Globalization's Dual Impact: Unity or Division? An Economic Essay

This essay delves into the multifaceted impacts of globalization, examining its role in either uniting or dividing the world. It explores how globalization fosters economic integration and interaction, influencing business on a global scale. The essay analyzes the effects of globalization on various aspects, including cultural preservation, economic growth, and political dynamics. It discusses the benefits, such as capital access and market expansion, while also addressing potential vulnerabilities and the impact on labor markets. The analysis covers aspects like multinational corporations, technological advancements, competition, and international trade relations, concluding that globalization has indeed united the world, despite some limitations. The essay emphasizes the importance of understanding globalization's effects on economic growth, efficient markets, and the overall social and political landscape.

Running Head: Essay
Persuasive essay

Table of Contents
Introduction................................................................................................................................3
Body...........................................................................................................................................3
Conclusion..................................................................................................................................7
References..................................................................................................................................8

Topic: Globalization: Will it unite or divide the world? Is it another form of political,
economic, and social control of one group?
Introduction
Globalization is the economic process of integration and interaction which is associated with
the various cultural and social aspects. It is the process that makes the business organizations
create and influence business on a global platform and on the international scale.
Globalization has implied various changes. The aspect of cultural preservation has not yet
been the major concern as a result of which the changes which the people have allowed and
encouraged for the overall outcomes. Globalization has been able to make the entire society
realize its potential to bring in improved outcomes. It is a matter of concern about whether
globalization unites or divides the world. Undoubtedly, it can be said that globalization has
broken down the barriers and obstacles between the nations and their populations. It is also
true that globalized markets provide opportunities for generating an imagined wealth. The
essay entails the analysis of whether globalization has united or divided the world and
whether it is a form of social, economic and political control.
Body
It has been observed that various American and European multinational organizations have
been acquiring small and medium scale companies of the developing nations. Globalization
has solved the problem of capital access but it has also produced emerging vulnerabilities to
political and domestic tensions particularly during the time of crisis. But the vulnerabilities
could not underestimate the benefits globalization has brought in to the international
economies. It has united the economies and nations on a global platform. Despite the
vulnerabilities globalization creates, it cannot be denied that it compels the business
organizations to expand and enjoy the economy is of the large scale of business. it helps the
businesses to get adopted to various strategies on the basis of new ideological trends. it also
tries to balance the interests and rights of both the communities and the individuals. it has
revolutionized the entire economy on the global platform. it has brought in various changes
which have compelled the business organizations to compete on the international platform.
globalization also signifies a remarkable change for business management, leaders, and
workforce by legally accepting the engagement between the government and workers in
structuring and implementing various organizational strategies and policies. the business

organizations have also been able to diversify and reduce the risks. the business organizations
could partner with both multinational and local businesses and they get involved with Global
Financial Institutions.
Globalization has also resulted in a reorganization at national, sub-national and international
levels. It has reorganized the trends of production of global trade and financial market
integration. The multilateralism has impacted social relations and capitalist economic
relations. Business competitiveness has achieved a completely new shape on the global
platform. The production system has undergone a transformation which has impacted the
structure of the class, labor process, and utilization of different technological aspects along
with the organization and structure of capital. Globalization has also marginalized the low-
skilled and less-educated workers. The mobility of labor has increased to a great extent
impacting the overall economic development. The developing nations are getting the
opportunities to perform and compete on the international level because of globalization. It
has been observed that many European and American multinationals are investing in several
developing nations because of the suitable factors found in developing nations. The
technological advancement has also impacted globalization and business on an international
level. Economic integration has increased because of the globalization of financial markets
and products. It has resulted in specialization, enhanced efficiency, and economics of scale.
The financial services could be traded to a large extent. Globalization has also initiated cross
border entry activities and capital flows. The technological aspects such as
telecommunication or availability of real-time information have adequately facilitated the
remote delivery system with the help of enhanced access and effective distribution channels.
The industrial structures have also undergone changes because of globalization. The non-
bank entities like utilities and telecoms could now enter the industrial structures and carry on
their financial services.
Globalization has also empowered the business organizations to command on both intangible
and tangible assets so that they could create more customer loyalty irrespective of the
locations they are operating in. The geographic location is not a barrier to any business
organization which aims to meet the international standards. The business organizations now
could use their core competencies, concepts, and connections which are the greatest assets in
expanding their businesses beyond the borders of their domestic business operations.
Economic growth has been catapulted as a net effect of globalization. Several pieces of
studies and research have been conducted to evaluate and understand the influence of

