Assignment on Globalization and its impact

Assignment on Globalization and its impact
Assignment on Globalization and its impact
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1Assignment on Globalization and its impact
Introduction
Globalization has drawn the world closer connecting the boundaries. This has been due to
the advances in the technology and continuous progress. Globalization means the growing inter
dependence of the world’s economy, culture, technology. This is possible due to the trade
between the borders. The trade is not limited only to goods, but technology, people, investment,
and information. This has been only possible after the improvement of the technology and the
transportation system (Krugman, 2017). The wave of globalization was propelled by the
European colonization and trade activities. Then there was economic corporation in expanding
the globalization effect. But globalization faded and crashed in the world war and great
depression. It was the US who tried to revive the globalization after the world war II. In 1940
they tried to revive the international trade and negotiation between the countries based on lenient
rules. Steamship, telegraph and railroad stimulated a faster global commerce. The growth in the
population increased the Demand and supply for the goods and services. England was the first
country to start exchange rate trading for more stable currency conversion (Rupert, and Smith,
2016.).
Today many countries have large inflow of foreign investments. Which is a combination
of asset and liability; this is the FDI, debt, investment in bonds and securities. In 2016 the US has
$26 trillion of total foreign asset and $34 trillion of debt. It has been concluded that
globalatisaion is the tool for prosperity and peace. After the world war II US made the global
economy come closer based on the rules and regulation accepted worldwide. This was an idea to
make the world a better place to live with help and corporation of the countries to participate.
Peter Dickens specification against globalization (base for
the argument).
Dickens (2015) states many arguments against the positive outcomes of the globalization.
The picture that is shown to everyone is wonderful and no flaw can be identified. Scholars have
identified the flaws of the globalization and its slow process of disturbing the nation’s prosperity.
Peter dickens is one such scholar who in his 7th edition book in 2015 highlighted the related
problems of globalization. He argues the consequences that the world has already faced without
knowing. How the economy is shifting through the help of globalization (Potrafke, 2015).

2Assignment on Globalization and its impact
According to Dickens in the last 50 years the world has seen long or short lived economic
crisis. Which has disturbed the economy to an extent that many people got highly affected in the
due process. Some of the short lived crisis is the oil related recessions of 1973-79. The east
Asian financial collapse that occurred in 1997. These were large but smaller than the great
depression of 1930. In twentieth century the globalization has become more complex. We are
intensively dependent on the production, distribution and consumption on the products that come
from the complex geography. The geographic scale of activity has expanded more extensively
vast allowing integrating different parts from many geograpoghies to be combined as one and
sold in many other places (Hanson et at, 2016).
Globalization is seen as a more natural process until 2008 when the world economy saw
the biggest financial crises. The 4th largest US investment bank Lehman Brothers Collapsed. The
repercussion of the financial crisis was the result of the US subprime mortgage market failure
that was felt throughout the world. The impact was so high that it took more than 8 years to
overcome the damages across the globe. Growth rate, remained low since 2008 in most of the
developed world The job loss, fall in the income, less suatinbilty resources has disturbed the
world so much. But the rich 1 % of the people eventually continued to grow. Shocking the world
and creating a social tension. Even some of the developing countries saw relatively high growth
and continues to be a promising emerging market. The concern affecting the people of the
developed economy is the fear of the shifting of the work location. The technological change and
the global shift is transforming the prospect of economy. The outsourcing and off sourcing of the
jobs like the IT industry or manufacturing jobs are been sucked by the merging economies living
the developed countries at the loss of job (Stenning, and Shearing, 2015).
Five quantitative questions
 There in an increase in the inequality of the income and rise in poverty-Whole world
has resources to provide food to around 10 billion people. But the number of people
suffering from starvation, hunger and poverty is more than 2.4 billion. Around 800
people are suffering from starvation and malnutrition. It can be concluded that the
exchange of trade between the economies are not fair and just way. There are 1 % of rich