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Globalization in Transition - Research Paper Example

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Subject: Business, Research Paper Date: Topic: Globalization in Transition Introduction Globalization is not a new development. It has been happening since centuries. With the rapid pace of industrialization, humankind adopting materialistic values all over the world, and with the internet revolution, we have entered into an age of transition…
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Download file to see previous pages It is in the interest of the welfare of humankind to allow a new system to emerge. What has happened about globalization so far, challenges the imagination of all concerned. It is impossible to predetermine or predict the outcomes and the shape of things to come. Human intervention and creativity have reached new zeniths and the developments that have taken place in various segments of globalization do not fall within the definitions of Capitalism, Communism, Socialism or Theocracy. Spread of democracy in the hardcore communist countries, which resulted in liberalization of trade relations, is also an important factor in hastening up the process of globalization. Narrow perspectives of nationalism have failed to check the economic reforms that are part of the process that accelerates the pace of development. The discussion is no more about whether there should be reforms to facilitate the march of globalization; it is about the strategy to implement reforms. The importance of transition economics is an accepted fact. The tug of war of votaries of globalization and the local manufacturing and local food markets will continue and the ultimate gainer is the consumer, as he has the choice. Globalization—its reach Is it possible to reconstitute local manufacturing and local food markets, or has globalization ultimately made this impossible? A straight forward answer to this question is impossibility. It is an admitted fact that the narrow domestic walls have crumbled. Firstly, let us try to understand the institution of market. The complex market institutions cannot develop in a theoretical or laboratory setting and then transplant them to economy. For the markets, transition to the ground realities is a complicated exercise. Institutions will take a long time to reshape and attain perfection. Globalization has challenged and will continue to challenge many of the old social and economic norms. Many such norms will die and many will need complete rejuvenation. Getting the reforms off from the national to the international ground calls for tough choices. One has to be realistic about the possible achievements, while giving up the existing set up in favor of the new one. Advantage Globalization Countries need an active domestic agenda and remain ready to follow the path of economic reforms well in time, to challenge the environment of integrated world economy. The domestic front needs to develop the fine sense of anticipation to capture the gains of globalization. Globalization is multi-dimensional. Global trade volumes are on the increase for more than one reason. Every country would like to take advantage of the technological breakthroughs and no one minds from which country it originates. Technological innovations have boosted immensely the quality of life in many countries of the world, but at the same time this has benefited the rich section of the society and the poor have no means to share the benefits. Volatile capital markets do not go well with the economy of the developing countries. The experts in the field of economics and commerce are not sure about the contribution of trade to the superior growth performance of the votaries who followed globalization. A country opens up trade channels and many domestic policy changes go in tandem with it. So it is difficult to assess the contribution ...Download file to see next pagesRead More
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