...Globalization benefits all countries when a country specializes in a product or service and then exchange that good or service with other countries. But these benefits of globalization are never evenly distributed across the whole economy of a given country. There are always winner and losers. When it comes to winners and losers, it is helpful to distinguish between long term and short term effects of international trade. The short term winners are manufacturers who produce exportable goods and the consumers who buy imported goods. For instance, American manufacturers benefit to the extent that they can expand their market overseas, while American consumers benefit to the extent that they pay less for imported goods than for domestically produced goods. The short terms losers are the the domestic producers of importable goods whose prices must now compete with imported goods, and the consumers of exportable products who now have to pay more because of the additional international demand. When Chinese textiles are sold in America the losers are American producers of textiles because Chinese imports are cheaper than American products, while consumers in China also lose because they now have to pay more for textiles because of the rise in international demand. In the long term the picture looks a little different though. Lets say in exchange for the textiles China exports, it begins to import large amount of cheap wheat from America. The short terms winners are the US producers...
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...Who have been the principal winners and losers from globalisation? Globalization affects everyone, whether intended, directly or otherwise; it has gradually increased its presence in our daily lives. In this essay, I will point out who are the ones benefited and the ones injured from it by breaking down the question in four broad aspects: economic, political, socio-cultural and environmental. Seemingly, I will analyse the causals for this particular outcomes and distributions that indicate that globalization is creating further divergence in our world increasingly fragmented and unequal. The globalization winners – predominantly developed countries, the top 1% wealthiest demographic segments, transnational companies (TNC’s), supranational organizations amongst others – deeply embedded in the neoliberal belief that markets are the answer to global growth through trade, fostered by incentives such as low tariffs and interest rates and minimal government intervention find themselves unattached to the markedly less benefited, the losers– developing countries, especially their poorest demographic segments, the low-skilled low-wage percentage of workforce, the unemployed, the minorities, women amongst others – who in turn find themselves trapped in this zero-sum cycle where one either leads globalization or follows it – at risk of falling behind – but not either. Globalization, as most concepts in IPE and other social sciences, is a highly contested concept and encompasses a wide...
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...My View on Globalization First of all, globalization is basically the tendency of businesses, technologies, or philosophies to spread throughout the world. In my opinion, globalization is a good thing because the overall benefits exceed its overall costs. For example, as consumers we are winners because we are able to buy within a huge range of better quality goods and services at lower prices. Sometimes employees or owners of business lose one way or another, but the truth is that globalization must create losers and winners on the production side so that resources can be allocated more efficiently. Some people reject globalization because sometimes globalization has the tendency to worsen income and produce wealth inequality. On the other hand I just want globalization to produce more winners with higher benefits and fewer losers with lower costs, because as inescapable as it may sound, there will always be winners and losers. Things such as globalization and offshoring may cause, or are most likely to trigger a reorganization of employment with some workers temporarily losing their jobs and possibly taking time to find a new one. This is called frictional unemployment. The Economics Glossary defines frictional unemployment as "unemployment that comes from people moving between jobs, careers, and locations." If a person quits his job as an economics researcher to try and find a job in the music industry, then that person is undergoing frictional unemployment. The demand...
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...increasingly available in all parts of the world. International travel is more frequent and international communication is commonplace. Globalization is a fact of economic life and it has now become a very controversial topic and the growing number of various economic and social issues all around the world has focused more attention on the basic assumption of globalization and its effect. Globalization may be defined as the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. It describes the interplay across cultures of macro-social forces. These forces include religion, politics, and economics. Globalization is believed to leave the poor behind. Without capital, you cannot gain from integration. And the poor have next to no capital. Trade reforms do create both winners and losers and it might not always be politically feasible for the former to compensate the latter. If the losers from trade turn out to be the poor, then trade reduces social welfare, where all the weight is put on the welfare of the poorest. Exactly the opposite would be the case if trade reduces poverty and unemployment and makes low-skilled workers better off. Importantly, adverse distributional consequences of trade reforms may erode the political support for its sustainability. Globalization promotes global economic growth, creates jobs, makes companies more competitive, and lowers prices for consumers. It also provides poor...
