Globalization & Economic Development



Globalization & Economic Development

Globalization

Globalization is a term that has, in many instances, come to replace the older and no less complex notion of “development.” In fact, globalization, has replaced the term development as the new action word of contemporary international governance discourse. Not simply a term that describes an inevitable process that is shaping the modern world, globalization, when conflated with development, is a metapolicy guiding the way to social and economic well-being in the global community.

Globalization and the economic Development

While economics cannot provide answers about the effects of globalization, it can provide insight by putting issues into perspective. To begin with, globalization is a part of process of specialization and expanding trade -a process that has been ongoing since the 16th century.. Macroeconomic theory supposes that both rich and poor economies can accrue significant benefits by fully integrating and participating in the global economy. By opening their economies to cross-border capital inflows, countries can improve financing opportunities through a more diversified and competitive financial and credit system, diversify risk, deepen their financial sector, and gain greater market access.

The world's economy characterizes itself by growing globalization, which is spurring the increasing integration of the global economy through trade and financial flows and the greater integration of knowledge through the transfer of information, culture, and technology. Globalization raises both fears and expectations. Some suggest that increasing interdependence is good for cooperation, peace, and solving problems. In addition to this, there are some aspects of globalization notably in the areas of communication, media and the economy that considered being having a homogenizing effect. It argued that new information and communication technologies, improved transportation and the emergence of a global media and powerful MNCs means that the world is becoming a smaller place, local cultures and traditions ...