Economic Globalization And Its Effects On The Global Economy Essay

In most cases U.S. citizens who are in poverty are in relative poverty in relation to the rest of the U.S. population; whereas in the world as a whole a greater number of people are in absolute poverty and are barely able to survive on their income, or wages and earnings, and they have very little to no wealth since it is impossible to save any of their money. Ethnocentrism makes it difficult to obtain a clear picture of the conditions of poverty and inequality in other nations and cultures. There are many theories concerning the causes and solution for poverty in the global economy. The two major theories are the modernization theory which explains inequality in terms of technological and cultural difference between nations, and the dependency theory which explains poverty in terms of the historical exploitation of poor, or low-income, nations by rich, or high-income, nations. This theory has manifest itself in a new way in today’s world in the form of neocolonialism; economic exploitation by multinational corporations.

The world we live in today is going through enormous changes in economics, technology, culture, politics, etc. The effects of the changes are not so clear, since it is hard to predict how each sector would affect the other and how society will be affected. However, analyzing past and present occurrences provides some information for experts to interpret society’s reaction in the future to different transformations. Globalization can be seen as a process in which societies around the world come together and expand through the combination of different forces. This paper will explore the effects of globalization on US companies, US society and economy, and the implications for other countries in the post-industrial world.

Some countries were developed more than others, because of innovations, technologies or strong governmental system. Other countries which did not reach a certain level of wealth were named as “the third world”. They did not have high level of life, a lot of resources, stable government, and the situation with poverty was worse there. On the other hand, some people are sure that poverty is a thing which cannot be overcome by any measures. So, in the next section we will have a look at some governmental attempts to reduce

The developed countries can influence the developing countries economic growth by means of financial, political and cultural on national development policy. The dependency theory is in contrast to the neoclassical theory which believed that economic growth was equally beneficially to both developed and developing country. According to the dependency theory economic growth in the advanced industrialised countries does not benefit the developing countries but rather the developed countries, the theorists argue that the developed countries exploit the developing countries by means of import and export. The theorists go on to explaining their arguments, developing or under developed countries export the raw materials to developed countries for manufacturing and when the when the developing countries import these consumable materials back they get them at a price much higher than the cost of manufacturing therefore the developing countries will never make enough to finance their own manufacturing developments or the costs of import and export (Ferraro,

Theorists have argued that some poor nations are held back due to political corruption, religion and a culture of poverty. According to the conflict approach, poor nations, are poor because of unequal relations with powerful nations and not because they lack resources. The economic and political systems of the powerful nations dominate and exploit the weaker ones in trade and other relations while preventing them from becoming dependent. Reader pg. 271 on global stratification, suggest that in the future power and influence will only grow. Technological advancements are playing a role in creation and reinforcing of the global economies.

The end of the Second World War showcased a devastated world with the former economic powerhouses of Europe in disorder. In contrast the United States of America emerged as the global economic powerhouse. America's aim was to reconstruct and establish a post-war global order that cemented American hegemony. This essay will argue that revolving global reconstruction and development around the surpluses of the United States led to the most golden period of capitalism, where growth in both economic and social spheres was unprecedented and is unlikely to be repeated. The stability and effectiveness of the Bretton Woods institutions and the Marshall Plan helped produce massive growth that lifted the global economy into a full-fledged recovery, away

Lack of development in countries in the so-called `Third World' has many political and economical reasons. Historians explain the inadequacy of developing countries with the early imperialism and the resulting colonization of the South. Exploitation of mineral resources, deforestation, slavery, and the adaptation of foreign policies shaped the picture of today's suffering and struggling civilizations and natural rich continents. The omission of concessions and equal negotiations between dependency and supremacy give rise to the contrast of enormous resources and immense poverty in developing countries is. In the last years the outcry of justice and the emancipation of the Third World became louder throughout developing and industrialized

