Advantages disadvantages and impacts of Globalization

Advantages disadvantages and impacts of globalisationIntroductionGlobalization is a process in which limited societies, economies, and cultures suck up affiliated through a world(prenominal) system of trade. The term is sometimes used to refer particularly to sparing globalization the incorporation of interior(a) economies into the world(prenominal) economy through trade, foreign direct investment, capital flows, and increase of technology. Globalization is generally cognise as determined by a combination of economical, technological, socio- pagan, and policy-making factors this term trick also refers to the worldwide distribution of ideas, languages, or trendy culture. Competition increases amid countries. (Alassane D. Ouattara, 1997)http//www.imf.org/external/np/speeches/1997/052197.htmGlobalization is the result of a depend of interconnected suppurations includingThe growth and relative implication of foreign direct investment.The internationalization of economic mar kets.The rapidly and continuing development of communication and transport technology ease and DeregulationPublic sector services converted into privatization(www.tssa.org.uk)http//www.tssa.org.uk/article-38.php3?id_article=2190Economic globalization is characterized by change magnitude in trade and investment, liberalization, privatization of creation services and deregulation of many an(prenominal) goernment institutions. Economic globalization is also linked with increasing inequality in wealth and influence between nations and within nations as well as between public and private sectors. Economic globalization has been taking place for the hold up several years it has begun to happen at an increased yard oer the last 20-30 years. This recent boom has been largely accounted by developed economies linked with less developed economies, by resources of foreign direct investment, the reduction of trade obstacles, and the modernisation of these ontogeny cultures. Environmental g lobalization recognizes that an environmental incident or impact that happens in one nation is not restricted to that area but has the probable to affect the entire worlds well being. Thus, communicative globalization refers to the rapid growth of communication technologies such as internet, telephone, satellite and so on, Ability to link people, study and ideas around the world which impact on culture, both confirmatoryly and negatively.(www.scribd.com) (function() var scribd = document.createElement(script) scribd.type = text/javascript scribd.async = true scribd.src = https//www.scribd.com/javascripts/embed_code/inject.js var s = document.getElementsByTagName(script)0 s.parentNode.insertBefore(scribd, s) )() Privatization is a unavoidableness for globalization and goes side by side with it. Nowadays the phrase of globalization has gained importance in all over of the world. Globalization may have positive or negative impact on developing countries. However, the developing nations can survive by alteration in the development of globalization by public policy readjustment for privatization, deregulation and liberalization.The cast of financial globalization as the mid-1980s has been marked by increase in capital flows among industrial countries, particularly between industrial and developing countries. Where these capital flows have been linked with the high growth rates in some developing countries. A fig of countries have go through interrupted collapse in growth rates and major financial crises over the same period, that disaster have exacted a serious toll in terms of macroeconomic and social costs. Trade could affect these inequalities only through its effect on economic growth in individual countries. A primaeval issue, so concerns the realizable effect of trade on economic growth. ( khair Uz Zaman, , qaiser Aman, 2007)Key Institutions of GlobalizationThe economic globalization lies with certain influential financial institut ions that are simply in the hands of western countries. They includeInternational fiscal Fund (IMF) initiation Bank (WB)World Trade Organization (WTO)These institutions are also known as the Bretton Woods institutions and mainly influence on the economic and political policy formulation in developing countries.(Rahman MD Faizur, 2005)History GlobalizationThe swallow of globalization goes back to the second half of the 19th century. When nationality as the basis for state formation was already widespread. The World Bank classifies the development of globalization since whence as followsThe 1st wave of globalization 1870 -1914The retreat into nationalism 1914 -1945The 2nd wave of globalization 1945 1980The new and 3rd wave of globalization 1980The first wave of globalization was started in 1870 and constant until the beginning of the First World War in 1914. This period of globalization made easy for the delivery of imported goods as well as the exported goods. The development of telegraph helped to begin contact over long distance.The period of 1914 to 1945 was tagged a retreat of independence and extensively modify in the technical condition of the transport and communication. The great depression of the late 1920s and early 1930s direct to protectionism, which additionally restricted the international air division of labors.The second wave