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...competitive and profitable, so they are taking advantage of the economies of scale by acquiring the cheapest labor and materials from around the world. 2)Who benefits from the globalization of the flat-panel display industry?who are the losers? The clear winners from globalization are consumers and efficient manufactureres. As producction has been redistributed along cheaper countries around the world, these made posible so many profitable changes. Also as always, there are losers from others joy. The film fimrs that make cathode-ray tv are losers and also manufactureres from countries whom are not profitable to investors. 3)Then they would make the product more expensive, and thus less accessible to population. They would eventually kill the industry and probably favor substitute goods for flat televisions. In a balance, this would be really bad, both for Asian and Mexican economies as well for the consumption of them in the US. Restricting trade through barriers and useless tariffs is always a bad idea. 4) What does the example of vizio tell you about the future of production in an increasingly integrated global economy? What does it tell you about the strategies that enterprises must adopt to thrive in highly comptetitive global markets? Vizio gives the perfect about globalization, that they will never have to worry about changing providers eventhough they are in different countries. The reason is that they dont finance any of these manufactureres as son as...
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...1. There are five major characteristics of Globalization, as described by the text. The first deals with World trade and output. As Globalization takes hold, many countries across the globe are seeing a marketable increase in trade with other countries, countries that are not necessarily their neighbors. Individual nations are exporting more globally and becoming more active in global markets. Foreign direct investment is also a key factor in Globalization. As the world markets become more and more accessible, many investors are looking outside of their homeland portfolios and investing in foreign markets and business ventures. This leads to another characteristic, the rise of the multinational enterprise. Not only are these investors putting up capital in other countries, they are actively buying and building productive extensions of their homeland enterprises. The 4th element is that of a changing world order, specifically the rise of democracy and free market reform. The decline of communism and closed markets has dramatically affected how the world does business. The last characteristic is the fact that world trade is growing from individual national economies into a closely integrated global economic system. In addition to these characteristics, the text describes two main drivers of globalization. Declining trade and investment barriers, such as reduced tariffs and taxes, and relaxed national investment regulations have substantially opened up worldwide flow...
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...Flat-panel TVs display effects of globalization Costs come down for consumers, but U.S. companies, workers pay To understand the trade-offs inherent in 21st-century borderless commerce, consider one of the hottest items in consumer electronics: the flat-panel television set. It begins in spotless, state-of-the-art fabrication centers in South Korea, Taiwan and Japan, where the glass panels that form the televisions' heart are produced. From there, the panels travel to Mexican plants clustered along the U.S. border to be assembled into cabinets and loaded onto trucks bound for retailers such as Circuit City or Wal-Mart. Each link in this global supply chain specializes in what it does best and at lowest cost. By collaborating across time zones and oceans, these industrial networks have driven costs down and performance up in ways no single company ever could. With scores of brands jostling for attention -- from global icons such as Sony to newcomers such as Olevia and even "virtual companies" such as little-known Vizio -- a fierce price war is giving consumers more TV for less money with each passing day. Dan Moll of Arlington, Va., just spent $4,000 on a 50-inch Pioneer Elite plasma TV after watching the price fall 25% in four months. "It's phenomenal. It's beautiful. ... It just looks great," he says. The one-two punch of globalization and technological advances that define this industry, however, entails costs as well as benefits. Earlier this year, as manufacturers...
