the impact of globalization on world economy essay in english

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The impact of globalization on world economy Essay

Essay – the impact of globalization on world economy.

The impact of globalization on world economy Essay: Globalisation has been started since the starting period of civilisation when human just learned to move new places. It has become a great phenomenon to bring rapid change and advancement within many sectors related to our livelihood. With the advanced skills and technological development globalisation has spread in the world over time. It is undeniable fact that globalisation has impacted near about all spheres of modern life specifically over global economy. Globalisation pays the role of increasing business operations worldwide with technological, economic, political and environmental advancements which will create favourable condition for all. The impacts of globalisation become quite evident when it comes to international trade. People get new dimension in selling and buying products, import, export and increasing their own business. The essay will clearly explain the effects on world economy for globalisation.

Positive effects of globalisation:

Countries get new opportunities to expand their business worldwide which open paths of sharing knowledge, culture and talents. People find out ways to reduce business complications through globalisation. It supports many developing countries to see growth in their economy. The path of sharing knowledge and advancing technology with cooperation becomes easier among countries. Many countries get direct opportunities to bring technological advancement in each stage of economy for faster development. Countries mix up with developing and low economy countries which can control the cost of goods and services and provide benefits to direct consumers. Developed countries get chances to invest continuously on research, development, innovation and implementation for improving situation. The relationship of cooperation between developed and developing countries becomes strong with long term benefits in economic aspects.

Competition in each sector:

With globalisation the number of producers for a single product gets increased which arises the competition in the market too. When stakeholders focus on a single product its price decrease naturally and it becomes beneficial for consumers. Countries face less import and export cost for delivery their products which increase the level of business. People have to pay less charges for their needed goods and services in the competitive race of business. Manufacturers make their own strategy to increase the popularity of their products among consumers in the competitive environment. They get better competitive price of products and can buy after comparing the price in market.

Foreign direct investment:

Globalisation clearly reflects more foreign direct investment with extended business in worldwide. Countries become more active in exporting raw materials, products, technological equipment, and tools etc. which include foreign direct investment in a country’s economy. In the same way, countries get influenced to improve their import business and extent business network with other countries for increasing foreign direct investment in total annual economy. Countries grow interest in developing business relation with neighbouring countries by sharing views, knowledge ad experiences which ultimately increase foreign direct investment.

Development in technology:

Globalisationbrings competition in every sector of modern life including business and economy. People can realise development not only in their living but also within the whole nation. Apart from that people experience technological advancement too in any sector. Within this technological advancement we see innovation, efficient usage of technology for all purposes. That creates a different form of competition in business, production, management and other sectors. Globalisation creates more efficient market, methodology of production, strategies of business development and developed world economy. It brings both short term and long term benefits in our lives. So, we all should welcome and include it business, government activities, business management etc.

Shared knowledge and skills:

Globalisation creates the highest chances of cooperation and correlation among countries for various purposes. They become so indulge in improving operations through sharingknowledge ad experience with each other. After that it shows new ways of including technology and new concepts to develop business. That ultimately affects economy and brings economic growth in the global economy.

Conclusion:

Globalisation is known for bringing development in each sphere of our modern life. It shows us the right ways and methods of improving the present tactics and strategy of business. Countries find out new ways of including innovative technology in business market to expand it globally. People take active parts in improving the business through the showing ways of globalisation. So, it brings ultimate growth in the world economy which affects people around the globe.

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Effects of Globalization

Definition of globalization, drivers of globalization.

Globalization is defined as interaction among different countries in order to develop global economy. It entails political, technological, cultural and political exchanges which are facilitated by infrastructure, transport and communication. Some of the traditional international theories of globalization include Ricardian theory of international trade, Heckscher-Ohlin model and Adam Smith’s model (Scholte, 2005).

For globalization to take place, it must be driven by certain factors. The first factor that drives globalization is competitiveness in the market, which focuses on aspects such as global competitors, interdependence among countries and high two-way trade. The second factor that drives globalization is the government.

The government drives globalization through regulation of marketing activities, provision of technical standards that are compatible and elimination of restrictions imposed on trade and investment procedures. The third factor that drives globalization is cost.

Cost in globalization deals with efficiency in sourcing activities, world economies and emerging technological trends. The fourth factor that drives globalization is market, which covers ordinary needs of customers, channels of world markets and marketing techniques that can be transferred to different regions.

Globalization is associated with both positive and negative effects. Its first positive effect is that it makes it possible for different countries to exchange their products. The second positive effect of globalization is that it promotes international trade and growth of wealth as a result of economic integration and free trade among countries.

