Globalization

Globalization has been accepted as the new economic mantra for the world economic progress. Most of the countries over the world have stepped forward for bringing spectacular success through Globalization.

With respect to world finance, Globalization leads to the emergence of financial markets on a worldwide basis. This improves access to external finances on the part of the national, sub-national and the commercial borrowers. Globalization in the realms of world finance, economy and industrial sector involves the progresses and revolutions taking place in free-market principles, involving services and the record movement of capital. Globalization of world economy affects the transportation and communication technology as well.

With the advent of Globalization in world economy, the definition of Globalization has acquired new meaning with passing time. The northern countries became willing to open world markets to their commodities, for deriving benefits of the cheap availability of labor from the southern parts and the economic policies promoted by the influential personalities of the south. These northern nations make extensive use of the commercial agreements on regional levels and the international financial organizations to induce the poor countries towards integration. In fact, the first step towards integration is reduction in the tax amounts, followed by privatization of the projects on state level and improving the standards of labor and environment. All these changes facilitate the investors in making huge profits, but the labor class remains as poor as ever, because they are given trifle wages.

Following are the factors, which regulate or facilitate economic globalization in recent times:

International trade and its progress depends largely on global commercial agreements like CAFTA, FTAA and NAFTA, exerting influence on people of all economic levels. It is these agreements which allow free exports in the north, thereby making the underdeveloped nations all the more pauper.

The emergence of transnational companies promote extensive liberalization, disputing the standards of business and health environment in many nations.

The primary role of the export processing zones is to excuse tariff duties, national tax, and a varied range of other regulations like environmental security, medical protection, wages and working conditions of the labor class. In fact, these zones today act as lucrative areas for foreign investment and employment.

Foreign direct investments encourage individuals and the transnational companies to invest abroad, increasing investible amounts to at least tenfold over the last 20 years. Though to many underdeveloped nations, foreign direct investment acts as a mean for economic growth and development, it tends to increase instability and discrimination as well.

Find detailed about Globalization:
Effects of Globalization Globalization and its Discontents Making Globalization Work For All Globalization of World Politics	Economic globalization Advantages of globalization Process of globalization Globalization in China