Position Paper. International Political Economy:Economic Globalization

International Political Economy: Economic Globalization
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International Political Economy: Economic Globalization
Globalization is an element that justifies the dynamism in the current civilization. Since the turn of the 21st Century, the globe has experienced tremendous change particularly, in the economic scope of things. Globalization can be referred to as the increased interactions among human societies worldwide. In essence, this procedure is a multifaceted phenomenon that encapsulates cultural, technological, political, social, and economic dimensions (Mir, Hassan, & Qadri, 2014). Technological advancements are central to these changes defining how these interactions ought to take place. Even then, globalization has been a source of a contentious topic. The hotly-contested debate reverberates around whether globalization is beneficial or harmful to the world. This discussion is quite controversial as both sides of the divide highlight worthwhile arguments. Some of the adverse consequences for the globalization include abused forced labor, environmental destruction in developing nations, lower wages for laborers, and extreme unemployment. Nevertheless, globalization has been instrumental in improved business and employment opportunities, reduced consumer prices, increased productivity, and educational liberalization, which are essential metrics in the alleviation of poverty despite the accompanying demerits.
An increase in the number of business opportunities underlines one of the most crucial benefits of globalization economically. Even though there are several explanations to this account, the most congruent is the significant development of firms and their businesses. Through exports, companies have sold more to the international market over time and in the same way, foreign customers have contributed immensely to this course. Statistics provide further justification. For instance, between 1980 and 2010, global trade by a remarkable 35 times. In essence, the corporate players had their foreign sales expand by the same figure. In the case of a singular country, Sweden is a prime example. Its foreign sales jumped from 200 billion SEK to 1500 billion SEK between 1980 and 2010. The telecom company, Ericson, achieved export sales at the mark of 100 billion SEK. These figures are double the company's sales in 1990. The Asian market which accounted for the company's 6% sales in 1990, was averaging 25% in 2010 representing a remarkable rise in the international market (Erixon, 2018). Globalization presented immense opportunities for companies to grow. In essence, they would find it difficult to evolve were it not for globalization. Ericson, in particular, would find it trickier taking into account the nature of the business and its demand for high intensive research and development expenditures.
Economics posits that all customers are rational. This perspective concedes that customers will seek to gain optimal products (both goods and services) with limited financial resources. On the other hand, globalization has come in handy as it has facilitated the reduction of consumer prices. Lowered costs in consumer products and increased levels of living standards are apparent effects of globa...