Globalization

Globalization is a most debated term in the 21^st century. Proponents of the debate assert that it is one of the best things to happen to the world, while opponents of the subject observe that it’s a new form of colonialism. Despite the acute debates, it is undeniable that the contributions of globalization to economic development are commendable. Despite the presence of quite a number of negative impacts associated with the subject, its positive effects outshine the former. Opponents of globalization, persons who argue on the lines of economic inequality, resource depletion and environmental degradation have stamped their presence in global conference halls. The aforementioned issues advocated by these groups pose catastrophic challenges to hosting nations if not handled appropriately. However, the overall advantages advanced by globalization are huge and most of the developing economies can trace its economic development success stories to globalization (Doces, 2011). This research paper looks to dissect the positive contributions of globalization, it focuses on how the oval effects have been cardinal for economic development of world economies .In addition, this paper seeks to document how the overall effects of the ever increasing globalization have been positive to economic development of most economies globally.

Globalization has become a cliché, it is been quoted in most contexts where matters related to global economic development are in discussion. For example, globalization is often the subject of debate in international conferences where the independence of economies is in question. Globalization is a word that has evolved over a long period of time, but its presence was felt after the end of the cold war when emerging economies was embracing liberalization rapidly. Considering the entire process of liberalization is about the formulation of transformative processes, globalization processes have become the driving factor of economic development. Most global economies are keen to improve their economic standing and one sure way of achieving this is by interconnecting with other economies. However, according to opponents of globalization, African economies are the biggest casualties as most of their economies cannot withstand the competition of the already developed economies (Akpor & Masoje, 2012). They further assert that third world economies that have opened up their borders to allow the free movement of goods and services expose their citizens and industries to undue competition. Developing economies dump cheap products in developing countries, this in turn lead to the collapse of domestic industries and subsequent job loss. However, the aforementioned hitches do not hold water as it is impracticable for economies to stay closed. In addition, globalization allows the free movement of people and capital, this therefore implies that developing economies are best placed to harness this foreign capital to boost its domestic developments and increase employment opportunities of its citizens. African economies need to formulate and implement feasible economic measures that will enable it harness fully the benefits brought about by globalization. With feasible and sound economic policies, economies will not only benefits from globalization but it will also be able to avert possible negative consequences that may be adverse to its economic development and growth (Shigeko, 2010).

Economic development and globalization are inseparable terms as they help in the description of economic processes. In the past 4 decades, the two concepts have witnessed a progressive transformation and shifts. Economic development revolves around the increase, gradual improvements, economic improvements of processes coined towards generation improvement of an economy. Economic development entails sound and feasible utilization of the resources of an economy to enhance productivity levels that will relatively improve the standards of living of citizens. Efficient production can be realized through the employment of sound technology and embracing of science. However, in accordance to globalization, economic development can be narrowed down to depict vast changes witnessed in the global economic arena in the past two decades. These changes revolve around production of commodities, flow of capital, consumption and technology (Edoho, 2011). Global economic development has rapidly grown to a point where it is attracting diverse uses. The emergence and subsequent thriving of globalization has delinked economic development from command economy. Globalization is operating in a free market economy where nations are able to interact in a free manner without any form of discrimination in matters taxation or protectionism tariffs. Unfortunately, Latin America and Africa are disadvantaged in that they are short of sound economic credentials that are vital to spur remarkable competition in the global arena. From past records, it is apparent that the economic prowess of a country globally is largely intertwined to its industrial level.

According to Shigeko (2010), globalization is often used by scholars to describe the broadness and the connection of production systems, telecommunication and other emerging technologies around the globe. The broadness nature of globalization is enhanced by the interlacing of not only the economic aspects but also the cultural activities of different nations. However, some quarters use the term globalization in reference to the efforts employed by the World Bank and monetary body IMF to advocate and advance a global market that is free and liberal. The interconnection of economies across the globe has been growing rapidly over the last three decades. The speed of exchanging information, the magnitude of networks together with the increased volumes of trade around the globe places globalization as a force that is unstoppable and a definite influencer of future policies (Wei & Ingo, 2012). Globalization has played a cardinal role in the opening up and expansion of opportunities for global economic development. However, it can as well be said that these extensive opportunities are not progressing in an even manner with some economies embracing globalization with much ease while others are being integrated into the system of global village slowly. Those that have are flexible to integrate to the system in a fast manner have been able to realize rapid levels of economic development and growth and have been able to bring down their poverty levels.

