The Purpose and Effects of Globalization

Globalization

The Purpose and Effects of Globalization
Introduction
Globalization refers to the widespread and worldwide movement of people from different countries, with a common aim of achieving economic and communication integration (Asongu, 2014). The main characteristic of globalization is the opening of nationalistic perspectives to a wider outlook, with free transfer of goods, services and capital beyond the national frontiers. However, in its application, national economies should take adequate precautions against unregulated movement of labor and capital, in order to safeguard fragile economies. The developing nations have been the major recipients of the effects of globalization. Globalization has opened up new opportunities in these developing nations, which have attracted foreign investors and foreign capital from trade, which has have contributed to both positive and negative effects (Asongu, 2014).
Improved standards of living
When a country, especially the developing nations participates in globalization practices such as trade, they get an opportunity to access foreign lending. Foreign lending is therefore utilized in developing the required infrastructure such as roads, healthcare facilities, as well improving access to education (Baylis, Smith & Owens, 2013). These social amenities are responsible for improving the overall standards of living among a population, whose most challenges are pegged on inadequate financial resources.
Increased accessibility to new markets
As a result of globalization, global organizations such as the World Trade Organization (WTO) have formed. The world Trade Organization, among other functions, promotes the possibility of free trade between nations (Asongu, 2014). Increased accessibility to free market as a result of the trade agreements is a major advantage to the developing economies, since it promotes their participation in the export market. The resulting growth in the market availability allows many industries to strive towards the development and adoption of new technologies to increase their production capacity.
Creates more employment opportunities
When two nations enter bilateral trade agreements, the WTO encourages them to apply their terms of trade to the rest of the world. In this case, the resulting terms of free trade encourage the free movement of factors of production such as labor. It is therefore possible to have people accessing employment opportunities in other countries when there are vacancies. Moreover, with the increased industrial production capacity as a result of new technologies, the industries often create new job opportunities. However, globalization is a double-edged sword, which has also presented the benefactors with a share of challenges (Asongu, 2014).
Inequity
The main limitations of globalization are based on the assumptions made by the theory of globalization. The theory of globalization assumes that there are equal opportunities available to all the players, regardless of their gender, financial status for individuals, as well as the state of development for nations (Baylis, Smith & Owens, 2013). The theory of globalization also assumes that the various trade opportunities offered as a result of free trade, are equally available for all players, such as small scale enterprises, the giant industries, as well as multinational corporations (Asongu, 2014). However, it is evident that such assumptions are responsible for lack of regulatory mechanisms to protect the most vulnerable economies against exploitation by the developed nations. This trend has therefore led to situations of widening gap between the developed and the developing economies.
Conclusion
The effects of globalization is a double-edged sword for the countries involved in its core activities of economic and communication integration. While many people have theoretically assumed universal benefits of globalization for all countries, especially the developing ones, the reality has been pegged at high rates of inequality. However, some of the benefits for these developing countries include improved standards of living, increased access to new markets internationally, as well as increased job opportunities, both locally and internationally.

References
Asongu, S. (2014). Globalization (fighting), corruption and development: How are these phenomena linearly and nonlinearly related in wealth effects? Journal of Economic Studies, 41(3), 346-369.
Baylis, J., Smith, S., & Owens, P. (Eds.). (2013). The globalization of world politics: an introduction to international relations. Oxford University Press.