It is now difficult to read a newspaper or a book, watch the television, surf the Internet, or participate in a demonstration without coming across references to how 'globalization' is affecting our lives. One of the crucial challenges facing many developing and transitional economies is balancing the benefits of globalisation with the risks and costs. According to Sheila L (2004) : 'Globalization can be described as a process by which the people of the world are unified into a single society. This process is a combination of economic, technological, sociocultural and political forces'Globalisation is a complex phenomenon, with economic, political and cultural dimensions. At the centre are economic pressures stemming from trade liberalization and increased international competition driven by technological change and growth of the knowledge economy. But political globalisation as reflected in regional groupings, American power, and the influence of global institutions such as the OECD and the IMF may also compromise the self-determination of individual countries.
According to Giddens (2001) there are also powerful influences that stem from a cultural globalisation of ideas and values. Thus the process of globalization results in the dissemination and transfusion of ideas that attain significant global social policy currency. Individual countries can both contribute to and be influenced by this process .
Effect of globalization:Globalization has variety of effects, that are influencing almost every aspect of life, existence, as well as economic, industrial, financial, social area. Increase of globalization can be seen on Table1. In most of the countries given in example, that measure doubled or, as in case of Czech Republic, even tripled.
Table1: Macro trade indicators- showing globalization. Trade to GDP ratio (total trade)Time19851990199520002001200220032006CountryAustralia26,5431,5839,0945,0543,5244,8746,5651,71Canada48,6354,7670,2485,480,5779,3778,5682,44Czech Republic..58,3389,1129,77141,86144,25149,83186,81Finland43,1545,4259,0876,8976,0676,8275,887,58France32,1536,643,0656,2356,556,8156,1861,54Germany38,6144,3348,8466,468,1169,1471,9489,3Iceland67,4762,4462,7274,6170,6371,173,4484,45Japan14,5815,6817,1120,5219,7820,5821,6625,75Poland..25,5140,760,6759,0260,3164,8278,47United Kingdom36,6840,9146,6657,8358,6859,2458,7168,01United States13,2816,4420,4126,3425,1324,9825,0828,7Source : http://stats.oecd.org/wbos/default.aspx?DatasetCode=SNA_TABLE11Basing on Wikipedia division, I would like to highlight economic effect of globalization, that seen in sociological context, increased economic inequality throughout...