Globalization, which involves the eligibility of nations to conduct free trade without experiencing any trade restrictions, barriers, and tariffs, is the core notion pulling behind today’s integrated and internationally connected countries in the world. The intention behind globalization is to integrate and expand markets globally, allowing nations to benefit and derive economic gain from international trade.
The goal is to point out the many influences globalization as a means of economic integration has on the national economies and societies of the world from a national and international point of view.
Understanding the effectiveness of globalization is essential. The motive of this paper is to make out if the influences of globalization fall in place or if they make a deviation from the expected structure.
Globalization has a significant effect on both the economy of a nation, the personal lives and society as a whole by improving the standards of living as well as access to amenities of life. (Glatzer 2012). Economies of the world are broadly subdivided into; developed, developing and transitioning economy. Globalization results to severe social impact for it ensure heightened interdependency among countries, their resources, markets, people, goods services, capital, culture, and information. From 1960, the developed world acknowledged the quality of life as the primary social goal, which was at a much earlier stage than the developing countries.
The subjective dimension regarding the quality of life deals with the Overall Satisfaction of Life. The assessed impact of Personal and National Well-being and indices that combine both subjective and objective aspects of life like Happy Life Expectancy gives a better social view of national economies (Dreher Gassebner and Siemers 2012).
The comparison of these indices has brought to light that, developed nation’s benefit from globalization, the resulting free markets, and increased output through free trade. The social dimension of globalization captures the weight it has on the life and employment of societies, families, and people. Globalization had merged the economic and political environment of the world which is a more significant consequence on social factors like equal access to essential amenities, marketed goods, enjoying legal, exclusive rights, keeping up the dignity, solidarity, and equality of people residing in a nation (Fominaya 2014). The most prominent impact of globalization recently is the inequality among nations, categorized into two sections; developed and developing.
It also affects the populations’ ability to obtain essential health services (McMichael 2013). There has been an acceleration in new infectious diseases due to the uninterrupted spread of cross-border markets encourage the spread of non-communicable diseases. On the flip side, it allows free flow of information, awareness and better technology to deal with complex health cases. This has been attributed to the improved coordination in vaccination programs and ways of curing infectious diseases.
The economic impact is only visible through various modifications. The expansion of markets through cross-border allowed open market trading with foreign countries with access to international investments such as the FDI and FPI. Increased foreign direct investment to the less developed nations by the capitalist developed actions led to growth and development of economic output for them (Sunkel and Inotai 2016). The push for colossal capital investment enhances the economic integration and interdependence of the economies.
Globalization also improves the market operations and output thus increasing the trade volume, bringing forth more trade possibilities. The interdependency among nations has pushed for the merging of transportation and communication among countries.
The dark side to globalization has been brought about by the accusations that it accentuates economic problems like income inequality, poverty, and unemployment. The most significant concern that has been evoked by the process of globalization is the increased inequality gap between the poor and rich countries. Instead, it makes the poor poorer and the rich richer (Arora 2012). The relationship between the increased pace of trade and financial globalization is well explained by the rising income inequality (Jaumotte Lal 2013). After the globalization process became more popular, the capitalist nations, having more access to capital, channeled the retail sector to conduct financing of assets, use, and management of working capital to have market power transformed into financial gains.
The main intention of globalization, is the free and uninterrupted trade. The concept of Heckscher-Ohlin model comparative advantage and absolute advantage, are the most prominent factor driving the theory behind the international trade taking place among nations. The model explains that a country should produce the goods in which it has a comparative advantage, relative to the other countries and export that to the world market in return for goods it goes without producing (Arora 2012). This model is a fundamental framework which explains the logic behind why countries should trade instead on one country producing all the goods and services by itself.
