The Economic Aspects Of Globalization

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The word “Globalization” is somehow very familiar with us who live in this modern era. However, many people are still questioning what is the actual perceptivity of this term. To be sure, globalization does not only affects one aspect of life but it influences many of them. In general, globalization refers to a more interconnected world that caused by the advancement in technology and communication field that has several impacts in the world economy, politics and also culture. Yet, in this essay, we would be focusing on the globalization in economics. Therefore, through this essay hopefully more people would understand what globalization in economic really means. As I stated before, globalization affects many aspecs in our life such as education,…show more content…
Every business certainly would experience the strong and weak economic condition which in business terms are called as boom and recession. Although each business in many different countries have a different period of ups and downs yet in this more interconnected world, nations incline to have resembling scheme of boom, downturn, and recovery of economy at the similar time. Additionally, there are factors that affect international business cycle. There are numerous elements which toughen and or weaken the cycle. The first one is the demand of goods and services from overseas countries (trade flows). The next element is the global interest rate level. At the time during a declined economical period, central bank will give lower interest rates. Afterwards, other countries will follow that decision. And the third one is international exchange rates. Actually, the rates reflect to the level of credence and rivalry between countries that alters on the level of economic…show more content…
The first one is that globalization resulting several problems in the occupational field. Globalization increases the rate of unemployment in MEDCs since most companies choose to hire people in LEDCs with a cheap price compared to workers in MEDCs who demanded high salary. And, companies in LEDCs have a tendency to exploit their workers. At the same time, globalization causes an interdependent to a specific other countries. Customers depend on the products produce by companies in other countries, while companies hang on the effectiveness of foreign workers in other countries. Subsequently, developed countries are more likely to gain more profit compared to the less developed countries as many big firms which dominating international market are derived from MEDCs. Thus, with a big power, they are capable to oppress the basic material sellers to give them a low price. By a lower production price, companies will obtain more

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