On balance, economic globalization benefits worldwide essay

The good side of globalization is all about the efficiencies and opportunities o pen markets create. Business can communicate efficiently and effectively with their partners, suppliers, an d customers and manage better their supplies, inventories, and distribution net work.

Local producers can sell their products in distant markets with the same ease and speed as in thee r home country. Sony Corporation (NYSE:SEEN), for instance, can sell its TV and game consoles with t he same ease in New York as in Tokyo.Likewise, Intel (INSTANCING), Apple (NASDAQ:PAPAL), and Cisco (NASDAQ:COCO) can sell their high tech gear with the same ease in Tokyo as New York. The good side of globalization is also about easy credit and rising leverage, as money flows easily across local and national boundaries, and creditors fail to distinguish between good and bad borrowers, boosting aggregate demand; setting the world economy into a virtuous cycle of income and employment growth; and easy credit and leverage fuel financial bubbles that f deed into a euphoria that perpetuates the virtuous cycle.The bad side of globalization is all about the new risks and uncertainties brow get about by the high degree of integration of domestic and local markets, intensification of compete Zion, high degree of imitation, price and profit swings, and business and product destruction. Corp. orations that previously have been enjoying the benefits of globalization, now face unstable and unpin decidable demand and business opportunities and their products quickly become commodities, leave Eng them little or no pricing power and under constant pressure by new competitors that undermine en profitability.The bad side of globalization is also about tight credit, deliverable, and decline Eng money flows across local and national boundaries, as creditors tighten credit to both good and baa d borrowers, depressing aggregate demand; setting the world economy into a vicious cycle of income and employment declines; and euphoria is succeeded by pessimism and a burst of asset bubbles, peeper eating the downward spiral of the world economy.

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The ugly side of globalization is when nations and local communities try to sees cape the vicious cycle of income and employment declines through simultaneous currency devaluation NSA; and by raising trade barriers that in essence put an end to globalization and a beginning to trade wars, as was the case in the asses. In the last quarter of the century and for the most part of the first decade of t is century, the world has seen the good side of globalization. In the last four years, the world has seen t he bad side of globalization. We do hope and pray that the world won’t see the ugly side of it Source: Investigated Link: http://www.

Investigated. Com/articles/03/11 2503. Asp What Is International Trade? By Ream Weak If you walk into a supermarket and are able to buy South American bananas, Brazilian coffee and a bottle of South African wine, you are experiencing the effects of international trade. International trade allows us to expand our markets for both goods and serve sees that otherwise may not have been available to us.

It is the reason why you can pick between a Japans SE, German or American car. As a result of international trade, the market contains greater competition n and therefore more competitive prices, which brings a cheaper product home to the consumer.International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and AR e affected by global events. Political change in Asia, for example, could result in an increase in the cost of labor, thereby increasing the manufacturing costs for an American sneaker company based I n Malaysia, which would then result in an increase in the price that you have to pay to buy the tennis s hoes at your local mall. A decrease in the cost of labor, on the other hand, would result in you having to pay less for your new shoes.Trading globally gives consumers and countries the opportunity to be expose d to goods and services not available in their own countries.

Almost every kind of product can be found d on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and WA term. Services are also eared: tourism, banking consulting and transportation. A product that is sol d to the global market is an export, and a product that is bought from the global market is an import. I imports and exports are accounted for in a country’s current account in the balance of payments.Increased Efficiency of Trading Globally Global trade allows wealthy countries to use their resources whether labor, t genealogy or capital more efficiently.

Because countries are endowed with different assets and Nat rural resources (land, labor, capital and technology), some countries may produce the same good m ore efficiently and Hereford sell it more cheaply than other countries. If a country cannot office neatly produce an item, it can obtain the item by trading with another country that can. This is known as specialization in international trade.Let’s take a simple example. Country A and Country B both produce cotton SW eaters and wine. Country A produces 1 0 sweaters and six bottles of wine a year while Country B produce sees six sweaters and 10 bottles of wine a year. Both can produce a total of 16 units. Country A, however re, takes three hours to produce the 10 sweaters and two hours to produce the six bottles of wine (tot al of five hours).

Country B, on the other hand, takes one hour to produce 10 sweaters and three hours to produce six bottles of wine (total of four hours).But these TV countries realize that they could produce more by focusing on t hose products with which they have a comparative advantage. Country A then begins to produce only w nine and Country B produces only cotton sweaters. Each country can now create a specialized out put of 20 units per year and trade equal proportions of both products. As such, each country now has access to 20 units of both products. We can see then that for both countries, the opportunity cost of producing boo h products is greater than the cost of specializing.More specifically, for each country, the opportunity co SST of producing 16 units of both sweaters and wine is 20 units of both products (after trading). Specials action reduces their opportunity cost and therefore maximizes their efficiency in acquiring the go odds they need.

