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Globalization
Globalization has gained extreme importance these last years. Every day you hear it on the news, you read it in the papers, you hear people talking about it… still, I find that word difficult to understand because it seems to have different meanings.
At an economical level, globalization is understood as the increased movement of goods and money across national borders, which led to the rise of the global economy. International trade has become the center of attention to most of local economies around the world.
At a political level, globalization is the process of denationalization of politics and legal systems. It presents challenges to the role of governments in political affairs.
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At a business level, globalization means the decision of the companies to establish themselves in foreign markets, in order to be part of the global economy.
On the other hand, at a social and cultural level, there are many manifestations of globalization, some examples are
- Informational services such as computer-based communication, Internet, and electronic mail.
- News services that extend their information to even the most geographically remote areas of the world thanks to a satellite technology.
- Popular culture "world music", for example, has developed a larger audience.
At a global level, "the term "globalization" describes the increased mobility of goods, services, labor, technology and capital throughout the world."
There are heated debates about globalization and its positive and negative effects. As part of this human phenomena two main postures arose. The first considers globalization as a thought of by many as having the potential to make societies richer through trade and to bring knowledge and information to people around the world. However, others perceive globalization as a contribution to the exploitation of the poor by the rich.
When talking about globalization pros, it has helped reduce poverty in a large number of developing countries. Global competition and cheap imports keep a balance on prices, so inflation is less likely to spoil economic growth. In addition, an open economy develops innovation with fresh ideas from abroad. Besides, productivity grows more quickly when countries produce goods and services in which they have comparative advantages companies adapt their products or services to the final users linguistic and cultural requirements. Then, establish a virtual presence on the international marketplace throughout the Internet.
On the other side of the coin we have globalization negative effects. For instance millions of people have lost their jobs due to imports and as a consequence of cheap labor force coming from abroad; others fear losing their jobs, especially at those companies operating under competitive pressure. Workers face downsizing from employers, which often threaten to export jobs. This generates unemployed people all over the world.
Globalization, as every other phenomena has pros and cons. As it has progressed, living conditions have improved significantly in most countries. However, the strongest gains have been made by the advanced countries and only some of the developing countries. Therefore, the international community should strengthen the international financial system, through trade, to help the poorest countries integrate into the world economy, and reduce poverty. No country can afford to remain isolated from the world economy.
Bibliography
Source Progress in Strengthening the Architecture of the International Monetary System
http//wwww.imf.org/external/np/exr/facts/arcguide.ht m
Source The World Bank Group
http//www1.worldbank.org/economicpolicy/globalization/
Source "Globalization Research Center" http//www.cio.com/research/global/
Source http//globalization.icaap.org/
Data News Week Magazine
Bibliography
Source Progress in Strengthening the Architecture of the International Monetary System
http//wwww.imf.org/external/np/exr/facts/arcguide.ht m
Source The World Bank Group
http//www1.worldbank.org/economicpolicy/globalization/
Source "Globalization Research Center" http//www.cio.com/research/global/
Source http//globalization.icaap.org/
Data News Week Magazine
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