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Measuring Globalization - Essay Example

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The essay "Measuring Globalization" is purposed to demonstrate the phenomenon of globalization, its influence on business. The author of this essay aims to examine the manner in which globalization may be measured by comparing some of the indices of globalization…
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Measuring Globalization

Download file to see previous pages... The spread of globalization, according to many, allows for free trade and free markets in most of the developing countries. This is with the aim of alleviating poverty. Many corporations, from developed countries, are responsible for running the lives of many individuals. Globalization, today, is seen as a means to try and calculate the gap that exists between the poor and the rich. Economists try to address globalization, and the effect it may have on different individuals and countries. If there is a constant or an even growth in a country, there is likely to be more satisfaction. This is unlike when there is an uneven growth (Guinness 194). This is because the latter indicates that some areas will be better off than other areas.
The most common method of measuring the globalization level in a country is the use of Gross Domestic Product (GDP) per capita in a region. It might be; import or export or the total consumption on import/export GDP in the region. This represents the final market value of goods in a country produced or consumed or a sum of both these factors within a year. In measuring globalization through the GDP, an increase in exports increases the country’s GDP, thus; symbolising growth in the country’s economic stature (Maher 109). The higher the annual growth rates, the higher the economic growth, through time. It is through such a constant method that allows for a country to trade freely along international lines. This may be because; their products are capturing a wider, global market.
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