of globalization (1945-1980) followed the patriotic period. As a response to the war, there was much effort to enhance international hold. This was reflected in the establishment of the unite Nations in 1945 and the Bretton woods institutions in 1946. In 1980, trade of manufactures was to large extent freed of barriers. In the case of agricultural products, trade was restricted between developing countries imports of products of developing countries were liberalized if they did not compete with those of the developed countries.The third wave of globalization started around 1980 and this leg continues today. Accordi ng to the World Bank, this period has four characteristics that separate it from the previous period. large-scale numbers of developing countries bankrupt into the global markets maturation countries became increasingly marginalized and suffered from declining incomes and increasingly povertyWorldwide capital give-up the ghostments and immigration became substantial.Increasing destruction of production.(Kotilainen, Markku Kaitila, Ville, 2002)Globalization, as World War II, is basically the result of planning by politicians to break down the borders obstacles in trade to increase the prosperity and interdependence, as a result to sicken the lucks of future war between the countries.Since World War II, barriers to international trade have been significantly decreased through international agreements GATT. Particularly initiative carried push through as a result of GATT and WTO, for which GATT is the foundation, has includedPromotion of free tradeEliminating of tariffs creation of free trade sector with small or no tariffs. decreased transportation cost, especially resulting from development of containerization for ocean shipping.Reduction , elimination or coordination of financial support for local businessesCreation of financial support for worldwide corporations.Coordination of apt poverty laws across the majority of states, with more restrictions.Super national identification of intellectual poverty limitations.(www.scribd.com)http//www.scribd.com/doc/20581903/Globalization-and-pakistani-economyThe phrase Globalization has been used broadly by media and educational in recentyears. This describes the process of generate networks of connections through aselection of flows of information, people, capital goods and technology.In economics, globalization connect in various phase of cross-border dealings, freeinternational capital flows, foreign direct investment, portfolio investment, and rapid andwidespread distribution of technology. Globalization enhances the economic prosperity and leads to more efficient allocation of resources, which, in turn will result in higher output, moreemployment, lower prices and higher standard of living. However, some critics worryabout the resulting outsourcing and off shoring, which have destroy the Americanmanufacturing sector.(www.scribd.com) (function() var scribd = document.createElement(script) scribd.type = text/javascript scribd.async = true scribd.src = https//www.scribd.com/javascripts/embed_code/inject.js var s = document.getElementsByTagName(script)0 s.parentNode.insertBefore(scribd, s) )() Advantages of GlobalizationGoods and people are transferred with more easiness from one country to an another(prenominal).Due to globalization war between developed countries has reduced.Free trading increases the interdependence of the nation-state.People connected in the world due to global plurality media.Communication between individuals and corporations in the world increases.Envi ronmental security in developed countries increases.Encouragement of more researches and development of new machines and equipment for domestic use.People connected in the globe due to worldwide mass media.Strong competition thus encourages higher quality productsGlobal mass media connects all the people in the worldIncrease in economic growth of the country.Reduction of cultural barriers increases the global village effect(www.buzzle.com)www.buzzle.com/articles/advantages-of-globalization.htmlDISADVANTAGES OF GLOBALIZATIONIncreased in flow of expert and non-skilled jobs from developed to developing nations as corporations try to find out the cheapest laborCorporate influence of nation-states far exceeds that of civil society organizations and average individualsIncreased chance of economic disruptions in one country affecting all countries.Threat that control of world media by a handful of corporations will limit cultural appearance.Greater chance of reactions for globalization be ing aggressive in an attempt to defend cultural traditions.Greater risk of diseases being transported unintentionally between nations dust of a materialistic livelinessstyle and attitude that sees consumption as the path to prosperityInternational bodies like the World Trade Organization violate the national and individual independence.Increase in the chances of universal war within developing countries and open war between developing countries as they struggle for resourcesDecreases in environmental reliability as polluting corporations take advantage of weak regulatory rules in developing countries.