An essay on the globalization and its influence in the economic world

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An essay on the globalization and its influence in the economic world

Globalization Globalization Globalization is a term frequently used to help developing countries to move to a global economy by raising the flow of trade and capital. While globalization grasp a complex set of dynamics that bring opportunities for growth; it also compromise significant threats.

The main emphasis of this paper is to discuss the effects of globalization on governance and welfare. Thus, I used the following definition to clarify the influence of governance in globalization: It includes the mechanism required to balance the powers of the members, and their primary duty of enhancing the prosperity and viability of the organization ' http: While, globalization has been providing to Ecuador the opportunity to increase capital, it also forced the government to cut back social welfare to aligned with the demands of the global market.

Recent decades, Ecuador has been emerging into a new world of globalization driven by neoliberal reforms such as free trade agreements, increase of capital mobility, and expansion of exports in natural resources to enhance social and economic development in the country.

During toEcuador lived a trajectory of political instability that generated challenges between the legislative and executive power due to the economic crisis of the 80's which gave place to the decline of the exportation of oil, adjustments to agrarian reforms and land distribution, and the liberalization of policies including market liberalization, deregulation of labor among others.

Also, the development of neoliberalism policies in Ecuador gave the opportunity to the private sector to mismanage the public sector investments. This involve reduction of the economic power of the State by privatization An essay on the globalization and its influence in the economic world state enterprises, downsize of public employees, fragmentation of tariff barriers, and uncertainty of national economy to a global market.

All of these aspects caused a disproportional social-economic system and stagnated distribution of goods and services. The global operations of multinational corporations MNCs have played a major role in the expansion of international trade and the emergence of regional trading blocs since the s.

If the objective of the MNCs is to maximize profits as some people claim,[13] then, a national government must have the power to regulate these MNCs and be able to channel some of the profits to the benefit of its people. But, according to the neo-liberal policies, a government must play a minor role in regulating the market, because it is assumed that the market regulates itself.

In addition, the economic meltdown of the 90's was the result of the accumulation of the external debt, high interest rates, inflation and devaluation of currency. The large deficit and the impact of oil prices, natural disasters like El Nino that caused enormous economic damages, territorial conflicts with Peru, and undervalued exchange rates impacted the infrastructure and production of the country giving favorable conditions for foreign exchange flows.

The vulnerability of the banking system was the most critical during the economic crisis and to prevent hyperinflation Ecuador adopted the U. However, dollarization also introduced new reforms that provided incentives to private institutions, encouraging privatization of state enterprises by taking away the power of the government to finance its fiscal deficit.

In other words, the government loss a degree of control for economic dependence over monetary and exchange policy and was obligated to find other resources of capital to maintain economic stability.

Through the economic crisis of the petroleum and the collapse of the national currency 'sucre', neoliberalism policies intensified the private sector for a modern society and attracted foreign investment along with the creation of control and competition of domestic and international markets.

This economy theory gave opportunities to capitalist enterprises to centralize economic activities and political repression on large business owners rather than smallholding peasants. On the other hand, the economic theory of neoliberalism and the belief of economic health and political freedom caused inequality on welfare and exploitation of economic development of the State.

The idea behind neo-liberalism is that the market operating freely and unencumbered by regulations, will allocate resources more efficiently than the state is able to, and it is assumed that this ultimately will benefit everyone, including the poor.

In addition, The free market reforms imposed by the IMF and the World Bank during the transition of dollarization opened up new markets and promote temporary economic and social recovery. The dollarization helped the country to improve its bank liquidity and asset liquidity.

On the other hand, the integration of the Ecuadorian national market to the global market created competition against developed countries, including privatization, reduction of the state employment and financial liberalization. The improvements and advances of the economy of Ecuador were at the expense of the State in particular from the working class and by non-capitalist farmers.

Liberalization and reduced protection of agriculture, by reducing agriculture supplies, the price of food, and the amount of money that food importing countries pay for their imports has increased.

By understanding the social changes that cause the neoliberalism system and the global market, it is evident that the most of the population in the rural areas need to choose between living conditions of the current place, migration to urban areas, or devote their working time to the capitalist enterprises to overcome the difficulties of neoliberalism policies.

For those who decided not to leave from the rural areas have been converted in the working class of the capitalist enterprises prevail under poor working conditions with low wages, occasional payments and uncertain employment offers.

Therefore, income has been concentrated in the upper classes and neglected the growth of human capital for the non-capitalist population. Essay UK - http: If this essay isn't quite what you're looking for, why not order your own custom Economics essay, dissertation or piece of coursework that answers your exact question?

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About this resource This Economics essay was submitted to us by a student in order to help you with your studies.Globalization. Globalization is the process of integration and exchange of economic, social, and cultural aspect of people beyond national boundaries.

(Also read: Globalization: Meaning of Globalization and its Advantages and Disadvantages) Globalization refers to the situation when individuals, groups, associations, .

(ii) Globalization of Economic activities: Another characteristic of globalisation is the control of economic activities by domestic market and international market. It also established coordination among the national economy and world economy.

EssayBasics is a remarkable writing service where you can pay for essays online cheap.. Meaning of Globalization, Its Advantages and Disadvantages.

An essay on the globalization and its influence in the economic world

In every moment, the world is getting nearer to a future that sees humanity as a part of a globalized system. Globalization of mass media has had a dramatic influence on in many cultures. One need not visit or live in a certain part of the world to emulate or adopt styles, behaviors, or traditions of another culture.

Globalization Essay 3 ( words) Globalization is the spreading of anything worldwide. However, generally it is the process of globalizing products, businesses, technologies, philosophies, etc all through the world.

An essay on the globalization and its influence in the economic world

Most economists agree that globalization provides a net benefit to individual economies around the world, by making markets more efficient, increasing competition, limiting military conflicts, and spreading wealth more equally around the world.

Globalisation Essay ~ Positive and Negative Impacts on developing world : The WritePass Journal