GLOBALIZATION !!

                                       GLOBALIZATION

The literal definition of globalization is about the entire world becoming a one single market, basically suggesting the businesses of say one country to be able to move across international borders and trade in markets of different countries. As a result of which characterizing the whole world into a single market. Therefore globalization can also be expressed as a process of deeper economic integration between countries involving certain factors, such as expansion of trade in goods and services, an increase in the transfer of financial capital including the expansion of foreign direct system (FDI) by trans national companies (TNC's). The development of global brands and division of labour are also some major factors leading to globalization, some other things aiding these factors could be the migration of labor and the world trade organisation (WTO). For example Russia joined the WTO in 2012. As a result of the WTO over the last few decades trade openness has risen from 25% to around 40% for industrialized economies and from 15% to 60% for emerging economies. 

Below shown are some reasons that have majorly contributed to the cause of globalization.

Globalization when talked or thought about is a very complicated topic, as every one has a different opinion about it. Like every change taking place it also has its pros and cons, however in my opinion the benefits definitely outweigh the detriments. 

Globalization a blessing or a source of corruption. Globalization as stated earlier is the making of the world into one single market. Meaning different businesses from different countries can trade in several countries around the world. An everyday example of such businesses are Coca Cola or Nestle, companies like these can be found all around the world. With the expansion of such companies to such a wide scale, alot of changes occur which could be for the better or the worse. For instance when Nestle moved into Pakistan which is still a developing country with an ever increasing unemployment rate, it employed thousands of people. Other then this when such big companies move into new markets they increase competition. Increase in competition can cause prices to reduce, it may cause better quality standards. Moreover such multi national organisations have a reputation to maintain so would have certain job securities, safety measures, motivational techniques e.t.c. Due to which other domestic companies inorder to survive would have to meet up to the standards. This technique to reduce unemployment is also used quite deliberately by some countries. for example the British government did so by allowing certain Japanese car manufacturing to manufacture and operate in the UK,  in order to create jobs in small towns in the North of England. While on the other hand this expansion may cause major difficulties for the domestic market. For instance the expansion of Coca Cola into Scotland caused very old and already practicing brands like Iron bru not to stand a chance. As Coca Cola had alot of capital to invest, it was able to pay more, advertise more, produce more. As a result of which such small businesses could not stand a chance.

 International trade allows for developing countries to continue to develop by increasing national incomes to fund modernization. Globalization can benefit all countries, rich or poor, if that country is willing to be open to international trade.  Not only do they have to be open to the world market, but they would have to do it in such a strategic way based on how their country is run in order to gain from trade.  Globalization significantly led to higher incomes is in China over the past several decades.  They have mastered the concept of globalization in their own way far from the Western norms.  In an article by Dani Rodrik China has averaged almost 8 percent per annum per capita by opening up to the world economy.  By taking part in globalization China has been able to fund modernization by selling its products on the world market.  Another remarkable fact as a result of opening up to free trade is that in 1960 China’s life expectancy was only 36 years of age and by 1999 reached 70 years.  These statistics prove that with a strategy most fit to a country, globalization can be achieved successfully. 

However still those against this topic argue that globalization has caused cultural loss, It makes the rich richer and the poor poorer. Where as i believe that  people who are anti-globalization are merely blind to the actual facts.  Poorer countries do what they can to survive, and globalization helps them obtain higher incomes and improve living conditions.  Just because wages are significantly smaller in poorer countries does not mean exploitation is present.  Countries with lower incomes, poor literacy rates, and poor health care cannot become wealthy and efficient over night.  Globalization is a slow process, but it is working.  It is allowing for more techniques and methods to be shared around the world.  A country closed to the rest of the world will not learn to better themselves, and continue to do things they way they have been doing.  As a result there will not be as much room for improvements and new opportunities to countries that do participate in globalization.

The fact is that globalization is here to stay and that we will become increasingly connected, hence we must work to learn about the world we live in and how it functions.