Explaining Globalization to an Alien: A Response Paper

EXPLAINING GLOBALIZATION TO AN ALIEN
Name:
Grade Course:
Tutor`s Name:
(17, November 2010)
Effects of Globalization in Developed and Developing Worlds
Globalization is a concept often used to refer to the ‘shrinking` of the world and the increased consciousness of the world as a whole. It describes change in the world economy and societies mostly because of investments, cultural exchange and cross-border trade.
Economic globalization refers to increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, service, technology and capital. It is the process of increasing economic integration between countries, leading to the emergence of a global marketplace or a single world market Economic globalization comprises the globalization of production, markets, competition, technology, and corporations and industries (Lindert Et al, 2001)
Depending on the paradigm, globalization can link or alienate developed world from developing world. Globalization has been able to link developed world from the developing world in the following ways:
Firstly, globalization has led to increased international movement of people and commodities because of adoption of faster modes of transportation. In addition, it is because of increased international relations between countries through formation of international trading blocs, international trading institutions and multinational corporations and organizations. This development has also led to rapid movement of information, money and has resulted in the development of technology, legal systems and infrastructure. Globalization has therefore allowed people and organizations to exchange good and services easily.
Globalization has linked developing world with the developed world by providing a free trade area between these nations through the removal of all trade barriers and impediments among themselves. For example, the Latin American Free Trade Area and the North American Free Trade Area.
The availability of a common market between nations in developed and developing world because of being a member of particular trade union has linked these countries, as they are able to freely trade their products and services as well as move their production factors like technology and labor across national member borders. An example of such common market is the Southern Common Market Treaty (MERCOSUR).
Globalization has enabled participating nations to form political unions that are similar in an economic and political sense. This therefore promotes their economic interdependence....