Globalization is largely intertwined with multinationals. Multinationals have had relative impact on economic development of quite a number of economies. Multinationals are foreign companies that are keen to open up branches in countries not their mother nation. First, these companies seek to establish business units in economies where they can have easy access to cheap labor and other resources. Proponents of globalizations are in full support of the rapid growth and expansion of multinationals. They assert that, multinationals are responsible for the flow of wealth to those economies and communities that have embraced them. However, opponents view multinationals as unnecessary encroachers that are out to fleece resources of other countries while exploiting its citizens. This is not necessarily the case because multinationals bring with them additional jobs to local communities and economies that embrace them. In addition, they help improve living standards of the populace as they provide easy access to not only quality but also quantity goods and services which are often subsidized as compared to those produced by local companies. Looking at the other side of the coin, multinationals are often keen to establish new branches in new zones or places where markets are yet to be exploited. Breaking the ground and injecting capital on new zones are responsible for economic development. Multinationals strive to ensure that they develop or else improve the infrastructures near the places of establishment. This opens up the economy for other businesses as businesses tend to be attracted to places with improved infrastructure. On the other hand, the influence of multinationals on the formulation and implementation of national policies cannot be understated. They often guide government in the development of policy papers that are keen in opening up the economy to business. Furthermore, these papers are tailored and well aligned to both the corporate and the public demands (Wei & Ingo, 2012). From the aforementioned, it is apparent that the ever increasing globalization has enhanced economic development through multinationals.

Globalization has played a major role in reshaping the operations of most economies. According to Pitelis (2011), globalization is responsible for the global village concept and the changed dynamics of political social and economic relations between nations. For example, globalization is responsible for the policies that propagated dynamic changes in the operations of East Asia economies. The outward policies brought about greater economic prosperity and transformed East Asia from a very poor region to a remarkably progressive region i.e. not only economically but also politically (Edoho, 2011). In the contrary, economies that failed to embrace outward policies in the late 20^th century, such as Africa and the Latin America were got up in economic stagnation. The failure to accommodate globalization led to the deterioration of their social economic standings. The vicious cycles of poverty together with runaway inflation gagged the developments of these economies. In addition, the rapid development of other economies that had embraced globalization worsened their state further (Lloyd, 2011).

In the contemporary society, globalization is an important aspect that has engineered a number of changes directed towards the development of sound economic development policies. As the term postulates, globalization integrates together local and foreign economies with a view to develop a unified political, social and economic order. The forces behind globalization have witnessed a rapid increase in the development and growth of economies globally. Globalization is instrumental in disbanding international trade barriers and the creation of free trade zones. Growth of world markets together with the changes in demand and supply patterns are some of the aspects responsible for economic development of nations. Globalization has been enhanced by the disbandment of economic barriers by nations who are keen to harness more from their partners. The coming in of liberalization together with the breakdown of economic barriers has spurred development and growth of nations. In addition, the move has enhanced competition between economies. This economic reforms and adopted strategies have encouraged the free flow of capital, investors and commodities. In addition, modern technology has been able to penetrate. Technology has enhanced ways of doing business and has subsequently reduced the costs of doing business. The communication costs have also been brought down through the rapid innovation in the telecommunications sectors. Low costs of communication together with advanced ecommerce have relatively increased the flow of global finance. Through the increase in international financial flows, economies have realized improved levels of economic development and growth. The performance of economies often trickles down to its citizens who will enjoy better standards of living. Through globalization, world population is now better placed to access quality and quantity goods and services. In addition, globalization has eased international transactions by embracing advanced levels of technology (Akpor & Masoje, 2012).

According to Hout (2012), global economy grew by a record 2.5% on average in the late 20^th century. The aforementioned was triggered by increased levels of global trade i.e. of up to 7% per year, and an increased level of foreign direct investment by 24%. From the above, it is apparent that globalization is responsible for the economic growth and development of many economies. When the global economy is experiencing a boom, benefits associated to it tend to trickle down to participating economies. Opponents of globalization argue that the benefits accrued by individual states fail to significantly reflect the global picture. For example, while developed economies realized economic growth rates between three to seven percent, least developed economies growth rate stood at two percent (Pitelis, 2011). This is true to some extent as the benefits accrued by a state are directly proportional to its participation in the global arena. Economies that have a wide pool of partners and have high levels of exports are able to accrue more economically than those with few partners and minimal levels of production. However, the above assertion can be altered if economies advance sound economic policies that seek to increase their productive levels.

