Economic Globalization

Globalization in Economics and Its Consequences

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Globalization as we know it has emerged due to the fact that our world has become integrated politically, socially and economically. Economic globalization has seen the entire world economy transforming into an amalgamation of the fiscal markets, global consumption and production. This has also led to the harmonization of the global cultures. Economic globalization was manifested as early as the 1930s during the Great Depression in the United States. The same type of globalization has seen the emergence of Multinational corporations. Basically, economic globalization seeks to ensure that there is standardization of fiscal policies across all nations. This endeavour hopes to transform the whole world into one big economic entity, which will function free from the trade barriers that exists in cross-border trade (Dreher, Gaston, & Martens, 2008). This essay will discuss both the positive and negative impacts of economic globalization.

It is generally argued that developing countries stand to reap immense benefits from economic integration. This assertion is informed by the fact developing countries are always in the business of catching up to the developed ones and that it is easier for the developing countries to borrow technology from the developed countries than for them to invent this technology. In this regard, openness, which is encouraged by economic globalization, accelerates the catch up process by ensuring that the developing countries are exposed to the wealth of knowledge held by the developed countries (Heshmati & Lee, 2010).

Additionally, economic integration is also manifested in other two fronts: global consumption and global distribution. Under global consumption, consumers in the global market get access to products produced in different countries. This grants the consumer access to a variety of goods and services from which he can...