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.
Bibliography:
1. Albertson, S. World Economy. Ottawa: Kingston Books, 1999.
2. Coopers, G. and Lybrand, M. Generating Economic Growth through Young Technology
Companies. New York: New Publishers, 1997.
3. Danaher, C. Seven Arguments for Reforming World Economy. London: Routeledge,
1999.
4. Gomory, R.E. Globalization: Causes and Effects. New York: Touchstone, 2002.
5. Khor, M. Global Economy and the Third World. New York: New Publishers, 2001.
6. Rodrick, D. Alternatives to Globalization. New York: New Publishers, 2002.
7. Rolf, K. World Economy: Past, Present, Future. London: Routledge, 2000.
8. Steward, L. Globalization and Alternative Ways of Development. New York:
Routledge, 2001.
9. Terry, P. Trends of the World Economy. New York: Guilford, 2000.
10. Van der Borght, K. Essays on the Future of the WTO: Finding a New Balance.
London: Routledge, 2000.
11. Weiler, J. The EU, the WTO, and NAFTA: Towards a Common Law of International
Trade. New York: Guilford, 2002.
12. Weiler, J. Alternative Ways of Development of World Economy. New York: Guilford,
2000.
