Essay by chachou25University, Bachelor'sA-, March 2005

download word file, 7 pages 3.7 2 reviews

Globalization is like fire. Fire itself is neither good nor bad. Used properly, fire has enhanced our standards of living and been a foundation in our lives. Used carelessly, fire has destroyed, killed and been the cause of catastrophic damage. Globalization has these same effects on human lives throughout the world. Both in business and socially globalization has impacted human life in many different ways. Is Globalization good or bad? That question can only be answered by looking at it from a business standpoint, a social standpoint, and through the eyes of different cultures. Some call it capitalism, others call it Americanism, either way it's happening now and it effects are visible on a global scale.

The basic definition of globalization is the progression from distinct national economic units towards one huge global market. The globalization we know is more a globalization of markets: moving away from an economic system in which nationals markets are distinct entities, isolated by trade barriers of distance, time, and culture and toward a system in which national markets are merging into one global market.

Is it wrong or right? There are different points of view.

The first positive result of the globalization is the growth of the GDP in almost every country. The world is 6 times richer than it was in 1960's.What is the link between growth and globalization? Economists think that there are two main explanations for the fast economic growth from international exchange, the increase of productivity and the expansion of markets.

The increase of productivity: international exchanges are based on comparative advantages and specialization. The theory of comparative advantages suggests that it makes sense for a country to specialize in producing those goods that it can produce most effective while buying goods from another countries that it can produce...