Globalisation
Introduction
In the recent
past, the global regime has experienced significant development that has
resulted in the establishment of regional integration and globalisation. Globalisation
can be defined as the aspects of increasing financial and economic integration
to encompass all the economies of the world. The aspects of globalization are
manifested in the establishment of production, financing, sales and also in the
distribution of goods and services (Ismihan et al 2008). Given that some
nations were opposed to the ideology of globalisations, the proponent so
globalisation has asserts that these beliefs have significantly enhanced the
aspects of globalisation.
Abstract
Globalization
mainly in the financial is increasing drastically, is opening up the new venue
in the developing, and develops nations. The major impact that has contributed
to the developing countries is opening venue for foreign capital and investors’
sectors (Hopkins, 2010). The government
have been able to access to foreign loans, which are used in the development of
the infrastructure such as roads, railways; health care and social services
such education. The investment such
sector will improve the standard living of citizens, however not all the
investment will benefit all people because it done selectively (Ayyagari,
2011).Globalizations also provide market of products from developing countries
to the international market. In the process, it allows the companies to acquire
new technology and develop new products that can compete in the international
level. Wide market allows the companies
to create new investments thus creating new jobs. Nevertheless, globalization
my lead to closure of some companies in the developing nation due to influx of
imported inferior products, which may be cheap. This makes a country to
register negative economic growth certain sectors (Hopkins, 2010).
Literature
review
The
consideration of the development of globalisation has taken toll in the recent
past and significant studies have been conducted to enhance participation of
the global nations. Analysis of the records has stated that global economies
have continued to embrace the aspects of globalization in the conduction of
business activities and in the exchange of ideas. In this regard, technological
advancement has been cited as one of the leading factors that has enhanced
development of globalisation (Khavul et al 2010). In summary, globalization is
a process where the countries all over the world come together in sharing
products, ideas and culture because of improved transport and telecommunication
infrastructure such as internet and promote sharing of economic and cultural
activities (Ayyagari, 2011). Analysis of the records has shown the IMF and WTO
have significantly enhanced the establishment of globalisation by enacting
rules and regulations that enhances omission of taxes and tariffs. The
establishment of tariffs has been cited as one of the measures that have
reduced the activities of international business and the reduction of these
tariffs by international monetary funds and world trade organization has
resulted in the enhancement globalisation (Murthy 2008). In the wake of these
developments, the establishment of these directives are beneficial because it
enhance the establishment and the realization of economic growth and development
of the economies. In this regard, the establishment of globalisation can be
stated to have significant effect in the establishment of sustainable economic
development. Economic growth is sustained and the utilization of nation
economic resources is also enhanced. The major obstacle the most countries are
facing especially the developing is to attain set goal in the economic growth
is to provide enabling atmosphere for
proper use and harnessingeconomic resources (Ayyagari, 2011).Globalization has
made situation to become worse because economic dispensation undermine and
marginalize development economies. Globalization has help more developed
countries to develop further and improved the standards of developed countries
while other countries especially the developing show minimal economic growth
thus poor standard living of people in such countries (Khavul et al 2010).Globalization
is the flow of people and resource in the process it has help in the flow of
labour in the world. The increase of
trade especially the international has promoted sharing of data and information
hence it is very easy for individual they get employment opportunity in the
other country which not origin (Khavul et al 2010). Ideal depiction of
globalisation is the case of fashion industry. This industry faces significant
involvement of regional industries because the designs are made in Sydney but
the materials for the Sydney industrial are sourced from china. Finally, the
assembling of the industries is done in Switzerland. Finally, the finished
products are transported back to Sydney for assortment and sale. In this
regard, the depiction of the benefits of globalisation and regional integration
is highlighted by the development of this example of fashion industry in Sydney.
These promote the specialization in the labour market and promote the
dependence of world economy (Kim, 2009).
One
factor that has characterized globalisation is the establishment of modern
technology which has resulted in the development efficient communication. This
has resulted in the enhancement of business incentives. (Fuhr, 2001). Its
contribution has not only affected rapid expansion of the information sharing over
the website or internet but also the increase in the education chances and form
part of transnational networks. The
information that accessed by few individual it now can be accessed to many
people from different background. Faster accesses to information by the citizen
make them to understand their rights and become part national activity by
ensuring their demands met (Ismihan et al 2008). However, social globalizations
bringmany challenges to various governments because the controls what type of
information get to its citizens (Kim, 2009). Analysis of the records has
highlighted that the consequences of globalisation leads to the improvement of
capital flow of the global market. (unalı, 2010). Finally, the attributes of
globalisation has proven to be beneficial for the establishment of developed
countries. Liberalization has helped it gross domestic products to grow from
5.6% in 1990 to average 77.8 in 1996-7, which was its peak (Mahtaney, P 2007).
However, it has maintained its economic growth at average 5-6% in the past six
years and at the moment India is the second fastest growing economy after
China.
