Winners and losers of globalization
In itself globalization is neither good nor bad. What or who can be a potential winner or loser? The answer is quite easy because it is deeply connected with advantages and disadvantages of globalization. To be considered as a winner of globalization, there is few caracteristics that could explain.
First of all, the mostimportant factor that makes winners of globalization is the free trade possibilities because of the breaking down of the trade barriors. This system of trade policy allows traders to act and or transact without interference from government. This liberalization of cross-border trade brings more business opportunites to countries. No laws, no regulations, no taxes and no protectionism are keys words offree trade. Most of the countries are member of the World Trade Organization or others associations such as the North America Free Trade Agreement ( NAFTA), thus it is more easy to do business.
An example of this can be considered the differences between Taiwan and Kenya where it’s the government that opens the door to globalization. The government made it possible in Taiwan to own parts ofland meanwhile it is not possible in Kenya. Taiwan is now a strong globalized country and they have the opportunity of worldwide trading. Kenya does not have the same developed technology which makes it difficult for them to participate with competitive products..
Afterwards, the expansion of the technology is also a major aspect of gloabalization winners. Internet and any sorts oftechnology keep the companies always updated on the potential market and how they may gain ressources from different countries. Technology keeps companies aware of what is going on in the world and accelerate the transactions between countries. Also, it is more easy to communicate.
Furthermore, international collaboration is needed to be a winner of glabalization. The governement realized that isbeneficial to collaborate between countries. They can gain reciprocal advantages, they can help eachother to solve problems and can put together their knowlodge to be more powerful. A good example of this is the European Union (EU), more than 27 countries joined the them policies to become an union.
Finaly, globalization increases global competion. Globalization brings about much increasedopportunities for almost everyone, and increased competition. Competition brings people to better, to find the best business opportunity. Also, globalization brings locational competition. Companies want to find the best location for their business, so they can reduce some costs for transports, for example and be more competitive over the world. Locational competition affects a higher and higherproportion of total economic activity at greater and greater distances.
However, globalization is usually recognized as being driven by a combination of economic, technological, sociocultural and political aspects. The aspects higher mentioned are the base to be a winner of globalization. Most of the developed countries that have a higher level of education, infrastructures are considered aswinners of globalization.
Globalization as a phenomenon has as well its foul sides. It causes wellbeing to countries being part of it in the long run, but the process is hard and testing, as wellbeing doesn’t spread equally instantly.
Different cultures come to contact with each other through globalization and they adapt features from globalizing cultures. This is athreat to indigenous cultures and many of them are disappearing due to the phenomenon.
Political values differ in countries that take part in globalization and in those that don’t. For example the OECD countries see in a totally different way in which the world should develop, than for instance many dictatorships. The OECD countries favour a liberal market economy, where the private...
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