EXAMINE THE PRIMARY FACTORS THAT HAVE LED TO THE GLOBALISATION OF THE

WORLD ECONOMY, AS WELL AS THE BENEFITS AND PROBLEMS THAT ARE

INHERENT IN GLOBALISATION ITSELF.
Introduction:

No matter how powerful its economy is, every nation has the same overarching goal: to advance
economically to the point where it can overcome the obstacles that stand in the way of achieving
long-term financial security, improved living conditions for its own people, and overall expansion of
the economy. In order to accomplish these goals, various nations have adopted a variety of strategies,
each of which is tailored to the specific sociopolitical and economic environment of the nation in
question. For example, the reasons that are contributing to economic growth in the United States are
not the same as those that are contributing to economic growth in the United Kingdom, China, or any
of the other economies that are rapidly expanding throughout the globe. Regardless of this, there are
a number of key ideas and components that, if carried out in the correct manner, may ensure the
prosperity of a nation. These factors include direct investments from other countries, advances in
technology, sound policies on both the micro and macro levels of the economy, robust political
institutions, a well-planned market economy, and a highly educated labour population. Nevertheless,
a nation's level of engagement in the global economy is the single most essential component that may
assure economic success for that nation.

Globalization, also known as participation in the global economy, has huge positive effects on the
lives of people living in any nation that chooses to take part in it. The high level of life that residents
experience as a result of these advantages is clear evidence of their value. The majority of them
include employment possibilities and positions that pay better, a wider range of products and services
available at reduced rates, improved access to the economies of other nations, and, amongst other
things, a reliable healthcare system. In point of fact, it is to the credit of globalisation that over the
course of the previous two decades, the number of nations in the third world that are living in severe
poverty has significantly decreased (IMF Staff, 2008).

There is no room for debate on the fact that the developed countries have been subjected to and will
continue to be subjected to significant effects of globalisation. However, there is still a significant
amount of work to be done in a great number of the world's other nations. According to a research
that was included in an Issues Brief published by the International Monetary Fund, the degree of
poverty in sub-Saharan Africa has actually grown despite the fact that globalisation has assisted
nations in East and South Asia in their struggle against poverty. According to the Human
Development Report published by the United Nations, there are still up to one billion people in the
world who live on less than one dollar per day, and another 2.6 billion people live on less than two
dollars per day (IMF Staff, 2008). This paper offers more evidence that there is a pressing need for
further globalisation in all countries throughout the globe, particularly in developing countries, since
globalisation affords these nations the chance to participate in the expansion of the global economy.
Therefore, those who are in favour of globalisation argue that it is not to blame for the collapsing
economies of third world nations but rather that globalisation is a solution to the problem of poverty
in these nations.

However, it is essential to keep in mind that the advantages and benefits that come along with
globalisation are not without the accompanying drawbacks and dangers. However, these dangers are
not sufficient grounds to give up on globalisation, particularly in nations where the economy are still
in the process of development. This research consequently takes an analytical look at the primary
elements that have brought about globalisation in the international economy, as well as the
advantages of globalisation, while at the same time analysing the difficulties that are inherent in
globalisation. In order to accomplish these goals, this research will begin with a broad introduction
and definition of the word "globalisation," and then it will go on to a review of relevant literature in
order to provide the reader with a more in-depth grasp of the topic at hand. Next, this research will
investigate the many forms of globalisation, as well as the elements that contribute to a growth in the
degree to which the global economy is integrated. In addition to this, it will shed light on other
aspects of globalisation, including its consequences, difficulties, and advantages. In the end, a
conclusion and some probable suggestions will be presented as the culmination of this research.

Globalization is a term that has been given a number of different meanings throughout the years,
particularly in reference to economic globalisation. While some academics have approached it from a
historical standpoint, others have focused more on the economic aspects of the subject matter while
defining it. According to the International Monetary Fund (2008), the term "globalisation" was used
more commonly for the first time in the 1980s to refer to the technological advancements that made it
easier and quicker to complete international trades and transactions. Historically, the term
"globalisation" was first used to refer to the technological advancements that made it easier and
quicker to complete international trades and transactions (IMF Staff, 2008). The extension of a
country's market forces – regardless of the level of the market, whether it be village markets,
financial centres, or urban industries – into international borders in an effort to participate in and
benefit from the economy of another nation is at the heart of what is known as globalisation.
Additionally, economic globalisation may be characterised not only as the integration of economies
across nations but also as the international transfer of labour and technical know-how. This is another
aspect of globalisation that is often overlooked. Globalization also has cultural, environmental and
socio-political effects.
The term "globalisation" refers to a broad network of relationships and activities that extend beyond
national borders in the areas of economics, culture, society, and politics (Yeates 2001). Globalization
may be broken down into three main categories: the economic, cultural, and social. Globalization is
largely an economic process of connection and integration. The rise in the number of contacts that
occur on a global scale has led to an increase in the volume of international commerce as well as the
dissemination of ideas, cultures, and beliefs. Despite this, there is widespread consensus that
"globalisation is not a policy choice but rather a reality to which decision-makers must adapt" (Wells
2004). Several hypotheses have been put up to explain the genesis of globalisation. Most often, this
phenomenon is said to have arisen as a direct consequence of advances in technical capability;
alternatively, it has been attributed to the development of market economies. On top of that, there is a
further argument that asserts globalisation is the product of the development of capitalism (Glazter
&Rueschemeyer 2005).
Globalization is an economic process that includes the exchange of services, products, information,
and technologies, as well as the economic resources of capital (Albrow et al., 1990). The proliferation
of global markets leads to a loosening of restrictions on economic activity like the trading of products
and money. The elimination of trade restrictions at international borders has made the establishment
of global marketplaces more practical (Martin 1990). Major contributors to globalisation include the
invention of the steamship, jet engine, steam locomotive, and container ships, as well as
developments in telecommunication infrastructure, such as the internet, telegraph, and mobile
phones. These factors have led to an increase in the degree to which cultural and economic activities
in different parts of the world are interdependent on one another (Stever 1972).