Research
methodology
Over the period,
significant amount of research has been conducted about the aspect of
globalisation. Conduction of these researches has been initiated to help in the
establishment of the benefits of globalisation in the enhancement of economic
performance. Some of the leading factors in globalisation are the transfer of
human capital and the establishment of ideal market for the goods and other
commodities. The research conducted above has been beneficial in highlighting the
benefits of globalisation. However, the aspects of globalisation and economic
development of the emerging economies are not highlighted in the researches
conducted. In this regard, the establishment of this research is aimed at
enhancing the establishment and contributions of globalisation in the
developing economies.
Analysis
Analysis of the
reports has revealed that the development of globalisation has been extremely
beneficial for the enhancement of the global economies. Globalisation is
crucial because it enhances integration and interdependency between the developing
economies and the developed nations. The establishment of the economies has
revealed that the consideration of the economies is largely dependent on the
contributions of international trade Robert, K (2009). Over the period, trade
has been identified as the leading factor of globalisation that enhances
regional integration and the transfer of resources and other attributes like
the factors of production and human capital. Majority of the developing nations
have the attribute of adopting the considerations of globalisation because it
encourages economic development and establishment of the economic factors.
Source Robert K
(2009).
The depiction of
the findings above illustrates the contributions of the aspect of globalization
to the development of the national economies. It is evident from the analysis
above that developing has continued to experience significant economic
development because of the involvement of the factors from international
markets. The table shows presentation of results depicting the value of imports
as an attribute of globalisation.
The pie chart
below highlights the depiction of developing economies and it is evident that
the value of manufactured goods is higher in thee economies because majority of
the foods are imported from developed nations (Kim, 2009). Developing nations
have ideal standards of manufacturing their goods but they have limitation in
extracting and manufacturing and this calls regional integration and
globalization.
In
view of Mbemba (2012), diversification of resources is a concept in business
strategy, which increases the range of business products and services.In
addition number of organizations use the strategynot only as institutional
strengthby lowering organizational risk factors and spreading interest in
different areas but also taking advantage of market opportunities, and
acquiring both business both horizontal and vertical in nature sectors
(Hopkins, 2010). Globalization has help companies in the developed countries to
get cheap labour from developing nations. Human capital in the developing
nation is not very expensive compare it to developed so multinational companies
invests in developing nation to low cost of production through labour. Apart
from labour raw material in the developing national are relative cheap and
readily available (Ismihan et al 2008).
Conclusion
Globalization
has both developed and developing countries in both positive and negative ways.
Most of the country or the individual who take the advantage of globalization
will benefit and steer economic development faster (Mahtaney, P 2007).
Globalization implications in national economy are many. The increase rate of
dependence and competition among economies in the world market, thus trading of
interdependence concerning trading in goods and services the movement of
capital. Internal developments notentirely influenced by country internal
policies and market environment.
International and domestic policies and economic condition both
influence market too (Fuhr 2001). Thus, when government formulating it domestic
policies must put the consideration of international condition to ensure
economic growth
Reflection
The
establishment of globalization has significantly enhanced regional and economic
development of global economies. In this regard, the analysis of the research
findings have revealed the overall benefits of globalization but the ideal
graphical and tabular benefits of globalization with respect to national
economic performance is not readily available. There are significant amount of
data regarding the developed nations but the depiction of developing nations
has not been adequately documented and this has proven to be a major difficulty
in the establishment of results about contributions of globalisation. In order
to overcome the difficulties and establish critical research for the project,
the analysis of collective national economies of the developing economies was
used in the research. The analysis of the collective results of the developing nations
has also proven to be critical for the establishment of correct results and it
has necessitated conclusion for the research.
The conduction
of this research has been immensely beneficial because it has enabled the
researcher to understand the provisions and operations of the global economy. In
conduction of this research, globalization has been presented as a significant
aspect that significantly enhances development of the national economies. With
regard to the development of the national economies, regional integration is
highly beneficial because it enhances the conduction of trade between various
nations and this leads to the development of the national economies. The
conduction of this research has proven to be extremely critical because it has
enabled the researchers to understand the complexities and disparities facing
development of the nations. The contributions of developed nations towards the
development of the global economies have been highlighted because they
highlight general establishment of the factors of production. The consideration
of providing the factors of production to the global has been beneficial in the
establishment of world trade and regional development. The global economies
have been portrayed as interrelated factors that are dependent on one another
for the attributes of trade. Finally, globalisation has been highlighted as the
factor responsible for the establishment of development of the global market
and global nations.
In the wake of
unfolding realities about globalisation, it is extremely beneficial for the
global economies to adopt the aspects of globalization because this wills
enhance significant development of the global economy. In this regard, various
global economies must adopt the provisions of globalisation because the
provisions and the recommendations of globalisation provide ideal features that
enable the nations to relate and conduct business. The economists in the global
nations should adopt the aspect of globalisation because it provides ideal
incentives for the nations to exhibit development. Therefore, establishment of
globalisation in the future will enhance regional integration and coordination
between various nations in the global perspective there leading to increase in
development.
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