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Economic Globalization Analysis

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Yet, the evaluation was not comprehensive. It only measure the impact on economic while impact on political and cultural were being neglected. Since impact can be either positive or negative, globalization became controversial. Some stated that globalization is overrated.

The impact on economic was significant. The economic globalization has accelerated the economic growth of globalize countries. Economic globalization refers to “the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies.”(Gao, 2000).

Since the outset of economic globalization, free trade has been established.
Free trade has reduced the trade barrier between nations. Companies in different countries could trade freely, without any restriction on import or export. An example of free trade is The European Free Trade Association (EFTA), an intergovernmental organization which allows and promotes the benefit of free trade in Iceland, Liechtenstein, Norway and Switzerland. (EFTA, …show more content…

There was a greater choice of goods because foreign companies could easily enter. The foreign companies also increased the market competition, it drove the prices down. Therefore, consumers could enjoy a wide-range of goods in a low price level. For manufacturers, they could enjoy a larger export market. They could sell their goods and services to numerous countries. Furthermore, free trade allowed countries to specialize, countries could produce goods where they have a comparative advantage (a lower opportunity cost). The economy of a nation would be efficient when …show more content…

However, some criticisms were on the impact of the globalized culture. Consumerism was one of the many. Large multinational corporations were all over the world, it is difficult a country where brands like Adidas, Coca-Cola. didn’t exist. These multinational companies promote their products worldwide. It has enforce the western consumption trend to other countries, local companies has been pushed to the edge of the market. With reference to the example, Mc Donald’s mentioned above, it promoted the value of efficiency of fast food. Traditional cuisine were labeled with less effective, local restaurant would lost in business and there may be a danger of lost in traditional

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However it doesn’t have a large impact on the food industry as such as consumers need to purchase food in order to survive. Although they may decrease quantity of foods they choose to buy, they are still willing to purchase basic foods that will sustain their health. Consumers are more likely during an economic downfall to spend their money on foods they require rather than want. The company as a result obtains an advantage from its competitors as they produce long lasting food options, which allows consumer’s to save during tough times. This highlights an opportunity for the company as they produce healthier and simple food varieties which many customers desire.

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Henceforth trade became more efficient and faster paced in correspondence with the high productivity of the factories. “(Before the Industrial Revolution), one person doing all five required steps in manufacturing a product can make one unit, (but during the Industrial Revolution), five people, each specializing in one of the five steps, can make ten units in the same time” (Document 4). New methods in manufacturing increased productivity. Since products were manufactured faster, the output of the product increased as well as the economic prosperity. With the growth of the economy an

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There were new markets being created during this time period, also the immigrants could fill jobs that were not filled before. Also, some of them could become farmers, which would help the common people pay for their foods. The supply would rise, so the demand would sink causing the prices to go down with the demand. More markets would also rise up due to immigration. Immigrants have access to create their own companies and try and expand quickly so they can show the United States their products from other countries.

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