Participate in a discussion with your classmates regarding how globalization aff
ID: 1845175 • Letter: P
Question
Participate in a discussion with your classmates regarding how globalization affects our lives. Recall that globalization refers to the shift toward a more integrated and interdependent world economy. Globalization has several facets, including the globalization of markets and the globalization of production. Therefore, based on the Discussion Rubric requirements, and your research and analysis, post your discussion explaining the trade policies and outcomes that best serve your self-interests, e.g., lower prices for unblemished pest-free flowers, and the trade policies and outcomes that best serve the social interest, e.g., potentially implementing trade restrictions on rose plantations who misuse a toxic mixture of pesticides, fungicides, and fumigants. When posting and sharing your discussion, please include the drivers of globalization concepts and the globalization debate issues as described in the textbook. In addition, reference the four (4) outcomes of globalization, i.e., growth, wages, poverty, and inequality, as highlighted in the research material.
The research material for this discussion includes the following two (2) articles:
1. Refer to the Opening Case titled, “The Rise of Ecuador’s Rose Industry”, on page 241 in the textbook.
2. Refer to our NAU Online Library; after opening the Online Library, select the down-arrow option within the Subject Guides Icon; then select the General Studies Option, Search for the following article: The Wealth (and Want) of Nations: The Impact of Economic Globalization on the Developing World. Authors: Haase, Dwight1 Source: Perspectives on Global Development & Technology. 2012, Vol. 11 Issue 1, p38-49. 12p.
Explanation / Answer
In simple terms, globalization is the economic, cultural and traditional share and communication between various countries across the world. It is a continuous socio economic process which is a major step towards the development of the country. Through the process of globalization, there is intermingling and blend of various cultures, traditions and thoughts and interchange of ideas. Another major aspect of globalization is the business and trade links between various countries across the globe. This fact has probably given rise to the globalization of markets.
Globalization has two major parts:
1. Globalization of Market
Due to globalization, India has turned into a vast consumer market with high demands. This has led to the growth of foreign investment in the country. More and more foreign companies and global giants have started entering the Indian market to cater to the high customer base and high demand. Today, the amount of foreign institutional investments (FIIs) has gone up to around US$ 10 billion. This is a very big factor behind the growth of the stock market and the overall market conditions. In case of the foreign direct investments (FDI), there has a large increase of around 85.1% over a period of few years. Recent surveys have shown that the amount of foreign direct investments had grown from US$ 25.1 billion in 2007 to around US$ 46.5 billion in 2008.
2. Globalization of Production :
In a global economy, no nation is self-sufficient. Each is involved at different levels in trade to sell what it produces, to acquire what it lacks and also to produce more efficiently in some economic sectors than its trade partners.
The globalization of production is concomitant to the globalization of trade as one cannot function without the other. Even if international trade (or long distance trade since there were no nations in the modern sense) has taken place centuries, as ancient trade routes such as the Silk Road can testify, trade occurred at an ever increasing scale over the last 600 years to play an even more active part in the economic life of nations and regions. This process has been facilitated by significant technical changes in the transport sector.