Developing Economy in the Age of Globalization

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Developing economy in the Age of Globalization

Introduction

The term “globalization” refers to the international integration that arises from worldviews, cultures and ideas being interchanged and increasing human connectivity. The process of globalization helps to reshape territorial structures throughout the world and affects the distribution of economic activity. One of the most significant consequences of globalization is that it helps to build a new territorial structure. It is a structure where the alteration of the existing territorial structures takes place. This eventually leads to the complex and heterogeneous socio political and economic landscape formation. “Rather than reducing the importance of place, the worth of local areas has increased for prosperity and economic growth with the help of Globalization. Space is becoming increasingly slippery, in the sense that capital, goods, people, and ideas travel more easily” Friedman says.

Discussion

Globalization is increasing at a rapid rate with the increase in science and technology and therefore people in United States like workers and communities are losing control over their destinies. All nations including the richer as well as the poor are changing and being altered as well as their firms as globalization takes place. Firms and multinational companies within and outside United States are growing dominantly which is one of the most important factor caused by globalization. Not only is this but it is also important to consider that employment level increased significantly due to globalization. Many value added services have been provided by the advertising, law and other firms in United States, which aid a lot in development. For instance, in 2006, 215300 more jobs were received as foreign corporations invested here with the largest number occurring in the Manufacturing industry. Various programs and policies are made by the government and the private agencies that help to increase economic development. This might have positive effects or negative, depending upon the approach adopted. If the program does not function properly or it does not affect the problem properly as assumed, this might be because of inadequate funding or poor designing of the program. Or it may be because the money gets drained in politically driven firms where justification of economic development was used as a cover. When programs that are produced and does not benefit the economic development, then to find the problem helps to use the scarce funds to flow to the other.

Wide ranges of initiatives are included in the economic development programs. It includes programs such as the improvement of human capital of individual workers, helping athletic teams by subsidizing them, to various enterprise zones and to various particular businesses. However, with the process of globalization, labor force has declined a lot as discussed by Bennett Harrisson. Jobs are off shoring, the downsizing of corporate industry, a decline in the number of unionized jobs, temporary help agencies being used more and more to meet the employment needs other factors that have helped to erode bases of good jobs. Job quality has been further tied ...