Globalization and the National Economy
Globalization can usefully be conceived as a process or set of processes which embodies a transformation in the spatial organization of social relations and transactions, generating transcontinental or interregional flows and networks of activity, interaction and power.
Globalization has four types of change. Firstly, globalization includes growing social, political and economical actions across political limits of countries and continents. Secondly, it recommends the growth of inter bondness and flows of trade, investment, finance, and society. Third, it is developing extensity and intensity of global inter bondness can be depended to a speeding up of global connections and developments as the progress of world wide actions of transport and communication speed up the flow of ideas, goods, information, investment and communities. Fourthly, the growing extensity, intensity and speed of global communications can be attached with their developing impression such that the results of indistinct actions can be very important else where and yet all the local growth may come to have massive global consequences. It makes the sense, that the boundaries between local affairs and global matters can become increasingly blurred.
In total globalization can be consideration of as expanding, increasing speed up, and developing influence of world wide inter connections. In sum globalization in this way, it makes possible to draw observe patterns of world wide contacts and business across all type of fields of human activity, from the military to the cultural.
Effects of globalization on national economies
Globalization creates major change on the economic environment of any nation; it changes any nation in terms of economic development policies under national government. The globalization provides the free movement of trade and investment, labour and assets. Through globalization nation’s economy growth globally so it opening up the barriers of international trade which increase the stability and creates positive impact on quality of life with in a nation’s individuals.
Economic growth through Globalization has both positive and negative impacts on the society. One of the main benefits of economic growth is the higher incomes per capita and higher living standards due to an increase in output. It increase in output has also created employment opportunities which takes the nation towards prosperity.
The best example of Globalization is Microsoft Windows which is done in United State of America but the technical support is provided in India which provides support to Indian economy. Job opportunities create in India for IT professionals and government’s income increases in terms of Taxes. In same way Toyota cars made some cars others are made in United State of America.
The animation on cartoons is done in South Korea. The characters voices are done in the United State of America or in country who buys these cartoons.
The native impact of Globalization is that the revenue earned in the nation is not spend in that particular country for growth of this country’s economic conditions of its people, this revenue is spend in other countries along the globe and the ultimate benefit goes to the company’s home country, For Example the American based company Nike is one of the company around the glob where ever in the world Nike products sale the ultimate benefit goes to America but the Nike enjoys the cheep labour and resources of that country. It also eliminates the difference of skilled and unskilled persons.
Other main weakness of Globalization is that it increases possibilities of unintentional motion of diseases between the countries. Globalization gives attraction towards the money oriented lifestyles and selfish attitudes, which suppose to consumption to be a mean to manage overall economic affluence.
As Amartya Sen said in 2002 “The market economy does not work by itself in global relations indeed, it cannot operate alone even within a given country”
Some believer of globalisation has the aim to expand market relations, push back state and interstate interference, and create a global free market. It is a political plan that seen at work in the activities of transnational organizations like the World Trade Organization (WTO), the International Monetary Fund (IMF), and the Organization for Economic Cooperation and Development (OECD), and has been a significant objective of United States involvement. Part of the impetus for this project was the limited success of corporate/state structures in planning and organizing economies. However, even more significant was the growth in influence of neo-liberal ideologies and their promotion by powerful politicians like Reagan in the USA and Thatcher in the UK.