Adverse Effect of Globalization in the Philippine Economy
The thrive of globalization has opened gates for economies both nationally and globally. The last three decades saw many governments acquiring the systems of free markets, thereby, maximizing their own potential and opportunities for international business as well as investment. What's more, as a result of globalization governments all over the world worked towards the elimination of limitations to business and trade of goods and services across the world. With these new opportunities having hit the global economies so hard, industries took advantage by constructing new business corporations in foreign markets with their associates. This gave international trade and business and a new business structure, which can, hence, be summed up under what is economic globalization capable of altogether.
Even today no country is fulfilled i.e. a country can’t produce each and ever thing required by its citizen. Due to geographical condition it produces some things which are in short to meet the demands and it is then when it has to look towards some other country gifted with abundance. This produced trading. Looking today in broader way the idea of globalization is in force. Globalization is expressed as primary economic phenomenon, including the increasing interaction, or integration, of national economic systems through the growth in international trade, investment and capital flows. It is the raise in connective and a procedure where geographical distance becomes less important in the establishment.
With globalization in effect there are two ways it can be seen at. The basic idea behind globalization is that it is a key aspect for the world economic development. While some think, it increases disparity within and between nations, threatens employment and living standards and thwarts social progress. It makes the whales larger and the minnows stronger. It depends on that particular country how to make use of the globalization and therefore make best use of it.
Globalization actually brings wonderful opportunities and benefits. The survey shows that 24 developing countries that increased their integration into the world economy over two decades ending in the late 1990s attained higher growth in incomes, longer life expectancy and better schooling. These countries got an average 5 percent growth rate in income per capital in the 1990s compared to 2 percent in rich countries. Many countries like China, India, Hungary and Mexico have adopted domestic strategy and institutions that have enabled people to take advantage of global markets and have thus sharply increased the share of trade in their GDP. These countries have been developed their annual growth rates increased from 1 percent in the 1960s to 5 percent in the 1990s. People in these integrating nations saw their wages rise, and the number of people in poverty declined.
It is seen that countries aim to achieve sustainable growth, low inflation and social progress, and then the proof of the past 50 years is that globalization contributes to these objectives in the long term.
Entreprenomist are naturally driven by risk-taking and creating, necessarily questioning the whys of current economic thunderstorms of increasing levels of imported inflation. They inevitably ask: 'does the enterprise have enough'; 'will it have enough'; and ultimately, 'what is the best course of action; can it be maintained, or do better?' The task is to cope – the Philippines as the Enterprise – in a “wicked” global market.
Globalization manifests Adam Smith's Specialization principle: if a pin factory's components can be broken down - and outsourced - greater efficiencies can be attained. This also highlights the need for a country's competitive advantage, as a cost-efficient, quality supplier of specific “pin components” ensures its place in the...
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