Alternatives to Economic Globalization

Alternatives to Economic Globalization

Positive and negative impacts of globalization

Speaking about positive and negative socio-economic impacts of globalization it is necessary to underline that the general effect of globalization is dubious regarding at developed and developing countries. In general, it is developed countries that basically benefited from globalization while developing countries are in a rather deprived position since the trend that is often singled out by specialists concerning globalization is the fact that rich countries become richer while poor becomes poorer. Consequently, globalization is obviously positive because it enriches developed countries and negative as it deteriorate the situation within developing countries. Furthermore, another positive impact of globalization is new markets and consequently new perspectives that open basically before developed countries. The development of competitiveness may be treated as a positive impact as well since the wider market is the more severe is competitiveness. In socio-demographical terms globalization contributes to free movement of labor force that is obviously positive for the countries which suffer from unemployment and in such a way they can export their labor force. Finally, some specialists believe that elimination of financial barriers is also positive since it contributes to development of free trade.
However, practically all positive impacts mentioned above have their other side, that is rather negative. So, if some countries (basically developed) become richer due to globalization than it is natural that they do it because other become poorer (basically developing). Furthermore, globalization opens new markets but mainly for producers from developed countries, at least their products are much more expansive than that of developing ones. As for competitiveness, it is positive without any doubt but the problem is that in the competitive struggle developed countries has obvious advantages, since they possess hi-tech and well-developed infrastructure, while developing countries has nothing but their natural resources to offer on the world market. Moreover, current competitiveness would eventually result in lack of competitiveness at all if the global market is not regulated by anti-monopoly laws. Speaking about relatively free movement of labor force, for instance in the EU, it is positive mainly to new members, or in global terms to developing countries, but not for ‘receivers’ of new employees. Finally, elimination of financial barriers, disappearance of quotas, etc. may have negative consequences as well, since it makes the markets of certain countries or even regions unprotected that may be crucial for local economies.
Thus, in conclusion it may be said that globalization has both positive and negative impacts, the problem is that developed countries are in a better position than developing ones and consequently globalization leads to free but not always fair trade, and as a result economic, socio-political and cultural integration of practically all countries of the world.
CEO of a Central America IT corporation in Europe
In order to globalize the service of CEO of a Central America IT corporation it would be very desirable to either acquire some local company working in the same segment of the market, or at least to develop contacts with it. Naturally, before starting the expansion in the European market it is necessary to start an advertising campaign using the most advanced technologies, including Internet. Than it is recommended to develop the company’s infrastructure within the market it is supposed to operate in. Finally, the main goal of the corporation should be the creation of its own brand, quite popular and well-known. Otherwise, if the corporation possessed enough financial resources it would be possible to acquire some brand famous in Europe.
Trade barriers related to globalization
In fact the trade barriers that are related to globalization are rather a respond of the countries which aims at the protection of the local market from the expansion of foreign corporations. Traditionally, among the main barriers are named financial ones, such as taxation that is to a certain extent unfair for domestic and foreign corporations, for instance it is observed textile and clothing industry in Bangladesh for instance, where foreign investments are strictly limited by local legislation and where an overwhelming part of the market is controlled by domestic companies.
Another significant barriers to globalization are different quotas existing in some countries. For instance, the recent arguments concerning Chinese food export to Europe and its quotation is quite eloquent illustration of the problem.
Finally, it is possible to mention such a tool as antidumping that traditionally protects local producers from foreign expansion, as it happened to Russian metallurgic export to the US, for instance, when American companies insisted on antidumping of Russian products.
Examples contributing to expand the globalization
Basically it is contemporary technologies and free trade that contributed the most significantly to expand of the economic globalization. So, among them may be named Internet and the rapid development of IT that made geographical borders disappear in international economic relations. At this respect another factor that contributed to expand of globalization is in a way the effect of the previous ones and it is free trade. The global economy has never experienced such a development of trade relations between the country and so rapid elimination of financial barriers in free trade.
Lack of competitiveness as the way to degradation
It is obvious that the lack competitiveness leads to degradation. In fact there are a lot of examples when some corporation, being a monopoly, controlled whole branches of economies of certain countries but eventually they degraded. Such a trend is particularly dangerous in the conditions of globalization when the effect would be global. The reason why lack of competitiveness leads to degradation is quite simple since lack competitiveness implies that there is no need to improve the quality of products or services because consumers have no real alternative and they will buy a product or service offered regardless its quality.

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