Module 3 Project 2 Economic Questions: Globalization

Mod 3 Assignment 1: Project 2: Globalization
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Globalization
Discontents and Dark Sides of Globalization
According to Stiglitz, globalization has had some adverse effects on the world nations, despite the preaching of positive impacts across the board. The dark side and discontents for that matter are the market elements at a global level when pursued through financial institutions. The most vocal of all organizations for that matter is the International Monetary Fund. In the process of trying to achieve uniformity, unity and the solid representation of all systems, globalization has failed in the financial as well as capital markets (Stulz, 2013). The most affected by the above measures are the developing nations when compared to the first world countries. The risk transferred to the developing countries is to the extent of the commensurate rewards, when analysis of all performance levels is taken into account. Logically, the nature of the third world countries’ economies has been subjected to risks throughout the process of integrating and unifying of the globalized intentions.
There is a lack of rewards being accessed by the third world nations, despite the influx of monetary outpour from their counterparts of the developed kind. With easier forms of boosts, uplifts and loans to secure even the little forms of stability, the nations are then left vulnerable to insecurities. The uncertainties include real estate booms that are categorical in making the majority of the populations underachieve the same. The latter is left to follow the speculative nature of the financial gains, as the gap between the wealthy and poor increases at an alarming level (Stulz, 2013). Economic devastation in the process becomes part of the discontents when the providers can attain their objectives at the primary school. The risks are then measured from one country to another, causing an uneven form of growth if any. The dangers left indicate volatile circumstances, leaving no room for growth of assurance of the future.
Another of the discontents exhibited by globalization is what Stiglitz terms as the new colonialism. In this case, a form of colonialism is witnessed through paternalism. The bodies in charge of financial administration are responsible for running of the capital markets as per their standards. The rules involve the developed nations, while the communication is usually targeted at the other ones at the lower end of the spectrum. Thus, the arrogance shown by the former, cannot be usurped by the third world countries as they do not have exemplary records in the economic achievements (Stulz, 2013). The latter is forced to adopt policies that are within the European nations, which is highly inadvisable as they cannot perform within the structures and dimensions where they belong. Irrational exuberance, as well as pessimism, follows the developing nations as they crumble within the same confines of economic struggles, leaving them in a worse state than when globalization was enforced.
Consequences of Market Liberalization
When it comes to capital market liberalization, the effects can be adverse or severe, depending on the nation involved and the particular timeframe of a...