Question

Globalization has stimulated much controversy in recent years. Some studies have shown that globalization increases economic growth, narrows the income gap between rich and poor nations and reduces poverty. But some critics argue that globalization may encourage governments to participate in a “race to the bottom”, i.e., countries compete for international investment by offering low or no environmental regulations or labor standards. Evaluate the major arguments.

Answer 1

globalisation in economics is defined as the interdependence of the different nations on each other for mutual trading through free trade. in the concept of globalisation, there is a import and export of the goods and services across the boaders of nations.

economics globalisation also includes the competiotion among the nations also.

pros. of the globalisation are as:-

1) boosts the economic growth of the nations through trading.

2) gives encouragement to the small, medium and large size industry.

3) free trade among nations also boosts democracy.

4) consumers and producers of the nations becomes more aware by globalisation.

Yes, Globalisation has increased the economic growth. By globalization, all the small and large producers of the industry are able to sell their product in international market. Hence, income gap between poor and rich have decreased.

cons. of the globalisation are as:-

1) it increases the economic inequality. as the richer becomes more rich and poorers become more poor.

2) it expoits the small industries of the developing countires.

3) it creates the unemployment in the small countries.

Also, globalisation leads to race among the countries.