Free Management Dissertations - Globalisation And The Development Of The Information Superhighway Have
Globalisation and the development of the information superhighway have brought the countries of the world closer. Globalisation is a theory of economics that encapsulates the growth of relations between countries and people, on a world wide scale. The aim of globalisation is to reduce barriers, which enables Trans-world contacts. People will become more able, physically, legally, culturally, and psychologically to connect with each other in one world. >From a business perspective, the world is one large marketplace. According to Karl Polanyi (1944) the economy is an instituted process that defines the rules whereby people in different societies and cultures make their livelihoods (Polanyi, K (1944) cited in D'Mello, B (2002:165).
Competition and free trade are critical for an improved world economy and these are part of WTO’s agenda. However, critics argue that while globalisation has the potential to become a positive power for economic growth, too many of the benefits go to well off countries while the cost of adjusting markets and implementing agreements have to be endured by the already poor workers within developing countries (Bove, J.2001).
One of the greatest debates on globalisation is the inequality of power and poverty, over half the developing world is living in globalising economies. These economies have seen large increases in trade and a reduction in tariffs. Whilst some are catching up with the rich countries, the rest of the developing world is falling farther behind (D Dollar, D. and Kraay,A. 2004) There is an uneven balance of power with their economies.Negotiations are based on the principle of reciprocity, which for most part, only benefits the large and diversified economies. The larger economies can gain more, by giving more. The majority of negotiations and trade offs take place between developed countries and some of the wealthier developing nations, excluding the worlds poorest (Bove, J.2001).
With this unequal balance of economies, the question has been asked do we abandon globalisation. Stiglitz (2002) discussed that it is not helping the world's poor or the environment" poverty has soared as incomes have plummeted" but globalisation has brought advantages i.e. the economic growth of the East Asian area, and so to abandon it is neither feasible nor desirable. Stiglitz also commented that there was more that one economic model and this should be recognised when reviewing poorer counties (Stiglitz, J. 2002:214).
Although China and India still contain vast numbers of the desperately poor, most of their success is accounted for since they embraced economic liberalisation and rapid growth. India has benefited from outsourcing of US and UK jobs; this has proved that it is not only the rich who benefit from globalisation. This brings economic growth to these countries, creating more employment and disposable income (McLaren, D 2001).
There are large economic shifts in both China and India.
Dissertations - Free Management Dissertations