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...Making Globalization Work by Joseph E. Stiglitz Making Globalization Work Making Globalization Work By Joseph E. Stiglitz Joseph Stiglitz does not believe that Globalization is working. More than 20 years ago people believed that globalization would make everyone better off and the poorest of nations would also be uplifted. A trade negotiation for the poorest countries was called the “Uruguay Round”. [pic] Most countries that were a part of this negotiation ended up in a worse position than they were previously. These types of trade negotiations created a large distance between the richer and poorer countries. The standard should be that capitol flows from richer countries to the poorest ones. By the year 2006, it was quite the opposite. Money is flowing from poor countries to rich countries. This is due to the fact that rich countries are able to take more risks than the poor ones. The World Bank provides loans to developing countries for purposes such as, infrastructure, health, and education. Poor countries are signing debt contracts with The World Bank. The end result of these contracts is that the poor countries bear and enormous risk associated with interest rates and exchange rate votality. According to Stiglitz, this is happening in not one or two countries but many countries. Since many countries are falling victim to these contracts, Stieglitz believes it to be a systemic problem. For example, NAFTA (North American Free Trade Agreement)...
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...GLOBALİZATİON People around the globe are more connected to each other then ever before. Information and money flow more quickly than ever. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more frequent and international communication is commonplace. Globalization is an economic tidal wave that is sweeping over the world. It can’t be stopped, and there will be winners and losers. There are some disadvantages and advantages of globalization. The disadvantages of globalization 1. “The general complaint about globalization is that it has made the rich richer while making the non-rich poorer. 2. Multinational corporations are accused of social injustice, unfair working conditions as well as a lack of concern for the environment, mismanagement of natural resources, and ecological damage. 3. Multinational corporations which were previously restricted to commercial activities are increasingly influencing political decisions. Many think there is a threat of corporations ruling the world because they are gaining power due to globalization. 4. Globalization makes it easier for rich companies to act with less accountability. They also claim that countries’ individual cultures are becoming overpowered by Americanization. 5. Some experts think that globalization is also leading to the incursion of communicable diseases. Deadly diseases like HIV/AIDS are being spread by travelers to the remotest corners...
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...1. What is meant by the globalization of human capital? Is this inevitable as firms increase their global operations? The globalization of human capital results in a range of winners and losers around the world: companies and their stockholders, consumers, contractors, firms up and down the supply chain, employed people, and unemployed people, as well as their economics. It inevitable that firms increase their global operations because many companies are expanding and becoming global. For example, Dell, HP and others companies have now migrated overseas. 2. How does this case illustrate the threats and opportunities facing global companies in developing their strategies? I think one of the threats that global companies have nowadays is the cost of labor. It is cheaper to produce a product out of the country that within the same. For iPhone the major advantage and cost saving in China is the management of supply chains and raid access to component parts and manufacturing supplies from various factories in close proximity. In the U.S they couldn’t easily find the engineers and other skilled workers as they found it in China. For Global company price and profit is the most important consideration to stay competitive. They can use the cheap labor in other countries to be price competitive. 3. Comment on the Apple executive’s assertion that the company’s only obligation is making the best product possible. “We don’t have an obligation to solve America’s problems”. By harder...
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...and to the global economy as a whole. Individuals who are going to work for small firms should be aware of where their products are coming from, how much it costs to produce and ship them, etc. Globalization refers to abolishment of ‘economic boundaries.’ Technological advances such as the World Wide Web, cellular phones, and social media have proliferated this phenomenon. This means that we are all players in one, and only one economy…the global economy. Response to #4: Ultimately, there’s no logic found in this statement. Domestic business refers to all trade activity within the borders of our nation, and international business refers to all trade activity that crosses sovereign borders. Understanding where raw materials and finished goods alike are imported from/exported to are vital to understanding the global economy as a whole. Response(s) to #7: a. The manufacturing of flat-panel TVs is migrating to different locations around the world because it is more cost-effective to produce them in low-cost locations. b. The clear winner of the globalization of the flat-panel industry is the US based consumers, as finding the most cost-efficient way to produce them has driven competitors prices down substantially. On the opposite side of the spectrum, the losers of globalization include firms that continue to produce traditional cathode-ray TVs in high-cost locations. c. If the government mandated that only domestically produced flat-panels could be sold in the US, you...
