Assignment



Assignment

Question 1

Globalization

Globalization is the integration of everything with everything else. A more complete definition is that Globalization is the integration of markets, finance, and technology in a way that shrinks the world from a size medium to a size small. Globalization enables each of us, wherever we live, to reach around the world farther, faster, deeper, and cheaper than ever before and at the same time allows the world to reach into each of us farther, faster, deeper, and cheaper than ever before (Weisbord & Bass, 1999).

Developing country

At a global level, globalisation has many benefits. For some people, it has been seen as an alleviation of poverty. One such example is the use of labour in 3rd world countries. At world level, globalisation creates hundreds of millions of jobs, not unemployment. These are mainly in the developing countries, but they are only marginally at the expense of jobs in advanced countries. As a result, the extra income would go to food and an improved lifestyle for some of the people living in 3rd world countries. For an example, the Japanese motor industry, Honda is manufactured in Thailand, and the U.S. Nike sports wear clothing are manufactured in China and South East Asian countries. This can create more jobs in the poorer countries and it also helps the wealthier countries. Due to the lower labour costs, larger quantities can be produced at a lower price. According to the World Bank report, it has said that developing countries have experienced high income growth, longer life expectancy, better schooling, higher wages and fewer people living in poverty since becoming integrated in the global economy(Weisbord & Bass, 1999).

In this utopian idea, there are still flaws and disadvantages; mainly concern the developing countries. Some countries are just not able to compete with the cheap labour costs of other nation. The reason why countries such as Russia remain not integrated with globalisation is because they would lose many jobs. They are not able to compete with the prices of foreign products and many of the local manufacturers would begin to close down. Employment, nationally, would decrease as the factories move to countries of cheaper labour costs. Also, Australia has suffered because of the lamb tariffs in the U.S. As a result of this, many Australian farms will become bankrupt. George Bush, though an avid supporter of free trade and trade liberalisation has puts tariffs on lamb to help the ailing U.S. farming industry. Such hypocrisy however, does not help promote the benefits of globalisation(Weisbord & Bass, 1999).

Developed Country

Growing trade and investment between countries, the major catalysts for globalisation, are a result of the liberalisation of trade around the globe. Free trade has improved the living standards of countries, regardless of rich or poor, due to the efficiency gains from the notion of comparative advantage. Rich countries can provide foreign investment and foreign direct investment to the poor countries to develop their industries, which in turn improves the income levels of the locals, while providing ...