Globalization Effects on Small and Large Economies

This report delves into the multifaceted concept of globalization, exploring its definition as the spread of technology, products, and services across economies, and its impact on various sectors. It investigates whether globalization is nearing its end, analyzing its positive and negative effects on both large and small economies. The report examines the macroeconomic impacts of a slowdown in globalization on firms, households, and governments, highlighting the effects on trade, capital flows, and employment. Furthermore, it analyzes the specific case of Ireland, illustrating how globalization has influenced its economy, and discussing the potential forms a crisis triggered by a slowdown in globalization might take in a small open economy. The report also covers the effects of financial crises and the importance of macroeconomic stability, offering a comprehensive overview of globalization's complexities.

Globalization

Table of Contents
Introduction .....................................................................................................................................3
Is globalization over ...................................................................................................................4
Understanding on globalization .................................................................................................5
Macroeconomics effects of a slowdown in globalization. .........................................................6
Slowdown in globalization triggered crises in small open economy. ........................................9
Conclusion ....................................................................................................................................11
REFERENCES .............................................................................................................................12

Introduction
Globalization means spread or sharing of technology products and services to different
people in an economy. Globalization helps in development of small economies by providing
them employment opportunities and develop standard of living of people of those economies will
effect overall growth and development of an economy. Helps in development of technology in
different economies that help organization to achieve their goals and objectives and improve
effectiveness of their products and services(Beck, 2018.) . Globalization helps in developing
competitive advantage in to increase ability of an organization at a large scale and develop
effectiveness of products and services. Helps to provide quality products and services to poor
people. Due to increase in competition prices of products and services of company will decline at
a large scale. Help large economies to develop their products and services and help them to free
trade in a new markets and develop their business at a large scale and improve effectiveness of
their products and services. Report is going to show that is globalization is over and
macroeconomics effects of globalization on different sectors like firms, household and
government. Also show the effects of slowdown in globalization on small and large economies
in an nation. And effects of globalization slowdown on small open economy and to what extent
they will effect business of small economy.
Globalization
Globalization means when large number of products, technology and employment spread
in different economies and cultures. Globalization develop standard of living of poor people and
provide job opportunities to underdeveloped country. Bring technologies in different countries
for their development at a large scale. Globalization is not over it just changing day by day due
to changes in technology and development of large number of new companies effect
development of globalization at a large scale(Eriksen, 2018.) . Globalization develop competitive
advantage between companies by marketing their products in cheaper environment. In 2017
globalization is more developed than ever before but 2018 got new blocks from tariff and
slowdown globalization.

Is globalization over
Globalization is not fully over or finished it just change with time and effects overall
development of economy. It have both positive as well as negative impact on an economy.
Globalization helps developing countries to increase their manufacturing and diversification of
their products and services. Helps to bring new technologies and expand abilities of an economy.
Globalization has negative impact on development of economy for example in 2008 financial
crises on Ireland, Greece Spain. Globalization is accelerated and develop economies of different
nations between 1990-2008 and in 2008-2017 globalization is slowdown. Worlds economy is
decline and weakness in economic activity is continue till 2012. Crises effects banking activities,
financial markets and imbalance in powerful economic countries. It make difficult to manage
economic cycles. Ireland is one of the most developed globalized economy they have large
number of trading partners and after independence they lost large number of partners and tax
implications become a barrier to trade in Ireland but after 1950 trade barriers are declined
because Ireland is become a powerful global economy(Bordo, 2017. ). Globalization effects
overall working of Ireland like
Change in product
Due to globalization new technologies and developments in an economy effects their
working. Clothing and agriculture industries are promoted at a large scale. Pharmaceutical and
technology sectors are changing day by day.
Develop new markets
Due to development in globalization Ireland expand their working and develop trading
partners for their products and services. Globalization help Ireland to sell their goods and
services to different economies
Dependence on other economies and industries
Due to increase globalization in Ireland they are more depend other economies as they
develop their business with those economies. They are more focused in knowledge based
industries to gain experience and information about new technologies. Due to economic crises
globalization is slowdown at a large scale.
Effect of financial crises
Trade flows

Company faces serious drops in their economies due to financial crises. Companies are
not ready to give goods and services on credit. Reduces the sales of products and services and
increase employment in an economy(Steger, 2017.). It develop an global economic recession
Capital flows
Financial crises have a worse effect on capital flows in an economy. It affects a huge
impact on highest debt levels and increase credit restrictions. Companies are not ready to spend
on changing economic country. Banking activities are declined due to financial crises.
Understanding on globalization
Globalization helps in development of large number of economies they helps in
developing education and employment in an economy and spread technology and effective
products in underdeveloped economies. Provide financial strength to underdeveloped economies
and helps them to improve their abilities to explore business at a large scale. Helps to develop
standard of living of people of less developed economy. Helps to interaction between people and
increase exchange of ideas, values and cultures between people. Helps companies to improve
their working and increase their profitability. In 2008 due to financial crises globalization is near
an end but not totally over or finish but a major slowdown is seen in working of economies and
companies are not ready to give credit. Globalization has both positive and negative impact
Free trade
Reduces barriers between companies like tax rates and tariffs. So that companies are able
to share their technologies and products with each other and helps them to develop their
economy at a large scale and improve effectiveness of their products and services.
Competition
Increase in competition helps to decrease price of products and services and develop their
business at a large scale(Pieterse, 2019.) . Price down help poor people to purchase products and
services of those organizations.
Cultural diversity
Working in different economies and increasing experience like people are travelling to
work on different countries and economies and adapt culture of those economies. This helps to
share their opinions and feelings with each other.