However, globalization is also associated with negative effects. Its first negative effect is that it causes unemployment. Since companies compete with their rivals in the market, sometimes they are forced to sack some of their employees in order to reduce salary costs and instead maximize profits. This is common in developing countries, where large numbers of unemployed people live in urban areas.

The second negative effect of globalization is that it promotes terrorism and criminal activities because people, food and materials are allowed to move freely from one country to the other. Individuals with evil intentions take advantage of this freedom and carry out terrorism activities and other crimes (Negative Effects of Globalization, 2013).

Negative Effects of Globalization. (2013). Web.

Scholte, J. (2005). Globalization: A Critical Introduction. New York: Palgrave Macmillan.

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Impact of Globalization Essay | Essay on Impact of Globalization for Students and Children in English

February 13, 2024 by Prasanna

Impact of Globalization Essay: Since the decline of communalism, Globalization has become one of the most controversial and debating issues among people around the World. Globalization has a different definition to different people, and whether it has a positive impact today or was better for yesterday is still questionable. Although a part of the population questions its existence, it has significantly impacted both developed and developing countries’ economies. Globalization cannot simply be related to being political as it has had significant effects on cultural, ideological, and social aspects of people around the World.

To understand the impact of Globalization, it is important to know what it is. One of the popular political scientist, James Rosenau, described the term as a currently popular label and accounted for people’s norms, goods, ideas, services, activities, and currencies that are localized and practiced in a confined area. As per World Health Organization, Globalization is defined as the interdependence and interconnection of people in a local place with the people around the World. The two main elements that need to work here is the ease of flow of goods, services, and activities of people from one place to another and the incorporation and change in policies that allow the easy flow of exchange around the areas.

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Worldwide Interdependence

Globalization is a complex procedure that includes the trends and tendencies of the economic, cultural, and social spheres of the people and places around the World. The process is huge and not easily predictable but organized as well. The liberation of investment and trade, Social networks worldwide, technological innovation, and entrepreneurship are the four major factors of Globalization.

Many political scientists believe that the two major forces that make Globalization effective are technological innovation and entrepreneurship. However, it is impossible to prove that the process works without the intervention of other factors. With the adoption and evolution of market-related laws and policies in local and international fields, the governments have played a significant role by allowing economic integration of special activities and giving major independence to welcome the outside World. Globalization’s financial aspect is the major force that acts as a driving agent for both the political and social parts. Due to the colonization by Europe in various countries, some of the practices and cultural lifestyle is adopted by the people deep inside the African villages.

Globalization Plays a Role in the Worldwide Development

Globalization has made way for the countries to develop rapidly. However, the development is not even because some countries are growing quickly in comparison to others. The interconnection between the countries helped decrease poverty, but it does not equally support global community members. The developing countries lie in a depriving position while the developed countries enjoy all the interconnection benefits. However, when we take a close look at the impact of Globalization worldwide, we can conclude that it has both positive and negative effects on both developed and developing countries.

Globalization has proven to make a positive impact on the quality of life of people in developing countries. Funding from foreign countries and industrialized nations are helping many developing countries to decrease poverty. These funds are spent on improving the social, health, transport structure, and education of developing countries, helping them with a standard of living.

Today, the developing countries can openly communicate and trade through transport, labor, technology, management, and other benefits from other industrialized countries.

The impact of Globalization around the World

Globalization has its backdrops that dually affect both the developed and developing countries. However, considering the positive side to be heavier, people still believe it to be beneficial and aim for a better standard of living for all the poor people around the Globe.

World Trade and Globalizationz

According to political scientists, the impact of Globalization and trade on developing countries and industrialized countries is obvious that has a positive impact on the economic development of the nations. However, economic progress is not possible if the member countries and governments do not allow free trade flow without any limitations. The liberalization of trade will help the free flow of goods and services with an increasing profit to the producer country and the export countries. In the past decade, Uganda has proven to improve its economic situation by allowing free trade flow and restricting laws.

Trade is emerging as a trend in various underdeveloped and developing countries. With the reducing restrictions of trade, labor requirement and demand of manufacturers has risen. Many such industrialists migrate their business and production to developing countries, increasing employment and wealth among poor people. The hosting countries get several benefits from such a situation. Firstly, increase in employment opportunities as a lot of labor and workforce is required in industries. Import of new technology automatically activates with the welcome of new foreign sectors. Therefore, training local employees gives another opportunity for employment for the hosting countries. Often these foreign industries distribute their work and machine factories in various other countries and states. In such cases, the widespread chance of employment paves the way for Globalization.

Globalization Increases Competition Among Countries

With the increase in creativity and innovation, local and Global competition is an automatic result of Globalization. The competition among the producers ensures the quality of the product and the efficiency of producing goods. One of the major positive effects of Globalization is access to foreign interests, culture, and entertainment via music, movies, apparel, and television broadcasts. The cooperation among the government officials and the focus on similar goals has helped distribute knowledge among different underprivileged countries. With Globalization, the news and another kind of interactions can be done faster than expected.

