Most impressive topic - GLOBALIZATION

For me, the most impressive topic is Globalization as it is a controversial issue.  It affect a lot on polities, cultural and economic. I am quite concern about the effect of economic globalization. Some people think this help to improve economy in the world while others argue it is harmful to society.

The book “Boddy” define the economic globalization as “Increasing integration of internationally dispersed economic activities.” (Boody, 2011, 125)

    

      I think it is good for economy rather than bad, since it closer the relationship between countries.

Examples

Apple

Apple - products designed in the US, but produced in China

 This chart revealed apple's product sell worldwide.

McDonald

McDonaldization transform the fast food culture in global society of McDonald.

 Nowadays, there are more than 3,4000 in the world.

Coco-cola

Without globalization, we cannot drink coca-cola at anywhere.

Thus I think globalization is very important to economy.

My home country - Hong Kong 

As I come from Hong Kong, so I want to talk a bit about my home country.

Before globalization:

Hong Kong could be defined as low living standard city since there are low level of scientific and education and    low wage labor force.

Then Globalization attracted people to do business and build manufactory

After globalization:

High technology was imported, and employment opportunities was increased since companies need to hire more workers, some of the manufactory even moved to other low wage countries or cities so as to lower their production costs.

So globalization does improved our living standard and help to opening up to global markets.        

   

There are many others benefit of improving economy:

• Increased trading

This book mentioned Globalisation is "Invisible hand”, to regulate markets and competition in a global market place (Gangopadhyay and Chatterji, 2005, p. 165)

But how can globalization increase trading?

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•      Decreased trade barriers

Without global trading, nations would be limited to the goods and services produced within their own borders.

I watched an article'The gated lobe' from a magazine "The economist" on Oct 12th 2013, it

talk about the trade barriers have been decreased.  

From the magazine:

In 2013: the value of goods-and-services exports run to 31.7% of global GDP.

Moreover, the big emerging markets like Brazil, Russia, India and China have displayed a more interventionist approach to globalisation, they relies on industrial policy, so that they can lower their cost of tariffs and quotas. 

  Examples:

General Agreement on Tariffs and Trade (GATT) help to reduce international restriction

and tax problem

From a report:

According to the Global Enabling Trade Report 2012. Reducing Supply Chain Barrier , it stated that reducing supply chain barriers can increase global GDP.

•  Decreasing poverty 

It might be quite hard to say why globalization decrease poverty, it seems the poverty was increasing, so let me explain more.

      

Globalization brings developing nations into the world marke such as US, China. 

Also, richer nations are spreading wealth to poorer ones.

Examples: Export growth & incoming foreign investment reduced poverty from Mexico to India & Poland 

From the research:

More important is that,  A research showed the world poverty rates have steadily fallen over the past 20 years. 

Decreased poverty in the world showed the economy was improved

•        Labour availability and skill

Lower labour costs and High skill levels from others countries

Examples: India has low labour costs (about a third of that of the UK), the clothing industry in Europe hire workers in India, so the productivity costs can be decreased by taking advantage of cheaper labour costs

The idea of example was taken from this BBC News, as it mentioned people will hire workers in India.

 However, Globalization bring negative effect as well.

 Globalisation is widening the poverty gap, which leads to economic inequality.

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• Poverty doesn’t decreased in all countries

Currency crises can cripple the poor

Example: Indonesia: poverty rates increased by at least 50 percent after the 1997 currency crisis

      Meanwhile, rich nations profit come from the expense of the poor

      And it harm third-world farmers as the removal of trade barrier, prices are too low so they cannot support agriculture

So this will increases economic inequality in the world

• Only serves the interest of powerful states and capitalist elites

     

    The New technology has only moved to elite nations in order to serve an economic interest

     

       Some countries still suffers from deepening poverty cycles

   Examples: Africa is not powerful at all, so they untouched the effects of globalization

   
   This is not fair to those poor countries and larger the poverty gab.

Among those advantages and disadvantages, I still think globalization helping our world but not destructing it. 

• Improve economy in the world

As it moved countries away from agriculture to manufacturing, Unemployment has decreased significantly in poorer nations, especially in Asia

It increase social mobility & trade and prosperity extended to developing regions

So I think the world is brought closer together through the consciousness of shared global space.