Coaching and training
Due to increase in diversity companies needs more coaching and training for their
employees to develop their business at a large scale. Employees are able to understand one
another and develop plans and policies on that basis.
Improved information
Helps countries to communicate with each other to develop their business at a large scale
and improve their effectiveness of their products and services. Countries collaborate to share
knowledge and improve technologies for their business.
Larger markets
Globalization helps company to grow their markets at a large scale. Bring opportunities
for business to develop their abilities and efficiency. Create job opportunities and helps poor
people to buy products and services at low prices due to increase in competition.
High standard
Due to development of technology an products in less developed countries it helps them
to provide standard of living to their people provide safety to their health and works for welfare
of people.
Macroeconomics effects of a slowdown in globalization.
Globalization plays an important role in changes in different economies.
Macroeconomics have a huge impact on employment and output in balance of trade.
Globalization becomes difficult when when effective instruments are not available for
development then it effects overall working. Stabilization is important in macroeconomics for
globalization(Bourguignon, 2017.). Macroeconomics plays and impact on exchange rates as
there are drop in sales of an economy effects overall development of organization and effects
their abilities to cope up with new technologies. Imports from abroad effects competitive prices
in market. Macroeconomic have huge impact on price and volume of exports and imports
Firms
Firms need to set prices of their products and services according to requirement and
analysis of past period prices. Exchange rates of different economies and development over those
economies effects working of firms and import and export ratio also plays an important role in

development and requirement of an organization. Firms need to know the prices to become cost
effective in market needs to know the income of the economy to develop business and prices
according to their requirement. Due to increase and development of different nations firms of
large economies need to set their prices according to their requirement. Firms who will import
have more chances to maximize their profit at a large scale. When small economies enter into a
bigger market they need to analyse trade policies and exchange rate to develop and maximize
profit of those firms. Small economies business needs to consider the size of market where they
are going to expand their business that helps them to develop plans and policies. Firms to gain an
global advantage they need to develop brand recognition and customer loyalty. Firms needs to
know the consumer of bigger economies as they are more demanding while consuming products
and technology and require effective skills and abilities to develop business over those
economies effectively. Firms needs to analyse rising economies and demographics for
development of their business. When bigger economies develop their business in an smaller
economy they need to analyse infrastructure development of those nations to develop their
business over those economies to achieve goals and objectives of their business. Develop
presence of an organization at a large scale to increase their effectiveness to convince their
customers. Due to increase in competition in large economies it benefits people of those
economies as that get products at low prices. Provide value to local people of those economies.
For firms from small economies need to take a risk when they enter in a market of a bigger
economies. Develop firms knowledge by working in a bigger markets. Helps to develop
innovation in their products and services. Build awareness in firms about their customers needs
and wants. Develop their business at a large scale by selling across different countries. Location
flexibility helps small economies to hire labour at low rates. Globalization plays an important
role in development small firms and allow them to access in bigger markets. Globalization helps
firms to achieve a competitive advantage and lower their cost to gain cost advantage and attract
large number of consumers.
Households
Macroeconomic is working of business an organization at a bigger scale means
globalization. Families are the primary function for globalization. Because values and relations
and culture those are prevailing in families are changing day by day in their lives. Due to
globalization large number of people are travelling from one place to another place for their

business and they got their own culture with them in an new economy which effects overall
development of those economies and reduce strength of the people of those economies.
Globalization effects on gender, work, citizenship, identity and family relationships(Macedo and
Gounari, 2015.) . Different group of have their own view and response towards globalization and
achievement. Globalization helps household to develop skills and education in their people.
Globalization helps to develop a rise in education level of that economy to develop.
Globalization helps in movement of families and individual within society and across national
borders. But policies and rules and regulations of different economies will effect families.
Globalization helps to move people from rural areas to urban areas and helps in their overall
development at a large scale to increase effectiveness. Develop relation between people and
provide them effective technologies for their development.
Government
Globalization effects both developing as well as developed countries at a large scale.
Government earn profit with development of large number of business in a economy to develop
their business at a large scale. Helps government to develop their abilities at a large scale.
Globalization helps to promote profitability and efficiency in both and private and public sector.
Helps government of small economies to expand their business at a large scale and worldwide
level. Helps government of small economies to gather knowledge and new technology for
development of their business and to achieve goals and objectives of their business to increase
their ability at a large scale. Helps government to provide standard of living to poor people and
develop education in their economy. Helps to develop environment in an economy to reduce
burden and effectiveness of their products and services. Globalization helps to small economies
to increase their market size to develop their business at a large scale. Government of large
economies have a chance to develop and improve effectiveness of their products and services
and helps them to enter in a Newmarket to expand their business and their abilities. Globalization
helps government of small economies to increase their purchases, poverty in their economy is
reduced, provide employment opportunities. Improve quality of their products and increase their
sustainability. Helps to develop infrastructure in developing economies at a large scale. Improve
their techniques development of their overall economy at a large scale. Helps government to
provide social protection to their people. Helps their workers to develop their abilities at a large
scale.

