ECONOMICS ASSIGNMENT

Introduction
This assignment is focused on describing neoliberal globalization and identifying that how it has changed the relationship between business and governments. The perspective that what needs to be done in order to ought to the current situation is also discussed and analyzed in this assignment. The suggestions to the government are also provided regarding neoliberalism in this assignment.

Neoliberal Globalization
Neo-liberalism refers to economic liberalism which has become very important in the international economy (Kotz and David, 1998). Neoliberal globalization is defined as setting up the market free and private enterprises are free from any bonds or regulations imposed by the government of the state (Ong, 2006). Neoliberal globalization mainly promotes the concept of free market economy. The rules of neo-liberal globalization include cutting the public expenditure and reducing the social safety net. It also involves reducing the government regulations or everything that could result in reduction in the overall business profitability of the private enterprises (Harvey, 2005). The state enterprises are sold to the private investors and concepts of ‘public good’ and ‘community’ are eliminated and the individual responsibility is increased. There is a huge criticism that this system usually involves pressing the poorest people within the society which could result in social distress within the society. At the global level, the neoliberal institutions are setting out the rules and regulations for free international trade and financial transactions in order to ensure the global economic growth (Greig and Hulme, 2007).

It is a fact that when there is free trades between the countries then it will help to boost the overall economic performance (Ong, 2006). However, there is a common perception that undeveloped countries are very less likely to get benefited from neoliberal globalization because of the strong hold of the developed countries on the international trade related activities. In the neoliberal system, the people are usually dependent on the market in order to ensure their survival. The production related activities of the companies are undertaken mainly for the purpose of generating business profitability and land and labour are considered as commodities (Kotz and David, 1998). The private enterprises are taking all the best possible measures that can help to enhance their business profitability. Labour is mostly exploited by the private enterprises in order to enhance their profitability especially in the non-monopoly situation. However, the proponents of noeliberalism believe that economic growth and development of the private enterprises can be ensured which can generate significant benefits in the long run (Kotz and David, 1998).

Neoliberalism has strong advocates in the Western Europe and international institutions like World Bank and IMF are also advocating the neoliberal policies because of the positive aspects of these policies on the international economy. The neoliberalism theory shows that a largely unregulated capitalist system not only emphasizes on the idea of individual choice but it also help to achieve improved economic performance, efficiency, technical progress, and distributional justice (Menshikov and Stanislav, 1997). The neoliberalism theory explains that unregulated trade and markets, free trade and unrestricted flow of capital are more likely to generate many economic related benefits (Kotz and David, 1998). It can also generate many social and political benefits for the country in the long run. There are many studies which reflect that free flow of capital across the boundaries can result in increased market efficiency. It will also help to bind the nations which are also associated with global stability which is an important concern in the modern era (Greig and Hulme, 2007).

Changing Relationship between Business & Governments
There is no other opinion on the fact that neoliberal globalization has changed the relationship between the businesses and governments (Menshikov and Stanislav, 1997). The reason behind this is governments are not interfering in the market and not introducing any regulations in order to regulate the trade related activities. The government role to facilitate the market also has been minimized. Neoliberal globalization promotes the concept of free international trade and the government of any country cannot restrict the business activities of any international firm just for the purpose of protecting the local industry (Ong, 2006). Previously the governments were playing the relatively interventionist role and usually high tariffs were imposed on the imported products in order to protect the locally manufactured products. However, neoliberalism approach requires that the government should not intervene in the economy even it is beneficial for the economy (Kotz and David, 1998).

Neoliberal globalization requires minimal government taxation, minimal regulations and minimal direct involvement in the economy which means that the governments cannot influence on the business activities of the local and foreign enterprises operating in the country (Harvey, 2005). Before the introduction of this particular concept, the businesses were largely dependents on the government policies and strategies and the policies introduced by the government can significantly affect the business operations of the companies (Menshikov and Stanislav, 1997). Research shows that neoliberalism approach cannot be effectively implemented in the under developed countries because the companies try to take advantage from the neoliberalism philosophy, therefore, the state interference is essential in order to regulate or monitor the business activities of the private enterprises (Greig and Hulme, 2007). The state is required to interfere in order to subsidize the prices especially the prices of the commodity items and setting the wages which is the most important concern (Ong, 2006). The reason behind this is labour exploitation is very common in the under developed countries and governments are usually setting the minimum wages in order to protect the labour class from the industrialists.

