Globalization and Trade: Examine the impact of globalization on local economies, including job displacement and cultural changes.
Выполнила Алиса
•Put simply, globalization is the connection of different parts of the world. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture. In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers.
A Historical
View
•Globalization is not new. Since the start of civilization, people have traded goods with their neighbors. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization.
A Historical
View
•The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. Advances in communication enable businesses to identify opportunities for investment. At the same time, innovations
in information technology enable immediate communication and the rapid transfer of financial assets across national borders. Improved fiscal policies within countries and international trade agreements between them also facilitate globalization. Political and economic stability facilitate globalization as well.
Benefits of Globalization
•1. Access to new cultures
•Globalization makes it easier than ever to access foreign cultures, including food, movies, music, and art. This free flow of people, goods, art, and information is the reason you can have Thai food delivered to your apartment as you listen to your favorite U.K.-based artist or stream a Bollywood movie.
•2. The spread of technology and innovation
•Many countries around the world remain constantly connected, so knowledge and technological advances travel quickly. Because knowledge also transfers so fast, this means that scientific advances made in Asia can be at work in the United States in a matter of days.
Benefits of Globalization
•1. Access to new cultures
•Globalization makes it easier than ever to access foreign cultures, including food, movies, music, and art. This free flow of people, goods, art, and information is the reason you can have Thai food delivered to your apartment as you listen to your favorite U.K.-based artist or stream a Bollywood movie.
•2. The spread of technology and innovation
•Many countries around the world remain constantly connected, so knowledge and technological advances travel quickly. Because knowledge also transfers so fast, this means that scientific advances made in Asia can be at work in the United States in a matter of days.
Benefits of Globalization
•3. Lower costs for products
•Globalization allows companies to find lower-cost ways to produce their products. It also increases global competition, which drives prices down and creates a larger variety of choices for consumers. Lowered costs help people in both developing and already-developed countries live better on less money.
•4. Higher standards of living across the globe
•Developing nations experience an improved standard of living—thanks to globalization. According to the World Bank, extreme poverty decreased by 35% since 1990.
•The target of the first Millennium Development Goal was to cut the 1990 poverty rate in half by 2015. This was achieved five years ahead of schedule in 2010. Across the globe, nearly 1.1 billion people have moved out of extreme poverty since that time.
Benefits of Globalization
•5. Access to new markets
•Businesses gain a great deal from globalization, including new customers. Companies interested in these benefits look for flexible and innovative ways to grow their business overseas.
•6. Access to new talent
•In addition to new markets, globalization allows companies to find new, specialized talent that is not available in their current market. For example, globalization gives companies the opportunity to explore tech talent in booming markets such as Berlin or Stockholm rather than Silicon Valley.
Downsides of
Globalization
•Not everything about globalization is good. Every change has its winners and losers, and people in communities that relied on jobs moved to other countries often face difficulties. This means that workers in developed countries have to compete with cheaper labor markets for jobs. Unions and workers may struggle to protect themselves against companies that give them the choice between lower pay or losing their jobs to a supplier in a country with lower wages.
Negative impacts of globalization on economic
•Loss of jobs and industries in some regions:
•Globalization has led to the relocation of industries and jobs to countries with lower labor costs, which has led to job losses and industry declines in some regions.
•Widening income inequality:
•Globalization has increased income inequality between and within countries, with some countries and individuals benefiting more than others.
•Cultural homogenization:
•Globalization has led to the spread of Western culture and values, which has resulted in the homogenization of cultures and the loss of traditional cultures.