Slowdown in globalization triggered crises in small open economy.
Small economies development largely depends on effectiveness of their products and
services. Globalization plays an important role in development of small economies then it effects
their overall growth and development of those economies at a large scale and effect development
and stability in those organizations at a large scale(Ritzer and Dean, 2015.) . If slowdown occurs
in globalization then it plays an huge impact on overall development of those economies at a
large scale. Globalization develop new opportunities for developing countries and if an
slowdown occurs then they are not able to develop their business at a large scale and improve
their effectiveness in business.
Lack of employment
Slowdown of globalization in small economies will effects overall development of an
economy. If globalization reduces then multi national companies are not ready to spend and
developing economies which effects overall growth of those economies at a large scale. Due to
increase in employment overall development of economy is declined and effects their economy
at a large scale. Reduction in employment effects development of organization and achievement
of their goals and opportunities. Due slow growth in globalization companies feel that they are
not able to earn profit in those economies.
Lack of standard of living
Without globalization people of small economies are not able to get employment and it
reduces their standard of living. Without employment people are not able to consume required
resources then it effects their overall growth in market at a large scale. Without effective
utilization of resources and effectiveness of products and services in an economy reduces overall
competitiveness of their product and services.
Reduces spending and investment by companies
Due to lack of globalization in developing countries it will effect their overall growth and
development of those economies at a large scale. Companies are not spend on those economies
where they are not able to earn adequate profit that helps them to achieve their goals and
objectives. Companies largely concentrated over developing economies. If investment in small
economies reduces then it effects employment for people in those economies. Reduction in
spending overall effects development of organization

Lack of quality products and technology
Due to slowdown in globalization effects overall development of an economy. If large
number of bigger companies are not ready to start their business in those economies then it
effects overall development of those small economies. And people of small economies are not
able to develop their business at a large scale. Quality products helps people to develop their
abilities and resources at a large scale. If multi national companies are not ready to develop their
business in those economies then people of those economies are not able to get effective
technology for development of their business.
Lack education and knowledge
Due to reduction in globalization it effects overall development and effectiveness of
economy(Croucher, 2018.)
. Due less technology and products and services employees and people in small economies are
not able to cope up with new technologies and trends and have less experience and knowledge
about products and services.
Interdependence
Small economies need to be depend on different economies for their development. The
products and services of their nation will not get rise in an market and effects overall
development of organization.
Increase poverty
Slowdown in globalization will increase poverty in small economies as people are not
able to develop their business at a large scale and effects overall development of an organization.
Due to increase in poverty and underdevelopment of nation will not able to reach its goals and
objectives. Due to unemployment and lack of standard of living reduces overall effectiveness of
an organization.
Conclusion
Globalization helps economies at a large scale to develop their abilities in different
sectors of society and help companies to achieve their goals and objectives of their business.
Report shows globalization is not over but slowdown their working for development of nation.
Macroeconomics effects of globalization slowdown has a huge impact on overall development of
small and large economies. Slowdown in globalization will reduces employment opportunities in

in small economies and stops them in their overall development of large scale. Slowdown
reduces standard of living of people of those economies at a large scale and effects overall ability
of economies to develop at a large scale. Slowdown effects economic development of small
nations.

REFERENCES
Books and Journal
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Eriksen, T.H., 2018. Globalization. In Handbook of Political Anthropology. Edward Elgar
Publishing.
Bordo, M.D., 2017. The second era of globalization is not yet over: An historical perspective
(No. w23786). National Bureau of Economic Research.
Bordo, M.D., 2017. The second era of globalization is not yet over: An historical perspective
(No. w23786). National Bureau of Economic Research.
Steger, M.B., 2017. Globalization: A very short introduction (Vol. 86). Oxford University Press.
Franko, K., 2019. Globalization and crime. SAGE Publications Limited.
Pieterse, J.N., 2019. Globalization and culture: Global mélange. Rowman & Littlefield
Publishers.
Crane, D., Kawashima, N. and Kawasaki, K.I. eds., 2016. Global culture: Media, arts, policy,
and globalization. Routledge.
Bourguignon, F., 2017. The globalization of inequality. Princeton University Press.
Macedo, D. and Gounari, P., 2015. Globalization of racism. Routledge.
Ritzer, G. and Dean, P., 2015. Globalization: A basic text. John Wiley & Sons.
Croucher, S., 2018. Globalization and belonging: The politics of identity in a changing world.
Rowman & Littlefield.