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ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023
УДК 330.5
Варнакула Вирасурия Дулаша Кавинди Диссанаяке, студентка международного медицинского института Курского государственного медицинского университета, Курск, Россия
e-mail: [email protected]
ГЛОБАЛИЗАЦИЯ: НЕГАТИВНЫЕ И ПОЗИТИВНЫЕ ЧЕРТЫ
Аннотация: экономическая глобализация является одним из аспектов мировой глобализации, в то время как двумя другими являются политическая и культурная глобализации. Экономическая глобализация в широком смысле означает широкомасштабное международное перемещение товаров, информации, технологий, капитала и услуг. Это растущая экономическая интеграция и взаимозависимость всех экономик по всему миру, от местной до международной. В первую очередь, это касается международного влияния на рынки, технологии, производство, институты и людей.
Ключевые слова: глобализация, экономика
Warnakula Weerasuriya Dulasha Kavindhi Dissanayake, student of the International Medical Institute, Kursk State Medical University, Kursk, Russia
e-mail: [email protected]
GLOBALIZATION: NEGATIVE AND POSITIVE LINES
Abstract: economic globalization is one main dimension of world globalization with the other two being political and cultural globalizations. Economic globalization broadly refers to the widespread international movement of goods, information, technology, capital and services. This is the increasing economic integration and interdependence of all economies across the world from local to international. This
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 primarily comprises the international influence on markets, technology, production, institutions and people.
Kew words: globalization, economy
Economic globalization has led to a more connected and interactive world with a huge impact on international trade, foreign investment, economic growth and labor market and many other sectors of the economy of a large number of countries [1]. Economic globalization mainly reflects the continuous expansion and mutual integration of all foreign market frontiers, and is an irreversible trend for the economic development in the whole world at the turn of the century [2]. Marketization and the rapidly growing significance of information in all types of production activities are the two major driving forces for economic globalization. In other words, the fast globalization of the world's economies in recent years is largely based on the tremendous advances in science and technologies [4]. Economic globalization functions by developing world market economies on the basis of increasing cross border division of labor that has been penetrating down to the level of production chains within enterprises of different countries. The advances of Science and technologies, specially in the fields of transport and communication has greatly reduced the expenditures and time consumed in economic activities. Today's ocean shipping cost is only half of that of 1930, the current airfreight has reduced by 0.833%, and telecommunication cost has gone down by almost 99% . The price level of computers in 1990 was only about 1/125 of that in 1960, and this price level in 1998 reduced again by about 80%. This "Space-time compression effect' of technology has greatly reduced the cost of international trade and investment, thus making it possible to organize and coordinate global productions. These growing cross-border interactions and increase in openness of nations also bring about many measurement challenges for the suppliers of micro and macroeconomic data, as the reading and application of statistics is increasingly becoming more difficult [6].
Economic globalization also poses rivalry between state economies. Companies in industrialized nations typically have superior national infrastructure, more advanced
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 technology and procedures, and higher levels of automation. They can occasionally outcompete comparable enterprises in underdeveloped countries because of these factors, as well as occasionally because of economies of scale [7]. This is a major problem in international agriculture because farms in developed nations are typically smaller and rely significantly on human labor, whereas farms in the West tend to be larger and more productive thanks to agricultural machinery, fertilizer, and pesticides. On the other hand, employees in emerging nations were able to outbid those in higherpaying nations for positions in labor-intensive industries thanks to cheaper manual labor. According to the principle of competitive advantage, a country's economy often tends to import more goods and services than it produces locally. We are starting to move into a new period of heightened economic instability, polarization, and fundamental reset of the global system as the conventional drivers of globalization have hit a crucial juncture. Yet, as digitalization continues to accelerate, competition for control of technology and information networks between global centers is quickly moving from the physical to the virtual world. The future of economic globalization will be determined by how various economic centers of gravity choose between actual and virtual integration, fragmentation, or isolation.