However, with numerous positive effects of Globalization, there are several negative impacts as well, which the critics put together to criticize the concept in developing countries. According to reports of 2004, Globalization’s negative impact has no greater examples than countries like China and India.

Negative Impact of Globalization on Developing Countries

According to political scientists, the major negative impact of Globalization is poverty. Although it is said to have decreased poverty in developing countries, the Secretary-General of the United Nations, Kofi Annan, says that only a few countries are enjoying Globalization’s benefits. In contrast, most developing countries are left behind in the dark. It is not possible to evaluate the effect of Globalization on poverty. However, according to a survey, Sub Saharan Africa shows increased poverty by eighty-two million, central Asia and Europe by fourteen million, and the Caribbean and Latin America by eight million. However, Globalization alone is not responsible for poverty in developing countries, weak reforms, governance, lack of economic policies and ideas. Like Zygmunt Bauman, popular political figures claimed that Globalization makes the industrialized countries rich and the poor developing countries poorer.

Globalization helped several African colonies; however, today, most of them are dependent on large wealthy countries over the years. The African colonies are known for their largely consuming economy. The weak agricultural practice and growth make the overall economy worse in Africa. With the decline of trade and import facilities in the late 90s, the region’s per capita income has slowly reduced. The survey of social and economic conditions of Africa has an external debt of a million dollars.

Impact of Globalization on Health and Diseases

Globalization has made a serious impact on the hygiene of infectious and deadly diseases. It has given the developing countries the opportunity to restraint, prevent and eradicate the infection quickly. The reason why deadly diseases are increasing worldwide is because of the technological challenges that led to the increase of harmful emissions, resulting in global warming. The increase in mosquito breeding in open waters, bathing in pools, and other ways to be contaminated with the Schistosoma’s larvae might result in harmful diseases. With the use of western diets in developing countries, food-related diseases started increasing in the long run.

The western style that took place through Globalization has led the adults and the youth to lose their core values leading to several diseases like AIDS or HIV that have a long-term effect on the country’s society and economy. Before the liberalization came into practice, the coffee farmers of Uganda had a Coffee Marketing Board organized by the Government that worked as a middle man between the farmers and the foreign buyers. Even though the farmer’s infrastructure cost was to be paid, they were assured of a standard price. However, with the introduction of Globalization, Coffee making board was abolished, and the farmers had to shelter in the unpredictability of the world market.

Impact of Globalization on Employment

With the introduction of Globalization, the structure of employment opportunities in developing nations has taken a turn. Before the inception of Globalization, the main source of occupation and economy in developing countries was based on agriculture among both men and women. With the introduction of foreign industrial corporations, the section of people has shifted their occupation from agriculture and joined industries as laborers required for mass production. This led to a small scale of people working in the fields. Evidence shows the decrease of male workers in agricultural areas by sixty-two percent and the female workers by fourteen percent. The increasing unstable income and unemployment with no guarantee of their future result from the employment structure in the developing countries.

Globalization has led to mass unemployment as multinational companies outsource their services. The three main changes that Globalization leads people to are the changes in their income as laborers, changes in prices, and household production-consumption. Before Globalization, there was a difference between skilled and unskilled laborers. However, with serialization, the demand for educated workers gradually increased in the developing countries. Among several debates, the only conclusion found to be similar is that there has been the development of inequalities with Globalization in developing nations.

Impact of Globalization on Cultural Boundaries

Before Globalization came into existence, the native countries had their own culture and practices. It leads to the extinction of various native languages in developing countries. Today, people are keen to learn the common language around the Globe, English, and thus, the cessation of languages is taking place rapidly. The blend of western and local culture has led to the declination of cultural barriers, which has led people’s individuality and culture to fade away. The imbibing of extremist ideas and adaptation of multiple cultures has led to multiculturalism, causing terrorist attacks and suicide terrorism in countries like Sudan, Egypt, Tunisia, Somalia, and many more.

The free trade areas in the developing countries that welcome the foreign investors have turned to adapt more negative points than positives. The female workers of factories are physically and verbally abused to keep up with the foreign industrialists’ production demands, as mentioned in 2003, “The Hidden Face of Globalization”. To maximize production and profit, many multinational companies avoid maintaining a secure and safe environment for their workers. The Philco Ford assembly plant in Taiwan was recorded to kill twelve female workers due to toxic fumes. All these are also leading to a toxic environment harming the eco-friendly areas of the developing countries. Other than these, human trafficking, cheap labor, and other illegal practices are also a result of Globalization.

