Globalization in economic activity Essay
Is trade or aid most effective at helping developing countries and regions? There can’t be an unambiguous answer to that question because the impact of these two factors is dependent on the particular level of development in the country/region. It is widely agreed that international trade is the key to help countries develop – according to Kelley (2012) it is estimated that an increase of 1% in the share of trade in GAP raises national income levels by between 0. 9% and 3%. However, for international trade to flourish, the right conditions have to be ensured.
Opening up read regimes and enhancing market access is often not sufficient to enable developing countries to reap all the potential benefits of trade (COED, 2011). For one thing, their goods and services have sometimes faced barriers and unfair competition in developed countries. For another, they haven’t always had the capacity to trade effectively in the world economy: bad roads can make it hard to transport goods; ports may not be able to handle cargo vessels; and some countries may not have the technical capacity to certify that goods they produce pass international health and safety standards. (Kelley, 2012, p. 9-121) These countries need help
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To sum it up, the aid will be relatively more effective for the least developed countries. Aid gives them a push and helps build the foundations for subsequent, self-sustaining development (Kelley, 2012). Whereas, on the other hand, trade will be more effective for a bit more developed countries which already have the required infrastructure and capacity. 2. ‘The price of globalization is environmental pollution’: true or false …? This is a sensitive issue when talking about globalization impact on environment.
But still there cannot be a straight answer to this statement. Industry, mass consumption and the increased energy needs of a growing global population are partially responsible for pollution, resource depletion and species extinction. Globalization has occurred alongside and sometimes nurtured these developments (Hurt & Verdi, 2013). Globalization sometimes might be related to rising international trade and has stimulated the rapid production, trade and consumption of material goods.
These activities left footprints around the globe. While it is still difficult to assess the impact of globalization on the environment, it’s quite obvious in mom areas (Hurt & Verdi, 2013). Industrial processes (including transportation) generate other forms of atmospheric destruction in addition to the effect of CA emissions on climate change. Some of these types of atmospheric pollution are invisible to the naked eye; others are very visible indeed, most notably the dense Globalization in economic activity By ruling 2011).
The impact of globalization is an urgent challenge to which global decision makers are not paying enough attention because globalization is compatible with a healthy and resource-rich environment that can sustainable satisfy the needs of true generations – provided it follows a sustainable path (Hurt & Verdi, 2013). So we cannot completely say that the price of globalization is environmental pollution. It is because we are taking the easiest way into globalization without thinking about other alternative ways to do that. And as long as we will go in the same path the price will get even bigger. . Discuss the extent to which Mans affect processes of globalization and vice versa. Mans are simultaneously a cause and a result of the processes of globalization (Mannish, 2012). In order to attract Mans’ investment, many countries propose government assistance, improved infrastructure, tax breaks, etc. Thereby, Mans play important role in different processes of globalization. Mans are the source of all foreign direct investment; they dramatically increase commodity circulation, I. E. Influence trade balances and trade flows by encompassing one third of the world trade.
Mans contribute to a rapid growth of financial operations and wide cross-border distribution of technology and know-how via transactions within companies. Therefore, information and communication have become globalize. The multiple Mans’ role results in growing economic integration amongst different economies and leads to arising global market (Fatima, 2007). Development of Mans can be affected by globalization processes in different ways. Globalization provides possibility to access various markets by using internet and reaching customers all around the world.
Globalization also gives access to cheap labor by off-shoring and outsourcing activities to foreign countries with lower labor and facility costs. Another effect of globalization is allowing Mans to make investment in the countries where tax policy is more liberal. In addition to the above- mentioned effects, globalization also helps establish partnerships among companies from all over the world by mergers and acquisitions, hereby, maximizing quality of goods and services and minimizing mutual costs (Button, 2011). 4. What do you think about the global economic structures 20 or 50 years ahead?
Will other parts (countries and regions) of the world emerge as economic leaders while others will decline? The global economic structure relies on the activities and organizations that consolidate international economies into one global marketplace. Improvements in the economic structure since World War II shifted the global system to which exists nowadays (Hall, 2013). The world has experienced essential and prevalent change in the last 50 years. Number of the economies involved into a global economic structure is constantly growing.
The globalization processes are determined by technological changes and barriers’ reduction in a sense of international trade and savings. Consequently, the importance of international trade in the global economy continues to grow. For instance, recently, several parts of the world switched from a closed economy to an opened trade system, such as Brasilia, Russia India, and China. These countries experienced slower growth than the others beforehand; however, there is a potential for them to gain a momentum for further economic development (Saltiest, 2011).
Manufacturing and intelligent policy implementation will allow such countries to have a comparative advantage across the global economy. The rise of the poor purchasing power is still weak, they perhaps will acclaim the R savings of major businesses, marketing companies and foldaway of multinational in future. These entries are in a better recovery position than their wealthier nobles because of the severer inflation control, minor deficits, and production growth (Fordham, 2009). Additionally, the world has been experiencing massive environmental changes.
International trade establishes an increasing scale of damage, making it as one of the essential drivers for environmental changes. Since the global environmental problems along with economic globalization become more obvious, there is a necessity to restrict the destructive processes within the multidimensional system and create severer legislation. In order to preserve the global structure of all the aspects in equilibrium, these tendencies must integrate on the corporal, legal and institutional bonds laterally with international trade and environment (INEPT, 2000).