ASSIGNMENT WEEK 2
Globalization in the twentieth and twenty first century is usually analyzed from an economic or technological perception, that is the internet, international markets and global institutions such as IMF, WTO cable news etc.
The impact of globalization on the economies of countries across the world whether developed or developing cannot be over emphasized.
An important ingredient in globalization is trade liberalization. . Economic liberalization is the process of achieving unobstructed economic activities, it seeks to remove all hindrances to trade, production and investment, whiles emphasizing on the freedom of economic activities (Onyekpe, 2001:52, Akinboye, 2008). In ...view middle of the document...
What it means is that whatever happens in one country has direct or indirect effect on the other countries, no wonder the effect of the global financial meltdown had rippling effect on almost every country including the developing countries i.e. Ghana. With the facilitation of the WTO companies can have free trade across borders. Due to the interlinking trhough globalization, companies have started sharing goods, technology, ideas as well as economic cooperation; these have contributed in lowering poverty and generating wealth to certain less developed country. Globalization has really aided the growth of china.
Despite the numerous benefits of globalization as highlighted by Mandelson, he did not fail to comment on the challenges associated with it notably the following issues were raised which included cost of globalization to the environment due to emission of green house gases in an attempt to meet the global demands and competition.
The advent of technology has led to job cuts in labor intensive industries, globalization competition is also exerting pressure on weak and local firms especially those in the developing world that is Asia and Africa, as well southern America.
In the financial sector it has led to certain crisis such as the global financial meltdown caused by imprudent lending, greed and speculation. Mandelson encourages countries to take advantage of the opportunities in globalization and as well prepare to face the challenges that it brings along.
I do agree with this point because globalization has come to stay and it is only those who are prepared for it who can win, I also associate myself with the point that Africa has to break its dependence on basic commodities trade by gradually integrating into global markets and building up a greater capacity to trade through private and public investment. Again the EU although holding on has really been affected by globalization negatively and positively, the negative part being the influx of cheap Chinese and south American products which did not previously exist, thus some EU countries i.e. UK have shifted more to service based industries. Finally global companies should work within the rules, fairness should be the game.
GLOBALISATION EFFECT IN GHANA
Globalization has had both its positive and negative effects on the Ghanaian economy which can be seen from certain key areas, which is the growth markets or trade and investment, information technology, reduction of unemployment to some degree, which in one way or the other have their positives to the economy of Ghana.
For the aspect for customers, globalization has brought about competition which has made business organizations more sensitive to the needs of customers, by improving their services and coming out with new innovations. Globalization has also offered customers a lot of choices which did not really exist before. The banking industry is one such area which has seen tremendous growth over the years, initially...