Response against Current Situation
My personal perspective is that people must respond against the current situation in a positive manner. The reason behind this neo-liberalism has become widespread during the last two decades and it is not possible to completely eliminate the policies related to neoliberal globalization. It is more appropriate to the people to consider the positive aspects of neoliberal globalization and try to improve their economic situation through the free movement of capital and minimal government regulations. It is a known fact that lesser government regulations and minimal taxes are more likely to improve the financial performances of the business enterprises. The free trade is also considered as one of the most effective ways of developing the national economy and it also enable the consumers to get the high quality products at market competitive prices. The reason behind this is due to free trade, the products and services of the international companies are available within the country and there would be a competition between the domestic and international firms.

Due to high competition level, it is the priority of every business enterprise to offer best quality possible products and services to their target market at competitive prices which is ultimately beneficial for the consumers. I believe that it is important for the people not to exploit the neo-liberalism business policies. For instance, if the government is not interfering or monitoring the business related activities of the organizations then it is not appropriate for the private enterprises to exploit the labour and offer the labour class low wages which is very common in the developing countries. The industrial organizations in the developing and under developed countries are offering very low wages to the workers and the working environment is also not appropriate. The private enterprises should not charge high prices from the customers if the competition level is low in any industry. The reason behind this is these kinds of measures require the government to intervene in the business activities of the companies which is against the neo-liberalism philosophy. The governments are elected from the votes of general public and if people are protesting against the higher prices charged by the companies then it is essential for the government to intervene and regulate the prices of the commodities.

Suggestions to the Government about Neoliberalism
The government is required to protect the sanctity of the individual and celebrates the “voluntary agreements” which means that the most important responsibility of the government is to facilitate the functioning of the market. Therefore, the Canadian government must facilitate the effective functioning of the markets. The Canadian government can regulate the prices of the commodity items especially the food related items because they are consumed by the general public on day to day basis which is also a reflective of the popular will. However, it is appropriate for the Canadian government to support the economic liberalism because it will benefit the economy of the country in the long run. The governments of the other states can also support the neo-liberalism principles because they are supporting the private enterprises within the country. It is important to understand that if business firms are not able to earn profits then they can wind up their business operations which are very harmful for the national economy.

Neo-liberalism advocates reduced government regulations, however, it is not necessary that government regulations can be completed eliminated. The governments can introduce regulatory reforms where it is necessary. It is suggested to the governments that if they consider that neo-liberalism concept is not appropriate then sound measures must be taken in order to overcome the capitalist crisis which is affecting the profitability of the companies in a significant manner. This is very crucial because capitalist crisis has encouraged the corporate elite to favour economic liberalism. During the last few years, there is a rapid globalization of capitalist economy and this is one of the reasons that neo-liberalism is on a global scale at the present moment.

Conclusion
It is concluded that neoliberal globalization is positively associated with many economic related benefits. The discussions made in the above section shows that neo-liberalism refers to economic liberalism and it makes the private enterprises are free from any bonds or regulations imposed by the government of the state. The discussion also shows it involves reducing the government regulations or everything that could result in reduction in the overall business profitability of the private enterprises. Neo-liberal globalization has changed the relationship between the businesses and governments and the governments are not interfering in the market and not introducing any regulations in order to regulate the trade related activities. The discussions made in the above sections of the assignment shows that neo-liberal globalization requires minimal government taxation and minimal regulations. However, it is suggested that the Canadian government must facilitate the effective functioning of the markets.

References
Baker, D. and Epstein, G. (1998) Globalization and Progressive Economic Policy, Cambridge: Cambridge University Press.
Greig, A. and Hulme, D. (2007) Challenging Global Inequality: Development Theory and practice in the 21st Century. Basingstoke, UK: Palgrave MacMillan
Harvey, D. (2005) A Brief History of Neoliberalism. Oxford: Oxford University Press.
Kotz, S. and David, M. (1998) Neoliberalism and the Reproduction of Capitalism,@ unpublished conference paper.
Menshikov, S. and Stanislav, P. (1997) AIndicators and Trends of Economic Globalization,@ Unpublished Paper.
Ong, A. (2006) Neoliberalism as Exception: Mutations in Citizenship and Sovereignty. Durham and London: Duke University Press.