Table of Contents
- Emerging Markets
- Globalization in China
This paper discusses the pros and cons of globalization and how it effect emerging markets. Goobalization is the process by which business or other organizations develop international influence or start operating on an international scale.
Globalization has been a good thing allowing developing countries to have access to other markets and export cheap goods. (Forbes) On the other hand, it has not been a good thing for the working class. (Forbes) The working class has suffered job loss due to globalization. Here in America, we can supplement to foreign countries for cheap labor and to produce our goods. Look at Apple, they have outsourced to China for the cheap labor and lack of regulations. They can manufacture phones, tablets and computers in another country, ship it to the United States cheaper than they can manufacture them here and only have to ship across the states. This says something about our economy here in the United States. If a company can manufacture a product and ship it back across seas cheaper than manufacturing it here, we need to look at our future. The united States will soon not be the most powerful couty in the world due to the lack of being able to produce goods and export them for profit. To be able to pay off our debts and create jobs for our country, we need to change something to allow manufactures to want to come back to the states.
Another positive on globalization is that it is better for the greater good. (Forbes) This means it is better for the world, allowing other countrues to create revenue for themselves. People who support globalization say that it supports free trade. (Forbes) This is not true according to the Washington post. (Forbes) With tariffs in place, free trade does not exist.
Competition between countries is supposed to help drive prices down. (Forbes) This does not seem to be the case, because of all the tariffs implemented on imports in other countries. (Forbes) We now have to pay higher prices to import goods into other countries and in the news there has been talks about the tariffs between the United States and China. These higher tariffs will raise the prices of certain goods that are imported and exported. Therefore, the prices of the goods will go up so the corporations will not lose money on their investments. The idea of globalization creating free trade is not the case. (Forbes) Free trade is when countures trade with each other and no tariffs are in place to tax those goods. Tarriffs exist in every country even here in the United States.
Globalizaton creates a worldwide market for companies and allows consumers to have access to products from different countries. (Forbes) Globlization has been around for thousands of years. (101) Remember the Silk road? They used to travel from Europe to Asia to trade goods with each other and take them back to their countries to sell. (101) It is not the same as it is now, but people have been practicing globalization almost since civilizations has been around. The difference between then and now is, that the time it takes to get products from different countries is only a few days rather than months.
An emerging market is a country that has some characteristics of a developed market but does not satisfy standards to be termed a developed market. When a country is classified as an emerging market, it typically shows increased liquidity in local debt and equity markets. They also show an increase in trade volume. Markets that are emerging are moving away form their traditional economies that consist of agriculture and the export of raw materials. Countries have to have a way to make money, but the export of raw materials can only bring in so much. This reason is why smaller countries are attempting to get into globalization investing in themselves to bring more manufactures to their country to bring in more revenue. The leaders of these countries want to create a better way of life for their people. Emerging markets are a good sign that globalization is working for the better in the world. These two tie in well together because they have a correlation between them. Without globalization, emerging markets would be very scarce. There still would some because countries always want to grow their economy, but without globalization they would struggle to progress. This is one of the good things about globalization, it allows smaller countries export their goods more easily and import goods as well. One of the characteristics of an emerging economy is that they have lower than average per capita income. By having low income it provides an incentive for rapid growth. This is why globalization is important because it allows smaller countries or poverty countries to have a chance to make a better life for their people. The world economy could not survive forever without letting everyone dip their hat into the pot. Another characteristic is high volitlity. These countries rely much on raw materials export and when a natural distaster occurs, they are hard to come back from. This is a good reason why a country would want to have other income rather than agriculture. They need something stable that if a natural disaster does occur, they still are able to bring money in the be able to rebuild. Potentiial for growth is probably one of the most important criteria for a country to be able to be considered an emerging market. If a country doe not have any room to grow or a good place for a new company to come in a grow, they will be over looked and never have the opportunity to grow.
Globalization in China
The beginning of globalization in China happened in Beijing. Officials thought it was a trend which was driven by the advancements in the scientific and technological world. This lead to the increased cross national movement of investment income, goods and services. China is home to a lot of tech companies and the biggest one Apple manufactures most of their prodicts there. China is the biggest emerging market in recent history. If you look at just about anything that you by that has been manufactured, the tag says made in China. Because of globalization, people who were once in poverty have been given a second chance and have been able to get out of poverty. Globalization has severely effected Chinas market for the better. Most think that globalization is just the effect on the economy, but it also brings factirs into social, cutltural, and political dimensions. If you look at how the Chinese culture was 50 years ago, it was very traditional. They still had many of the same traditions as their ansectors. Now look at their culture, they have modernized. They have modernized because of globalization. Their social economy has changed with globalization as well. They are more and more into the new technology that has boomed their economy. Before globalization was a booming idea, China was already breaking ground in the world economy. In 1992 China was the world’s leading recipient of foreign direct investment among developing countries. China was ahead of the game in globalization and possibly that why they are the leading developing country in the world.