The major impacts of economic globalization are numerous. A more interconnected globe as a result of economic globalization has had a significant impact on labor markets, international trade, foreign investment, economic growth, and many other areas of the economy. Although measurement issues for providers of micro and macroeconomic data are also brought on by the expansion of cross-border exchanges and the increased openness of nations, understanding and using statistics is also becoming more challenging. As a result of globalization, legal national borders are becoming less important, and it is getting harder and harder to apply the conventional notions of internal (domestic or national) vs. external (international) economic operations. Consequently, a key distinction for macroeconomic statistics is the boundary between resident and non-resident economic units. Increased international trade in products and services, capital (portfolio investments or foreign direct investment by MNCs), and labor as people relocate for work have all been a result of
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 economic globalization. Particularly, advancements in technology (telecommunications and information technology) and transportation have made this phase of globalization easier. It is frequently referred to as "neoliberalism" since it is ostensibly founded on a rise in market dependence (and a commensurate decline in government dependence), liberalization of trade and investment laws, and an increase in economic openness. Globalization of the economy has, however, happened quite unevenly. The degree of a country's integration with the world economy varies greatly. Rising inequality and friction as a result are now seen as the negative effects of growing reliance. Global agents of Economic Globalization include- Governmental agencies operating internationally. A group established by agreement between two or more nations to cooperate in good faith on matters of mutual interest is known as an intergovernmental organization (IGO) or international governmental organization (IGO). IGOs work to promote stability and security as well as address economic and social issues. [5] Examples include, among others, the North Atlantic Treaty Organization, the World Bank, and the United Nations. Examples of Nongovernmental organizations operating internationally (NGOs) are charities, non-profit advocacy organizations, commercial associations, and cultural associations are examples of international non-governmental organizations. During World War II, there was a rise in international philanthropic operations, and generally speaking, NGOs give developing countries more economic aid than governments of rich countries.
Tax havens are also a major part of economic globalization. A tax haven is a state, nation, or territory where certain taxes, which are exploited by enterprises for tax avoidance and tax evasion, are charged at a low rate or not at all. Moving to a region with lower taxes may be appealing to both individuals and/or corporate entities. Governments now face tax competition as a result of this. The amount of taxes varies widely between jurisdictions. Unless otherwise restricted by prior international treaties, sovereign states have potentially unrestricted authority to create tax rules that apply to their territory. The ability to evade or circumvent the tax laws or regulations of other countries is the key characteristic of a tax haven. Globalization of the economy could impact culture. With immigration and the blending of cultures, populations can
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 act as global labor and capital markets. Different native cultures may be impacted by foreign resources and economic policies, and a native people may assimilate. Family size is decreasing, more people are moving to larger cities, more people are engaging in casual dating, and gender roles are changing as these populations are exposed to the English language, computers, western music, and North American culture. Yu Xintian identified two opposing cultural trends brought on by economic globalization. They are as follows- Culture and industry, according to Yu, not only spread from the developed world to the less developed ones, but also spark an attempt to preserve regional cultures. He points out that following the Second World War, "With an estimated 210 million individuals living outside of their place of origin, worldwide migration has touched the lives of practically everyone in both the sending and receiving countries of the Global South and the Global North," the International Labor Organization (ILO). Technology advancements have made it very simple for people and things to travel between other nations and areas.
The acceleration of economic globalization was followed by a fall in poverty on a worldwide scale. From 1.4 percent a year in the 1960s and 2.9 percent a year in the 1970s, per capita GDP growth in the post-1980 globalizers increased to 3.5 percent in the 1980s and 5.0 percent in the 1990s. Given that the affluent countries' growth steadily declined from a peak of 4.7 percent in the 1960s to 2.2 percent in the 1990s, this increase in growth is all the more astonishing. However, emerging nations that did not embrace globalization fared worse than those that did, with the former's annual growth rates dropping from highs of 3.3 percent in the 1970s to only 1.4 percent in the 1990s. The significance of legal national borders is diminishing as a result of globalization, and it is getting harder and harder to apply the accepted definitions of internal (domestic or national) vs. external (international) economic activity. So too is the distinction between resident and non-resident economic units, which is crucial for macroeconomic data [9].
