.. to accomplish. The European common market is a step that has been in progress since the second world war and the European countries have been delaying it until its prerequisites are ripe “Europeans lefts to make sure that each step of the integration was accompanied by double series of measures ” (Amin 7). After a long period of building and establishment the common market has been established. The Arabs saw this market and started talking about having one tomorrow, as if the Europeans have established this market over night, and as if the Arabs had set the preconditions for it since a very long time. Employment, labor, and technology are terms that appear to a large extent in the formula for globalization.
Technology is supposed to equalized between countries by the time global of a global world. This implies capital intensive products in all nations, again this defies H-O theory which states that trade takes place between countries with different product intensity. This is not the issue, however the problem is if the whole world is turning to capital intensive goods then what are we going to do with all the excess labor? Dunning replies to that question saying “must wait the departure from the labor of those with obsolete skills who cannot, or will not, retrain, and the entrance of a new generation trained in the newly required skills ” (Dunning 79) . Could this globalization trend over come the ethnicity of people and put labor in to perfect mobility within the country and between different countries? globalization could remove the boundaries for the flow of money, technology, and information, but to realize a level were they could remove the ethnicity of a human being, then we are looking at a world which has fully globalized. Yet this will create a situation of great interdependence between nations to over come the unemployment problem, this also implies that employment levels are put at risk depending on any shock in the world economy.
A great example of that is what happened in the oil of 1970’s ” the result was an acceleration in the rate of inflation. To contain inflation these countries invoked unemployment and recessions ” (Khan 9). To overcome the conflict of how protects who and who has the right to protect? The United Nations and its Security Council was put into the picture. The UN was initially founded to insure world peace, yet under this category falls under an infinite amount of actions. As said before the political integration lead to a situation where the governmental powers were not limited to the boundaries of it country especially if its a super power.
Under this UN world peace talk the talks of development and its sustainability arises ” Reform of the economic institutions would be accompanied by a heightened political role of the United Nations ” (Amin 41). The notion of sustainable development which takes into its consideration the environment, human development, and fight against poverty. This notion put certain specification to the limits to the environmental, and human exploitation that is being put in the production process. This limits are being used as the new trade tariff and barriers. If a country is not regulating the level of exploitation then no trade or limited trade will take place with this country, and in a global market trade is a main source of wealth.
All the arguments for globalization is putting forward the benefits realized for the developing countries, then why are the developed countries pushing forward this global trend and putting their own money in jeopardy for it? The developed countries are playing a role that is very well hidden, they are veiling them selves under the World Bank and the IMF organizations. ” under the continued surveillance, incentives, and sanctions of new international financial institutions ( the IMF and World Bank), which behaved as accessories to U.S. policies ” ( Mittelman 90). Their actions are based from their after extensive studies. The IMF and World Bank are putting different level of reform plans for different countries all aiming at the rise of the living domestic standards, and the elimination of tariffs and quotas. The elimination of tariffs leaves room for the developed to use it technological advantage to flood the markets with their goods.
Which intern yield high profits for their countries. It is only a matter of increasing the first world countries market share, and increasing the consumer’s ability to consume and differentiate between the good and bad goods. Ultimately, the introduction of globalization with its very short-term history will play a significant role in the economic, political, and social sides. It will increase free trade, competition, and nation profits. But these benefits are going mainly towards the nations who have the highest interests in removing tariffs and trade barriers i.e. developed nations.
On the other hand the developing countries which are the ones that have the greatest needs for progress and growth are the ones that will be hurt in the process of unification. This globalization trend is simply a new developed or we may say a good looking way to keep the exploitation of the third world countries going on. One may argue for the benefits of globalization for the developing countries, yet time will prove that its a new from of economic imperialism the I personally call Neo-Imperialism. OUTLINE I. INTRODUCTION A. Definition of globalization.
B. Problems with the full meaning of the word. C. Division of the world into three categories. II.
Degree of autonomy under a global market. A. Effect of foreign investment B. Effect of other governments. III. Security Question.
D. Free trade. A. The effect of trade on developing countries. B.
The effect of free trade on developed countries. 1. GATT and WTO. 2. Economic block and European community.
V. Globalization Vs ethnicity. A. Capital, labor intensity. B. Unemployment.
VI. First world countries pushing forward globalization. G. conclusion. Bibliography Amin, Samir. Capitalism In The Age Of Globalization.
Zed Books. London,1997. Dunning, John. Governments, Globalization, and International Business. Oxford University presses. New York, 1997.
Khan, Azizur. Employment Expansion and Macroeconomics Stability Under Increasing Globalization. Macmillan Press. London,1997. Mittelman, James. Globalization Critical Reflection. Lynne Rienner Publishers. Colorado, 1996.