How Does Globalization Effect the Economics of the Countries - Assignment Example

Download file to see previous pages International corporations produce products in different countries and sell them to consumers across the globe; whilst raw materials, technology, and money also move more speedily across national borders (Cogburn, 1998). Besides finances and products, cultures and ideas also flow more freely and quickly (Held et al., 1999). Therefore, social movements, laws, and economies are forming at the global level. All this has been caused and driven by globalization. The term includes a range of political, social, and economic modifications. Academicians have defined globalization as a procedure of integration and interaction amongst individuals, corporations, and governments across the globe; a process driven by investment and international trade and facilitated by information technology (Scholte, 1996).

Globalization has impacts on culture, environment, economic development, political systems, and prosperity, all of which affects the well-being of individuals either positively or negatively in societies across the globe (International Monetary Fund, 2000; Shaw, 2001). This paper will focus on the analysis of the economic effects of globalization on nations around the globe and assess how this affects the citizens of the states. In addition, the paper will focus on the changes made by globalization in the law of international law and what would happen as a result. The paper will generally compare two developed countries: the United States of America and Australia.

Economic effects of globalization
Globalization has affected the economy of countries both positively and negatively (World Bank Research, 2002; Scholte, 2000). Although critics argue against globalization based on its negative effects, research has proved that the positive effects of globalization are more substantial compared to the negative effects (Wolf, 2004). Furthermore, proposers argue that globalization has brought about international peace among countries through integration and interaction (Jagdish, 2004). As such, many people tend to overlook the negative impacts and focus on the positive impacts of globalization. However, this should not be the case; it is evident that if not handled properly, these negative effects can someday outdo the positive effects and this may result in adverse political, social-cultural, and economic problems. ...Download file to see next pages Read More