Globalisation Essay Example | Topics and Well Written Essays - 1000 words - 1

Globalisation - Essay Example The World War I & II were the central points that proposed the idea of globalisation. The World Wars adversely affected national economies. On the basis of numerous studies conducted, economists realised that the concept of globalization would contribute to the rapid economic restructuring. In addition to the economic benefits, nations could improve its political as well technological relations globally. It is argued that globalisation can benefit developing countries more in achieving rapid economic growth. Obviously, it has several negative aspects too. This paper will critically analyse notable strengths and weaknesses of globalisation. Strengths According to Devetak and Hughes (34), globalisation connects nations through a global network, and it assists a nation to get access to foreign markets and customers. Sometimes, an organisation can attain more benefits from foreign markets than from domestic markets since the offshore country may provide better business conditions. The fa vourable conditions include cheap raw materials and labour, liberal government laws, and large number of potential customers. The removal of trade barriers promoted import and export activities by which a government acquires foreign investments. The emergence of a global financial market can be directly attributed to the concept of globalisation, which assisted the borrowers to get better access to external financing. The increased volume of national and international trade transactions will probably boost the rapid economic development of a country. The economic development of a country may raise the standard of living of its citizens. Moreover, every nation gets access to highly developed technologies so that organisations can take advantages of these improved technologies in order to enter the next phase of growth. Hence, technological improvement and increased productivity are some of the positive outcomes of globalisation. As per statistical data, â€Å"everyday more than $1.5 trillion is now swapped in the world’s currency markets and around one fifth of products and services are generated per year are bought and sold† (Benefits of Globalisation). The global interconnectedness helps nations to attract more and more investors and thereby complete their capital accumulation process successfully. It is evident that potential investors are invaluable assets of every organisation as these investors have the capacity to raise additional capital in times of unexpected contingencies. The buyer group also acquires benefits from world trade as they get better selection options through which a buyer can purchase quality goods at lower prices. Another fascinating feature of the globalisation is that it can keep inflation level lower. This feature greatly aids governments to trim down public sector spending and minimise troubles associated with a higher inflation level. The increased global trade creates a lot of employment opportunities across the glob e and thus it effectively contributes to each nation’s economy. Globalisation brought some excellent economical results in 1980s and it can be attributed to increased global trade activities. In 1986, commerce as a percentage of gross world product has risen from 15% to 27%; in addition, globalisation process brought revolutionary developments in the number of mobile phone subscribers and internet users during the last few decades (Benefits of Globalization). Weaknesses As in the case of any other potential