A nation has an absolute advantage in a particular line of production if it requires less unit of labor to produce one unit of good compared to other nations. This makes them capture higher labor productivity that drives the trade among nations (Margalit 2012). This explanation takes labor as the only input of production. The nation with higher labor productivity that is taking lower labor to produce a unit of goods is required to produce and export the good with other nations. This lead to specialization of the nation in that good which further reduces the cost making production more efficient.
|
Labor hour per unit of production |
||
|
Country |
Food |
Weapon |
|
A |
30 |
40 |
|
B |
50 |
20 |
Figure 1: Absolute Advantage
Country A seems to require a lesser unit of labor in the production of food and Country B has little labor requirement in production weapon. The doctrine of absolute advantage would suggest A produce food and trade it for the weapon with B.
The research was conducted to prove that globalization has adverse effects on both social and economic aspect. The effects have proven to be both positive and negative in the sense that globalization has brought about socio-economic benefits and detrimental effects as well. Social inequality is the largest negative effect of globalization. The methods used in the study was qualitative research.
The problems faced during the study were, finding out if the positive effects of globalization could outweigh the negative effects. Coming across literature that proved the need to continue with globalization has proven to be a challenge. This is because most literature was putting down both the merits and demerits of globalization.
According to the study, the issue of how globalization is going to help solve or upgrade poor developing countries to developed countries was not addressed. In addition to this, there was no mention of how and why the developing countries have been left out of the picture yet; they are part of the global society. The question of how to fill the gap between developed and developing countries was also not answered.
What are the influences that globalization exerts in the world national economies?
What are the outcomes of free trade and unrestricted trade?
How do nations achieve a comparative advantage?
What are the strategies that countries adapt to frame global trade policies?
Globalization defines the economies of nations globally.
Comparative advantage is essential for a country’s progress in global trade.
Countries implement policies to assist them to maneuver the mitigations of globalization.
In the study of the socio-economic influence of globalization, both the quantitative study design as well as the qualitative design will be applied.
The research will employ the use of quantitative design. The aim type being the quasi-Experimental Design. The research work will be focused on establishing a cause-effect relationship among various variables of concern. There will be no group assignment neither will the study involve manipulating the independent variables. Control groups will just be identified, and a variable used to analyze them about each other (Bernard, 2012).
The design target will be to quantify the issues and generate numerical data that is analyzable and useful in generating statistics of essential to the research. From this, patterns will be generated to approve or do away with a hypothesis.
The methodology will entail obtaining numerical data online from government websites as well as from independent global monetary firms. The data will be collected based on the two extreme groups of nations worldwide; developed and developing.
Afterwards, analytical instruments like diagrams, charts, and graphs will be applied to obtain trends and diagrammatic pictures of the situation before a conclusion is made.
The qualitative research approach that will be applied will be the case study method. The research work will examine some countries and use them as a case in approving the opinions.
The focus of qualitative design will be to obtain a more significant understanding of underlying opinions, justifications, and motivations which are related to the research objectives. From here a bigger picture of the idea will be gained and research hypotheses generated. Also, the quantitative design will clear the way for quantitative interpretations.
The research data will be obtained from the government websites especially the department concerned with economic statistics. The central area of focus will be global financial reports and journals from international monetary organizations.
The variables of concern will be countries poverty level, industrialization, per-capita income and global trade contributions.
The study will be based on the use of secondary data. Currently, there are thousands of reports and journals regarding the globalization nation’s economic trends. Due to time constraint, it is therefore not possible to evaluate all the documents to formulate an opinion. The research work will consequently ignore some statistics and information that could have altered the findings.
Some of the information that the study will need to be assessed are classified and hence may not be obtained for the study. This presents a challenge of reliability as not all issues are addressed.