Some research said that the global economy is a way that can easy to affect to other countries when a country has an economic problem. However, the global economic crisis usually is based on an influential country that has the economic problem and affects the countries who besides this country in a short time. Finally, these countries affect the whole world of the economy, this is the globalization of economic crisis. In another hand, the benefits of globalization in economics is more than the negative of globalization. Globalization can make people have a life that is high quality. Because of the globalization, some of the counties lower the level of other countries’ business to come into native

Globalization has been in existence for the past hundreds of years; it has exercised control over the transformation and development of the trade world as we know it. It has impacted trade in a good way, and overall as a positive force. Globalization has given rise to the job market and increased trades of many products. Without trade, the world would not have been able to further its economy as it has. When deciphering between what could be seen as a positive and negative force, different definitions come to mind. When I think of a positive force as it comes to the economy, I think of an upward moving building block as the world went through globalization by increasing the worlds organization of economies. Resulting in the growth of trade of goods, services, and international capital. This was also accompanied by a new spread of technologies and global international trade.

According to dependency theory, governance of the global economy has been marked by asymmetry and skewed in favour of developed countries and multinational corporations while developing countries survive “at the margins”. This essay will seek to examine the basis for this point by extracting examples from the real world and comparing the theory with the neoliberal theory in providing a more accurate view of the global economy.

According to the World Bank, from 1993 to 1998, poverty rate has reduced by 14 percent in developing countries, similar to about 107 million people. This may result from receiving foreign investment that plays an important role in local economy growth. For example, the proportion of population living in poverty in India decreased by half in the two decades, from the 1970s to 1990s, while the number of Chinese in poverty declined by approximately 210 million during twenty-one years, from 1978 to 1999 (Healey 2008). In other words, the standard of living is improving due to the benefits of international economic activities.

The Worlds Finance Ministers and the Governors of the Central Bank gathered for their annual global finance convocation. Due to stagnation and inadequate economic growth the mood was somber. The group did not see any options for bettering the stagnation and structural changes in the global economy. The International Monetary Fund has forecasted downward and feels the global economy is entering unexplored dangerous territory. Central Banks fear they will not be able to keep up with the possible recession. Lawrence Summers (2016), writer for the Washington Post stated that “saving has become overabundant, new investment insufficient and stagnation secular rather than transient.

In today’s world, with a few notable exceptions, nearly everyone in every region of the world has access to the same products, information and services. A long-distance relationship is no longer so distant, since each party involved in the relationship can communicate through Skype, Facebook or through any of the vast amount of social media available. A person in Easter Island, one of the most remote inhabited islands in the world, can go to the other side of the world and travel to Canada. An economic crisis in Argentina could affect the economic landscape in Brazil. A person in Chile or Peru can buy an Abercrombie and Fitch t-shirt because this transnational corporation decided to expand its market to developing countries, or as you might prefer, to emerging economies in South America. Although many of these examples might be trivial, these are the consequences of globalization.

Globalisation is the process by which the world is becoming increasingly interconnected, leading to cultural, political and economic changes. According to Waters (1995) it is: “A Key idea by which we understand the transition of human society into the third millennium”. Referring to Schotte (2000), ‘Globalisation’ is in other words is ‘Liberalisation’, ‘Americanisation’ and ‘Internationalisation’ of the world, promoting the capitalist free-market, universal human rights and a common global regime(Walby, 2003). As a result, it leads to a variety of changes in the world, such as: increased production of goods and services, access to highly advanced technology, better communication through social media, spread of ideology, drugs and diseases across different states. Undoubtedly, globalisation had a positive impact on the world through improvements in communication, reduction in overall global unemployment, reduction of ‘absolute poverty’, bringing equality and political representation (Manza and Brooks,1998) and the creation of ‘luxury goods’ that unfortunately tends to benefit elite groups. Many scholars and activists argue that the ’nation state’ concept is slowly fading away due to evolved powers of new actors in the International Arena, such as: NGO’s, MNC’s, TNC’s and other global governing organisations and unions that can dictate to “sovereign states" to take specific actions, which in the end alters the political roles of states and undermines its legitimacy. This

be the risky nature of the financial markets, and the fact that they are still unstab