Introduction The economic race between each country caused an enormous changed of global economic growth and caused the formation of globalisation (Underwood, 2014). Globalisation is a new phenomenon that has become increasingly prominent in the world. It is the basic characteristic of the present age, the economic transformation by which organizations or different associations create … Read more
1. Introduction The globalisation aspects of modern society have transformed the economies of societies all over the world, with the resultant environment providing corporate entities and entire government with access to resources outside their borders. The globalised economic environment has created a means for these entities to cooperate with other actors outside these national boundaries, … Read more
ABSTRACT The automotive companies in the world are facing new and pressing challenges. In future due to globalization, the automotive supply chain would focus on exploring innovative methods to reduce operating costs, lead times and inventory to sustain their growth rate in market. Globalization will foster a substantial industrial reorganization in the automotive industry. The … Read more
Globalization is a mechanism of cooperation and unification between the individuals, corporations , and governments of various countries, a movement guided by international commerce and prosperity and supported by IT. The FIFA World Cup, for example, has more fans than any other sporting event in the entire world. Cultural globalization is characterized as measurable by … Read more
Globalisation is the process of integration and interconnection of economies and societies; and the intermingling of different cultures (Upadhyah, 2016). Things such as advancement of technology dissolves international boundaries and opens cultures to new experiences ), enabling globalisation to occur. On one hand globalisation has the potential to promote a collective identity through socialisation and … Read more
Globalization continues to be a study with great controversy among scholars. There are disputes over the origin and overall definition of globalization (Turner and Holton 130). Understanding globalization is crucial to how it is used and interpreted in our society according to Scholte (67). This study has been used to explain cultural, economic, political, religious, … Read more
INTRODUCTION Since the dawn of mankind people were always trying to record their presence on this planet. From cave drawings and all kinds of petroglyphs, hieroglyphics and other kinds of writings and carvings in stones, pyramids and every other type of temples around the world we can see that we as a race had always … Read more
This will be a minimum of 9 double-spaced pages, not counting the required Works Cited section. You may include graphics if you wish (e.g., charts, graphs, illustrations, etc.) but the total of the text portion not including those graphics must fit the minimum page guidelines. Write an argumentative essay on a topic relating to both … Read more
Economic globalization is the process of increasing the financial integration amongst countries. Consequently, economic globalization leads to the development of a “global marketplace” or “a single world market”. Economic globalization is enhanced by the accession of multinational enterprises, which result into the rise of the profits of that “global marketplace”. It is hard to define … Read more
Title: Globalisation has benefited everyone. It helped all the people to increase their living standards, brought advantages to organisations and businesses and enabled economies to develop.” Discuss Introduction We live in a self-regulating world. Countries are influenced by the economic health of other countries and by their governments’ policies. Problems in one part of the world can … Read more
Globalisation is the integration of markets through trade openness; giving countries greater access to newer technology and institutions and is said to eventually lead to price convergence. (Crafts, 2004). Many argue over what the actual consequences of globalisation are. Some say it leads to economic convergence others say it leads to economic divergence. In either scenario, it is still hard to say that globalisation is good for everyone, as there are winners and losers in each scenario.
One aspect of globalisation commonly argued is that it will help lead to global convergence where less economically developed countries will converge to levels seen by better economically developed countries; this convergence is argued to reduce overall global inequality. (Baumol, 1994). As these poorer countries increase their accumulation of new capital, they should be able to catch up and converge with richer countries. (Crafts, 2004). However, globalisation doesn’t benefit everyone the same, for example Baumol elaborates on the “advantage of backwardness.” Less developed countries are able to implement newer technology and therefore can grow at faster rates than already developed countries. This shows that globalisation is better for less economically developed countries and that richer countries will grow at slower rates. (Baumol, 1994). However, it is important to note that it appears that convergence is conditional which means that not all countries catch up and it is conditional on certain factors; such as high education levels, openness to trade, high investment levels, and political stability. Countries that have these factors are said to be a part of the “convergence club.” Again, this shows that globalisation doesn’t help everyone the same and in fact it might lead to global divergence and increased global inequality between countries that are in the club and those who are not. (Baumol, 1994). Even though membership to the club is expanding as more and more countries join by meeting the conditions, less economically developed countries seem to be the ones that can’t join the club and therefore fall even more behind. (Baumol, 1994).
Not all countries benefit from openness to trade. As trade occurs countries will tend to trade in what they have a comparative advantage in, however
Prebisch and Singer argue that countries who have their advantage in primary resources might be negatively affected. (Crafts, 2004). Prebisch says countries focusing on agricultural goods tend to underperform those who focus on manufacturing, this again might lead to overall divergence and increasing inequality. (Crafts, 2004). He argues that countries might need to implement protectionist measures such as tariffs for a while, to be able to set up a reliable manufacturing sector or to prevent negative price convergence, however given globalisation, this can’t be done without the possible consequence of retaliation leading to possible trade wars. (Crafts, 2004).
However, setting aside countries not in the convergence club, convergence doesn’t benefit everyone in the club either. As globalisation leads to factor price convergence, meaning some will experience price increasing, others price decreasing, this is the same for wage convergence. (Williamson, 1997). This can lead to increased income inequality within these countries. Essentially although international equality might decrease, intranational inequality might increase. Due to the increased migration from globalisation the supply of unskilled workers will increase (as migrants tend to be unskilled). This lowers unskilled wages relative to skilled wages, increasing the income gap. (Williamson, 1997).
In conclusion, although some aspects of globalisation seem to be beneficial; such as convergence allowing poorer countries to increase their growth rates quickly. It is very clear that these benefits aren’t extended to everyone and that these benefits aren’t distributed equally, possibly leaving some relatively worse off.