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...We live in a world that is changing faster than ever. As developing countries begin to play an important role in the world economy, the global markets are becoming more integrated than ever before. Products that are made in a different continent can be available in other countries within days. Important developments and the integration of countries as trade partners have greatly influenced the progress of the world markets and provided economic benefits to countries that were missing this profitable opportunity. Hyperglobalist perspective of globalization is certainly the approach that privileges the world economies. Currently, the world economies are being benefitted by the disappearance of trade borders. The world as we knew it is not the same. Dependence on other countries products or services is more relevant than ever before. With new technological developments and faster modes of transportation, communication and distances between countries have been reduced significantly. They can move their products faster and efficiently. Countries that did not have any important interest or participation in the markets are now being rewarded by concentrating their resources particularly on what they best produce, giving them a comparative advantage in the global economy. This is one of the benefits found in this new structure of the world economy. Even though some countries are worse off and affected by this type of trade, nearly all countries have a comparative advantage in producing...
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...What exactly is globalization? Simply put, Globalization means the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Globalization has largely been made possible by advances in technology, particularly the Internet. As the world grows more connected, people in all nations achieve a far greater level of interdependence in activities such as trade, communications, travel, and political policy. It’s easy to assume that globalization is an entirely modern phenomenon driven by inventions like the telegraph or the Internet. In many ways, globalization has been taking place for centuries. From the Silk Road, which spanned from Europe all the way to East Asia, to the invention of steamships and railroads, humans have engaged in cultural exchange and international trade for centuries. In the 20th century, this international exchange and trade was made far easier by the invention of airlines and road vehicles. What was once a slow process, became a far simpler one in a very short period of time. In the late 20th century, the invention of digital communications tools like the Internet made modern globalization a reality. While globalization covers a wide range of topics, ranging from cultural values and information to economics and international trade, most modern discussion of the pros and cons of globalization is focused on economics and culture. There are advantages...
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...Sustainable development of globalization The positive view of the effects of globalization is surrounding the world, because it raised the awareness between cultures. Globalization is partly a result of the huge advances in technology, which linked all parts of the world and helped to expand the capitalist of productions. It shows the world is much smaller place, so there must be a positive impact in people aspects of the effects of globalization. In contrast, Cultures and environment represent the negative side of globalization, because it affects the pollution in water, land and air. Also it consumes metals such as iron, petrol, gas etc. Generally, the problem of globalization is using resources and environmental systems fast, which makes worry about the future life. Because we are living in environmental limits in the world, we will face some challenges to provide sustainable developments to protect local cultures and environment in globalization. Sustainable development is a process to provide people needs, while keep preventing the sources for future generations, although globalization lead for utilizing all kinds of resources to burden the planet of earth. Therefore, all government are working to get sustainable development to let the world getting all best interest in long-term, because the goal of sustainable development is to enable all people in the world to satisfy and enjoy their basic needs with good quality, excluding the life quality of future generations...
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...Globalization impact on the Saudi economy has been very substantial, and the effects of it in the future are likely to be even greater. Not only have the structures of, and effective operation and management of, the domestic economy has been critically affected, but also the balance between the different economies, the way in which they all relate to the rest of the world, and the potential for development. It is already clear that there are major winners and losers in this process, in terms both of economic sectors The impact of globalization on Saudi capital market In reaction to the global technological advancements in business, the Saudi capital market is being forced to update, consolidate, and expand its activities. Globalization has affected Saudi capital market in the following: 2.1. Market Deregulation There are no restrictions on foreign investment, no restrictions on foreign exchange and repatriation of capital and profits, and no taxes on capital gains, dividends or repatriation of earnings. In 1997, foreigners with or without local participation, were allowed to participate in the Saudi equity market through the Saudi Arabian Investment Fund (SAIF), instituted in London. Since November 1999, foreigners have also been allowed to participate in the Saudi equity market through open-end __ mutual funds offered by Saudi banks. GCC citizens are permitted to directly invest in the Saudi equity market. Foreigners enjoy full market access and suffer no...
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