Recently, the world has grown into one market due to integration of business related activities across organizational and geographical boundaries. This has necessitated the need for the capacities to deal with many culturally diverse merchants. Due to globalization, markets have expanded to include competition for productive inputs and customers with regard to national boundaries. This paper seeks to look at evidence regarding penetration of global economies into the community, who benefits, and those who do not benefit from it.
I hail from a region where there exists economic globalization manifested in a variety of ways. At the business level, companies have decided to take part in emerging global economy in order to establish themselves in the foreign markets, and increase standard rate of profit. In order to meet all round customer cultural and linguistic requirements, company’s existing in my community has been forced to restructure their services and products. The companies have taken advantage of the internet revolution, which came alongside globalization. Through it, they have established effective global market place presence with multilingual corporate websites including electronic commerce (e-business). As the companies, attempt to improve their output in terms of services and products, workers from within my community have been transferring from one company to another as the competition for high-skilled workforce has increased.
Initially, my community practiced small scale farming systems, but due to globalization, they have since been destroyed, and interest in agribusiness has largely taken over. Agribusiness is a technological innovation bringing about development in physical agricultural stock. This has resulted in essential increase in exports of agricultural produce from the community to the outside world. Furthermore, information about agricultural production techniques, management methods, export markets, and economic policies has been made available at remarkably low costs. This is particularly attributed to growth of the global economy in my community.
Global economies are continually evolving, and globalization is on e among several other continuing trends. As industrial economies grow, they become more service oriented in order to meet changing demands of their populations. This has resulted in the shift towards more highly skilled jobs. Therefore, those who benefit from global economic growth due to globalization are individuals who are qualified and proficient in commercial fields. Globalization has made service and production processes easier and less expensive for the community as a whole. The community benefits in terms of capital flows, technological innovations, and lower import prices (Tisdel 578). Moreover, there has been a significant increase in employment rates, improved living conditions, and subsequent growth in economies, which is unlikely to occur in a closed economy.
Gains from growth in global economies are typically unevenly distributed among groups within the community, and some groups tend to lose out. For instance, community members working in declining older industries are not able to make an easy transition to new industries. Cost of labour has increase for older firms due to technological advances. Furthermore, the old firms have been forced to outsource their manufacturing to areas where the cost of labour is cheap. Child labour has been on the rise since the development of global economies. This practice is unethical and therefore not beneficial to children as they are succumbed to labour intensive activities beyond their capabilities.
Bilateral trade imbalance between US and China has created fears of protectionism that much of attention in the rebalancing discussion centered at shifting of monetary and fiscal policies which are likely to affect national saving-investment imbalances (Lesher & Kowalski 27). Since many developing nations have substantial English speaking populations, customer care jobs have been set aside for persons who are English literates. However, many Americans are not satisfied with the level of customer service they are subjected to. This has caused a lot of resentment amongst people across the global divide.
Government should henceforth try to protect groups who are predisposed to the negative effects of growth in global economies, such low-paid workers working in old industries. Approaches such as a reduction of capital flows and trade can help in the short-term. However, this cannot be carried out at an expense of the living standards of the entire population. Governments to pursue policies that promote integration of old industries into the global economy, and at the same time put measures in place to assist those affected by the changes. Global economy will flourish more from policies that embrace globalization through promoting an open economy, and, consequently, focus on the need to ensure benefits are widely shared (Shubber 27).
Work cited
Clem, Tisdel. International Journal of Social Economics.28.5 (2001):578-592. Print.
Kadom, Shubber. International Journal of Sustainability in Higher Education. 3.2 (2002): 27-54.
Print.
Przemyslaw, Kowalski, & Molly Lesher. A commercial policy package for rebalancing the
global economy. Paris. 2006. Print.
