The concept of globalization is one of the most talked about terms over the past decades. In fact, it is a highly popular buzzword that admittedly lacks a standard or commonly agreed upon definition. (Trebilcock, 2000). The concept of economic globalization stemmed from the root concept of “globalization” and by definition, pertains to that specific attribute of globalization that refers to the process of integration between the economic front and the ‘developed’, ‘under-developed’ and ‘developing’ economies (Naik, 2011). Economic globalization essentially comes together through international trade, FDIs (foreign direct investments) and the like (Naik, 2011). As stated by Naik (2011), economic globalization is a process that is all about the citizens and their welfare. By standard definition, economic globalization refers to the so-called increased economic interdependence of various countries which may result from the rise in terms of the movement of the different goods, services, capital and technologies across the international borders (Trebilcock, 2000). Other authors and economic experts define the concept of economic globalization as the “globalization of the markets” which explains the phenomenon of the global marketplace or the ability of a specific manufacturer that is based from a specific part of the world to sell a product or good to the consumers in other parts of the world (Trebilcock, 2000; Naik, 2011). Economic globalization has also enabled the rise of other related concepts such as ‘transnational or multi-national companies/corporations’ which refer to the companies that are active in numerous countries at the same time (Trebilcock, 2000; Naik, 2011). 4 |B u s i n e s s a n d S o c i e t y
Because of these characteristics of economic globalization, other notable concepts which include foreign direct investments (FDIs), alliance capitalism, international trade and the like have been attributed to the concept of economic globalization. In fact, more than mere concepts, these terms have exerted tremendous benefits for the different people around the world (Naik, 2011; Trebilcock, 2000). However, one cannot totally ignore the fact that some critics recognize the negative effects or consequences of economic globalization as even the very concept of globalization itself may have specific ‘pros’ and ‘cons’. As argued by Naik (2011), while there are a number of advantages in economic globalization, there also exists a number of disadvantages in economic globalization as a phenomenon. Many critics point out that the countries’ interdependence with one another serves as one of the biggest issues in economic globalization. They assert that when an economic crisis is being experienced by one country, this can result into an economic crisis as well on the different countries with which a country shares its economic ties (Naik, 2011; Trebilcock, 2000; Harrison, 2007). Aside from this, there are also many critics who argue that different companies actually exploit labor by investing in production facilities within developing countries. Because huge multinational companies that come from already developed countries resort to developing countries in order to acquire cheaper labor, critics consider this as alarming because they are only coming to these countries in order to acquire natural resources and more affordable labor which will be at their own advantage (Naik, 2011; Trebilcock, 2000; Harrison, 2007). 5 |B u s i n e s s a n d S o c i e t y
Aside from this, many critics also argue that economic globalization has already proven to have caused a number of ideological and political tensions in the different parts of the world and that these will continue to move on and grow further as the so-called economic superpower era comes closer (Naik, 2011; Trebilcock, 2000). Furthermore, the critics argued that the ‘interdependence’ brought about by economic globalization has not really done anything in order...
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