Third World and Hyper Globalization
The Good, Bad, And Ugly Side Of Globalization
For most of the period since World War II, globalization posted steady increases. But today, we find ourselves in an age of ambiguity. Some exult about “hyper globalization,”
1. With one source predicting that global flows could triple by 2025.
2. But others worry that the “age of globalization” that defined the last few decades may have ended and started going into reverse.
This ambiguity adds to the importance of measuring globalization.
GLOBALIZATION:
David Held et al., defined globalization as a “transformation in the spatial organization of social relations and transactions—assessed in terms of their extensity, intensity, velocity and impact—generating transcontinental or interregional flows”.
Globalization, the increasing integration and interdependence of domestic and overseas markets, has three sides: the good side, the bad side, and the ugly side.
Good Side of Globalization:
The opportunities and efficiencies open markets create, depicts the good side of globalization. This facilitates good communication in the business world. It allows the business to communicate effectively and efficiently with the customers, traders, partners and suppliers across the globe. This helps them to manage their inventories and distribution network. The domestic players can now sell their products in foreign markets with ease as in their home country. For example Samsung can sell its mobiles in India with the same ease as in Korea. Similarly Apple, Intel and Cisco can sell their high tech gear with the same ease in Tokyo as in New York.
The easy credit and rising leverage are also considered to be good side of globalization. The flow of money is easy across the boundaries of the countries, thanks to globalization. The creditors are not in a position to differentiate between good and bad borrowers, which results in an increase in the aggregate demand, thus setting the world economy into a vicious cycle of income and employment
For most of the period since World War II, globalization posted steady increases. But today, we find ourselves in an age of ambiguity. Some exult about “hyper globalization,”
1. With one source predicting that global flows could triple by 2025.
2. But others worry that the “age of globalization” that defined the last few decades may have ended and started going into reverse.
This ambiguity adds to the importance of measuring globalization.
GLOBALIZATION:
David Held et al., defined globalization as a “transformation in the spatial organization of social relations and transactions—assessed in terms of their extensity, intensity, velocity and impact—generating transcontinental or interregional flows”.
Globalization, the increasing integration and interdependence of domestic and overseas markets, has three sides: the good side, the bad side, and the ugly side.
Good Side of Globalization:
The opportunities and efficiencies open markets create, depicts the good side of globalization. This facilitates good communication in the business world. It allows the business to communicate effectively and efficiently with the customers, traders, partners and suppliers across the globe. This helps them to manage their inventories and distribution network. The domestic players can now sell their products in foreign markets with ease as in their home country. For example Samsung can sell its mobiles in India with the same ease as in Korea. Similarly Apple, Intel and Cisco can sell their high tech gear with the same ease in Tokyo as in New York.
The easy credit and rising leverage are also considered to be good side of globalization. The flow of money is easy across the boundaries of the countries, thanks to globalization. The creditors are not in a position to differentiate between good and bad borrowers, which results in an increase in the aggregate demand, thus setting the world economy into a vicious cycle of income and employment