The Economic and Financial implication of Globalization on the UK Economy - Essay Example

Qualitative research generates data that is based on the participants’ own categories of meaning, it is useful for studying a limited number of cases in detail, and tends to collect data in realistic settings (Creswell, 2001). However, quantitative research method has been adopted for this current study mainly because of the reason that it is the most suitable. The term “globalization” gained prominence in the 1960s and it began to be extensively applied by economists and other social scientists.

The current study has taken into account the output generated in the GDP, rate of unemployment and inflation for instance for a period from 1997-2001. A Chow Test will be performed to check the structural break over the years. The study will specifically deal with time series data in order to check whether there is structural change (parametric instability) in the relationship between the regressand (output and import-export in UK) and the regressor (GDP, technology, Consumer’s Price Index, Producer’s Price Index, rate of unemployment for instance).

By structural change, it mean that the value of the parameters do not remain the same for the entire time period (UK Economic Indicators, n.d.). Globalisation is loosely defined as the economic activity taking place across the national boundaries (Buckman 2004). In essence, globalization sought to liberalize trade as well as deregulate the economy and this particular study seeks to investigate the extent to which deregulation has impacted on the economy of UK. Quantitative methods will be used to collect data in order to ascertain the impact of deregulation on UK economy.

During the contemporary era, the concept of globalisation has liberalised trade among nations and Information and Communication Technology (ICT) has substantially changed the ways of doing business. ICT has made dramatic changes in the contemporary society and economy at large and has impacted on almost all businesses