Globalisation-Boom or bane???
February 27, 2008 2:13pm CST
The International Monetary Fund defines Globalization as the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services,free international capital flows and more rapid and widespread diffusion of technology. Globalisation has economic,political,cultural and technological aspects that may be closely intertwined. The economic aspects stressed in globalisation ar trade,investment and migration. The globalisation of trade entails that human beings have greater access to an array of goods and services never seen before in human history. From German cars,to colombian coffee,from chinese clothin,to Egytian cotton,from American music to Indian software,human beings may be able to purchase a wide range of goods and services. The globalisation of investment takes place through Foreign Direct Investment,where multinational companies directly invest assets in a foreign country,or by indirect investment where individuals and institutions purchase and sell financial assets of other countries. Free migration allows individuals to find employment in jurisdictions where there are lobor shortages. Critics of free trade also contend that it may lead to the destruction of a country's native industry,environment and loss of jobs.Critics of international investment contend that by accepting these financial schemes a country loses its economic sovereignty and may be forced to set policies that are contrary to its citizen's interests or desires. Moreover,multinational companies that invest in a country may also acquire too much political and economic power in relation to its citizens. Finally migration may lead to the exploitation of workers from a migrant country and the displacement of workers from a host country. Critics of globalisation also contend that different economic systems that either augment or supplant globalisation may maximize social welfare more efficiently and equitably. Based on the above facts do you think that globalisation would be a boom or bane?????