Answer 1- Globalization is the integration of the national/domesticeconomy with the world economy which has made the world a global village, ithas led to the creation of a worldwide system, thereby enabling free movementsof goods, capital and information, virtually sweeping away the politicianboundaries ‘no distance is now big enough and no country or nation reallyforeign’.It points to the whole effort towards making the world a global communitybecause of the increasing integration of economies and advancements ininformation and communication . technology, benefits of technology advances todeveloping nations, making the world a smaller place. People can move from onecountry to another, trade restrictions are reducing, domestic markets are openup for foreign investments, telecommunication are better established. Globalization has affected thewhole world in both positive as well as negative manner .EFFECTS ON WESTERN/DEVELOPED COUNTRIES Globalization has brought benefits in developed countries as well as negativeeffects, but the positive effects have been usually successful is out shadowingthe substantial negative effects.
On the positive side, it has created a global market- brought up theconcept of MNC’s , encouraged FDI flows, increasing cross border transaction,encouraged foreign trade in the world, there by classifying the need ofworldwide in a better way by providing them with more options to choose from ,enabled resource sharing thus lead to better optimum utilization of resource, increasedlevel of competition there by leading to improvement in the of domestic goodsand services, raised standard and many more,But globalization has its negative effects .Loss of jobs – developed nations have been outsourcing manufacturing andother jobs to developing and poor nations where they can be performed at alower cost, with cheaper resources , leading to the loss of jobs, for a lot ofpeople, insecurity among people in the west. Fluctuation in prices – due to increased competition, availability oflot of substitutes, western countries are forced to lower the prices of theirproducts.
Terrorism – Due to barrier force trade and movement of goods, capitaland people across borders, some unwanted elements also cross borders and createruckus in the western countries, sometimes the scale of these unwanted and unwelcomedactivities is quite high to give shape to terrorism. Fluctuationin currency – whencountries enter into trade dealings with each other, they exchange currenciesfor transaction to take place, so when one country changes the value of itscurrency deliberately or because of market forces, the other countries tradingwith it are affected and there they have to change the value of theircurrencies in response. After a brief number of years in which globalization made everything seeminglycheaper, the term of trade moved badly against the west. Though, the world as whole is getting richer and the size of economy hasincreased considerably, but the benefits have occurred to the developingnations at the expense of developing western world and the wealth divide bar widenedto record levels almost everywhere.western world adopted, were owned and promoted globalization because it opensup new markets, introduces new ideas, leads to more, productive activities,reducing the cost and increasing the profits, but they failed to realize itsnegative impact on them , that leads to a loss of jobs for their people, theywill be priced out of the market. Globalization, though were supposed to work, uniformly and for equitabledevelopment for the entire world but because of the western nations giving upon a lot of activities and relying too much on the concept of outsourcing andproduction in developing and emerging economies and making use of theirresource, thus it played against them in the above mentioned ways.
System would work properly only if everyone has played by economies set ofrules and standards, that’s what went wrong with globalization. History of globalization- link Globalization, as a means of increased integration through trade and investmentis an important reason for reduction of poverty and global inequality. overrecent years.yes globalization has helped some poor nations to become emerging countries byliving them win the developed nations or developed parts of the world. Globalization has improved employment situation in developing countries, itcreated the concept of outsourcing. Developed countries prefer to provide workto developing countries where cost of services is cheap. Work/task such as customer service report, software development, accounting,marketingand insurance are given to developing countries like India, therefore thecountry that is allotted the work enjoys by getting jobs. It has created investment opportunities in the emerging economies by tappingthe hidden potential resources, talent, the lack of capital in developingcountries is there satisfied by these investment and hence increasedopportunities due to global nature of business.
Advancement in technology-technology has facilitated the communication, transportation hence contract between people worldwide. thisadvancement increased the access of people from the emerging nations to get intouch and experience new things developed worldwide and to use them atfacilitates the work and knowledge transfer also take place throughtechnological means. access to education –educational institution has increased for emerging nations because ofglobalization, has helped in reducing knowledge gap in developing nations.Since physical movement from one country to another is expensive many peopleare excluded from, gaining the opportunity of education, technology has made inpossible to import and gain knowledge sitting in one own’s country throughelectronic mediums.
Participation trade/Imposed tradebalance- Globalization has enhanced the participation ofdeveloping nation in trade by providing them the means and subsidiary them,most developing countries were net importers, but today, because of reducedcost of manufacturing and trading and ownership and subsidiary resource base, emergingnations are becoming manufacturing hubs for net exporters. Improved living standard – Greater access to developed nations.marks and access to education and technology has raised the living standard ofpeople in developing nations.