GLOBALISATION

Globalisation in the Twentieth Century



Globalisation in the Twentieth Century

Introduction

The term globalisation has a different definition for different individuals. Some see globalisation as a beneficial process which will contribute decisively to global economic development. Others have a negative perception for this process and believe that it increases inequality within and between nations, threatens employment and living standards and thwarts social progress. The objective of this study, which is an overview of certain aspects of globalisation, is to compare the present the different definitions of globalisation along with its benefits in the contemporary world.

Globalisation offers great opportunities to achieve a truly global development in an irregular manner. Some countries integrate into the global economy more quickly than others. For those who could fit in this changing environment, growth is stronger and it reduces poverty. Under the influence of outward-oriented policies, the countries of East Asia, which were among the poorest in the world 40 years ago, for the most part became vibrant and prosperous (Owens, 2011, Pp. 25-55). As living standards rose in these countries, they were able to open up to democracy and economic progress in areas such as environment and working conditions.

In the 1970s and 1980s, many countries in Latin America and Africa, unlike Asia, pursued inward looking policies and their economy stagnated or declined, poverty increased and high Inflation became the norm. Adverse external events have compounded the difficulties, especially in Africa. However, as these countries changed their policies, their incomes began to rise and economic indicators showed improvement.

Crises in emerging markets in the 1990 showed very clearly that the benefits of globalisation are not without drawbacks. It is associated with the risk of instability of capital flows and degradation of the social fabric of the economy and the environment that could lead to poverty. For all stakeholders and investors, whether they come from developing countries and advanced economies, globalisation is the reason for investment as well as withdrawal (Owens, 2011, Pp. 25-55). Countries have become so much correlated and integrated to one another, that slight uproar in one country trickles down to all the related states. Some argue that globalisation increases inequality and instability which threatens the global economy.

Globalisation

Globalisation is a process formed as a result of human innovation and technological progress. It evokes the increasing integration of economies around the world, particularly through trade flows and financial flows. The term sometimes also refers to international transfer of labour and knowledge (Lentner, 2004, Pp. 98-121).

The term is commonly used since the 1980s, that is to say, since that technological progress allowed for easier and faster international operations (commercial or financial). It reflects an extension beyond the borders of the countries of market forces that have operated for centuries at all levels of economic activity (village markets, urban industries or financial centres).

Markets promote efficiency through competition and the division of labour (specialization allows workers and economies to focus on what they do best). With the globalisation of markets, it is possible to exploit more ...