globalization on the economy of different countries. The major variables which have been
studied upon are capital flows, trade foreign direct investment, GDP per capita, and many
more factors. Globalization results in the development of more efficient markets. Efficient
markets are the major demands of any economy. When there is an equilibrium between the
willingness of the buyers to pay for any product or service and the willingness of the sellers
to sell any product or service, efficient markets get developed. It is always prudent for
business organizations to operate business cost-effectively (Ahmed, 2018). If the business
organizations could improve the ways they produce goods and services it would be beneficial
for them. Globalization has opened the opportunities for outsourcing the process of producing
goods and services. It is cost-effective on the part of the business organizations when they get
discounts from overseas suppliers. The business organizations should also keep their selling
prices competitive which in turn results enhanced affordability and demand. The consumers
also get benefited from this strategy. If the business organizations could not lower the prices
of the deliverables then they could generate additional profits which they could relocate and
invest in expansion projects. Outsourcing of the resources of business has also reduced the
geographic distances between the nations (Weidenbaum, 2003). The enhanced rate of global
activities has also improved the political and social relationships between the nations.
Competition is another important aspect which has increased to a great extent because of
globalization. in an economy there can be multiple producers which are competing on the
same platform and this is good for the consumers. the competition makes the business
organizations to increase the quality of the deliverables. Increased competition has also
compelled the business organizations to take better care of the customers and to maintain
international standards in manufacturing and delivering the various products and services.
Increased competition has also resulted in continuous improvement of the different goods and
services and value creation for the customers. Globalization has enabled the customers to get
products and services of better quality and of improved standards at reasonable prices (Sufian
& Kamarudin, 2016).
Stabilized security is another important aspect of globalization. In the globalization era, the
economy of a country depends on the economy of another country to a great extent. The
countries could enjoy stabilized security because of globalization (Lee & Vivarelli, 2006). It
has also been observed that many conflicts have been halted because of globalization. These
conflicts if not halted by globalization could have affected the financial health of different
countries. Globalization has also initiated the exchange of information, ideas, knowledge, and

technological aspects between different countries. The countries are now developing a cordial
relationship with each other on social, economic, and political grounds. The governments of
different countries are developing suitable strategies and policies so as to initiate business
transactions between different nations. The resources of the developing countries are getting
the opportunities of being rationally utilized on an international business platform. The
globalization has opened the doorway towards wealth equality throughout the world. It has
initiated removal of the accumulation of wealth in the hands of fewer and distributed it to the
people all over the world. In the globalization era, the developing nations also get the
opportunity to interact and communicate with the developed nations and let grow their
business on the global platform. Different nations now develop a relationship with other
countries with the help of globalization (Rao, 2013).
The international trade relation between different countries has been remarkably noticed
because of globalization. In the year 2010, as per the report of Federal Reserve Bank of San
Francisco more than 35% of shoes and clothing sold in the markets of the United States have
been manufactured in China and have been exported from China. In the United States, only
3.4 % of the clothes and shoes have been observed to have been manufactured domestically.
The trade relationship between the developing countries and developed countries not only
unite the nations but also helps in enhancing economic growth and prosperity (Collins, 2015).
The investments made by the developed countries in the projects of developing countries help
in the technological transfer, a growth of international companies and industrial restructuring.
The technological innovation of one nation directly impacts the business of the other nation.
Globalization has led to the interdependence between several nations. This interdependence
has benefited in preventing instability in local economic fluctuations which could have
impacted several countries adversely (KUEPPER, 2018).
The enhanced involvement of different nations and states because of globalization and
liberalization has made the market expansion to take place remarkably. The cordial
relationship among the different nations has also contributed to the harmonization of business
and trade. The exchange of resources and other aspects between the nations has also made the
relationships between the nations much friendly. Globalization has also helped in increasing
employment opportunities and enhancing the economic conditions of various countries.
Because of the enhanced mobility of labor, the skilled and less-skilled workers of one country
can move to the other and can feasibly search employment in the other countries. The
political policies are also highly responsive to the development of the cordial relationship

between various nations. It can be said that because of globalization and free trade policies
different countries can work together and can boost up the overall economic development.
Conclusion
It can be said that globalization has united the world. The government system of various
countries has also structured various policies to safeguard domestic business platforms. So it
can be said that globalization has definitely united the world. There can be some vulnerability
or limitations of globalization but the benefits and facilities it has provided could never be
overemphasized. The service industry has also been highly developed and expanded because
of globalization. The economic activities between different nations also impact other
activities and impact other domains like education and research. The process also helps in
economic growth and prosperity. The globalization is important and it should be understood
that globalization unites the world.

References
Ahmed, A. (2018, May 29). The Effects of Globalization on Global Communication.
Retrieved from bizfluent: https://bizfluent.com/info-8232542-effects-globalization-
global-communication.html
Collins, M. ( 2015, MAY 6). The Pros And Cons Of Globalization. Retrieved from forbes:
https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-
globalization/#31a82f8cccce
KUEPPER, J. ( 2018, November 19). The Impact of Globalization on Economic Growth.
Retrieved from thebalance: https://www.thebalance.com/globalization-and-its-impact-
on-economic-growth-1978843
Lee, E., & Vivarelli, M. (2006). The Social Impact of Globalization in the Developing
Countries. Discussion Paper Series, 1-28.
Rao, A. (2013, May 77). 4 positive impacts of globalization on world economy. Retrieved
from kstatecollegian: https://www.kstatecollegian.com/2013/05/07/4-positive-
impacts-of-globalization-on-world-economy/
Sufian, F., & Kamarudin, F. (2016). The impact of globalization on the performance of Banks
in South Africa. Review of International Business and Strategy, Vol. 26 Issue: 4,
26(4), 517-542.
Weidenbaum, M. (2003, March). WEIGHING THE PROS AND CONS OF
GLOBALIZATION. PROJECT ON AMERICA AND THE GLOBAL ECONOMY, 1-9.