What is globalization
Globalization is a term that has been used to describe the general global trends which characterize the on going behavior of states towards moving and joining together to merge their core functions especially economic functions through, through enhanced education, politics and society, thus creating a global feeling of togetherness which radically decreases the chances of nationalism and increases that feeling of global citizenship (Moses, 2002).
Globalization is perceived as an instrument of bringing people together from different nations especially through a specific common medium such as economy and consequently information technology through the use of internet (Dunning, 2003). The world economy has for many years been used as a tool of integration and interaction through the enhancement of trade which has however increased external capital flows, foreign direct investments, spread of technology and increased migration.
Therefore, globalization has been seen as a mixture or combination of several factors such as political, economic, social cultural, technological, and biological factors (Moses, 2002). Globalization as a factor has had both positive and negative impacts in the growing economies. However, its advantages cannot be underestimated for it has resulted to tremendous transformations in the global economies.
By and large, through globalization nation-states have been able to pursue tremendous policies which enhance the achievement of rapid and even faster economic growth, higher income, lower inflation rates and greater chances and opportunities to enhance economic freedom (Paul, 2001). Globalization has therefore increased greater integration between nation states which has also led to the elimination of barriers to trade and an increased inflow of money from foreign exchange serves and this has radically transformed economies of different coutries.
Free trade has therefore been used as an instrument for enhancing national prosperity. The benefits of globalization on the international economies can be observed with the increased growth of global markets which has been characterized by specific events such as increased establishment and creation of intergovernmental treatise and agreements, changes in the patterns and trends of global consumption rates, as well as the increased creation of transnational corporations.
Liberalization of trade as an instrument of globalization has also evolved further global trends through the creation of new global reforms which govern trade policies and it has however resulted to increased competitiveness in the international markets. Increased economic reforms in the global markets have resulted to increased reduction of trade restrictions thus increasing and encouraging direct foreign investment and capital flows.
Technological advancement have however propelled the situation to function even further by challenging the means of communication and transportation of goods across frontiers and this has made trade more cost efficient ( Vamvakids, 2000). The invention of e- commerce and telecommunication has further resulted to increased transfer of international finance. However, the benefits accrued from globalizations cannot be underestimated and almost all states that are integrated into the system, have in one way or another reaped benefits from the rapidly growing changes in the international markets.
To some extend the wave of globalization sounds like a gospel to the rich to continue enhancing their pockets and to the other end it has been felt like a curse and an instrument of oppression to the weak economies (Greiner Gong, 2004). Globalization has been perceived as a new or rather current fashion for enhancing imperialism by advancing the accumulation of wealth to one pole of the sphere and on the extreme contrast enhancing the creation of poverty and agony on the other end.
For instance, it has been argued out that globalization has increased unparalleled growth among nations in the world thus advancing the growth of increased inequalities in resource distribution and accusation of wealth among nation-states (James, 2002). Globalization has portrayed an inability to enhance equal playing fields for all states involved by creating and establishing unequal rules and policies which revolve around engagement and participation into international trade.
Conditionalities imposed by international organizations in regard to international trade have failed to favor several economies especially those of the developing states. For instance, refusal of developing countries to extend subsidies and tariffs on their economies has weekend them since they have been over ridden by the strong economies and this is what prompted failure in the final rounds of the World Trade Organization talks which were held in Doha Qatar.
Poverty has drastically increased while the global income per capita increased rapidly but with considerable variations among different countries (Moses, 2002). It is therefore evident that the income gap between nation states will continue to increase especially between the rich and poor countries. Reflecting keenly with the changing trends in the global system in view of globalization, asymmetrical relationships will continue to be observed as the by- products of globalization in which the ultimate end would be an establishment of a unipolar world.
With economic empowerment of just but a few, China and India who have highly been favored by the wave are going to emerge as the most significant futures of the globalized economy and this would relatively lead to a shift in power from West heading to East.
In conclusion, resource competition will even become more and more stiff with increased population growth and increased consumption rates (Dunning, 2003). Pressure on, water, food and energy shall be witnessed globe wise and consequently more sphere global economic crisis shall be observed as capitalism shall remain to be the most dominant economic model.