Topics: International trade, Economics, Globalization Pages: 5 (1746 words) Published: April 16, 2013
Government Business Relations|
Essay Option 2.|

Option 2.
Government is more rather than less important in an era of Globalisation. Do you agree? In an era of Globalisation, society interconnects each nation in regards to the concept of a 'Free Market' where nations are united within fundamental methods and practices to circulate the economy such as trade, markets, products, resources and culture. Despite this inter-connection and quarrel that governments have against the ideology of Globalisation, disputes still continue whether Globalisation is an advantage or disadvantage. This paper will briefly illustrate information about the underlining question 'is government more rather than less important in an era of Globilisation?'. The main points will revolve around the global economy policies, privatisation and deregulation within arguments that revolve around tariffs and policies that governments indent into the global economy.

First of all 'Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world' (A students guide to Globalisation). A simple example is the proliferation of a major fast food brand, McDonalds. McDonalds is dispersed globally and adapts it's menus culturally to suit specific tastes. 'Whether or not the establishment of the global marketplace will be beneficial is in dispute. Proponents believe that globalization has the potential to create greater opportunities for growth throughout the world, benefiting the developed nations while leveling the playing field everywhere else; opponents of globalization believe that it will merely increase the opportunities for the wealthier nations to take advantage of the poorer ones and, furthermore, could eradicate regional diversity and lead to a homogenized world culture.' (Globalisation, 2007)

On the other hand there are governments whom are run as an organization or agency where the political entity exercises its authorities in different policies regarding the global economy. Governments implement policies such as regulations and legislations in the hope of keeping the nations society afloat, and its own economy circulating money for wealth. For example the government implements taxation on imported goods from overseas so that Australian traded companies have a fighting chance of selling their own products to consumers where an opportunity presents itself to generate profitable revenue. Realistically, Governments intervene in the efficiencies Globalisation is striving to achieve, basically to create a free market. The two do not go hand in hand.

The historical origin for Globalisation today is still debated by all different scholars whether it began in the modern era or carries an extensive past. Most would argue that the period of 1870-1914 was the major movement and uprising of Globalisation as it was a time of 'increasing free movement of goods, capital and people as the technology of the telegraph and the steamship made international communication and transportation much faster, easier and cheaper. This extraordinary period of growth in the global economy was interrupted by the two World Wars and the Cold War, but with the collapse of the Soviet Union, the primary alternative to "market capitalism" also disappeared. Nation states worldwide began to open their economies to international goods, services, practices and ideas, to privatize the means of production that for years had been government owned'. (Globalization Supporting Comparative Advantage in Economies, 2006)

Today, Globalisation 'describes a world environment in which much freer international movement of goods, capital, people,...

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Kahn, A. (n.d.). Globalisation. Retrieved September 22, 2010, from Sociology 415 :
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