Prospect and Setbacks of Globalization to National Economies in the New Century

Essay by itstanleyUniversity, Bachelor'sA-, June 2004

download word file, 12 pages 4.7

Prospect and Setbacks of Globalization to National Economies in the New Century


Globalization (or globalisation) in its literal sense is a social change, an increase in connections among societies and their elements due to, among others, the explosive evolution of transport and communication technologies. The term is applied to many social, cultural, commercial and economic activities. Depending on the context it can mean: (a)closer contact between different parts of the world (globalization of the world, global village), with increasing possibilities of personal exchange and mutual understanding between "world citizens", (b) or (economic globalization), freer trade and increasing relations among members of an industry in different parts of the world (globalization of an industry), (c) or some negative exploitation aspects of economic globalization such as evasion of legal and moral standards by moving manufacturing or mining and harvesting practices overseas.

Moreover, it shares a number of characteristics with internationalization and is used interchangeably, although some prefer to use globalization to emphasize the erosion of the nation or national boundaries.

Furthermore, there is much academic discussion about whether globalization is a real phenomenon or only a myth. Although the term is widespread, many authors argue that the characteristics of the phenomenon have already been seen at other moments in history. Also, many note that those features that make people believe we are in the process of globalization, including the increase in international trade and the greater role of multinational corporations, are not as deeply established as they may appear. Thus, many authors prefer the use of the term internationalization rather than globalization. To put it simply, the role of the state and the importance of nations are greater in internationalization, while globalization in its complete form eliminates nation states. So, these authors see that the frontiers of countries, in a broad...