Globalization and Its Effect on the World Essay

Globalization and Its Effect on the World - Essay Example It shows that the East Asia Pacific has grown from a GDP of 15.8 in 1980 to 36.3 in the year of 1997. This has also been seen in the region of Europe and Latin America. The lowered accessibility of finance in the 1980s resulted in suppressed growth which led to many problems. It was after this that the new funds designated to states included the aspect of foreign direct investment. This type of investment is encouraged in the developing countries because they can help in increasing the capital of a state through which the state can further develop economically. Globalization is an aspect which not only helps the countries directly but also helps the countries to improve indirectly. It helps in the improvisation of the living and working standards of a country. Foreign Direct Investment is a type of process through which globalization has given a direct advantage to the countries whereas an indirect advantage can be witnessed in the accessibility of these types of investments to diffe rent states. The concept of globalization has increased the interest of developed organizations to expand their business in countries where it was previously unknown. As the organizations are expanding it can be seen that their products are widely distributed all over the world. Moreover the distribution channel of the new product helps the countries to increase their understanding about the technological advancements of the world. Foreign investors not only help the country economically but they also help to introduce technologies which were previously not known in the country. The country can benefit from these technologies by using them in an effective manner such that their... Globalization and Its Effect on the World This essay analyses the factor of globalization, its impact on different aspects of the world and considers the question of the globalization real existence. Though it is still seen that some of the concepts relating to globalization have remained unexplored, a debate is going on between the proponents and opponents of globalization. Globalization has been defined by Goldstein as â€Å"the worldwide spread of industrial production and new technologies that are promoted by the unrestricted mobility of capital and unfettered freedom of trade†. This clearly shows that globalization affects the issue of investment and economy in this world. Furthermore, James Rosenau described the globalization as â€Å"a label that is presently in vogue to account for peoples, activities, norms, ideas, goods, services, and currencies that are decreasingly confined to a particular geographic space and its local and established practices". Globalization not only affects the microenvironment but also affects the macro environment from an economic perspective. Microenvironment here refers to the advancement in technology along with its effect on the organizations and macro environment is the whole situation in which the markets are operating. Therefore, the question here arises as to if globalization only has a significant effect on the economics. Studies have been carried out to find out the relationship of globalization and labor market trends and it has been analyzed that both of these have a relationship.