Secondary sources of data are done by previous researchers and experts. Even though the data used in the study is obtained from responsible government and firms’ websites, they were collected by individuals. There is a possibility that when making their conclusions the researchers were biased based on their view of the situation or personal feelings regarding the issue. Such biases are difficult to detect especially with the qualitative data. There is thus a possibility that we make a skewed conclusion which justifies some individual feelings rather than the actual situation.
|
Period |
Objective |
Activity |
Expected completion time |
Person in charge |
|
January 2018 |
Formulate research topic and secondary questions |
Evaluate the definition of globalization |
February 2018 |
Research assistant director |
|
January 2018 |
Identify and group counties based on industrialization state |
February 2018 |
Research assistant director |
|
|
February 2018 |
Define research design and methodology |
Go through assorted models and methods to identify which techniques fit the study. |
March 2018 |
Research assistant director |
|
March 2018 |
Identify potential sources of data |
Croup and validate the nature of websites from which information will be collected |
April 2018 |
Research director |
|
April 2018 |
Carrying out the study |
Collect data on poverty level, trading state and the extent of industrialization in the various grouped states |
June 2018 |
Research director |
|
June 2018 |
Data analysis |
Use statistical tools to evaluate the numerical data and identify trends |
September 2018 |
Research director |
|
October 2018 |
Finalizing |
Using the observations to make findings and recommendations |
September 2018 |
Research director |
Conclusion
The emergence of globalization has redefined the role of international trade to the various economies of individual countries be it developed or developing. This has been enhancing globalization’s ability to break the trade boundaries which previously safeguarded countries’ economies against the influence of other nations. Currently, firms must adapt to the techniques which come with the new ideologies to strike a balance between individual interests or and the entire community. Failure to adapt to such trends may just see the death of a firm (Joshi 2009).
Through globalization, the world trade has been opened to all forms of businesses, and the workers in developing countries can now participate in the international trade. This has seen companies diversify their operations by involving the international financial institutions as well as partnering businesses operating locally and globally (Thomas 2017).
Globalisation has had both positive and negative outcomes. First, it has seen various cultures integrate globally bringing the people who were once divided closer. With the close association of countries and cultures the global market has expanded creating a more extensive labour and product market (Rappa 2011). Employment opportunities have opened to nations which were once languishing under poverty courtesy of the global trade. Also, firms can now access a larger market making it easier for governments to apply the comparative advantage to increase their competitiveness.
On the other hand, the emergence of globalization has also led to mushrooming of some problems. The developing counties are occasionally being used for dumping by the industrialized nations. Also, the nation’s industries lack adequate capitals to compete hence killing businesses in the countries. With this, the inequality gap is widening as poverty spreads in the developed nations (Kate 2009). Globalization is advantageous but if not monitored may end up raising more humanitarian problems than experienced before.
Reference
Bernard, H. R. B. a. H. R., 2012. Social research methods: Qualitative and quantitative approaches, s.l.: Sage.
Dreher, A., Gassebner, M., and Siemers, L.H., 2012. Globalization, economic freedom, and human rights. Journal of Conflict Resolution, 56(3), pp.516-546.
Ebenstein, A., Harrison, A., McMillan, M. and Phillips, S., 2014. Estimating the impact of trade and offshoring on American workers using the current population surveys. Review of Economics and Statistics, 96(4), pp.581-595.
Fominaya, C.F., 2014. Social movements and globalization: How protests, occupations, and uprisings are changing the world. Palgrave Macmillan.
Joshi, R. M., 2009. International Business. 1 ed. s.l.: Oxford University Press.
Kate, R. W. a. P., 2009. The Spirit Level: Why More Equal Societies Almost Always Do Better, s.l.: Allen Lane.
Margalit, Y., 2012. Lost in globalization: International economic integration and the sources of popular discontent. International Studies Quarterly, 56(3), pp.484-500
McMichael, A.J., 2013. Globalization, climate change, and human health. New England Journal of Medicine, 368(14), pp.1335-1343
Rappa, A. L., 2011. Globalization: Power, Authority, and Legitimacy in Late Modernity., s.l.: Institute of Southeast Asian.
Thomas, V., 2017. The world transformed 1945 to the present. Second ed. s.l.: Michael H.hunt.
Stromquist, N.P., and Monkman, K. eds., 2014. Globalization and education: Integration and contestation across cultures. R&L Education.
Sunkel, O. and Inotai, A., 2016. Globalism and the new regionalism (Vol. 1). Springer
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