Impact of Globalization Essay Conclusion

Globalization is a complex procedure that is currently the topic of debate around the World. Since it has both positive and negative impacts on the developed and developing countries, many countries face economic wrath and a serious lack of growth and development. It is the leaders of developed countries’ responsibility to take measures and try to remove poverty from the developing countries and improve their style of living. Imposing various rational laws and reforms for a better guide of liberalization will help the developing countries. All the developing countries must get equal opportunities rather than focusing on a few countries to develop into a better country both in economy and health.

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Essay on Impact Of Globalization On Economy

Students are often asked to write an essay on Impact Of Globalization On Economy in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Impact Of Globalization On Economy

What is globalization.

Globalization means countries all over the world are connecting more. This happens through trade, technology, and people moving from one country to another. It’s like everyone is becoming part of a big global village.

Trade Between Countries

Because of globalization, countries buy and sell things to each other a lot more. This means you can find the same brands and products almost everywhere. It’s easier for companies to sell their stuff to faraway places.

Jobs and Industries

Some places now have new jobs because of globalization. But, some workers lose their jobs too, especially in factories, because companies move to where they can pay less for labor.

Technology’s Role

Technology, like the internet, helps make globalization possible. It lets businesses work together from different countries and allows people to buy things from anywhere in the world.

Impact on Wealth

Globalization can make countries richer by helping them trade a lot. But sometimes, the money only goes to a few people, and not everyone gets to share the benefits.

250 Words Essay on Impact Of Globalization On Economy

Globalization means countries all over the world are connecting more than ever. Think of it like friends in a big playground sharing toys and ideas. Countries trade goods, services, and money, and also share knowledge and culture. This has changed the way money moves and how businesses work.

Trade and Markets

Because of globalization, countries can sell things they make to faraway places and buy what they need from others. This has made products like toys and clothes cheaper, so more people can buy them. Companies can also make things in countries where it costs less to produce, which can lead to lower prices for us.

Jobs and Skills

With globalization, some jobs move from one country to another. This can be good for countries that get new jobs, but not so good for places that lose them. It also means that people need to learn new skills to work with others around the world or to use new technologies.

Investment and Growth

Money flows across borders more easily now, which means a business in one country can get investment from another. This can help businesses grow and create new jobs. It can also help countries develop faster by getting access to more money for big projects like roads and schools.

Challenges and Balance

Globalization has its tough sides too. Sometimes it can hurt local businesses and can also lead to fewer jobs in some areas. Countries need to work together to make sure the benefits of globalization are shared by everyone and to support people who might be having a hard time because of these big changes.

500 Words Essay on Impact Of Globalization On Economy

Globalization is like a big web that connects different countries. Imagine a spider’s web; if you touch one part, the whole web feels it. That’s how countries are linked through buying and selling things, sharing ideas, and moving from place to place. It’s like a big market where everyone is a neighbor, no matter how far they live from each other.

More Jobs and Businesses

One big effect of globalization is more jobs and businesses. When companies from rich countries set up shops in other places, they create jobs for people there. These companies can make things for less money, which means products can be cheaper for everyone. It’s like when a new store opens in your town and hires people; it’s good for the town because there’s more work and more things to buy.

Learning New Things

Globalization also means people can learn new things from each other. For example, a farmer in one country can learn better ways to grow crops from a farmer in another country. This sharing of knowledge can make businesses better and can help countries make more money. It’s like when you learn something new at school and use it to do better on a test.

Competition and Choices

Another part of globalization is competition. Companies from different countries try to make better and cheaper products than others. This is good for us because we get to choose from lots of different things to buy. It’s like having many ice cream flavors to choose from; you can pick your favorite or try a new one.

Making Things Even

Globalization can help make things more even between rich and poor countries. Poor countries can grow faster because they can sell things to more people around the world. It’s like a race where everyone has a chance to win, not just the fastest runner.

Challenges of Globalization

But it’s not all good. Sometimes, big companies from rich countries can be too strong for small businesses in other places. These small businesses might close because they can’t compete. It’s like a big fish in a small pond that eats all the food, leaving nothing for the smaller fish.

Also, not all people or countries benefit the same way. Some people might lose their jobs because their company moves to a place where it’s cheaper to make things. It’s like when a new machine at school does the job you used to do, and you have to find something else to do.

In conclusion, globalization is like a game where everyone is connected and can play together. It has many good sides, like more jobs, learning new things, competition, and helping poor countries grow. But it also has challenges, like big companies taking over and not everyone getting the same benefits. Understanding globalization is important because it’s a big part of how the world works today, and it affects all of us in different ways.

That’s it! I hope the essay helped you.

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