how globalization has affected a country (经济全球化）

1、Birmingham City UniversityBA (Hons) Business & FinanceModule: Pre-sessional Course“Describe how globalization has affected a country or countries you know well, and assess its benefits and drawbacks”Submitted by: Student Number: PEN10525488Submitted to: Maxine PalmerDate of Submission: 13th Sept

2、ember 2010With a long history, globalization has affected human beings deeply. No one knows clearly about when globalization took place. Maybe it was recorded that at Middle Age Silk Road was used by transfer tea and silk. Furthermore, development of New World was a big step of globalization which n

3、ow is celebrated by people all over the world. It can be believed that advanced transportation is the direct cause of globalization. Nowadays, globalization is not only a narrow meaning of economy or transportation. What is more, it means much more changes and options in international society. Globa

4、lization is a tending in modern society; human being can not ignore the phenomena. It brings about positive and negative effects on economic, culture, trade and so on. This essay will, specifically, outline the both side effects of globalization, how can the globalization affect the world, what the

5、difference between the development and developing countries face the globalization.At the very beginning, globalization has a limited definition which just means goods exchanging between countries. Later, globalization has been developed as a way of communication and spread which brings things and p

6、eople flow. The suitable example is discovering New World. After discovering New World, Spanish became the most popular language. It is also a deep effect in modern society. But in 15th or 16th Century, the globalization was not fair and unequaled. With thermal weapon, strong countries became the wi

7、nner; however the weak countries had been faded from history. So development countries become the biggest winner in the globalization (Ravenhill, 2008:156-157): First: broaden the scales of trade. With the economics of globalization developed rapidly, the international trade has grown rapidly. The g

8、rowth rate far exceeds to the growth of the world GDP. In the international trade, the development countries are not only the rule-makers, but also the monopoly. (Wang, 2009) Such as the America and European have become the biggest beneficiaries.Second: Accelerate the economic expansion. The economi

9、cs of globalization supply the development countries broader economic space; they can use their own advantages and economic strength to make a bigger market for them. They have become the core of the economic in the world. (Wang, 2009)Third: to accelerate the industry upgrade. The globalization brin

10、gs a huge number of competitions in the world; it accelerates the development countries make their industry upgrade from economic to technology and science. (Wang, 2009)Also the continuous innovate in high technology. For example, the importance of international flows of trade, investment, and techn

11、ology to the US economy has dramatically increased during the past two decade from relatively low levels. The share of GDP accounted for by export and imports of merchandise and services doubled during 1975-94 from 11% to 22% (Dunning, 1997:285), and during the 1980s, rapid growth in the US merchand

12、ise trade deficit had important consequences for the incomes of skilled and unskilled US workers (Dunning, 1997:286).Although the USA remains an important source of FDI (Foreign Direct Investment) outflows, its economy has also become a major host nation for FDI.Globalization can comprise major chan

13、ges in the external environment of economic. On one hand, it creates opportunities for business, particularly for the big MNCs (Multinational Company) who are in the best position to take advantage. On other hand, it can pose threats for business as well. (Hamilton & Webster, 2009:29)So do the c

14、ountries.First, the challenges from the new developing countries are increasing. Globalization has supplies more term for the developing countries to develop. A group of developing countries were took the cake in the nation challenge. Although the development countries have the dominate power to con

15、trol the global market economic, the proportion they occupied in the global GDP total amount and international trade total amount is appearing as a decrease trend. For example, Chinese Multinational Corporation which about fabrication industry and making industry has a huge development; India increa

16、se the ability of competition in serves industry especially the software industry. Some of the developing countries increasing the ability of operation national capital, and began to challenge with the development countries, even merger. The India Company had successful finish one hundred and thirty

17、 six merger, and the total amount were more than thirty hundred million. (Zhang, 2006). Second, the pressures of deal with the industrial structure are really big. From the push of globalization, the development countries traditional industry was closely to on an empty stomach. Meanwhile, the indust

18、ry of pack by outside is increasing for 20% per year. Until 2004, the total amounts have reaching to 63,000 hundred million dollars (Zhang, 2006). Because of the press of competition and technique innovation, many transnational corporations happened input the research into some developing countries.

19、 This conduct will cause the unemployed phenomenon, even appearing the phenomenon that economic increasing without employed. Third, globalization will cause the inside of development countries lose balance. Gap between rich and poor is expansions; the income under the average level is shrinking. Obs

20、erve from the America economic report, in the past 20 years, the annual income of richest family is about 7.12 times than the poorest family (Zhang, 2006). Those aggravate the benefit clash between different steps.Globalization makes the world like a village. In other words, worldwide communication

21、and transportation make people closer than before. Someone claim that the developing countries cannot confront the development countries by their weak power. In fact, developing countries will find an effective way to face the globalization. (Strange & Susan, 1996:227)First: The fact that the ec

22、onomics of developing countries were fall behind compared with development countries we cannot debate, but it cannot be considered as they never have the hope. From the possibility aspect we can see, the globalization has supplies the developing countries more opportunity and term to attract foreign

23、 capital. The most significant reason of which caused the developing countries is the lack of fund. (Jing, 2007) However, developing countries always have some useful resources which havent been discovered. If they still develops in their own national, the useful resources will not been used. Global

24、ization can help those countries to be found, and other countries will invest for that task. More invest are no doubt that relax the crisis of lack of fund.Second: globalization have creating outside environment and term for the invest export of developing countries. It spread the invest scale, whic

25、h are benefit for the increase of economic. (Stefan, 2007:169)Third: it bring along the economic and technique or free duty area and free trade area to develop.Fourth: it adjusts the structure of industry in deep. The developing countries can grab this opportunity, recognize the fact and keep moving

26、 forward. Deal with the relationship between global industries and improve of national industry.The opportunities are always accompanied with challenges. When the developing countries share the part of benefit by the globalization, they suffer the negative effect from globalization as well.First: In

27、creased risk of financial crisis. Economic globalization makes the international financial markets gradually towards integration. If the "bubble economy" formation, people just to borrow money and invest in real estate and its stock exchange, they can make money. This serious violation of

28、the law of value is departure from the demand economy. (Jing, 2007) Once burst, the financial crisis in the offing.Second: Environmental pollution cannot be ignored. Some heavy polluting enterprises of developed countries, based on its domestic situation are difficult. It will take advantage of the

29、developing countries need to introduce foreign investment, it will continue to be transferred to the developing countries of production, which will increase the environmental pollution in developing countries.Finally: The competition for professionals in an awkward position.Both development countrie

30、s and developing countries are in global economic competition. In fact, competition in economic as well as the competition in science and technology, however, the professionals are the key to science and technology competition. (Zhu, 2002) Furthermore, the development countries are very attractive f

31、or professionals.In a conclusion, globalization is a trend which no one can stop. When meet the wave from globalization, strong countries can became stronger, at the same time, the weak countries will lose a lot. But every effect has positive and negative aspect. Seizing the opportunities, meet chal

32、lenges skillfully, it must not be ignored in face the globalization. Moreover, new things have appeared in the world. The challenge can encourage both the development and developing countries to innovate, and the innovation is importance for a country to increase the comprehensive national strength. All in all, thats what globalization does for all