Globalization refers to the increasing economic interdependa

Globalization refers to the increasing economic interdependance of countries with trade, it also refers to a rise in cultural exchange. It also refers to knowledge, information, people, across international borders. Whether we like it or not just like technology, globalization is not going anywhere!

There are people that believe that globalization will save the world. That it will bring development to the world and fix 3rd world poverty.
On the other hand, there are people that regard it with hostility, even fear. They believe that it will increase inequality within and between nations, threaten employment and living standards and stop social progress.

Which side are you on? Explain in 3 paragraphs your stance on globalization.

Solution

Globalization is a concept where entire world is like a single country. Many developing countries of the world were adopting the strategy of closed economy. In this concept, other countries are restricted to enter and operate within the ecoomy. Thus opening of a economy to other country is a positive move towrds globalization. Since the latter half of twentieth century most of the coutries are opening their economy.

Some people argues that globalization will increase disparity between rich and poor coutry. As poor countries are weak in all respect, their domestic industries will not be able to compete with the industries of developed ecoomy. Thus developed economy will extract the resources of poor coutries. They will produced goods at low cost and will sale them in poor countries market to make huge profit. They will not try to bring necessary improvment in those countries for their own sake. Ultimately rich will be richer and poor will e poorer.

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However if you look ito the matter a little deeply, then you will observe that globalization is always a better option. Some arguments in its favor are described below:

1. A poor coutry has to grow at a very fast rate. It has to cover up existing deficiency. At the same time, it has to generate fund for further growth. Thus country has to invest at a rate higher than the investment growth rate of rich coutry. But it is very difficult to achieve since people are poor. Fund for investmet is generated from savings. In poor countries may per capita earning is very low. So rate of saving is not adequate. This deficiency of investible fund can be met by inviting foreign investment. Globalization is thus needed.

2. In underdeveloped economy goods are produced using old technology where cost is high and productivity is low. If other countries are prevented to enter the economy, then domestic industries will not learn about the latest developments that are taking place. Further due to absence of foreign competition industries will not grow as it will not feel any urge to develop them.

3. Increase in investment, will create new employment opportunities. Thus unemployment will decrease. Domestic production will raise national income. Ultimately standard of living of the people will be better.

So globalization ultimately causes development of the economy. Without it no developing country can prosper.