(www.darkseptemberrain.com)Impacts of GlobalizationAccording to economists, there are a lot of global events connected with globalization and incorporation. It is easy to classify the changes brought by the globalization.Improvement of International Trade.Globalization increases the international trade between many countries and makes the sale or corrupt easy.Technological Progress.Go vernments have upgraded their direct of technology to compete and be competitive globally.Increasing Influence of Multinational Companies.An important trend in the globalization is the increasing influence and broadening scope of the multinational companies. A company that has subsidiaries in various countries is called a multinational.Power of the WTO, IMF, and WB.Another effect of globalization is the strengthening top executive and influence of international institutions such as the World Trade Organization, International Monetary Fund, and World Bank.Greater Mobility of Human Resources across Countries.Globalization allows countries to provide their men in countries with cheap labor. For instance, the manpower shortages in Taiwan, South Korea, and Malaysia provide opportunities for labor exporting countries such as the Philippines to bring their human resources to those countries for employment.Greater Outsourcing of Business Processes to former(a) Countries.Different countri es are tremendously benefiting from this trend of global business outsourcing. Global companies in the US take advantage of the cheaper labor and highly skilled workers that countries can suggest.Civil Society.Broadening scope of the global civil society is an important trend in globalization. Many institutions are found in the country and serve by citizens which civil society often refers to NGOs. Global civil society refers to NGOs that advocate certain issue or cause. There are many NGOs that instigate good environment to womens and support their rights. Government and NGOs have the same goal of serving the people but these NGOs are working to establish polices that are full to all.(www.hubpages.com)http//hubpages.com/hub/Definition-of-GlobalizationEffects of globalizationMore goods and services are availableExpansion of new marketsIncome generation and increased in economic growthDevelopment in the volume and range of cross border transactions in goods and services.Increase in the use of new technology in small-scale manufacturing to increase the level of production.The global common market has a freedom to trade of goods and capitalThe emergence of a new market where the products were market at an international level for all type of consumers.Widely access to a large variety of goods for consumers and companies.Free movement of people of different nations leads to community benefits.Global environmental and other trade problems are solved by discussions.development of containerization of ocean shipping reduce the transportation costReduction in trade barrierIncreases in international travel and tourismIncrease in the ambition to use overseas ideas and products, accept new practices and technologies and become a part of world culture.Subsidies for local businesses decreaseLocal consumer products are exported to other countriesCapital controls reduce or conquerEnhancement in worldwide modern traditions/cultures.(www.buzzle.com)http//www.buzzle.com/artic les/advantages-of-globalization.htmlDEVELOPING COUNTRYDeveloping countries are those which have a lower per capita income, unemployment, lack of goods and services. People have a lower standard of living, high infant mortality rate.Characteristics of Developing sparingThe common characteristics of developing countriesLower living standardsInsufficient housingLow education standardIncrease in death rateLimited life and work expectancyHigh and rising levels of unemployment and under employment.Lack of technologyLow standard of education(www.shvoong.com)http//www.shvoong.com/social-sciences/1758902-characteristics-developing-countries/Advantages of globalization in the developing worldGlobalization increases the economic prosperity and opportunity in the developing world. The countrywide freedom is enhanced and increases the resources of the developing countries and there is a more efficient use of resources. entirely the countries involved in the free trade are at a profit. As a res ult, there are lower prices, more employment and a better standard of life in these developing nations. It is feared that some developing areas progress at the costs of other developed areas. However, such worries are unprofitable as globalization is a positive-sum chance in which the skills and technologies enable to increase the living standards throughout the world. Liberals look at globalization as an efficient slam to eliminate poverty and allow the poor people to hold a strong grip in the global economy.The Impact of Globalization on the Pakistan economic systemGlobalization is not new. Pakistan has been involved in trade, investment, financial flows, technology transfers and the movement of labor since its foundation. There are a number of factors that have aided this transformation.The working out of new marketsForeign exchange and capital markets are linked internationally. They control 24 hours a day with contact any where in the world possible in all time. Financial d eregulation increases the impact of globalization on the economy.New technology and the tools of globalizationThe internet, email, mobile phones, media and