Comprehensive Report: Socio-Economic Impact of Globalization

This report delves into the socio-economic consequences of globalization, examining its effects on both national economies and societies. It begins with an introduction to globalization, defining it as the integration of markets through free trade. The report outlines the project's objectives and scope, followed by a literature review that explores the social and economic impacts of globalization, including its effects on living standards, access to amenities, and the rise of inequality between developed and developing nations. The theoretical framework, based on the Heckscher-Ohlin model, is presented, along with the concept of comparative advantage. The report justifies the research, addresses literature problems and gaps, and poses primary and secondary research questions, along with hypotheses. It outlines a mixed-methods research design, incorporating both quantitative and qualitative approaches, and acknowledges research limitations. The report concludes with a schedule for the research process and provides references.

SOCIO-ECONOMIC IMPACT OF GLOBALIZATION 1
Socio-Economic Impact of Globalization
By
Name of Student
Course Name
Professor’s Name
Name of University
Location of Institution
Date

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Table of Contents
Socio-Economic Impact of Globalization....................................................................................................3
Introduction.............................................................................................................................................3
Project Objective.....................................................................................................................................3
Project Scope...........................................................................................................................................3
Literature Review....................................................................................................................................3
Social Impact of Globalization............................................................................................................3
Economic Impact of Globalization......................................................................................................5
Theoretic Framework of Globalization....................................................................................................5
Justification.............................................................................................................................................7
Literature problems.................................................................................................................................7
Literature Gaps........................................................................................................................................7
Research questions and hypothesis..........................................................................................................7
Primary questions................................................................................................................................7
Secondary questions............................................................................................................................8
Hypothesis...............................................................................................................................................8
Research design and methodology..............................................................................................................8
Quantitative research...............................................................................................................................8
Qualitative research.................................................................................................................................9
Research limitations....................................................................................................................................9
Schedule....................................................................................................................................................10
Conclusion.................................................................................................................................................12
Reference..............................................................................................................................................13
Appendix...............................................................................................................................................15

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Socio-Economic Impact of Globalization
Introduction
Globalization, which involves the eligibility of nations to conduct free trade without
experiencing any trade restrictions, barriers, and tariffs, is the core notion pulling behind today's
integrated and internationally connected countries in the world. The intention behind
globalization is to integrate and expand markets globally, allowing nations to benefit and derive
economic gain from international trade.
Project Objective
The goal is to point out the many influences globalization as a means of economic
integration has on the national economies and societies of the world from a national and
international point of view.
Project Scope
Understanding the effectiveness of globalization is essential. The motive of this paper is
to make out if the influences of globalization fall in place or if they make a deviation from the
expected structure.
Literature Review
Social Impact of Globalization
Globalization has a significant effect on both the economy of a nation, the personal lives
and society as a whole by improving the standards of living as well as access to amenities of life.
(Glatzer 2012). Economies of the world are broadly subdivided into; developed, developing and
transitioning economy. Globalization results to severe social impact for it ensure heightened
interdependency among countries, their resources, markets, people, goods services, capital,

SOCIO-ECONOMIC IMPACT OF GLOBALIZATION 4
culture, and information. From 1960, the developed world acknowledged the quality of life as
the primary social goal, which was at a much earlier stage than the developing countries.
The subjective dimension regarding the quality of life deals with the Overall Satisfaction
of Life. The assessed impact of Personal and National Well-being and indices that combine both
subjective and objective aspects of life like Happy Life Expectancy gives a better social view of
national economies (Dreher Gassebner and Siemers 2012).
The comparison of these indices has brought to light that, developed nation’s benefit
from globalization, the resulting free markets, and increased output through free trade. The social
dimension of globalization captures the weight it has on the life and employment of societies,
families, and people. Globalization had merged the economic and political environment of the
world which is a more significant consequence on social factors like equal access to essential
amenities, marketed goods, enjoying legal, exclusive rights, keeping up the dignity, solidarity,
and equality of people residing in a nation (Fominaya 2014). The most prominent impact of
globalization recently is the inequality among nations, categorized into two sections; developed
and developing.
It also affects the populations' ability to obtain essential health services (McMichael
2013). There has been an acceleration in new infectious diseases due to the uninterrupted spread
of cross-border markets encourage the spread of non-communicable diseases. On the flip side, it
allows free flow of information, awareness and better technology to deal with complex health
cases. This has been attributed to the improved coordination in vaccination programs and ways
of curing infectious diseases.

