Implications Of Globalization Research Assignment (Essay Sample)

Implications of Globalization to the Global Economy
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Implications of Globalization to the Global Economy
Globalization is the process of interchange of various aspects between the world’s economies in a seamless and integrated manner through the movement of capital and goods and services across borders. According to Wolf (2014), the International Monetary Fund (IMF) recognized the four fundamental features of globalization as capital and investment, trade as the driving force, labor inflow and outflow, and Information Communication Technology(ICT). Notably, globalization is an ever-flourishing process geared by advancement in technology. For instance, revolutionization of communication between countries and individuals. Therefore, the globalization process has effects on the world’s economic development aspects such as trade, transportation, communication, and political systems.
Firstly, globalization has led to increased access to international markets through trade. Consumers can access a variety of goods and services from other regions in the world. Consequently, competition between companies has increased which, subsequently, leads to lower prices of commodities. On the other hand, some “corporations have gone global by becoming multinational companies” (Gemma, 2014). These companies have headquarters in one country, but they open branches in lower-wage countries, widening their global market. Similarly, locating production plants in lower-wage countries lowers production costs for the companies. However, countries that lose the well-paying jobs are at a risk of higher unemployment rates.
Secondly, advancement in transportation technology has made it possible for people to move from one place to another with much ease. People can travel to other parts of the world where they can experience new customs, languages, and even attend international business seminars. Consequently, the global economy has witnessed a faster movement of goods, which boosts global trade.
After that, through globalization, countries and organizations can strengthen their relations through partnership. Agreements are made, and as long as they are upheld, global-cooperation is sustained. Such organizations “provide both stability and security for countries that wish to remain peaceful and prosperous” (Ghemawat & Pisani, 2013). Moreover, the world can work together and share ideas resulting to new solutions to combat existing problems.
Also, developing countries have a chance to develop economically due to the foreign capital influx. The money can be used to improve and expand transport and communication network, build education facilities and even health services. Therefore, improved standards living of people can be realized.
On the contrary, globalization poses new challenges to the world economies. For example, some corporations won’t survive as a result of stiff a...