Globalization is an old phenomenon, whose term is used since the 80s. This phenomenon consequences from an invention and human proficient advancement. The primary end of globalisation is to let states to do trade and fiscal exchanges easier and faster.

So as we have seen, the most of import facet of globalisation is strictly economic. The integrating of the economic system of a state in the universe allows him to hold entree to more resources and capital. Export countries will increase and import costs decline. Participate in globalisation demand equal policy, leting free exchange. In peculiar, democracy is a policy that promotes globalisation and enables international trade.

In economic footings, globalisation refers to the turning economic integrating of the universe, as trade, investing and money progressively cross international boundary lines ( BBC [ online ] , 2007 ) .

Globalization allows the transportation of know-how, cognition, engineering, manpower for the growing of states but increasing competition between them.

Take the illustration of China: 40 old ages ago, China was one of the poorest states on the planet. Gradually, they opened their boundary lines and have adopted democracy, which enabled them today to be one of the most dynamic states in the universe.

However, globalisation possesses strengths but besides its failings. For illustration, in the twelvemonth 90 where the first side effects of globalisation could be felt because of the instability of capital flows.

See besides the illustration of the fiscal crisis of 2008, where globalisation clearly shows its bounds.

Globalization has multiple good sides, such as sharing engineering, cognition, which give rise to the cyberspace. However, these good sides are non without some side effects, and the planetary economic system possesses its bounds as we could see with the subprime crisis in 2008, a crisis that dived much of the universe into recession.

We will see that globalisation possesses unsafe side effects that can sometimes force some states in bankruptcy.

Globalization is good

There are many divergent positions on globalisation. Is it good? Is it bad? What is the hereafter of the universe economic system with this “ unfastened ” policy?

All agree instantly, if globalisation has seduced many states in the universe that means globalisation possesses good sides, it can supply important aid to the economic system of a state.

In the close hereafter, at least five billion people around the universe will utilize some signifier of nomadic device to download information, entree cognition and manager and learn each other ( BBC [ online ] , 2012 ) .

We can see that globalisation has opened the boundary lines of some states, leting the in-migration of workers. Workers migrate for better occupation chances. It should be noted that exchanges worker for most of the clip between developing states. Some workers from developing states go to work in developed states to gain more money and accomplishments in order to one twenty-four hours return to their place states with new cognition.

Globalization besides allows international trade. This is major plus for developing states where labour is much cheaper than in developed states. Take the illustration of China, a state where labour is the cheapest in the universe. The huge bulk of international companies manufacture their merchandises in Asiatic states. Chinese labour is one of the most competitory in the universe market which allowed them to do a dramatic growing in a really short clip. International trade benefits non merely developing states, but developed states every bit good as it let them to import merchandises whose fabrication cost is much cheaper. The dramatic growing of China is the fact that the state exports more than it imports, and this is chiefly owed aˆ‹aˆ‹to the fact that their work force is one of the most profitable.

Globalization has facilitated the manner of capital exchange. This is due to technological progresss that have been made. Today, thanks to the cyberspace, Bankss and private investings financess no longer hold a monopoly on stock market investings. Today, anyone with a computing machine and an internet connexion can put in stocks. This accomplishment has besides allowed some companies to raise money without traveling through the traditional banking system. We can therefore state that the exchange of capital has ne’er been so easy and fast. You can be an Irish and in one-click purchase portions of a Chinese company at the other side of the universe. We will see, nevertheless, that this system is non unflawed. This system will give rise to guess.

Frequently ignored by the general populace, globalisation has facilitated the exchange of cognition and engineerings. Take the illustration of the Internet. Without globalisation, the cyberspaces ne’er have emerged. And if internet ne’er existed, international trade will hold been really hard, Asiatic states are still in poorness. So be cognizant that the exchanges of cognition are the footing of globalisation, because the engineering is at the bosom of the globalisation. These exchanges allow you to purchase on the cyberspace today all that can be on Earth.

Globalization has created an international establishment such as the IMF ( International Monetary Fund ) . These establishments are at that place to modulate and verify international trade. These establishments can besides supply aid to states in trouble. As we have sawn in 2010 with Greece. IMF and Europe have rescued Greece whose bankruptcy was at hand.

Do non bury the 2000s, with the IT bubble where Internet enabled some startups to go international imperium. Take a more recent illustration: Facebook with Mark Zuckerberg, now the youngest billionaire in the universe. Mark Zuckerberg would non hold managed the effort without cyberspace and hence without globalisation.

The rise of the cyberspace and recent progresss in telecommunications have boosted the already billowing train ( BBC [ online ] , 2000 ) .

To reason, globalisation has allowed some hapless states as China where the criterion of life of its dwellers has significantly improved in 20 old ages. Globalization has besides helped little start-up to go private international imperiums ( Microsoft, Apple, Google, etc. ) . We can besides state that globalisation has improved our life conditions and our life anticipation. With the exchange of engineering and cognition, every twelvemonth, our life anticipation additions.

