Globalization

Globalization

Globalization is the integration of economic, political, and cultural systems across the globe. Or it can be Americanization and United States dominance of world affairs.

A globalizing market promotes effectiveness through competition and the division of the labor; it allows people and economies to focus on what they do best. It also allows people to go globally, therefore, merge into other markets. In some cases, countries must be prepared for policies that other countries need in order to help maintain a supportive international community.

Unparallel growth and increased inequality explains how we are expanding at a rapid pace, and how the poor countries are not expanding at the same pace. Basically the rich is getting richer and the poor are not increasing at the pace of the rich. Therefore, a major gap has risen between the two. Economically, making it impossible to close the gap.

There are four aspects of globalization and it consists of:

Trade

o Countries as a whole have increased, such as, China and Asia who have the resources to export (for example automobiles and electronics). As opposed to countries like Africa or other third world countries that rely only on food or raw materials have decreased due to a lack of limited resources.

Capital movement

o Due to financial crisis in some countries, direct foreign investments have become the most important necessity to help aid the development of other countries.

Movement of people

o Consists of people moving from one country to another in order to better ones lifestyle. It can also help increase the capital flow of ones country by sending funds back to developing countries.

Spread of knowledge and technology-.

o The exchange of technology is very critical to a countries expansion. The knowledge of production methods all the way down to management techniques can be the rise or fall of a country. This is why the knowledge we need to survive, and the technology to live, is a very valuable resource to developing countries.

There are special cases of economies in transition from