SOCIO-ECONOMIC IMPACT OF GLOBALIZATION 5
Economic Impact of Globalization
The economic impact is only visible through various modifications. The expansion of
markets through cross-border allowed open market trading with foreign countries with access to
international investments such as the FDI and FPI. Increased foreign direct investment to the less
developed nations by the capitalist developed actions led to growth and development of
economic output for them (Sunkel and Inotai 2016). The push for colossal capital investment
enhances the economic integration and interdependence of the economies.
Globalization also improves the market operations and output thus increasing the trade
volume, bringing forth more trade possibilities. The interdependency among nations has pushed
for the merging of transportation and communication among countries.
The dark side to globalization has been brought about by the accusations that it
accentuates economic problems like income inequality, poverty, and unemployment. The most
significant concern that has been evoked by the process of globalization is the increased
inequality gap between the poor and rich countries. Instead, it makes the poor poorer and the rich
richer (Arora 2012). The relationship between the increased pace of trade and financial
globalization is well explained by the rising income inequality (Jaumotte Lal 2013). After the
globalization process became more popular, the capitalist nations, having more access to capital,
channeled the retail sector to conduct financing of assets, use, and management of working
capital to have market power transformed into financial gains.
Theoretic Framework of Globalization
The main intention of globalization, is the free and uninterrupted trade. The concept of
Heckscher-Ohlin model comparative advantage and absolute advantage, are the most prominent

SOCIO-ECONOMIC IMPACT OF GLOBALIZATION 6
factor driving the theory behind the international trade taking place among nations. The model
explains that a country should produce the goods in which it has a comparative advantage,
relative to the other countries and export that to the world market in return for goods it goes
without producing (Arora 2012). This model is a fundamental framework which explains the
logic behind why countries should trade instead on one country producing all the goods and
services by itself.
A nation has an absolute advantage in a particular line of production if it requires less
unit of labor to produce one unit of good compared to other nations. This makes them capture
higher labor productivity that drives the trade among nations (Margalit 2012). This explanation
takes labor as the only input of production. The nation with higher labor productivity that is
taking lower labor to produce a unit of goods is required to produce and export the good with
other nations. This lead to specialization of the nation in that good which further reduces the cost
making production more efficient.
Labor hour per unit of production
Country Food Weapon
A 30 40
B 50 20
Figure 1: Absolute Advantage

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Country A seems to require a lesser unit of labor in the production of food and Country B
has little labor requirement in production weapon. The doctrine of absolute advantage would
suggest A produce food and trade it for the weapon with B.
Justification
The research was conducted to prove that globalization has adverse effects on both social
and economic aspect. The effects have proven to be both positive and negative in the sense that
globalization has brought about socio-economic benefits and detrimental effects as well. Social
inequality is the largest negative effect of globalization. The methods used in the study was
qualitative research.
Literature problems
The problems faced during the study were, finding out if the positive effects of
globalization could outweigh the negative effects. Coming across literature that proved the need
to continue with globalization has proven to be a challenge. This is because most literature was
putting down both the merits and demerits of globalization.
Literature Gaps
According to the study, the issue of how globalization is going to help solve or upgrade
poor developing countries to developed countries was not addressed. In addition to this, there
was no mention of how and why the developing countries have been left out of the picture yet;
they are part of the global society. The question of how to fill the gap between developed and
developing countries was also not answered.

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Research questions and hypothesis
Primary questions
What are the influences that globalization exerts in the world national economies?
Secondary questions
What are the outcomes of free trade and unrestricted trade?
How do nations achieve a comparative advantage?
What are the strategies that countries adapt to frame global trade policies?
Hypothesis
Globalization defines the economies of nations globally.
Comparative advantage is essential for a country's progress in global trade.
Countries implement policies to assist them to maneuver the mitigations of globalization.
Research design and methodology
In the study of the socio-economic influence of globalization, both the quantitative study
design as well as the qualitative design will be applied.
Quantitative research
The research will employ the use of quantitative design. The aim type being the quasi-
Experimental Design. The research work will be focused on establishing a cause-effect
relationship among various variables of concern. There will be no group assignment neither will
the study involve manipulating the independent variables. Control groups will just be identified,
and a variable used to analyze them about each other (Bernard, 2012).

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The design target will be to quantify the issues and generate numerical data that is analyzable
and useful in generating statistics of essential to the research. From this, patterns will be
generated to approve or do away with a hypothesis.
The methodology will entail obtaining numerical data online from government websites
as well as from independent global monetary firms. The data will be collected based on the two
extreme groups of nations worldwide; developed and developing.
Afterwards, analytical instruments like diagrams, charts, and graphs will be applied to obtain
trends and diagrammatic pictures of the situation before a conclusion is made.
Qualitative research
The qualitative research approach that will be applied will be the case study method. The
research work will examine some countries and use them as a case in approving the opinions.
The focus of qualitative design will be to obtain a more significant understanding of underlying
opinions, justifications, and motivations which are related to the research objectives. From here a
bigger picture of the idea will be gained and research hypotheses generated. Also, the
quantitative design will clear the way for quantitative interpretations.
The research data will be obtained from the government websites especially the
department concerned with economic statistics. The central area of focus will be global financial
reports and journals from international monetary organizations.
The variables of concern will be countries poverty level, industrialization, per-capita
income and global trade contributions.

