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Globalization and Neoliberalism - Essay Example

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Globalization and Neoliberalism Instructor Date Globalization and Neoliberalism The advancements that have been made in society today have led to the progress in matters such as technology and communication which have in turn turned the world into what can be termed as a global village…
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Globalization and Neoliberalism
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Globalization and Neoliberalism

Download file to see previous pages... Neoliberalism refers to a number of factors that have occurred in today’s modern society such as deregulation, free trade, open markets and economic liberalism that have led to a more active role of the private sector in economic and business matters.2 Globalization refers to the process whereby societies of the world integrate with one another through a number of various processes such as communication and interaction leading to the exchange of ideas, cultures and views as a result. 3From the definition of both terms, it is clear to see that globalization and neoliberalism have similar aspects that relate to one another and thus it can be said that one would not exist without the other. However, to prove this fact one can use aspects of one to determine if they have a relation. In this case a few aspects of neoliberalism, namely open markets, free trade and economic liberalism will be used to determine whether these issues have a relation with globalization. Open Markets An open market is an economic term referring to a type of market that is accessible by all economic players as they are not tied down by various factors such as monopolization or a set of requirements that have been put in place for those who would like to enter in the form of legalities such as policies by the government. This means that in an open market, anyone who is able and has the means to, is able to enter into the market without the worry of any sort of constraints interfering in their business. The open market is an aspect of neoliberalism which supports less involvement of outside factors in matters involving business and trade.4 However, it can be said that the open market is only made possible through the existence of globalization otherwise it would have no reason to exist. This is because the open market has been created in order to allow investors from across the borders to enter a market unencumbered and without the worry of interference as most of the regulations that would be put in place to bring about the demise of this type of market would be related to would-be external investors and not local business men who do not face a lot of opposition except maybe in the case of monopolization of an industry.5 If globalization did not exist, they would be no need for an open market but on the other hand it should also be considered that if the open market did not exist without the open market, it would make it harder for globalization to take place as investors would remain within the realms of their countries and thus there would be less global interaction taking place in the business sense. Free Trade Free trade has to do with the imports and exports of a country in reference to the interference of the government in these activities. According to free trade, a government is not allowed to play a role in affecting the amount of goods that are imported or exported out of a country through their various methods such as placing tariffs or subsidies on the above mentioned and thus as a result allows the partners involved in the trade to both benefit from the transaction without one having it easier than the other. 6There are a number of reasons that the government may want to interfere in such activities such as boosting their number of imports which would lead to an economic benefit for the country but in the view of ...Download file to see next pagesRead More
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