Globalization in Economics and Its Consequences
The contemporary world is slowly getting more integrated socially, economically and politically. Economic globalization encompasses the entire world and a growing amalgamation of the global production, consumption and the fiscal markets with a simultaneous harmonization of global cultures. Globalization of the transitional monetary system was manifest after WWII and the Great Depression of the 30s in US. The evolution of Multinational enterprises was a resultant phenomenon of globalization. In principle, globalization on the fiscal front submits to the assimilation of merchandise, prices, labour incomes, revenue rates and proceeds toward industrialized nation standards (Garrett, 2000). The emergency in the volume of business between industrialized nations and the developing nations, augment in cross-border dealings, increase in immigration and transfer of skill are fundamental issues of globalization. In simple words globalization is analogous to making the entire world function as a huge country. This paper highlights a two-fold impact of economic globalization. Main Body
Globalization has some attractive benefits which would have been rather intricate to realize otherwise. Lessening of barriers in various countries, both fiscally and politically, have ensured that global organizations can harvest the benefits of economies of scale by employing in discounted labour and unprocessed material which are not manufactured locally. China for instance, has lowered its tariff rate to approximately 13 percent at present after it joined the World Trade Organization or (WTO) in the first year of the 21st century (Milanovic, 2000). Globalization has brought about a rise in production ability of diverse firms globally, which now provides to a global customer base. A cycle of bulky flow of...