• Category: Business
  • Words: 634
  • Grade: 95
Before we begin we must ask ourselves, "What is globalization?" Economic "globalization" is a historical process, the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through trade and financial flows. The term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders. At its most basic ideals, there is nothing mysterious about globalization. The term has come into common usage since the 1980s, reflecting technological advances that have made it easier and quicker to complete international transactions"”both trade and financial flows. It refers to an extension beyond national borders of the same market forces that have operated for centuries at all levels of human economic activity whether they be village markets, urban industries, or financial centers.
Markets promote efficiency through competition and the division of labor"”the specialization that allows people and economies to focus on what they do best. Global markets offer greater opportunity for people to tap into more and larger markets around the world. It means that they can have access to more capital flows, technology, cheaper imports, and larger export markets. But markets do not necessarily ensure that the benefits of increased efficiency are shared by all.
Throughout the 20th century, global average per capita income rose strongly, but with considerable variation among countries. It is clear that the income gap between rich and poor countries has been widening for many decades. The most recent World Economic Outlook studies 42 countries (representing almost 90 percent of world population) for which data is available for the entire 20th century. It reaches the conclusion that output per capita has risen appreciably but that the distribution of income among countries has become more unequal than at the beginning of the century. Examples of this uneven distribution of money through globalization can be found in the highly controversial mixture of "big business-corporations" and agriculture to form agribusiness. Agribusiness refers to the corporate capitalization of farming regions in various nations. The goal of agribusiness is synonymous to the ideals of capitalism, to maximize profit even if in the process it is hurting other countries. Agribusiness is practiced in various countries including the Philippines, Costa Rica, and Brazil. Practices of globalization such as agribusiness undermine various countries in order to get more profit. If richer countries can afford the margin of cost for products yielded from the more efficient agribusinesses, they would be able to keep a constant supply of food coming into the richer more affluent countries. However, if the country could not afford the cost of product, many citizens would starve. At the end globalization will advantage the richest countries while throwing poorer countries into an endless downward spiral.
When analyzing these types of situations we wonder how we can fix these problems. But first we must analyze the source of these problems. Obviously since globalization is widening the financial gaps between poorer and richer more affluent countries, action is needed to equalize countries economies. These are some of the things necessary to build strong economies:

1) Macroeconomic stability to create the right conditions for investment and saving;
2) Outward oriented policies to promote efficiency through increased trade and
3) Structural reform to encourage domestic competition;
4) Strong institutions and an effective government to foster good governance;
5) Education, training, and research & development to promote productivity;
6) External debt management to ensure adequate resources for sustainable

All these policies should be focused on in order to reduce poverty by promoting pro-poor policies that are properly budgeted"”including health, education, and strong social safety nets. These changes would have great social benefits not to mention they would eliminate the discrimination between richer and poorer countries, thus making globalization a perfectly viable business venture
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