Table of Contents
What, Why and How Globalization is?
Economic Development and its Different Aspects.
How Globalization is affecting World Economic Development?
Changes in World Trade Picture
Changes in Foreign Direct Investment (FDI)
Effect on the Standard of Living
Effect on Employment
Globalization and poverty alleviation
In the current digital world, volumes of investments, services, and goods are crossing and transferring national borders very rapidly towards the global market. On average, the foreign exchange transactions in a day is bout £1.5 billion. According to a report conducted by Hill (2013), about £8.9 trillion of good transactions are taken place in a day, where about £2.10 trillion of service transition is taking place a day. Thus, the term “globalization” is a hot and controversial topic, where there is no particular definition of globalization focusing on lifestyles and disciplines. In this age of globalization, economic factors focus on the transfer of foreign exchanges, services, and goods.
Political factors focus on the roles and responsibilities of the World Trade Organization (WTO), the United Nations Organization (UNO), and GATT and other same kind of institutions. Some other issues where the globalization effects are sociology and anthropology focusing on cultural differences. For improving, economic development, better education, better transformation, better communication, better health facilities and utilization of resources are important. As the distribution of goods and services is part of economic development, it is important to improve the distribution network including a better transportation system to improve the delivery of goods and services across the world market (Henderson, 2015).
Therefore, in this current digital world, the scope of globalization of improving and increasing (EuroStat, 2014). One of the popular definitions of globalization is globalization refers to integration among business organizations, people and governments across the world (Rothenberg, 2013).
This paper critically analyzes and evaluates the impact of globalization on the world’s economic development. In the first section, this paper outlines the term ‘globalization’ the causes behind this term. In the second section, this paper analyzes how globalization is affecting global economic development. In this section, different terms have come under consideration which are a global market, global organizations, changes in world trade picture and foreign direct investment, change incorporation, technological effects, effect living standard and employment, industrial effect, cultural and environmental changes, and global and poverty alleviation.
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What, Why and How Globalization is?
Globalization is not a new concept, lots of work has been done so far on this topic but still, now it is a hot topic mainly in the global market. According to Kotler et al. (2014), before people were used to moving to another place to look for a better living style, gain access to others’ land, and better workplace to gain more salary, to find out a better place to find out better. However, global statistics disclose that Globalization is expanding very rapidly day by day, whereas the major changes in Globalization have been observed since the 1950s. Now, the volume of merchandise trades has increased to around 7.5 times (Farrell, 2012).
According to an expert on Globalization discloses that there is a strong link between Globalization, technology development, social and economic factors (Hamilton and Webster, 2014). According to an expert, globalization refers to the shrinkage of space and time. Globalization elimination of diminution of state-enforced restriction on foreign exchanges, the integration and exchange of global complex product system which has emerged as the outcome of global business concepts (Palmer, 2012).
Economic Development and its Different Aspect
Economic development is the increase and improvement of people living quality or quality of life. According to Kane and Sand (2014), economic development focuses on dramatic and rapid changes in local economies and their capacities. However, in traditional views, economic development is the economic system that focuses on the improvement of capital and annual production, rather than the population size.
In the modern sense, the term ‘economic development’ is practiced in the movement of real and potential income per head (Robbins, 2013). A particular country’s development can be taken place in a number of ways. One of the American economists, named Rostow disclosed that economic development follows five steps…………