With the greater supply, the price of each product would decrease, thus giving an diva montage to the end consumer as well. Note that, in the example above, Country B could produce both wine and coot on more efficiently than Country A (less time). This is called an absolute advantage, and Country B may eve it because Of a higher level of technology.However, according to the International trade thee rye, even if a country has an absolute advantage over another, it can still benefit from specialization. Other Possible Benefits of Trading Globally International trade not only results in increased efficiency but also allows coo entries to participate in a global economy, encouraging the opportunity foreign direct investment (FED which is the amount of money that individuals invest into foreign companies and other assets. In the ROR, economies can therefore grow more efficiently and can more easily become competitive CEO mimic participants.For the receiving government, FED is a means by which foreign currency and e expertise can enter the country. These raise employment levels, and, theoretically, lead to a growth in the gross domestic product.

For the investor, FED offers company expansion and growth, which m means higher revenues. Free Trade Vs.. Protectionism As with other theories, there are opposing views.

International trade has two contrasting views regarding the level of control placed on trade: free trade and protectionism. F ere trade is the simpler of the two theories: a leisurewear approach, with no restrictions on trade.The m in idea is that supply and demand factors, operating on a global scale, will ensure that production happy en’s efficiently. Therefore, nothing needs to be done to protect or promote trade and growth, because market forces will do so automatically. In contrast, protectionism holds that regulation of international trade is import Tanta to ensure that markets function properly. Advocates of this theory believe that market inefficiencies may hamper the benefits of international trade and they aim to guide the market accordingly. Protection miss exists in many different forms, but the most common are tariffs, subsidies and quotas.These e strategies attempt to correct any inefficiency in the international market.

The Bottom Line As it opens up the opportunity for specialization and therefore more efficient use of resources, international trade has the potential to maximize a country’s capacity to prod cue and acquire goods. Opponents of global free trade have argued, however, that international trade e still allows for inefficiencies that leave developing nations compromised. What is certain is t hat the global economy is in a state of continual change, and, as it develops, so too must all of its parasitic pants.Source: Oxford News 7, 2015 Link:towpath. Ox. AC. Justness/DODD-01-07-worldâEHs-poassst- people-donâ ??t-aEHays-l99th-where-youâ??d-expect TEH woradds poorest regions ‘in countries you wouldn’t expect’ Poverty measures reported at the national level don’t provide a full picture of where the world’s poorest live.

New research from the Oxford Poverty and Human Development Initiativ e (OPHI)Initiativeity PHIxford has revealed that nearly 60 per cent of people living in the world’s poo rest regions apoopactually not in the least developed countries.Measuring the different things that people are deprived of, researchers have i entified subnatiInnotifiednsubstantialrld where the poorest people live. The global Multidimensional Poverty Index (MPI) reflects the IMPbined simultaneous disadvantages poor people experience ac ross different ACeRossf their lives, including education, health and living standards.

If people are deprived n at least onethird of ten wenonwhitendicators, they are identified as multidimensionallymultidimensionalityty measure, pope artyplements iIMPme poverty measures.Using the January 2015 updates of the MPI released todayIMPhe study team loo ked at more thlo230 regions of countries here multidimensional poverty is at least as high as the 25 poorest Least Developed Countries (LDCs), identified Lidshe United Nations (Economic and S ocial Council). Thsocialund that nearly 60 per cent of the 678 million multidimensionallymultidimensionalityhese speeptleenal regionsubstantialountries that are not classified as LDCs, and all but LidsnonLD C region weronlycountries classed as middleincome: IndiMendocinoPakistan, Cameroon, Cote D’Ivoire, Ghana, NDivorcend the ReIambiof Congo.The findings show that pockets of deprivation are missed in aggregate statisti cs. For estatisticiCSSDoula, the largestDual in Cameroon, 6. per cent of peoplePere multidimensionallymultidimensionalityepop in the same country, in the Extr©meNord, nearlExtra minorednt are measured as MPlpo or. The reseEmployrs say the striking disparity would be hidden if we only relied on the figure for the na tional average aniactionws that 46 per cent of the population in Cameroon are MPIpoor.

While NigMopingthe highest percentage of MPlpoor, with 89. Milksopnt of its e Perre population fentireto be living in multidimensional poverty, using the same MPI measure the fiIMPpoorest regions in the world are in Chad and Burkina Faso. The BarkingsFasthers fPHI that the ver poorest regioeverf all the 803 regions studied is Salamat in Chad, wSalaamsarly 98 per cent Of its 354,00 O inhabitants are measured as multidimensionallymultidimensionalitylkire, Dryrector oAlkali, said: ‘The MPHInables us to IMPmine pover ty within reprove TTY a country as well as nationally, and compare the interlocking deprivations peopl e experiencepeopleIt can reveal experiences across rural and urban areas, and across different ethnic p opulations. We meapopulationsrent types of deprivation together – such as malnutrition, poor sanitation , a lack of housing or schooling – and every person matters. ‘ Our findings highlight the value of having good quality, uptodate and detaiupdateey data to reveal what life is really like for the poorest section of populations. I’m particularly gl ad that ofthe 3gal.low incomof thentries covered, we can analyse MP’ in detanalysesaPMas within countri es for allcountryeseesThe United Nations has stressed the need to identify where the poorest live n order to ‘leave noone behind’.

