Article written by Adit:
Globalization is a powerful factor for growth in the developing world, and it is one of the most influential forces in determining the future course of our world. It has many dimensions: economic, political, security, environmental, health, social, cultural and others. The main focus is on how the "globalization" improves the world economy.
Amnon Levy-Livermore observes globalization as “a force for advancing the world economy” (42). There are many important aspects to globalization. Some of its features stem from the effects of competition that it entails. Globalization can contribute to their containment through the beneficial effects of competition and the potential for global cooperation to treat economic and other threats that our world is facing. One can see globalization as a positive development and it must be understood that it has changed the world economic system and poses both opportunities and challenges.
Globalization leads to an increase in worldwide trade. It has involved greater openness in the international economy. There has been a remarkable growth not only in traditional international trade in goods and services, but also in exchange of currencies, in technology transfer, in people moving through international travel and migration, and in international flow of information and ideas.
Globalization has had significant benefits to all the economies of the world, with manifold effects. It affects the production of goods and services. It also affects the employment of labor and other inputs into the production process. In addition, it affects investment, both in physical capital and in human capital. It affects technology and results in the diffusion of technology from initiating nations to other nations. It also has major effects on efficiency, productivity and competitiveness. Globalization has led to growing competition on a global basis (AharoniandNachum 235). Daniel Drezner points out that there are many beneficial effects of competition that can increase production or efficiency (841). Specialization and the division of labor, with their implications for increases in production, now exist not just in a nation but also on a worldwide basis.
Globalization is a very positive force that lifts countries out of poverty. It causes a virtual economic cycle associated with faster economic growth. Nico Van Stokrom, Frank Bonger, LeslieNootenboom and Wim Tebbens mention that the workers in the developing countries now have more occupational choices than ever before (167). Competition and the widening of markets can lead to specialization and division of labor which in turn helps for an increase in production on the worldwide basis. Thus globalization has the potential for increased output and living standards. The result is a potential for human well-being throughout the world. For instance, China has benefited enormously from globalization as a result of which thousands of people have been lifted from poverty and have improved their standard of living.
Therefore, globalization is a positive force offering opportunities. The net result of globalization depends crucially on the nature of the world system. In a cooperative world globalization benefits the economies of the world.
Works Cited
Levy-Livermore, Amnon. Handbook on the Globalization of the World Economy.Cheltenham,UK; Northampton, MA, USA: Edward Elgar, 1998. Print.
Aharoni, Yair and Lilach, Nachum. Globalization of Services: Some Implications for Theoryand Practice. London; New York: Routledge, 2000. Print.
Drezner, Daniel. “Globalization, harmonization, and competition: the different pathways topolicy convergence.” Journal of European Public Policy 12.5 (2005): 841-859. Print.
Van Stokrom, Nico, Frank Bonger, Leslie Nootenboom, and Wim Tebbens. “Globalization andthe effect on national accounts: Practical examples.” Statistical Journal of the UN EconomicCommission for Europe 23.2 (2006): 167-178. Print.
Written by: Adit
Oct 2011, Minneapolis MN