The growth of international trade courtesy of globalization has resulted in not only the improvement of living standards but also the economic standings of economies. International trade has enhanced economic development and growth through increased foreign receipts, although these impacts vary between economies. Whereas the increase of global trade i.e. imports and exports resulted from the disbandment of protectionism, it has brought a lot of advantages to producers especially those dealing with manufactured products. The increased levels of trading between nations who produce different goods have enhanced the economic developments in economies as much that is realized in foreign receipts is incorporated in the larger plan of a nation. Although globalization has played a cardinal role in opening up markets for trade, economic growth and development is largely dependent on the ability of an economy to manage and monitor its rates of exchange, terms of trade, balance of payment and other external liabilities that guide the perceptions of global players (Edoho, 2011). Despite the widened areas of trading courtesy of globalization, volatility of global markets can destabilize the standing of an economy globally. Therefore, to contain the uncertainties of foreign exchange market and spur economic development, economies need to improve their international financial standing i.e. have good foreign reserves.

Technical know-how and innovations play a cardinal role in the economic development of economies. While there is a general assumption that the above only happen in developed economies, the same is transferred to developing economies courtesy of globalization. It is therefore apparent that globalization plays an integral role in ensuring that no economy is left behind in matters innovation. Moreover, it is evident that the accrued advantage could not be a reality if economies were not integrated. The spread of new innovations is not limited to technological innovations as economics, political and social knowledge is also exchanged. The transferred knowledge is therefore coined well to suit the economic needs of an economy. In addition, it can be packaged and sold to other economies i.e. in terms of labor exchange programs. The exchange increases the economic receipts of a country and spurs rapid development internally. From the aforementioned, it is apparent that the advantages accrued through globalization spur economic development of countries (Lloyd, 2011).

Economic development goes hand in hand with quality education. The spread of quality education is one of the huge advantageous effects of globalization. In the 21^st century, one is able to search and enroll in the world best facilities without any controls. This implies that one is not limited to local educational facilities that might otherwise fall short of expectations. On the other hand, one is able to acquire required knowledge from one country that is to be utilized in another country without and form of restriction. For example, some United States of America managers who were keen to learn the best practices regarding production in bulky travelled to japan and later on incorporated the acquired knowledge in their mother country production units (Shigeko, 2010). From the above, it can be observed that the benefits associated with globalization are immeasurable in that it helps the citizens of a country acquire appropriate skills i.e. those that are necessary to spur the economic development of their county. 

Through globalization, a number of companies and economies have been encouraged to invest in developing countries. These investments help the least developing countries increase the foreign exchange reserves. In addition, it provides employment avenues to citizens who will in turn utilize the earned wages to improve their welfare. Another notable effect of globalization on economic development is the issue of comparative advantage. Due to the opening up of global market, economies will tend to produce what it can produce best incurring minimal costs. This move to inject countries capital on commodities that give it a competitive advantage globally will enhance economic development (Edoho, 2011).

In conclusion, from the above discussion, it is apparent that the effects of globalization on economic development have been positive. For instance, globalization has enhanced trading between economies by disbanding protectionism policies. In addition, economies have been able to attract foreign direct investments that have led either invested with local industries or establish new industrial units. The increased levels of investments do not only improve the infrastructural standing of an economy but also opens up employment avenues to its citizens. Opponents of globalization are insensitive in that they only bank on the over exploitation of developing countries by the developed ones without necessarily considering the wider benefits they bring with them. However, despite the magnificent contributions of globalization to economic development, a lot more needs to be done to ensure that developing countries are not left behind in the share of global benefits. From the discussion, it is evident that the benefits earned by developing countries are less compared to those realized by developed economies. To realize this, they need to invest more in the production of products that they have a comparative advantage in.

References

Akpor, R., & Masoje, M. (2012). The impact of globalization on entrepreneuship development in developing economies: A theoretical analysis of the Nigerian experience in the manufacturing industry. Management science and engineering , 6(2), 1-10.

Doces, J. (2011). Globalization and population: International trade and the demographic transition. International Interactions, 37(2), 127-146.

Edoho, F. (2011). Globalization and Marginalization of Africa: Contextualization of china- Africa relations. Africa today, 58(1), 103-124.

Hout, W. (2012). The anti-politics of development: donor agencies and the political economy of governance. Third world Quarterly, 33(3), 405-422.

Lloyd, G. (2011). Globalization with growth and equity: can we really have it all? Third World Quarterly, 32(4), 629-652.

Pitelis, C. (2011). Globalization, Development, and history in the work of Edith Penrose. Business history review, 85(1), 65-84.

Shigeko, H. (2010). The developmental state in the era of globalization: Beyond the northeast Asia model of political economy. Pacific review, 23(1), 45-69.

Wei, D., & Ingo, L. (2012). Globalization, Industrial restructuring , and regional development in china. Applied Geography, 32(1), 102-105.