Globalization

Even today no country is fulfilled i.e. a country can't produce each and everything 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
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 ness 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 capita 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.

Some of the negative aspects of globalization
The loss of jobs in urbanized countries is quite commonly associated with globalization. The main reason that the impact of globalization is negative is as follows:
1) Multinationals have exported jobs from urbanized countries to developing countries through foreign investments and outward production in special economic zones.
2) Through trade freedom, governments have encouraged the replacement of domestically produced goods with goods produced abroad.
3) Some trade unions resist globalization, saying that it directs to a lowering of wage and workplace standards. The quarrel generally presented is that globalization encourages the trade in goods produced in countries which do not allow unions to defend their workers' rights. They undermine the goods shaped in countries where unions do defend unions' rights. This causes a race to the bottom as the markets are won by those with the lowest standards.

Advantages of Globalization
There is mounting confirmation that inequalities in global income and poverty are decreasing and that globalization has added to this turnaround. For example, the World Bank notes that China's introduction to world trade has brought it growth in income from $1460 a head in 1980 to $4120 by 1999. In 1980, Americans were paid 12.5 times as much as the Chinese, per capita. But by 1999, they were only earning 7.4 times as much. The gap among rich and poor is also decreasing with most nations in Asia and Latin America. The countries that are becoming poorer are those that are not open to world trade, notably many nations in Africa.

Poor countries that have reduced their tariff barriers have increased gain in employment and national income because labor and capital shifts from import-competing industries to expanding, newly aggressive export industries. In addition to giving jobs, companies moving to developing countries often export higher wages and working conditions compared with those in domestic companies operating in the country. While wages are often less in developing countries than those in developed countries they reproduce lower levels of education and productivity. The knowledge in countries like Korea is that as countries develop their wage levels lift and the focus shifts from labor intensive to more capital and knowledge intensive industries.

Just as capitalism needs a network of governing systems to keep it from devouring societies, globalization requires vigilance and the rule of law. Organizations like Anti-trust laws, the Securities and Exchange Commission, labor unions, charities, the Federal Trade Commission etc keep check of American capitalism. Alike transparent mechanisms are desired to make sure globalization is a positive force in the world.

Rapid growth and poverty diminution in China, India, and other countries that were poor 20 years ago, has been a constructive aspect of globalization .Globalization should be imagined as a relatively long-term process. The triad of deterritorialization, interconnectedness, and social acceleration barely represents an abrupt or recent event in contemporary social life. Globalization is a constitutive characteristic of the modern world, and modern history comprises many examples of globalization (Giddens, 1990). It has allowed the range for expansion of trade, exchange of culture and helped many countries to increase their economic condition.