Impacts and Importance of Economic Globalization

Running Head: SOCIOLOGY
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Globalization
Essay
Student
9/15/2019

SOCIOLOGY
1
Introduction
Economic globalization means globalization of the market, technology, labor, and corporations.
In this assignment, through the support of liberalization theory, the impacts and importance of
economic globalization have been discussed comprehensively. Along with the impacts, the focus
has been placed over various advantages and disadvantages to the economy of Africa.
Economic globalization is one of the key areas of globalization as it displays the dependency and
relations of countries with one another, which encourages the cross border transaction of
essentials like goods and services, advanced technology. Such decisions have brought evolution
in an overall market that has eventually opened the employment opportunities for the people of
the society (OECD Insights 2019). .
To understand the overall concept of economic globalization and its impact on the economy of
other nations, several theories have been proposed and by the authors which can provide a
systematic review of the concept (Market Business Review 2019). From the proposed theories,
liberalism theory has been selected, as it is the most effective theory to explain the impacts of
economic globalization (Bekana 2011).
Liberalization theory is a procedure of globalization, which has brought revolution in the system
of trading and marketing of the products on the global level. This theory promotes economic
welfare and political independence (Coulibaly, Erbao and Metuge 2018). It maximizes the
interest of the people by making them accesses to the wide range of commodities and has opened
business opportunities for them. Liberalization is a diversified concept as it connects people from
all overall worlds through the medium of trade (OECD Insights 2019).

SOCIOLOGY
2
Through the application of liberalization theory, economic globalization is creating a positive
impact on the world economy. As a government, authorities are following leniency in the
reforming and introducing the laws related to the economic transition between the countries
(OECD Insights 2019).
Positive as well as Negative impact of Globalization on Africa
In the era of globalization, numerous social scientists are disapproving that various
economically powerful and developed countries are facing difficulties in retaining their power
and sovereignty with the emergence of economic globalization (Okonjo-Iweala and Coulibaly
2019). Whereas, in the article, many authors presented their contradictory thoughts in the context
of it, as they believe that an advance economy encourages economic globalization. These
arguments can be understood from the case, Africa (Bangwayo‐Skeete and Prosper F. 2012).
In Africa, the situation was very critical, as in the past there was no sign of globalization and
economic development. Besides this, African citizens faced discrimination and received very
fewer benefits of globalization even though they are counted as 40% of the world’s population.
The development of Africa as compared to the developed economy becomes slow and steady in
the context of globalization (Bangwayo‐Skeete and Prosper F. 2012). With the introduction of
economic globalization, their market faced backlash and criticism in the global trade market,
which has almost barricaded and reduced their opportunities and chances of further development.
These incidents have created a great divergence in the financial status of the global North and
South (Petersen 2017).
Apart from this Globalization has also provided benefits to the economy of Africa to some
extent. With the rise in the level of earnings and more purchasing power, African traditional