The Global Economy essay
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Once achieved, globalization results in numerous opportunities which enable countries and individuals to prosper. To start with, the most primary opportunity of globalization is liberalized market and the attendant effects on the global economy. Liberalized market means more trade which result from increased financial flows. As trade flow increases, capital redistributes, and economic theory holds the potential to pull impoverished countries from the bottom arises. The notion of free trade is based on the works of 18th-century economist Adam Smith. In his book The wealth of nations, Adam Smith taught that privatized business encourages economic activity more than the government-controlled business. In his article Making it work (1998), Jeffery Sachs described the importance of liberalized market for the development of the less developed countries. He went ahead to describe global capitalism as the best opportunity for economically weaker countries to gain a foothold on the economic growth ladder. He argued that removing barriers between countries is the surest way of guaranteeing countries equal opportunities for economic advancement.
Secondly, globalization creates a transnational regulatory framework. As nations acquire less and less authority over their individual economies and companies and the global system assumes control, the global network falls under obligation to take care of the welfare of individual nation and the global society. For example, as developing countries of Latin America became heavily indebted in the 1980s, the International Monetary Fund (IMF) chipped in to bail them out. Currently, IMF is supplying over 20 African countries with loans going to a tune of 3 billion US dollars resulting in the debt relief and industrial development. Owing to globalization, finances of developed countries are literally tied to those of their less developed counterparts.
According to an article Developing a Global Leader by Julia (2012), globalization helps create an institution of property rights. Because the global society is becoming more and more integrated, it is no longer sufficient to honor copyright within a nation-state. For this reason, intellectual property rights have been instituted worldwide to protect the protect copyrights.
In conclusion, globalization has the potential to bring people together, hence promoting social-cultural ties between different nations and their citizens. This promotes global togetherness and unity.