Effects of Globalization on World Economy

Executive Summary

Globalization has been reported to create many issues and problems along with the unlimited benefits in terms of advancement of world economy by removing barriers for trade and business and sharing of different values, beliefs and cultures through a single platform. One of the most prominent issues faced by nations is that of inequality and uneven distribution of wealth. It has been reported that globalization and technological advancement is only beneficial for the developed countries as they the ones actually taking advantage of globalization while poor and developing countries are unable to reap any of the benefits. It has been reported to increase the gap between nations as United Nations reports show that the number f nations benefitting from globalization are less than 20 and the difference between the richest and poorest nation in terms of per capita income has increased from 30 times to 70 time from the year 1960 to date. This shows the severity of problems caused by globalization. It has been suggested that global cooperation and usage of model inspired by the world power United States must be undertaken to deal with the issues of globalization. It is important that the model must be followed along with making reforms and changes in the existing policies and economic regulations of the country. Additionally there is a serious need to develop a global institute or association that must work as linking authority between different nations in order to look into the challenges posed by globalization and propose relevant solutions at an international level.

Effects of Globalization on World Economy

Introduction

Globalization has no doubt emerged as one of the most important and powerful aspect of the world's economic system in a sense it has proven to be very useful and beneficial in predicting the future direction in which the world seems to be heading in the days to come. The concept of globalization has made prominent changes in the external environment of the society in terms of economic, politics, security, environmental, health, social and cultural reforms. The aim of this report is to study the effects of globalization on international or your may call it world economic conditions. The concept of globalization was first introduced during the 1980s era but their real inception is much older than that as different scholars used different terminologies and interpretations of the concept. This report will emphasize upon the disadvantages that are attached with the concept of globalization. It has been reported to give rise to conflicts and inequality between different nations and countries Additionally it has been suggested that whatever the severity of issues and problems may be, international cooperation and development of new institutions operating globally, would help in coping up with the challenges and dealing with the issues of globalization.

Discussion

Background and History

Globalization has a great impact on the economies of all the countries operating in the world. It not only effects the production of goods and services but also brings changes in the employment sector, labor ...