What is Globalization?
Globalization refers to the increasing economic integration and interdependence of countries. Economic globalization in this century has proceeded along two main lines: trade liberalization (the increased circulation of goods) and financial liberalization. (The expanded circulation of capital) Globalization refers in general to the worldwide integration of humanity and the compression of both the temporal and spatial dimensions of planet wide human interaction. It "has aggravated many of the region's most chronic problems such as the pronounced degree of economic exploitation and social inequality that have characterized Latin America since it came under European colonial domination in the sixteenth century.” (Richard L. Harris)
Globalization, the growing integration of economies and societies around the world, has been one of the most hotly debated topics in international economics over the past few years. Rapid growth and poverty reduction in China, India, and other countries that were poor 20 years ago, has been a positive aspect of globalization. But globalization has also generated significant international opposition over concerns that it has increased inequality and environmental degradation.
Markets promote efficiency through competition and the division of labor—the specialization that allows people and economies to focus on what they do best. Global markets offer greater opportunity for people to tap into more and larger markets around the world. It means that they can have access to more capital flows, technology, cheaper imports, and larger export markets. But markets do not necessarily ensure that all shares the benefits of increased efficiency. Countries must be prepared to embrace the policies needed, and in the case of the poorest countries may need the support of the international community as they do so.
How Globalization works
There are four aspects of globalization:
Trade: Developing countries as a whole have increased their share of world trade–from......
