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The major implication is that the US dollar cannot serve as a stable international store of value. This is because its value is tied to the prevailing conditions of the United States. As finance and trade continue to grow fast and world integration increases, the significance of this wider view of having a different international currency is projected to continue rising.
One of the points raised is that developing nations have seriously untaken CSR activities, essentially those that promote conducive and ethical working conditions. Economists argue that sweatshop labor conditions are actually not so bad after all. Sweatshop labor conditions are the most rational way that can assist poor people to attain their ends.
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Since the intensification of globalization, there has been a hot debate about whether the life of workers especially in global industries is improving or worsening. Some argue that since the formation of trade unions, which fight for workers’ rights, the life of workers has improved compared to the era before the industrial revolution.
International political economy is one field of science that fuels the understanding of global and international problems using a discriminating interdisciplinary array of analytical tools and theoretical perspectives. There are different arguments for the effect that politics and the economy tend to have varied approaches to international issues.
The decline of the resources boom has led to the growth of the gap that exists between those at the top and those at the low level of wealth as well as income distributions (OECD, 2011). When talking of economic inequality, it is the disparity that exists among the populations of a country as a result of income, wealth, opportunity, and education level differences among other inequalities.
Such a project has several benefits that include sugar and ethanol production, and electricity generation. On the other hand, the project will require the use of River Tana water for irrigation, domestic uses as well as industrial use. In the end, the project would interfere with the natural biodiversity of the region.
Organizational legitimacy theory explains the behavior of companies and corporate groups about the social and environmental impact. The theory suggests that companies face pressure from the environmental laws in sustaining it and maintaining a functional environment. They are also challenged by the societies who request information about the impact the environmental impacts on the businesses.
In the words of Larsson (2001), globalization can be defined as the increased interaction between different nations regarding communication between citizens, culture, and trade. Nationalism is a shared feeling among people of the same geographical locality of independence for their culture and ethnicity which holds those people together.
Globalization is a force that undermines nationalism. However, others believe that its trends reinforce national identity. Globalization can be termed as the removal of barriers that have led to free trade, communication, and cultural exchange between different countries. Globalization has led to the constraints of geography.
The industry collapse affected over 73, 772 employees who were working full-time, and other impacted other important aspects of Australia’s automotive manufacturing industry. Therefore, the impacts of the death of this industry were deeply felt by many because the key players closed their operations in Australia.
Holden, Toyota, Ford, Mitsubishi, and even Nissan have announced that their operations are going to be closed. This could be part of a global financial nosedive. It is shaping an extinction occurrence of Australian jobs and the automotive industry being phased out. Most of these companies are closing their operations in Australia.
It is real, factual, and verifiable that the labor unions in the Australian car industry caused the collapse of the country’s automobile industry. Who Killed the Australian Automotive Industry? The Australian car industry has collapsed with the announcement of plans to exit the market by major automobile companies.
The automotive industry is being phased out in the Australian market following its decline over the past years. This is a setback to the Australian economy since it is a contributor to the Australian gross domestic product. The decline of the automobile industry in Australia has also led to unemployment for many engineers.
Therefore, the car companies in the automobile industry have decided to take their business enterprises overseas where there is a low cost of production as compared to Australia (Beer and Thomas, 2007). The unions are the ones that mostly contributed to the collapse of the car manufacturers by raising wages and also demanding good working conditions.
Marxist theory has greatly contributed to the successful analysis of globalization. Marx can be considered the earliest theorist of globalization. From a Marxism perspective, the features which are often identified as proof of globalization are seen as coincident indicators of long-term tendencies in the growth of capitalism.
The idea of democracy in the Chinese way is seen as putting the interests of the community first other than those of the individual. This orthodox interpretation of unity among the Chinese was first introduced by Deng Xiaoping in 1979. Unity of interest thus obscured the articulate interpretation of state and society.
A real model of the economy lies in using the strengths of the nation or area as a whole for sustainable development. The nation should have the ability to undertake the latest technological developments. Traditional methods will be changed with modern methods and new developments will be taken in to make sure that the economy grows manifold.
