Economics Homework Help

Now that you have read a book on globalization and an article on globalization and a lecture on globalization – provide a thoughtful paragraph or two addressing the following(once youve done that respond to two peers):

You have one-minute to explain globalization to a very confused audience – all they have heard is media bias and that Walmart is mean and oil companies are bad, etc.  Set them straight with the answer to the question….”What is globalization and why does it matter?”

peer 1

When nations engage in international commerce and establish bilateral and multilateral trade agreements across the world, the process is referred to as globalization. Economies across the world are becoming more open, allowing businesses from other nations to enter the local market. To help ease commerce, infrastructure development is given particular focus, and forex-related laws are developed to ensure the market is appropriately regulated as a result of globalization.

Furthermore, companies, in particular, benefit from globalization since it provides them with chances to enter new markets and grow their operations in other countries. It opens the door to competition from newcomers from other countries, who will be competing for the same market share. As new laws are implemented, the business climate becomes more volatile and uncertain. As a result, businesses must use an emergent transformation strategy.

peer 2

Globalization in two words- accessing possibilities. Globalization is a means of speeding up movements and exchanges of production, land, labor, capital & entrepreneurship. What do businesses do when the cost of producing a good or service rises to the point that profits are diminishing? They decide to look outward to secondary channels, which may mean producing and sourcing parts or all of the production cross-borders to remain competitive. The sharing of resources, be it raw materials, labor, or capital, allows firms to find lower-cost ways for production and increase competition, which drives down prices and encourages innovation. Lowered costs help people in both developed and underdeveloped countries who participate in cross-border production increase their standards of living. Increased living standards raise the wealth of a nation which allows more infrastructure, housing, clean water, roads, and healthcare to its citizens. The increased interdependence of economies around the globe allows for sharing of those resources which are unique to that economy and works to drive productive activities and marketization-driving forces for economic progress. Innovation is a driving force of market growth, and globalization is the path towards greater prosperity and a nation’s well-being.

In the push towards globalization, there will be challenges, setbacks, winners, and losers. The positive effect of globalization is creating competitive advantages by sourcing materials and labor where they are least costly in emerging and developing countries. These countries that have not been able to maximize their labor and materials gain opportunities to participate in the marketplace and move around the world. Consumers benefit from gaining access to more goods, and lower prices as companies can offer lower prices. The negative side effects can be job insecurity, fluctuations in currency or prices, labor strikes, environmental impacts, and the wasting of a nation’s precious resources. Let’s not kid ourselves into thinking globalization is a net zero-sum game; it is not. Globalization allows for an exchange of ideas, technology, and cultures contributing to a wider worldview. What happens in one nation no longer is self-contained, a trickle-down and out effect as all nations are tied in many ways through political, financial, and economic policies. Countries that tried to go it on their own, like China, once they opened their economies and borders, grew the country’s wealth and that of their people. When China won, the rest of the global community also won with access to lower costs, speeds in production, and a larger consumer audience to exposure goods & services.