Thenonearchers argue that the MP’ is essential tPMaccurately target re sources and policies where they are needed most. The updated global Multidimensional Poverty Index now covers 110 developi ng countrdevelops Eng3 egions in 72 of thsessionsuntries. The analysis is of data ranging from 2002 to 2014, mainly collected by UNICEF’s Multiple Niece’srs Cluster Survey and USAID’s DemographiSquid’se alth Survey. Sourcaltnternational Policy Centre for Inclusive Growth Date: April, 201 2 Link: http://www.

pc-undp. org/pub/lPCOundogeOrg5. pdleapfroggedtyPDFasurement: A Reassessment Moneymetric indicaMeteoriticerty are a powerful tool to understand human deprivation. However, as the measurement of moneymetric povertmeteoriticelf to a wide range of defi nitions, theodefied notionshodologies, there is often little agreement, even among poverty experts, o basic questions such as: How many poor people are there in the world today? Have developing countri es been sucountrylseesn reducing poverty? This paper addresses those two questions.First and foremost, the authors argue that the choice Of an appropriate pover ty line is aproveiTTY prerequisite for sensible measurement of moneymetric povertmeteoriticy Iin e can be held Instant over time and across countries, as has been the practice in the specialised lite rspecialized.

elite returnBank’G fTheus IJS$I per day per IISson purchasing power parity (PPP) povert y lineAPPHopoverty ppps do not equatepepschasing power across countries. Thus, as ar gued elsewhere,ARtgeedost of the same bundle of goods and services of similar quality will generally be hi gher in richer coucheeres even in PPP terms. In thatAPPse, the $1. 5 line (and indeed any fixed poverty li ne) cannot servlieaena reliable measure of poverty outside the poorest countries. A more sensible approach for international comparisons, as argued in this pa per, would need to allow the poverty line to be related to changes in the standard of living between co untries. To that eentriesis important to note that we accept the World Banks basic idea of relying on nat ional poverty NateIANALonstruct a globallinstructable poverty measure. However, we reject the ass umption that this emotion should be constant, or that it should be based on the national poverty lines of the poorest countries only.Rather, we argue that an internationally comparable poverty line should be b ased on wellestableasedd stwildebeest’sgstylizedhe relationship between national poverty lines and av erage per capitVAerageiture (in 2005 ppp) across all deappoping countries.

Once established, t his poverty line can then lead to a more realistic estimate of global poverty. Three steps are required to reach this new poverty estimate. First, using data from over 300 household surveys covering 1 07 countries, we establish a robust regression equation bet ween both variablewhenecond, we use the regression equation to estimate our countryspecific pocounterinsurgencyproveTTYThird, we apply these poverty lines to the World Bank POVCAL dataset to VOCALate new pover ty rates. ThprovenTTYinding, shown in the table, is that developing countries may be sign ificantly poorer tefficientlyntionally thought, with hundreds of millions more people living in pover ty. More alaprovelTTY with only a 14. 4 per cent reduction in poverty since 1990, the world may be fa r less successfFAA in its ight against povereightnd as such may be missing the target of halving poverty by 2015.

The regional story is also quite different depending on the poverty measure u sed.Our methodology leads to the conclusion that Latin America is the leader in poverty reduction a mong developing remongos, followed closely by East Asia. Conversely, South Asia and Arab regions had the slowest pace of poverty reduction. This outcome can be explained in part by slower growth a nd sharply rising NDequality in both regions, which the authors conclude is the case based on co mparing survey andimpairingal accounts data for both regions. Note: 1 .

See, for example, Reddy, S. (2009). ReedyEmperor’s New Suit: Global P overty Estimates Rpovertyised’, SCEPA Working PapeSCOPE0911.Schwartz Center for Economic P olicy Analysis (SClogic The New ScSCOPESource: The National Bureau of Economic Research Link: http://www. nber.

org/digest/jNever/wOrg0. html juglweonHTMLuces Child Labor in Vietnam “Households appear to have taken advantage of higher income after the rice price increase to reduce child labor despite increased earning opportunities for children. ” In the ongoing debate about the wisdom of deliberately seeking a globalized marketpglobalizescurring riticism is that feroticismdeveloping countries, integration inevita bly will linvite flyincrease in child labor.The argument holds that globalization, by boosting demands for cheap exports from poor countries, provides an incentive for children to enter the workplace by either i ncreasing their Iaincreasingpanding opportunities for their employment. Yet in Does Globalization Increase Child Labor? Evidence from Vietnam (NBER Working PaperNEVER 8760 ), authors Eric Edmonds and Nina Pavcnik show that Pacificzation in fact may be having the opposite effect. They conclude that Vietnam’s efforts Vietnamese a significant layer in global rice markets are linked directly to a decrease in child labor.

Furthermore, their fin dings suggest that using trade sanctions to combat child labor in developing countries could be counte rproductivecountednreproductivenik focus on tPacificct of Vietnam’s decisionVietnamese to be gin lifting export restrictions that, in the interest of domestic food security and suppressing do mestic prices, hadmasticrained the ability of rice farmers to sell their crop abroad. This liberalizat ion alliberalizedamese rice exports to more than double between 1993 and 1998, with the demand frFRR

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