, and keep pace with the innovation becomes easier. Innovation is the keystone of the global economy. The countries need to follow all innovative investment to keep their place and improve their economic development. New economy proceeds with the technology. Globalization offers all the factors of improvement to the countries. Globalization has different effects on every country. The countries are affected according to their development levels.
The impacts of globalization on the economy are generally positive. International trade and capital flow developed with high technology, new markets, and innovation. Many of the developing countries achieve to export-led economic growth throughout the globalization. International marketing opportunities left a positive impression on the developing countries in terms of accessing new cultures, markets, technologies etc. Access to other cultures remove borders of people from different countries. The multicultural economic system provides people to meet different pleasures around the world. International tourism improves with global markets. Global entrepreneurs try to interest people from other nations by focusing on their request and requirements. The way of doing this is to focus on the last technology and follow innovation. The trade liberalization provides an excellent opportunity for the less-developed countries to turn their face away to abroad marketing ways. They can decide on their future economic recovery by accessing the new markets and cultures. The significant benefit of globalization may be the removal of all kind of borders, including culture and finance.
Economic globalization includes development in global corporation and networks. Globalization integrates the trade and investment flow by internationalizing the most forms of economic activity. Besides accessing new cultures and markets, technologic and innovative information spread rapidly around the world. As a result of globalization labour migration, technology production, sub-assembly and finished product distribution increased at the low-wage economies. Less-developed countries have an unemployment problem that may cause poverty for the citizens. People who live in these countries look for work opportunities in different countries. On the other side, the developed countries need for labour force for the industries. Increase in migration of labour-intensive is an advantage for both workers and receiver country (Pettinger, 2019, para. 4). Globalization helps to find out new talents around the world as well. The young generation is supported through technologic education, and they become a pioneer for future developments.
Globalization affects the living standards of people. Developed countries live in an improved standard of living via globalization. When we look at the general situation, we see that poverty decreases today. According to World Bank penury decreased by 35% from 1990 (Globalization Benefits and Challenges, para. 5). In addition to this, the target of the first Millennium Development Goal was to stop 1990s poverty in 2015; however, this goal was achieved five years earlier (para. 5). Globalization increases international relations and prevents most of the disadvantages of some people who live in a less-developed country.
To increase the life standard, people’s purchasing power should be high. Globalization decreases the prime costs of the products. The decline in prime costs decreases the sale prices, and in this way, purchasing power remains. The consumers are aware of the various decisions from all around the world, and they prefer to buy the cheapest and the best products. Therefore, people live better with less expense.
Globalization has many challenges behind its benefits. At the top of these challenges, we can see the exploitation. Developed countries reach an agreement with the less-developed countries about their industrial producing. The less-developed countries need to take advantages of globalization, so they are open to inflow of capital. The industrial countries make their products in small countries by giving the working opportunity to the people who live in that country. People suffer from poverty for years. Thus, they admit any work with a lower salary. The decrease in the prime costs of the products is because of labour exploitation. A mount salary of the workers in third world country may be equal to the people’ salary of two-three day long that live in developed countries. The globalization brings capitalism beside itself. Therefore, people’s labour, time, and lives are exploited. The developed-countries prefer to establish work opportunities to third world countries to prevent the immigration that is one of the challenges of globalization. People who live in less-developed countries try to migrate towards the industrial countries for a better life. Developed countries need to prevent this flow of migration to stop the pressure on the resources and social order.
Globalization increased competition between the countries. The corporations try to be best at their branch all around the world. Competition is a driving force for countries to have an essential position in the global economy. Multicultural Corporations try to hold their place and improve their financial value every year. This increases industrial production every year. The corporations do not look after the natural values and global health problems. The rapid development of industry causes various pollutions and global warming.
The use of non-secure energy resources or uncontrolled producing systems to catch the low-cost during production give cause for many global health diseases. Derangement and unstrained industrialization cause significant health problems, especially in less-developed countries, because of the lack of opportunities. On the other side, competition causes some conflicts and terror incidents. The trade liberalization is not available for countries to strive to prevent other’s development. At this point, the countries support terrorism from time to time according to other’s movements.
Globalization’s definition is to remove all borders and obstacles between the nations in terms of economy. The global finance actors require to make their industrial production while competing with others. Globalization supplies the connection between the world’s different nations. It gives people the opportunity of reaching the best and cheapest products from all around the world. The cultural interaction increases the variety of products to submit better service for people around the world.
Globalization Essay Conclusion
Globalization provides high-standard living conditions for the developed-countries’ citizens. Besides, it prevents poverty in some regions of third world countries. Throughout the globalization, technologic and innovative information is transferred in a short period. It is a way of finding new talents around the world. The challenges of globalization may be pollutions, capitalism, labour exploitation, and global health problems. 21st century’s economic changes exist rapid, pervasive, and global. The future of country’s economies depends on their global attempts.
Learning, L. Principles of Marketing. Lumen Learning.
Pettinger, T., R.p.s.j, Danielle, Dawn, Letlhogonolo, Lwanele, … Sara. (2019, November 24). Costs and benefits of globalisation. Economics Help.
Globalization Benefits and Challenges. Velocity Global. (2020, June 24).