Pro Globalist vs Anti Globalist - 1341 Words

Pro Globalist vs. Anti Globalist An Essay Globalization in a broader sense means Integration. This integration happens through the flow of resources in the form of information, ideas, technology, goods, services, capital, finance amp; people. Like everything else that flows, the flow of resources happens from high potential (country) to low potential (country). Globalization is therefore a natural phenomenon and is bound to happen unless stopped by an external force. In principle all flows are good since they help in achieving equilibrium; but they must be checked and constrained to avoid them being destructive. It is therefore not correct to call Globalization good or evil. Globalization will essentially be good, but may require some†¦show more content†¦Capital flows can take either the form of foreign direct investment or portfolio investment. For developing countries the preferred alternative is foreign direct investment. Portfolio investment does not directly lead to expansion of productive capacity. Portfol io investment can be volatile particularly in times of loss of confidence. That is why countries want to put restrictions on portfolio investment. Country needs to place such checks in place and the World trade blocks should respect that decision, as it checks for the adverse effect of Globalization. When an economy becomes more open to capital and financial flows, there is even greater compulsion to ensure that factors relating to macro-economic stability are not ignored. On the impact of globalization, there are two major concerns. These may be described as even fears. The first major concern is that globalization leads to a more iniquitous distribution of income among countries and within countries. The second fear is that globalization leads to loss of national sovereignty and that countries are finding it increasingly difficult to follow independent domestic policies. The argument that globalization leads to inequality is based on the premise that since globalization emphasizes efficiency, gains will accrue to countries which are favorably endowed with natural and human resources. The technological base of these