The Effects of Economic Globalization: Is it Sufficient or Non Sufficient?

Running head: The effects of economic globalization. Is it sufficient or not sufficient? Name Course University Lecturer Date Globalization according to economists means assimilation through exchange of goods and services internationally. This can be measured through transport and tariffs costs, trade volumes and the regulation of a single price across borders. It can as well be defined as financial assimilation through exchange of benefits, which is seen in direct measuring of transactions and capital control costs, rate parity interest conditions, net and gross capital flows, consumption sharing and portfolio shares, direct investment in foreign countries, increased selling and buying of intermediate goods across the nations, contracting out of services from nation to nation and global outsourcing of employees. According to Wolf (2004), globalization is defined as the` movement in the direction of greater integration, as man-made and natural barriers to international economic exchange continue to fall. Therefore, globalization in the line of economics simply implies assimilation of monetary activities through trade. Though globalization has social, political and cultural effects, this paper will only focus on the sufficiency and insufficiency brought about by economic globalization (Wolf 2004). There is a high increase in globalization of markets and production of goods and services. This has to a large extent been boosted by the advancement in technology. Despite this increase, the economy of some countries is increasing faster than others such as China. These economies are almost controlling production in major industries worldwide. This change is not being realized by the western countries falling under western economies. According to the old system of economics, a steady condition, more proceeds and market entry in international markets (Ludwig 1951). Lowering hi-tech difficulties to movement of factors of production, services and goods. Moving production to countries with low hiring cost of labor. Setting up production stages to have partially processed products processed into refined goods at lower expenses in low rate nations. Evade tariff and non-tariff difficulties and even the cost of transporting both intermediate and finished products. Increasing the movement of the product from one nation to another thus increasing its price, ` are the reasons driving faster expansion of global activities (Boone et al 1998). Capitalism being a multinational conglomerate, has not been carrying out its responsibilities well especially in tackling problems related to increased debt, rising poverty level universally and the issues concerned with our environment. Multinational corporations can have a greater influence both in local and international economies since some of their budgets do exceed the gross domestic budget of some nations. For example, according to the UN conference report on trade and development in 2002, multinational conglomerate raised $18 trillion from its worldwide sales through global export. The national and multinational organizations have for the last few years been increasing pressure on the setting of laws of global human rights protection for individual rights against state abuse. These organizations have continued to develop international criminal regulations due to increased hostilities against humanity, genocide and other misdemeanor touching people. Despite this organizations being there, still there is no attention being paid to the universal actors globally including transnational corporations. These corporations increases employment opportunities, investment and hi-tech. A number corporation struggle to develop working conditions and improve the living status of the locals. They impact positive to the issues pertaining development. however, some multinational conglomerates abuse global human rights values (Boone et al 1998). There is discrimination of some workers, some employ children, some do not even provide better and safer working conditions, harass trade unions, discourage corporate bargaining, and limit the transfer of hi-tech and scholarly property and discarding deadly waste. Most of these exploitations will always fall among the third world countries, young people under the age of 18 years and women who work under this pathetic condition with low pay. The aboriginal communities also find themselves under such conditions. Capitalism also initiated the use of crediting to speed up business growth and increase consumption, crediting can only work in profitable development which requires shorter time to adjust recessions. This however is not in line with current developments in the international economies which don’t hold steady drastic growth hence crediting begun to bring unhelpful standards. This has been attributed by the lack of trade regulations and individual liability for the risk handling and the deregulated guidelines no longer support such financial development. The following chart is an excerpt from the research on the effects of globalization on autoworker jobs in the United States of America.
Source: Richard D.Vogal (2007) Those who could not go to school and toil hard were considered unproductive, that is the sluggish and ineffectual persons. The idea behind capitalism is that everybody can be successful if one works hard and goes to school. The US employees have improved their living standards. Their earnings adjusted to price increases have been declining when the workers in the US have increased their production than the rest of the workers in the world. For the last 20 years most of the industrial productions were moved to china, now to Brazil, Vietnam and India for better returns on capital invested on productions not done in the US. Increased hi-tech advancement in the US has led to reduced number of employees in the industrial sector. The national debt for the US country has risen to $13 Trillion when its average life has stalled. The other countries worldwide have also run into debts thus reducing market for US goods (Landesberger 2007). China is presenting realistic economic and flexible ways of corresponding private enterprises with the state governed ones, infrastructural strategies and social policies with private job employment opportunities on a supple employment marketing area, developing equity motivated financial system by using equilibrating `as it come: as it goes` money matters. This is the strategy that china is using to influence markets, social, industries and infrastructural plans and exports through its large monetary reserves. The EU is also trying to employ the idea of capitalism that is trickling down to restrict spending and impose au...