Globalization: Economics and Politicals - Essay Example

The general consensus from them is that the focus should be lack of reach of globalization rather than on its benefits or pitfalls. Proponents of free trade and globalizations would like to believe that it is the best path to economic growth especially for developing nations. Once trade barriers are removed, exports will grow due to its competitiveness in price and in areas where the country has superior expertise. Imports in areas where the country is lagging like infrastructure development will also take place and the nation will be able to bear the cost of the same due to its increased revenues from the higher levels of exports.

But, it appears that the reality is far from what has been portrayed above. All the articles state various pertinent reasons why free trade and the resulting globalization have not had the perceived effect and range even after two decades of ‘borderless trading’. One person who has strong reservations of the extent of benefits is Pankaj Ghemawat (professor of business administration in Harvard Business Schools) whose article ‘Why the World Isn’t Flat’ is primary an explanation of facts against ideas propounded by Thomas Freidman.

Friedman in his book ‘The World is Flat’ states that there are ten forces are helping nations to play in a level field which is open and conducive to free trade. The primary among them, according to Freidman is the increased connectivity due to advancement and availability of inter-continental communication. Ghemawat contents that Freidman’s observations are exaggerations and the level of interconnectivity still remain dismally low. He calls this phenomenon the ‘ten percent presumption’.

One of the immediate perceived benefits of globalization and free trade, according to its proponents in an increase if foreign direct investments (FDI) in competitive economies. Ghemawat argues that the total volume of FDI in the