The Effects of Economic Globalization: Is it Sufficient or Non Sufficient?

Running head: The effects of economic globalization. Is it sufficient or not sufficient? Name Course University Lecturer Date Globalization according to economists means assimilation through exchange of goods and services internationally. This can be measured through transport and tariffs costs, trade volumes and the regulation of a single price across borders. It can as well be defined as financial assimilation through exchange of benefits, which is seen in direct measuring of transactions and capital control costs, rate parity interest conditions, net and gross capital flows, consumption sharing and portfolio shares, direct investment in foreign countries, increased selling and buying of intermediate goods across the nations, contracting out of services from nation to nation and global outsourcing of employees. According to Wolf (2004), globalization is defined as the` movement in the direction of greater integration, as man-made and natural barriers to international economic exchange continue to fall. Therefore, globalization in the line of economics simply implies assimilation of monetary activities through trade. Though globalization has social, political and cultural effects, this paper will only focus on the sufficiency and insufficiency brought about by economic globalization (Wolf 2004). There is a high increase in globalization of markets and production of goods and services. This has to a large extent been boosted by the advancement in technology. Despite this increase, the economy of some countries is increasing faster than others such as China. These economies are almost controlling production in major industries worldwide. This change is not being realized by the western countries falling under western economies. According to the old system of economics, a steady condition, more proceeds and market entry in international markets (Ludwig 1951). Lowering hi-tech difficulties to movement of factors of production, services and goods. Moving production to countries with low hiring cost of labor. Setting up production stages to have partially processed products processed into refined goods at lower expenses in low rate nations. Evade tariff and non-tariff difficulties and even the cost of transporting both intermediate and finished products. Increasing the movement of the product from one nation to another thus increasing its price, ` are the reasons driving faster expansion of global activities (Boone et al 1998). Capitalism being a multinational conglomerate, has not been carrying out its responsibilities well especially in tackling problems related to increased debt, rising poverty level universally and the issues concerned with our environment. Multinational corporations can have a greater influence both in local and international economies since some of their budgets do exceed the gross domestic budget of some nations. For example, according to the UN conference report on trade and development in 2002, multinational conglomerate raised $18 trillion from its worldwide sales through global export. The national and multinational organizations have for the last few years been increasing pressure on the setting of laws of global human rights protection for individual rights against state abuse. These organizations h...