Even if the export sector has contracted in both countries, the growth in their economies has continued to grow. This is because both have a lesser share of the economy and policy dealings have sustained domestic activity (International Monetary Fund’s April World Economic Outlook, 2008). However, there are some inhibiting factors that are like to hinder these two countries from becoming future economic giants.
One of the most important theories of the above-mentioned market model is the idea that together the result of the market along with social order results from the logical decisions of those who are seeking to capitalize on their interests. Models like these give a lot of importance to the markets as a palace where traders, manufactures and consumers can get in touch with each other so that trade their merchandise for money.
East Asian countries such as Japan, Taiwan, and Korea shifted from poverty to affluence through rapid industrialization, while today many developing countries continue to languish. This has been due to over-reliance on foreign aid which has served to hinder their climb up the development ladder. Foreign assistance is linked to formal development aid.
The classical school of economic theory believes that the economy is a self-regulating system of the market and that the economic needs of the population are satisfied without human intervention. The classical also describes the mechanism of the market as an “unseen hand” that drives all persons to undertake their self-interest.
Recession in economic terms is, in essence, a slowdown in the economic movement in a country over a sustained period of time, or a business cycle contraction. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, etc.
This is mainly done so as to make a discovery that can lead to development of a new technology, product or procedure or improve existing technology to a better one. Research and Development consist of four distinct types of activities namely: basic research, applied research, product and process development.
The job market has suffered much and it has called for the variation in strategies related to recruitment and selection in most of the Irish organizations. In Ireland, employment has been checked by more than a quarter a million since the inception of recession and the figure stands at 3.7% and declining on year by year analysis.
Economists do not understand criteria that seem irrational and they are to be found in public discussions on economic policy. Traditional economics fails to appreciate the fact that people get more concerned when there are job losses as a result of relocation even if such relocation results in the creation of more jobs elsewhere.
However, I disagree with this statement. This is because of the visible things that can be observed from the use of eyes. Looking at several situations and occurrences in the world, it is evident that change is occurring, and things are no longer the same as they were before. Change is described as a transformation from the normal.
There is a need to ensure fair trade in free trade to guarantee that all gains generated by free trade are distributed and shared equally. Free trade is a business partnership founded on respect, transparency, and dialogue, which is meant to facilitate more fair play and enhance sustainable growth by providing a better business environment.
Thus, government regulations and safety nets were not in place to protect or create a buffer from the 2008 global financial crisis. Neoliberalism is a term that denotes the liberalization of economies, the emergence of free trade in the world, the existence of open markets, privatization, and the deregulation of companies.
Despite the whole region being a form of a monopoly, there are certain policies that fuelled the growth of international trade. The land was only given to noblemen, military men, and also people of substance. In these pieces of land, peasants were always present to work on them in order to earn a living. In this way, productivity was ensured.
The emergence of globalization has come along with a wide range of challenges to various economies. State capitalism is in a better position than other forms of capitalism in solving most of these challenges. Some of the challenges created by globalization include widening inequality between nations and citizens within individual nations.
They consist of concerted efforts and initiatives geared toward common goals amongst members and followers. Such movements are inspired by the need to challenge an existing status quo by sharing related identities. In their efforts, members mobilize masses and individual networks in order to affect their intended entities.
Globalization is the process of international integration arising from a blend of many factors. Those factors include the interchange of world views, products, ideas, and other aspects of culture. While globalization is known to affect and impact whole world affairs, some factors have been observed to accelerate globalization.
Globalization can be referred to as the increase in interconnectedness worldwide. It is the power, process as well as momentum obtained from growth in technological advancement in means of communication and market capitalism. Many of the debates concerning globalization involve the economic dimension of the complex process.
It rose by adopting the Japanese and other East Asian tigers’ state mercantilist practices within a region that was fast becoming the world’s most rapidly growing one. The nation has since continued growing to become the world’s biggest exporter, and its large trade revenues help it to buy large amounts of influence across the world (Fumio, 2004, p.71).
