Globalization's Influence on Economic Development: Pros and Cons

This essay examines the multifaceted relationship between globalization and economic development. It begins by exploring the ways in which globalization drives economic growth, focusing on international trade, the flow of goods and services, capital, and information, and the role of trade agreements in fostering economic integration. The essay highlights the benefits of globalization, such as meeting demands, creating opportunities for countries, and boosting economies. The essay then shifts to analyzing the ways globalization impedes economic growth, addressing issues such as economic inequality, unemployment, cultural dominance, and the negative impacts on traditional industries. The essay provides a balanced perspective, acknowledging both the positive and negative effects of globalization on the global economy. It also includes references to relevant literature to support the arguments.

Running head: GLOBALIZATION AND ECONOMIC DEVELOPMENT
Globalization and Economic Development
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Author Note

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GLOBALIZATION AND ECONOMIC DEVELOPMENT
1. In what ways do you think globalization drives economic development? Please
explain why and support your responses with clear references to the relevant
literature and the provision of detailed practical examples.
Globalization and interconnectedness of states are multidimensional in nature.
They are defined in terms of economic terms as it has opened way to carry out trade and
commerce between nations. The aspects which is related to economic globalization
include flow of goods and services (Pawel 2019). It has also given way to the flow of
capital and information which adds to the economy of a nation greatly. The flow and
exchange of goods and services require conditions for such trades. Organization of such
exchanges and processes impact a country’s economy which can be evident in the GDP.
The second wave of Globalization which can be seen continuing even to this day has
acted as the catalyst and helped in the process of growth in terms of international trade.
The contemporary picture of nations are different, liberal and not centered on the idea of
nationalism (Van den Berg 2016). More than 60% of the services and goods which are
produced are also shipped across the globe from one nation to another. This has only
been possible because of globalization. Thus, globalization has been the reason for
convenience to the nations to meet the demand of things which are scarce as well as
supply the products which are surplus. This trade and exchange of goods and services can
be beneficial for a country’s economy when traded with another for mutual interest
(Samimi and Jenatabadi 2014). Countries now have trade agreements which help in
meeting the needs and demands which are unavailable and often inadequate as resources
for the nations.

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GLOBALIZATION AND ECONOMIC DEVELOPMENT
Since the emergence of the trans-national trade, economic globalization can be
seen on the rise. This has grown as there are enhancement in transportation,
telecommunication and information is valued. In the modern day, economy is not only
boosted with the help of capital but also with the help of science and technology which is
traded between nations (Keohane and Nye 2000). This has paved way to the process of
integrating the developed countries with the developing countries and now they engage in
trades to boost their capital accounts. There can be witnessed a significant rise in the
cross border migration as there is less barrier.
2. In what ways do you think globalization impedes economic growth? Please explain
why and support your responses with clear references to the relevant literature and
the provision of detailed practical examples.
Globalization has effected economy negatively as well, such as economic
inequality and cultural dominance. There are different schools of thought who view this
aspect differently and assess the effects of globalization on economy negatively. The
negative effects cannot be ignored in a developing world. The effects are felt in the rate
of unemployment in many nations in the world (Rodrik 2014). Though globalization has
brought opportunities of jobs but has also increased competition and more stringent
process of being accessible to jobs. The current situation of saturation and low
employment rates can be blamed on globalization to quite some extent (Ohlan 2015). It
has although tried to increased economic integration at the enterprise and national level
which has given liberty to employers and producers to reduce cost and efficiency in order
to increase productivity but also impacted negatively.

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GLOBALIZATION AND ECONOMIC DEVELOPMENT
Countries with liberal laws and regulation on their macroeconomics made labor
market and employment flexible with comparatively lesser judicious enforcement.
Whereas, on the other hand, some countries with stringent regulations and policies were
subjected to stifled growth as they were unable to retain the job opportunities which were
created (Ying, Chang and Lee 2014). Trade policies and tariffs continued to be high in
several countries. Due to globalization, traditional industries and global firms started
developing a consequent gap on their growth. Globalization has also been one of the
prime reasons behind fluctuation of prices. Products are made available at lower prices in
many countries, for which other companies are often compelled to reduce the prices at
which they are offered at (Grossman 2015). This has many adverse effects on the
economy. Some countries will always be on the advantageous end whereas the others be
at the backward for the lack of economic integration which is attempted but have not
been achieved.

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References
Bozyk, Pawel. Globalization and the transformation of foreign economic policy. Routledge,
2019.
Grossman, Gene M., and Elhanan Helpman. "Globalization and growth." American Economic
Review 105, no. 5 (2015): 100-104.
Keohane, Robert O., and Joseph S. Nye. "Globalization: What's new? What's not? (And so
what?)." FOREIGN POLICY-WASHINGTON- (2000): 104-119.
Ohlan, Ramphul. "The impact of population density, energy consumption, economic growth and
trade openness on CO 2 emissions in India." Natural Hazards 79, no. 2 (2015): 1409-1428.
Rodrik, Dani. "The past, present, and future of economic growth." Challenge 57, no. 3 (2014): 5-
39.
Samimi, Parisa, and Hashem Salarzadeh Jenatabadi. "Globalization and economic growth:
Empirical evidence on the role of complementarities." PloS one 9, no. 4 (2014): e87824.
Van den Berg, Hendrik. Economic growth and development. World Scientific Publishing
Company, 2016.
Ying, Yung-Hsiang, Koyin Chang, and Chen Hsun Lee. "The impact of globalization on
economic growth." Romanian Journal of Economic Forecasting 17, no. 2 (2014): 25-34.