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This has an impact on the capitalist social and economic relations through microeconomic and multilateralism phenomena like competitiveness of businesses globally. The consequential change of production systems has an impact on the labor process, class structure, technological application, and capital organization and structure. Globalization marginalizes workers that are less educated and less skilled. As a result of globalization, expansion of business does not automatically result in increased employment. The higher mobility in comparison to labor can cause high capital remuneration. Power in the global economy is a company’s ability to command the tangible as well as intangible assets that result in increased loyalty of the customers irrespective of location. A company can tap into global networks no matter what is its geographic location or size. Globalization has had mixed effects on world economy with the increase in trade and foreign direct investment on one hand, and increased labor and production costs and income inequality on the other hand.
Globalization has mixed effects on currency as a result of which, certain countries become stronger economically while other countries loose economic strength. Acceleration of globalization has caused market conditions to change. This has affected the volatility and value of national currencies all over the world. For example, the euro EUR in the European Union has replaced a number of local currencies. The Renminbi RMB has challenged the power of the US dollar. Many other currencies are linked with euro and dollar to deter harmful volatilities and fluctuations. Countries like Germany and China have taken advantage of the power of global currencies’ unification to sustain their growth. On the other hand, countries like Spain and Greece have gathered huge national debt while other countries have become poorer. A range of factors
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According to the research findings globalization is of great significance in contemporary societies. When looking at its impacts, it is apparent that globalization is transforming contemporary societies. This is because globalization has had positive impact in nearly everything ranging from, economies, cultures, information flow, governance, criminal investigation, among others.
Such fragmentation in the origins and belonging of the ethics and moral values therefore offer a rare glimpse into a world which is shrinking. Globalization, as a phenomenon, is overcoming the local cultures, values as well as the indigenous political will of the individual.
It covers the major processes of the world socio-economic development and accelerates economic growth and modernization. At the same time, globalization gives rise to new contradictions and problems in the global economy. The process of globalization today overcame all the countries in the world in a different degree.
Globalization impacts on societies in the cultural, political and environmental systems (Held et al. 2005). It also affects economic growth and development of nations worldwide. The concept is not new since over the years, people and companies have been trading for long distances.
Globalization, Its Significance to Challenges of Development and Key Debates. Globalization and related development were considered as the wave of the future when they first appeared to unite countries into one global economy for the mutual benefits, which presumed global integration and interdependence in the technological, economic, social, cultural, ecological and political spheres.
Globalization has introduced new ideologies that have replaced the traditional thinking perspectives. The reception of globalization in each specific culture varies, but a close analysis reveals the aspects of life that change. This brings in the aspect of globalization, used to denote the various ways in which each distinct culture localizes globalization.
The layman's perception is predominantly confined to economic aspects of globalization, which is a very narrow perspective and is mostly confined to a mere expansion of trade and investments. However, the process of globalization has much wider implications that go beyond the mere internationalization of markets.
Episodes Three which is entitled New Rules of the Game discussed globalization and its impact in the world economy.Globalization doesn’t just involve the goods and services.Market integration also means the assimilation of countries’ financial markets.Countries like Thailand were greatly helped by the inflow of foreign direct investments.