communication networks have all sped up the process of globalization. They have increased the broaden of communication and and speed knowledge transfer.New institutional players The World Trade Organization (WTO) has emergent right over national governments, as does the IMF with its restrictions and controls it can force on nations requiring support. Multinational corporations have more economic power than many other nations. Include funds and financial dealers are able to control financial flows and consequently exchange rates, leaving nations helpless in their wake.New rules and restrictionsMutual agreements on trade, services and intellectual lieu rights, supported by strong enforcement instrument, decrease the possibility for national governments to extend their own economic policies.Pakistan EconomyPakistan is a South Asian country that was established in 1947. Pakistan is a developing country its total population is approximately 180 million. Its neighboring regions include India, Iran, Tajikistan, Afghanistan, and China. Its GDP is $164 billion and contributing in agriculture, manufacturing and services respectively 19.6%, 26.82% and 53.7%. Per capita income and HDI is approximately $1022 and 0.52. Population of Pakistan is in the 6th number and has biggest and strongest army in the world. Pakistan economy is based on agriculture sector. In last two decades Pakistan service industry has grown up rapidly. More than 50% population of Pakistan is linked with the rural sector. So thats why mostly area is miss and misused. Total acquired area of Pakistan is 803,940 km2, but mostly area is neglected and underdeveloped. External debts are around $50.1 billion. Pakistan has an outstanding potential for growth and its current growth rate is 2%. Pakistan has marvels treasures of natural resources, fruitful lands, some of largest natural resources mines, highest mountain ranges, 1050 mile coastline, vast deserts and the best productive lands. Pakistan is one of the most blessed countries on the earth. But Pakistan political and economic conditions are not good.(www.ezinearticles.com)http//ezinearticles.com/?Pakistans-Economy id=3489752Pakistan economic developmentlast few years there has been a con rate of Pakistan economic development that has marked itself in its remarkable gross domestic product statistics. In financial year 2007 there was an increase of 52 percent in amount fixed in Pakistani budget for the development of national economy. This has been an important step in development of Pakistan economy is concerned as this move has required to address underdevelopment of national economy that has broaden at all levels especially in social sector. Economic development of Pakistan has always been among its major assets as far as attain identification from global financial circles is concerned. In decade of 60s Pakistans economy had progressed at a straight rate and it was view as being excellent. Economic policies adopted by national government have helped economic development in Pakistan to a significant extent. In 1990s 2 % of gross domestic product of Pakistan had been assigned for economic progress and its double in 2003.In 1999 PKR 80 billion had been set away for economic development of Pakistan and by 2007 this amount had gone up to PKR 520 billion. In fiscal year 2008 this amount was PKR 549.7 billion. Poverty in rural areas has been an important area of Pakistani economics. From 2005 to 2008 $16.7 jillion has been spent in order to deal with different issues related to poverty. This money has played a very important role in overall economic development in Pakistan. Poverty has been reduced to 24 % by 2006 from 35 % at 2000-01. As per Human Development Index of 2007 Pakistan has been accorded status of a strength Development Country.Infrastructural development is an important area of Pakistan economic development. However, it has not been paid much attention by Pakistan national government. More years a number of international financial organizations have played a most important role in development of Pakistans economy such as International Monetary Fund, Asian Development Bank and World Bank. From 2006 to 2009 Asian Development Bank would be providing almost $6 billion for Pakistan economic development. World Bank is say to provide a loan for infrastructural development worth $6.5 billion in the same period. Pakistan would also collect a yearly financial help from lacquer worth $500 million.(www.economywatch.com)http//www.economywatch.com/world_economy/pakistan/VARIABLESGDP is the sum of market value of all final goods and services produced in a country within a accustomed year, equivalent to total consumer, investment and government spending, plus the value of export, minus the value of imports. GDP includes only goods a nd services produced within the geographical boundaries of the U.S, in antagonism of the producers nationality.(investorwords.com)FDI Direct investments in productive assets by a company incorporated in a foreign country, as opposed to investments in shares of local companies by foreign entities. An important feature of an increasingly globalized economic system.(www.investorwords.com)BOTA countrys exports minus its imports it is the largest component of a countrys balance of payments.http//www.investorwords.com/396/balance_of_trade.html