Globalization and its Domestic implications

Globalization and its Domestic implications

Abstract

 The process of globalization in the past many decades has led to many changes all over the world. Its importance and significance cannot be underestimated as it has come out a long way in effecting how trade occurs all over the world. While there have many advantages that have been gained as a result of globalization, on the other hand there have been many harmful effects. Studies and researches that have been conducted in the past with regards to many empirical such as GDP per capital or FDI have concluded that the disadvantages far more outweigh the advantages. This is the view of non-economic policy makers and also a major portion of the public. A significant disadvantage that has been gained is that this process assists greatly in illegal activities such as money laundering which results in huge financial losses for many countries around the world. It also leads to a rise in criminal activities such as human trafficking and drug trafficking as such criminals are able to find more advanced and sophisticated methods of engaging in crime.

This paper will attempt to explore the process of globalization and the implications that are sustained on account of it domestically.

Globalization and its Domestic implications

Introduction and Background

While discussing the actual definition of globalization, a debate could arise. The main difference in the viewpoint of the argument is that whether globalization is a change of politics and culture through globalization, or it is the developed nations who are taking benefits of globalization. Globalization enables a nation to generate higher profits through cheap labor. It is obvious that globalization is bringing different nations of the world closer, and majority agrees with this statement. Innovation and technological developments have resulted in globalization. Globalization has resulted in widening connections between different people of the world. Most of the people view globalization as a beneficial process, while other consider it an issue for the cultures I different parts of the world. Some questions have been developed that are very important to be answered. These questions are mentioned as follows.

1. How can the developing countries, especially the poorest, be helped to catch up?

2. Does globalization aggravate inequality or can it help to reduce poverty?

3. Are countries that integrate with the global economy inevitably vulnerable to instability? (Brown, 2003).

It has been observed that globalization provides opportunities for advancements and improvements to different regions of the world. Globalization involves technology and human development across international boundaries. The technological advancements and financial benefits are provided to different organizations all around the world (Brown, 2003).

One of the most important changes that have been incurred due to the process of globalization is that it has many implications on the countries all over the world domestically. These implications are far reaching and could be positive as well as negative. These implications need to be studied to grasp a better understanding of the process of globalization and how it comes out in affecting the ...