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Economic Globalization

Decent Essays

As international business cannot make profit in a new market if remained unchanged in this wave of fast-changing globalization, localization helps them adapt to their new international markets and effectively gain the most out of this process. If localizing in the era of globalization is so helpful, why can’t countries as a whole also learn from it to better adapt to the macro-environment of economic globalization? Glocalization, as stated by sociologist Roland Robertson, “the simultaneity – the co-presence – of both universalizing and particularizing tendencies,” can be applied beyond business to reduce existing income inequalities in the world caused by disparity among countries’ development. To promote glocalization, local government should understand its country’s internal factors so that it can enact changes to its infrastructure to adapt to economic globalization and solve accompanying challenges such as increased income inequality within the country.
To gauge an overall performance of economic globalization in the world, poverty reduction and income level together provide a quantitative evaluation. Using data across 114 countries from 1983 to 2007, Andreas Bergh and Therese Nilsson from Research Institute of Industrial Economics found a significant negative relationship between globalization and poverty, robust to several econometric specifications (Bergh and Nilsson, 42-61). In general, as supported by many statistics, economic globalization has successfully

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