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Impact of globalization on world economy
Impact of globalization on world economy
Global factors that influence economy
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Many countries are in the process of industrializing, such as China, and other countries are in their post industrial era like the United States. When the economy failed in 2008, the entire world was affected. While many of these countries faced hard times after the economic failure, the elites of most still flourished (Priestland, p 232, 233). Any country that was tied to the global market in some way was affected. They were affected because the merchants had created a world economy in which all major world nation participated.
After the Cold War, the field was sowed for globalism to be planted among the countries of the world. Its roots grew and were used to bring together a world that was separated. In the eyes of historians, globalism is seen as a double edged sword that has benefits and drawbacks in a nation’s economy, environment, and social structure. According to ABC-CLIO, the definition of globalism is “...the growth of systems and activities of economic and commercial production, trade, and services on a global scale” that is a result of collaboration between nations.
There is also increased political support for globalization and political pressure for higher wages as the minimum wage requirements are raised (Yüksel, 2012). Economical Factors There is a reduction in the rate of unemployment in the United States and stability in the national economy. A reduction in the rates of unemployment has also contributed to the growth of disposables incomes that is held by households. Developing countries are also having continued growth providing an opportunity for retail companies that have an objective of expanding its business internationally (Yüksel,
Extreme poverty has decreased by 35% since 1990. In addition, the goal of the development goals of the first millennium was to halve the poverty rate between 1990 and 2010. Since then, almost 1.1 billion people worldwide have fled into extreme poverty. Access to new markets: Businesses in Australia are benefiting from globalization including new customers and various sources of income.
In Central Europe, employment levels and consumer confidence has started to rise after a stretched period of economic stress, low levels and real income are starting to benefit from lower inflation, but household spending is yet to increase considerably. In Asia, even though some economies are quickly growing, some were impacted by the recession in 2013-2014 which saw consumers stressed with huge debts such as Thailand. Furthermore, consumers’ confidence was affected by Thai political unrest during 2014. In South Korea even though consumer confidence is high, household debt reached a record level.
Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. The most common example of globalization might be Ebay or Amazon. Nowadays flows of goods and services are not only cheap and fast, but reliable and secure.
Globalisation is a process whereby flows, exchanges and interactions are transboundary in nature. People, goods, services, ideas and information are being exchanged globally with intensification and acceleration. These exchanges are worldwide and real time. The results of globalisation are interconnectivity, integration and interdependence. With globalisation, many global citizens have greater mobility, which allows them to seek better opportunities overseas.
Globalization means that people from. different countries communicate together and work together. The world is becoming globalizing because many people have benefits in globalization. Business men can set up their business in other countries. Also ,we can have better communication with other countries’ people through the widely used language, like English.
The relevant number was quite small until the period 1965-1990, the rate of number of workforce raised about half (International Monetary Fund, 2000). That is a huge effect to developing countries when their employee goes outside the country to work. So far, they will face to the lack of labor. Thirdly, local business will have a lot of difficulties because people tend to like import goods or foreign goods more than local products. The trend of globalization put developing countries into a hard competition.
Globalisation could be defined from a descriptive and prescriptive sphere of the economy. Descriptive, globalisation is views as the fastest growth processes of the world-wide connectivity
The employment growth has not been proportionate with population and GDP growth. The fact that there has not been any significant growth in employment despite considerable acceleration
INTRODUCTION Economic growth is defined as the increased capacity of an economy to be able to produce goods and services in comparison from one period of time to another. This is figured by the genuine Gross Domestic Product (GDP) and development, and is measured by utilizing genuine terms such as “Balanced Inflation”. These terms help to remove any distorted views on the perceived outcome of inflation on the cost of merchandises produced. Likewise, Economic growth is related to the high expectations in a person’s standard of living. If the standards are high, it wouldn’t be beneficial for the economy as the working class individuals will face a lot of trouble.
Poverty is the main social and economic problem that the people are facing particularly in the world (Bruton & Ketchen, 2013). As of 2013, there were about 2.47 billion people in the world living in poverty with an income of USD 2 or less a day most of them from developing or under developing countries located in African and Asian continent (Bruton & Ketchen, 2013). The population living under poverty only declined from 2.59 billion to 2.47 billion between 1981 and 2013 (Bruton & Ketchen, 2013). Poverty means the lack of income or shortage of assets; the lack of competence, confidence, disempowerment and deprivation of national currency (Singer, 2006) .Poverty may arise from low productivity of the households and they face financial constraints
Rapid increase in unemployment, under employment and poverty (about 60% of the youth aged 14-25 years) amounting into 3 million jobless people entering the labour market annually. 3. Social instability (ethnic nationalist and religious friction) 4. Hyper inflation covers 50% between (1985 – 1995) 5. Unstable exchange and interest rates 6.
