The Impacts Of Globalization on Economy
Introduction
In the recent past, the world has become more like a ‘global village’, a term coined by a Canadian academic Marshal McLuhan in the 1969. Earlier on, the people from the northern hemisphere remained separated from those in the Southern hemisphere cutting off the knowledge of the various happenings from either side before the 20th century. However, people from all the countries are now able to remain in touch despite the geographical gap, which has been virtually minimized by advanced means of transportation and communication. This marked the era of globalization. Globalization is the concept used to refer to the integration of the people of the world in its entirety. It is a powerful aspect of the new world system that constitutes of the major influential forces in dictating the future course for whole world. When applied to economy, globalization is seen as a force that is to be utilized for advancing the world economy by the policymakers, scholars and activist. A majority of the people supports the trend of globalization given that the process undoubtedly culminates to benefits for humans (Tinabe). However some of them regard it as an eminent danger to the economic system of the world ( Intriligator).
The purpose of this paper is to bring forth, the various effects of globalization; either positive or negative. The view of globalization should be embraced and facilitated for firm establishment worldwide as a result of the potential benefits that would accrue to the world’s economic system. Although globalization has some negative effects that can potentially end up in conflicts that would undermine the international cooperation, it can as well contribute to the containment of the global conflicts through beneficial effects competition. Additionally, the conflicts can be alleviated through the effect of the potential global cooperation aimed at treating the economic threats facing the world. The positive...