February 28, 2014
WHAT IS GLOBALIZATION?
Many analysts have attempted to define globalization in a variety of ways. Some explain it only on economic perspective. Others define on more overall perspective, which means that globalization can affect several areas, not only economy. Each approach has its own strengths and weaknesses: general definitions will be likely to be more base-covered but less concrete, while specific definition will provide vivid images of how globalization has been impacting one or several particular area(s) but narrower in scope. George Soros, one of the world’s most famous speculators, and according to Paul Staines in his article “The benefit of speculation” (1996) is the man who created the Black Wednesday by breaking the Bank of England in 1992, described globalization in his book “George Soros on Globalization” as “the development of global financial markets, the growth of trans-national corporations, and their increasing domination over national economies”. George Soros’s definition provides an overall outlook of all elements related to globalization on economic perspectives, and this paper will present several specific definitions on the economic level based on Soros’s, which refer to global economic integration, “the development of global financial market”, and the “increasing domination over national economies”. Discussion
Initially, according to most of the economists, globalization refers to “development of global financial markets”, which means that countries are now able to interact and benefit from each other, additionally globalization allows countries to specialize what they do best, and maximizing the revenue from their output through trade between countries. For example, Carnegie Mellon University’s research (n.d) pointed out that India has become the world largest software industry due to the country’s comparative advantage on cost and availability of software talent, compared to...
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