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Globalization is a Result of Neoliberal Polices - Essay Example

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The purpose of this paper is to analyze globalization as a result of neoliberal policies or International financial institutions (IFIs) which have been developed on the basis of neo-liberalism model. This paper will also discuss the contested view of globalization and neo-liberalism…
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Globalization is a Result of Neoliberal Polices
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Globalization is a Result of Neoliberal Polices

Download file to see previous pages... This research is being carried out to evaluate and present the concepts of neo-liberalism and globalization with proper definitions. On the surface, globalization has been understood as a process of compression of time and space which has enables business enterprises to concentrate more on production and achieving localization benefit. But it should be noted that the definition of globalization is broader and aggregated in terms of socio-economic levels. Globalization is basically an economic change which has taken place in every part of the world with a wider reach to heterogeneous audiences. The spread of globalization is mainly a spread of capitalism which has been in active since late 19th century. The spectrum of globalization has been understood as a very helpful concern because it helped enterprises to save a great deal of time and capital in order to transport products and services. This also saved the cost to communicate with better and effective transference than before. The view of globalization has been taken and welcomed in the international business including all major business institutions. It was merely because the dream of reaching to the areas which were once considered as remote. There is no part of the world which has not been reached in terms of economic activity. The credit for this massive increase of business activates al around the world goes to the phenomenon of globalization. The aim of business enterprises is to make profit by making sure that the member of societies (consumers) is able to get all the comforts for sustaining a better lifestyle. This is due to the faster and diverse means of trading and financial transactions. Seemingly, the political control over the activities of business being undertaken cross-border is just another aspect that has declined now. In other words, it could be said that the control of political institution on business enterprises to go cross-border seems to be less influential than before (Baldwin 2012). It should also be noted that the quicker and diverse impact of globalization could not be possible on its own. There are some of the factors that have influenced globalization to take place all around the world. These factors are rationalism, capitalism, technological innovation and regulation. Taking these four elements into account, it becomes easy to understand as to why globalization has taken such a diverse reach in the business world. The technological innovation such as easy transport of products and services through air routes and sea routes was has become faster because of the easy and diverse communication networks. The financial institutions which were limited to the domestic business are now complying with international financial systems allowing better visibility of shares for foreign markets for investment purpose (Pambazuka News 2010). The phenomenon of globalization is somewhat similar to that of neo-liberalism. It is due to the nature of neo-liberalism which is defendant of free trade and a liberal view of economy to promote equal and diverse platform of markets. ...Download file to see next pagesRead More
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