Globalization is bad

We saw that globalisation could supply a encouragement to the economic system of a state. But globalisation besides has increased inequalities between states. The rich have become richer and the hapless have become poorer. This being had to the fact that some states have been wholly ignored in international trade, as some Africans states. You should cognize that to take part in globalisation, political stableness is needed is for this ground that many African states are populating in unstable conditions, due to the state ‘s instability. Other states do non wish to take part in globalisation, as states in the Middle East ( Iran, Pakistan, etc… ) . These are unstable states, and they do non desire to open their boundary lines to international trade. This is why hapless states stay hapless and the rich get richer.

So a first side consequence of globalisation is doing it deepens inequalities between hapless states and rich states. On the one manus we have states with rapid growing, and other manus we have states in civil war.

Inequality does non merely between states, but these inequalities are felt besides within states. Take the illustration of a developed state like the United States. Some have taken advantage of globalisation and have been rich really rapidly, thanks to the cyberspace. This has created inequalities within the state.

You should besides cognize that globalisation penalizes workers in developed states. Today, many companies relocate their workss in states where labour is much cheaper in Asia, for illustration. The resettlement allows concern to salvage money, or possibly gain more while on the other manus, it puts unemployed first workers. Inequalities are besides felt in this country where Asiatic labour is unjust comparison to developed states labour.

With this inequality in the cost of labour in the universe, the state where the work force is low is invariably turning because they export more than they import. While the developed states, which depend on the state where labour is low. This is what is go oning in Europe with the debt crisis. European states are indebted because they import more than they export. They are victims of labour at low cost. Workforce of developing state is more competitory on the universe market, which is why 1000s of European workers were left without occupations due to globalisation.

We will come to the point for much of the universe today: the crisis. Today, much of the developed states through a serious crisis. A crisis that is owed aˆ‹aˆ‹because of globalisation, a crisis that shows us the bounds of our actions. A crisis that bring us back to world. We spoke earlier guess. Guess is partially responsible for our current state of affairs.

Globalization has enabled a group of people ( bank, private investing fund, etc. ) to put in unstable fiscal merchandises. At first glimpse these merchandises are really attractive to consumers, but they were unstable. Because of guess, involvement rates of these fiscal merchandises are winging ; consumers could non refund their loans: it is the crisis of subprime. Today, with a computing machine and a mouse, a group of people can make up one’s mind the hereafter of a company. The stock markets are unstable, and our full economic system is based on these stairss. Banks invest with money that they do non hold, with practical money. Today, Bankss can do really large net incomes in merely a few seconds. They invest in stock market with money from their clients. Some Bankss are more attracted to do large net incomes and hence take hazards. This is what happened with the subprime crisis. Banks were blinded by money and have sold fiscal unstable merchandises exclusive intent in order to doing more money. But sooner or later the bounds are reached: the crisis.

Decision

Globalization has demonstrated its good sides, as the growing of emerging economic systems, free trade, exchange of engineering, international trade, nevertheless, and for 4 old ages, we are sing the violently side effects of this system. Yes, for 4 old ages, the universe is in crisis. The universe is in crisis because of the deficiency of control in these exchanges. The universe is in crisis because all developed states are dependent on them. This is the Domino consequence if a state is affected ; it leads all others with him. This is what happened in 2008 in the United States, the subprime. Because many European Bankss have invested in the United States in unstable fiscal merchandises and therefore were impacted by crisis. Exchanges of capital is non be plenty controlled, Bankss are Masterss of our economic system, they dictate Torahs. States are no longer Masterss of their economic system because they depend on the planetary fiscal system. This means that if a state goes bad, it will impact all its spouse states.

Before, the events taking topographic point in the universe were non interrelated. Since they are all dependent on each other ( Brunel 2007 ) .

Globalization has done some technological art, medical revolution, dramatic growing, but at what cost…

Banks have non learned the lesson and continue to play with the universe economic system.

For 4 old ages now, we are a victim of globalisation, we could avoid that.

Mentions List

Schifferes, S. , 2007. Globalization shakes the universe. Available at: hypertext transfer protocol: //news.bbc.co.uk/2/hi/business/6279679.stm. ( Accessed: 3 November 2012 )

Gratton, L. , 2012. The globalization of work and people. Available at: hypertext transfer protocol: //www.bbc.co.uk/news/business-19476254. ( Accessed: 3 November 2012 )

BBC, 2000. Globalization: What on Earth is it about? Available at: hypertext transfer protocol: //news.bbc.co.uk/2/hi/special_report/1999/02/99/e-cyclopedia/711906.stm. ( Accessed: 3 November 2012 )

Brunel, S. , 2007. Qu’est-ce que La mondialisationA ? Sciences Humaines, Mars, p.23.