Economic Globalization Free Essay Sample

Globalization is a phenomenon where the world is connected through the influence of trading activities and advancement of technology. Economic Globalization is the interdependence of global financial markets that leads to trade openness. But because economic globalization is a complex development, we must be mindful on how these fiscal exchanges benefits and disrupts the local, national, and global economy.

Trading activities exist because of natural and local services/goods. More trading activities denotes more productivity and revenue, but this also signifies that there will be an increase in resource exploitation. In addition, developing countries depend on local livelihood and its products, that if depletion continues without a proper substantial plan, natural resources will be greatly affected having the local economy sector affecting the country (Randhir, 2016). This is comparable to Garret Hardin’s economic theory “Tragedy of the Commons”. This theory states that individuals may gather shared resources that eventually exceeds its supply. This can cause to affect the local and national economy. Hardin also noted possible solutions to alleviate its consequences, which are through government authorization, implementing private proprietorship and regulation programs (Investopedia, 2022).

The direct and indirect channels also contribute to the country’ economy progress. The direct channels pertain to foreign trading activities while the indirect channels focus on imposing macroeconomic policies. Having global linkages on our country’s externalities would help improve our economy. But sudden change in the financial capitals of these externalities may have the country prone to sudden economic downturns (Deluna, Antiquisa, 2014). The Philippines was no exemption in the global economy impact of the Ukraine-Russia war. The consequences brought by the rise of oil prices affected the GDP (Gross Domestic Product) growth. The government then allotted expenditures for fuel subsidies that would help the agriculture and economic sector (de Vera, 2022).

Economic interactions across the globe varies from one another, with the purpose to achieve varying fiscal objectives. The varying economic progress of each country would eventually synchronize and increase the global economy. But keep in mind that these international economic activities are greatly influenced by the global cities. Although there is progress in the global economy, global divide between the north and south is still evident (Shangquan, 2000). Economic globalization allows businesses from developed countries to have access for more cheaper resources abroad and for developing countries to have lower labor costs. This results to more affordable products and services for consumers and gentrification/income inequality between skilled and unskilled workers (National Geographic Society, 2019).

Economic Globalization cannot be reversed. Progress in economic globalization also means industrial reformation on a global scale. Meaning, not only does economic globalization improve the world’s economy, but also in all its sectors. More international trade would also increase domestic productivities (Shangquan, 2000). There is an interactive relationship between the local, national and world economies. Progress in the local economy leads to progress in the national and world economies, and progress in the world economies leads to progress in the national and local economies. Economic Globalization has its positive and negative impacts. To balance these, fiscal and monetary policies have been implemented to ensure that as we progress through globalization, we get to enjoy its process.