We are starting to move into a new period of heightened economic instability, polarization, and fundamental reset of the global system as the conventional drivers of globalization have hit a crucial juncture. Yet, as digitalization continues to accelerate,
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 competition for control of technology and information networks between global centers is quickly moving from the physical to the virtual world. The future of economic globalization will be determined by how various economic centers of gravity choose between actual and virtual integration, fragmentation, or isolation. The benefits of economic globalization in this regard, for growth, according to the International Monetary Fund, are widely dispersed. However, it should be noted that inequality has risen in several nations that have embraced globalization policies, most notably China. The global supply chain is made up of intricately connected networks that enable businesses to produce, handle, and distribute a range of products and services to customers around the world. Businesses manage their supply chains to benefit from lower production costs. A supply chain is a network of businesses, individuals, events, information, and assets used to move goods from a supplier to a customer. Natural resources, raw materials, and components are transformed through supply chain operations into finished goods that are shipped to the final consumer [10]. Linking value chains are supply chains. Depending on variables like the weather, customer demand, and sizable orders placed by international organizations, supply and demand can fluctuate greatly. The "race to the bottom" phenomenon, which suggests that companies choose to base operations in nations with lax environmental and labor restrictions in order to reduce costs and speed up delivery, is sometimes attributed to globalization. If rival businesses use the same tactics to cut expenses, the pressure to do so will increase. This not only pushes governments to under-regulate in order to attract jobs and financial investment, but also directly results in bad working conditions, low salaries, job insecurity, and pollution. However, if business demand is sufficiently great, the labor pool in low-wage countries runs dry (as it has in China), which leads to higher salaries due to competition and increased public demand for government protection against exploitation and other forms of abuse.
In conclusion, economic globalization has had a significant impact on the global economy and is a thriving phenomena of the previous century. Indeed, turning businesses become international corporations is one facet of economic globalization. It is also noted that more businesses are focusing on expanding their customer bases
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 and exporting their goods these days. Businesses seek to boost their profits while also fostering the development of a global market and raising global GDP through the establishment of Internet Encartas or franchising. Also, businesses who expand internationally boost the market's size and global revenues. Customers have a wider selection of things to choose from as a result, which raises any company's revenue. Thus it is possible to conclude that the phenomenon of Economic Globalization will generally continue to pose boons as well as banes on World economies at large.
References
1. Effect of Economic Globalization- National Geographic Society-https://www.nationalgeographic.org/article/effects-economic-globalization/
2. Economic Globalization: Trends, risks and risk prevention-https://www.un.org/en/development/desa/policy/cdp/cdp_background_papers/bp2000 _1.pdf
3. Economic Globalization- WITA- https://www.wita.org/ustrade/basics-of-trade/economic-globalization/
4. Economic Globalization- An Overview-https://ec.europa.eu/eurostat/web/economic-globalisation
5. Overview of Economic Globalization by Eurostat-https://www.weforum.org/whitepapers/four-futures-for-economic-globalization-scenarios-and-their-implications/
6. What is Economic Globalization- IGI Global-https://www.imf.org/external/np/exr/ib/2008/053008.htm
7. Four Futures of Economic Globalization and their effects-https://www.pnas.org/doi/10.1073/pnas.1100480108
8. Globalization: A Brief Overview-International Monetary Fund-http://www.scielo.org.co/scielo.php?script=sci_arttext&pid=S1909-30632017000100002
9. Globalization History of Business: Pros and Cons-https: //www.investopedia.com/terms/g/globalization.asp
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 10. Economic Globalization, nutrition and health: A Review-https://globalizationandhealth.biomedcentral.com/articles/10.1186/s12992-019-0456-z