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Research limitations
The study will be based on the use of secondary data. Currently, there are thousands of
reports and journals regarding the globalization nation’s economic trends. Due to time constraint,
it is therefore not possible to evaluate all the documents to formulate an opinion. The research
work will consequently ignore some statistics and information that could have altered the
findings.
Some of the information that the study will need to be assessed are classified and hence
may not be obtained for the study. This presents a challenge of reliability as not all issues are
addressed.
Secondary sources of data are done by previous researchers and experts. Even though the
data used in the study is obtained from responsible government and firms' websites, they were
collected by individuals. There is a possibility that when making their conclusions the
researchers were biased based on their view of the situation or personal feelings regarding the
issue. Such biases are difficult to detect especially with the qualitative data. There is thus a
possibility that we make a skewed conclusion which justifies some individual feelings rather
than the actual situation.
Schedule
Period Objective Activity Expected
completion
time
Person in
charge
January
2018
Formulate research
topic and secondary
Evaluate the
definition of
February
2018
Research
assistant

SOCIO-ECONOMIC IMPACT OF GLOBALIZATION 11
questions globalization director
January
2018
Identify and group
counties based on
industrialization
state
February
2018
Research
assistant
director
February
2018
Define research
design and
methodology
Go through
assorted models
and methods to
identify which
techniques fit the
study.
March 2018 Research
assistant
director
March 2018 Identify potential
sources of data
Croup and validate
the nature of
websites from
which information
will be collected
April 2018 Research
director
April 2018 Carrying out the
study
Collect data on
poverty level,
trading state and
the extent of
industrialization in
the various
grouped states
June 2018 Research
director
June 2018 Data analysis Use statistical September Research

SOCIO-ECONOMIC IMPACT OF GLOBALIZATION 12
tools to evaluate
the numerical data
and identify trends
2018 director
October
2018
Finalizing Using the
observations to
make findings and
recommendations
September
2018
Research
director
Conclusion
The emergence of globalization has redefined the role of international trade to the various
economies of individual countries be it developed or developing. This has been enhancing
globalization's ability to break the trade boundaries which previously safeguarded countries'
economies against the influence of other nations. Currently, firms must adapt to the techniques
which come with the new ideologies to strike a balance between individual interests or and the
entire community. Failure to adapt to such trends may just see the death of a firm (Joshi 2009).
Through globalization, the world trade has been opened to all forms of businesses, and the
workers in developing countries can now participate in the international trade. This has seen
companies diversify their operations by involving the international financial institutions as well
as partnering businesses operating locally and globally (Thomas 2017).
Globalisation has had both positive and negative outcomes. First, it has seen various
cultures integrate globally bringing the people who were once divided closer. With the close
association of countries and cultures the global market has expanded creating a more extensive

SOCIO-ECONOMIC IMPACT OF GLOBALIZATION 13
labour and product market (Rappa 2011). Employment opportunities have opened to nations
which were once languishing under poverty courtesy of the global trade. Also, firms can now
access a larger market making it easier for governments to apply the comparative advantage to
increase their competitiveness.
On the other hand, the emergence of globalization has also led to mushrooming of some
problems. The developing counties are occasionally being used for dumping by the industrialized
nations. Also, the nation's industries lack adequate capitals to compete hence killing businesses
in the countries. With this, the inequality gap is widening as poverty spreads in the developed
nations (Kate 2009). Globalization is advantageous but if not monitored may end up raising more
humanitarian problems than experienced before.
Reference
Bernard, H. R. B. a. H. R., 2012. Social research methods: Qualitative and quantitative
approaches, s.l.: Sage.

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Dreher, A., Gassebner, M., and Siemers, L.H., 2012. Globalization, economic freedom, and
human rights. Journal of Conflict Resolution, 56(3), pp.516-546.
Ebenstein, A., Harrison, A., McMillan, M. and Phillips, S., 2014. Estimating the impact of trade
and offshoring on American workers using the current population surveys. Review of Economics
and Statistics, 96(4), pp.581-595.
Fominaya, C.F., 2014. Social movements and globalization: How protests, occupations, and
uprisings are changing the world. Palgrave Macmillan.
Joshi, R. M., 2009. International Business. 1 ed. s.l.: Oxford University Press.
Kate, R. W. a. P., 2009. The Spirit Level: Why More Equal Societies Almost Always Do Better,
s.l.: Allen Lane.
Margalit, Y., 2012. Lost in globalization: International economic integration and the sources of
popular discontent. International Studies Quarterly, 56(3), pp.484-500
McMichael, A.J., 2013. Globalization, climate change, and human health. New England Journal
of Medicine, 368(14), pp.1335-1343
Rappa, A. L., 2011. Globalization: Power, Authority, and Legitimacy in Late Modernity., s.l.:
Institute of Southeast Asian.
Thomas, V., 2017. The world transformed 1945 to the present. Second ed. s.l.: Michael H.hunt.
Stromquist, N.P., and Monkman, K. eds., 2014. Globalization and education: Integration and
contestation across cultures. R&L Education.
Sunkel, O. and Inotai, A., 2016. Globalism and the new regionalism (Vol. 1). Springer

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Appendix

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