Table of Contents
Globalization has the implication of the way people, companies and Government of different nations interact and understand one another in the line of trade and investments supported by information technology. This concept has some impact on environment, politics systems, economic development and culture. It also affects the prosperity and physical human well being among the communities of the World
Globalization is an old issue in the World as for many years people and corporations have been buying and selling from one another in the countries of great distance. For years of ages companies and people have investments in different countries which further give great emphasis on globalization. Also the current features of globalization are still the same as those which were there before the occurrence of the First World War in the year 1914 (William, 1997).
Globalization also state the procedure by which integration of economies of regions, societies and culture are done by global networking of the ideas of politics, communication, transport and trade. It is closely associated with globalization of economics where national economies are changed into international one through trade, open investment, movement of people, availability of technical know how and presence of military security in the World.
The situation where people have connections and depend on one another likewise to countries for it to have more meaning it must include some two related parts. These elements are: Countries have free entry and exit in their borders to promote faster movement of commodities and services not excluding finances and people of the trading countries. The other element is to have transition on institutional and policies at the international and national hierarchy which hasten movement of good and services in the interconnected countries when trading. I t has also come into the knowledge of people of the World that Globalization has both negative and positive impacts in both economic and human development. The negative impacts will therefore bring great losses to the societies while positive one will boost the morale of the countries involving in Globalization.
The positive impact of Globalization is that it makes countries with low per capita income to grow economically and also to boost the living standards of the people living in such particular nations. There is another argument that globalization has only benefited worldwide corporations which are situated in the western part of the World and suppress local enterprises, cultures and people in there own countries Globalization has been accepted by both the Government as well as people of the World which make them to be able to manage their capital, labor force, goods and information which has influence on Globalization. The balance of benefits and costs which are connected with Globalization can only be attained when the citizen how it is working and the choice of policies which affect them and their societies (William, 1997).
Globalization has brought in many improvements in transport, communication and far much more on information technology which resulted into an increase in wider range of goods and services being moved from one place to the other. This also enhances the speed and reduces the cost of these transactions by having efficient ways of doing these over along distance. It also brings some evolutionary changes of taste and preferences on both individual and societies in favour of their choices and diversion state of source of goods along with services which we daily use. Such evolutionary changes are brought by good education and well developed communication technology which is matter of Globalization. The cross-border barriers have also been reduced by the Government to enhance liberated movement of goods in addition to services in and out of those commodities in those countries. Those actions came by because of the benefits which have been observed in countries which earlier adopted (Ewen, 1976).
Globalization and high costs of maintaining similar barriers
The introduction of the corporate strategies boosting the growth of profits by reducing the cost comprises of material out sourcing and supply of service functions in addition of economic of scale not by increasing prices of these goods. These also are of great benefit to the Government and the so called central bank in general as it controls both inflation and deflation when price stability is maintained in these countries.
Globalization also has played a big role in poverty elevation as it has never been done to its completion more so it is still a big stress in Africa. The slow poverty reduction is experienced in Africa due to late adoption of Globalization.
Globalization has also another benefit of majorly boosting commodity and service production not excluding economic growth, which finally give good living standards of the people. This result to better separation of duties and give good atmosphere for the companies to properly consume big economies of scale. In addition to the above, it is proved that due to these Globolisation financial resources can be taken to nations with good investment opportunities.
The other versions of negative impact come with some views that higher competition in countries of low wage bring down employment opportunities in nations which are already rich. The steam of high competition can also affect the ability of the Government from putting their policies right and result into lack of regulations and these demoralizes their strengths to guard and boost the interest of the people. Furthermore Globalization also has some negative effects as documented bellow. It brings down the sovereignty of a nation and that capability of country to manage its own economic deeds.
There is also uneven access to the rich positive impacts of Globalization majorly for the poor marginalized nations and finally the presence of high market financial risk which come with too much of instability (Brecher, 1998). Losers as well as winners are evident in short term orientation. This implies that different parties perceive the effects of globalization from diverse points of view as indicated by the demand supply curve in the following figure.
The home producers of those good which are being brought into the country having prices competing with those which have come into the country are the short period losers who are indifferent from exports with higher prices because of the added foreign demand. Therefore Globalization has more positive impacts than negative ones hence should be adopted by most of the countries of the World.