International economic relations and hence international trade have rapidly grown since 1945 after the end of World War II. This has seen the number of exports by countries increase by 6 percent annually since 1950 to a value of $7.6 trillion by 2000 according to Johann (2008). In fact, the value of international trade has grown consistently more rapidly than the world economic output.
Thus, greener economies must seek to improve levels of human well-being as well as natural capital and systems. This implies that synergies between environmental aspirations and growth must be sought which requires combined efforts of all stakeholders in an economy. As Scarpa (2009) notes, growth in the green economy is considerably diverse.
Since its inception in 1999 in the aftermath of the East Asian financial crisis, the G20 has evolved from a group of finance ministers and central bankers to a formal world leader’s summit. This essay will examine the primary political and economic dynamics which influenced the development of the G20 and its evolution from a finance group to the premier forum for international economic cooperation.
The main aim of their establishment was to ensure that globally, there is a balance in the economy as well as peace. This would be fulfilled as more activities such as supporting the developing countries by the already developed countries to strike a balance in all continents. These institutions are the World Bank and International Monetary Fund.
According to the author, the concept of neoliberalism is applicable in reference to numerous political ideologies with some disparities, and people will continue questioning whether neoliberalism political philosophy is a coherent ideology. Despite different understanding and definitions, neoliberalism is the common sense of the modern era and the basis of conservative, liberal, and labour parties.
One of the major indicators of the economic growth of a nation is its industrialization level. It is only after the end of World War II that less-developed nations wilfully adopted industrialization tactics for economic growth and to save the nations from their vulnerable reliance on the export of few products
It can be noted that years following the end of World War II, many leaders of less developed countries adopted industrialization strategies. The new economic structure was adopted because many developing countries hoped to expand their colonial economy and solve various societal problems. Immediately after World War II, many governments of less developed countries adopted industrial policies geared towards spurring economic growth.
These parameters are compared to the other nations hence coming with the richest country following that order. For all the countries that are studied, there exists uniformity in the determining factors. For instance, when studying the human development index in these countries, health, education, income/command over the resources, etc.
It is mandated by the rules and treaties between countries in the international arena. At its Centre stage are World Trade Organization agreements as negotiated and signed by many of the global trading countries after ratification by their legislative chambers. The main objective of WTO is to aid importers and exporters.
It means that the nation persuading others uses attraction rather than coercion to influence others. For soft power to be, successful force should not be used, but economic assistance programs, strong relations with allies, and vital cultural exchanges are used. For example, countries like the United States can apply soft power successfully.
In Kenya, the provision of public service is faced by inefficiency, corruption as well as lack of patronage. Burgeoning corruption remains one of the main challenges facing governance in Kenya (Wrong, 2014). In order to meet all its expenses, the government receives 27% of the revenues from the donor.
It came into existence in 1965 to promote the educational sector in the nation. The United States government offers financial assistance to students in higher learning institutions through funding. The financial assistance aims at assisting the students in the payment of tuition fees, books, and other educational supplies.
Most of the developing economies were subjects to European colonialists between the late 19th the early 20th centuries. However, the countries established uprisings during the period that eventually led to the withdrawal of the colonialists from the specific states. Thereafter, the developing countries embarked on a period of democratization.
China has a population of 1.3 billion which is more than 1/5 of the whole population in the world. China has grown at a high rate to become the second-largest economy in the world after the US. China is the largest beneficiary of Foreign Direct Investment in the World, after the US. It has one of the highest GDP per capita in the world.
When comparing the past and the current, there is a remarkable thrash forward in global regionalism growth. The advancement of regionalism is spearheaded and stimulated largely by the propagation of regional organizations and associations. The aspect of the emergent of regionalism has promoted a substantial enthuse of deeper scholarly research.
States including Australia have to participate in the process of globalization. Moreover, in the globalization era, individual states are relying on other countries and sometimes on NGOs (non-governmental organizations) to assist them in governance. States operate in a highly sophisticated and internationally integrated order of economy.