2 Areas of globalization

1. The economy.

Globalization has a great impact on the economies of all countries. It affects the production of goods and services, the use of the labor force, investment in "physical" and human capital, technology, and their spread from one country to another. All this eventually affects the production efficiency, productivity and competitiveness.

For globalization is characterized by free trade, free movement of capital, reducing taxes on business profits, ease of travel industry between different countries in order to reduce labor costs and natural resources, as well as:

• Developed and developing countries has been steadily closer together in terms of wages, prices of goods and profitability of enterprises;

• The number and size of mergers, both national and transnational level, accompanied by a radical restructuring and the reduction in the number of the employed labor force;

• Rapid dissemination of financial information around the world thanks to the Internet, the trend towards greater openness of enterprises;

• Impact of the few national currencies through the international system of free foreign exchange on economic processes in different countries;

• The increase in consumer loans as a platform for further growth in consumption. On the other hand, failure to maintain the average standard of living without the involvement of credit;

• A powerful stream of advertising in all media, the blurring of clear distinction between information and advertising;

• The increasing stratification by income, both in developed and developing countries, which strongly affects the population of unequal access to education.

Production and consumption in many countries mainly depend on whether they will be able to provide the import of raw materials and energy, or not. A number of countries to sustain economic growth in urgent need of imports of capital and consumer goods, and sometimes skilled labor. Such international relationships require increased financial flows and services, a network of international freight transport and communications.

It should be noted the extremely high rate of growth of foreign direct investment, far surpassing the growth rate of world trade. These investments play a key role in technology transfer, industrial restructuring, education, global enterprises that have a direct impact on the national economy.

As a result of globalization, there is a growth of trade in services, including financial, legal, management, information and all kinds of "invisible" services, which are becoming the main factor in international trade relations.

The globalization of finance most complex and the most advanced in terms of the internationalization process, which is the result of deepening financial ties between the countries, the liberalization of prices and investment flows, creating global multinational financial groups. As the pace of growth, the amount of borrowing on the international capital market in the previous 10-15 years has exceeded 60% of the volume of foreign trade and for 130% of the gross world product. An increasing number of international institutional investors.

2. Policies.

In politics, globalization is the weakening of the nation-states. On the one hand, this is due to the fact that modern states delegate more powers influential international organizations such as the United Nations, the World Trade Organization, the European Union, NATO, the IMF and the World Bank. On the other hand, by reducing state intervention in the economy and tax cuts increase the political influence of companies (especially large multinational corporations). Because of the easy migration of people and the free movement of capital abroad also reduced the power of states towards their citizens.

Joseph J. Stiglitz defines the modern period of globalization as a new form of colonialism, expansionism derivative of the United States that emerged during the Cold War. The conditions imposed by the IMF ("supplier of the orthodox ideology") of client countries and only increase the likelihood of repayment, but not its economic growth, the loan is converted into a political tool, undermining national sovereignty. Cost-effectiveness of conditionality is not proven, says Stiglitz. The conditions in the short-term weakening economy, and uncertain in the long term. The question of the formation and the need for the reserve fund from the point of view of Stiglitz is also controversial, as the country is controlled by the IMF, can not spend money on urgent projects, and had to keep the funds in U.S. Treasuries. The policy and program to be successful, must become the "property of" not imposed them, says Stiglitz.