Although the term "globalisation" was used in the English language as early as the 1930s, it was only
ever used to the field of education, and the concept of globalisation failed to capture the public's
attention. Over the course of the subsequent several decades, the phrase would sometimes be used by
various researchers and members of the media, but it did not have a precise definition at this time
(James 2014). In his studies from the early 1960s, a French economist named Francois Perroux
coined the word mondialization, which is also rendered as mundialization. This was one of the
earliest helpful definitions that were generally used, and it was created by Francois Perroux (Manfred
et al., 2014).

The concept of globalisation was first articulated by sociologists Martin Albrow and Elizabeth King,
who defined it as "all those processes by which the people of the globe are absorbed into a single
world society." (Albrow and colleagues, 1990)
According to Anthony Giddens, globalisation is "the intensification of worldwide social relations that
link distant localities in such a way that local happenings are shaped by events occurring many miles
away and vice versa." Globalization can thus be defined as the intensification of worldwide social
relations that link distant localities (Giddens et al., 1990).

Roland Robertson, a professor of sociology at the University of Aberdeen, offered the following
definition of globalisation in the year 1992: "Globalization may be defined as the compression of the
globe and the amplification of the awareness of the world as a whole" (Robertson 1992).
David Held described globalisation as a shift in the spatial structure of social contacts and
transactions, which were evaluated in terms of their breadth, depth, speed, and influence on
producing transcontinental or inter-regional flows (Held 1999). In 2014, this was referred to as "the
definition that is most often referenced."
Thomas Larsson, a Swedish journalist, wrote a book titled Race to the Top: the Real tale of
Globalization in which he portrayed globalisation as a process that results in a shrinking of the globe,
with shorter distances and items that are brought closer together. It refers to the growing ease with
which a person on one side of the globe may engage, for mutual advantage, with a person on the
other side of the world who is located on the opposite side of the world (Larsson 2001).

He states that globalisation is the extension of social relations across world-space, defining that world
space in terms of the historically variable ways that it has been practised and socially understood
through changing world-time. Paul James defined globalisation with a more direct and historically
contextualised emphasis: he states that globalisation is the extension of social relations across world-
space (James 2005).
Globalization is defined by Lechner and Boli (2012) as the process through which more individuals
spread out across vast distances become linked in more and varied ways (Lechner et al., 2012)

Review of the Published Material

Arguments in Favor of Globalization:

There is a school of thought among academics that contends globalisation, despite the fact that it does
have some positive outcomes and outcomes, also has some negative outcomes and outcomes. Ireland
and Hitt (1999) pointed out in particular that the breadth and depth of the consequences of
globalisation have led them to the conclusion that a great number of nations would be stripped of
their sovereignty in the not too distant future. This forecast is based on the findings of a research that
claims the processes of globalisation have resulted in something of a seesaw effect between the faster
expansion of the global economy in certain nations and the rising polarisation of social inequality in
other countries (Noruzi and Hernandez, 2010).

As a result, the purpose of this research is to investigate the contributions made by a number of
different academics and organisations about the circumstances that have led to a more globalised
economy, as well as the advantages that it offers and the challenges that it poses.
An issues brief published by the International Monetary Fund elucidates precisely what does not
constitute globalisation. Because the majority of people have incorrect perceptions of what the global
economy comprises, it is necessary to provide appropriate explanations on the subject matter. This
explanation is crucial because of this reason. According to the information presented in the article,
globalisation is not the key factor that contributes to pay moderation in low-skilled labour in
industrialised nations. This runs counter to the widely held belief that highly globalised economies
would always be characterised by persistently weak wage growth. According to the International
Monetary Fund (IMF), technological advancement is more to blame for this factor than globalisation.
According to the International Monetary Fund, the problem lies more in the fact that as more jobs are
automated, fewer people are required to perform the automated tasks, which in turn leads to a
decrease in the amount of labour that is performed, which in turn results in lower wages for the
labour that is performed (IMF Staff, 2008).

In addition, globalisation is not to blame for multinational corporations' operation of sweatshops in

low-income countries, which feature low wages and deplorable working conditions for employees.
On the contrary, globalisation makes it possible for multinational corporations to pay higher wages
than what is obtainable in developing countries (IMF Staff, 2008).

More so than globalisation itself, what really brings about human suffering is the collapse of the
political systems of individual nations. It is important to keep in mind that the world has experienced
far more setbacks as a result of the first and second world wars as well as the great depression over
the course of the past century than it has as a result of globalisation. In point of fact, these
occurrences have been responsible for the setbacks suffered by globalisation (IMF Staff, 2008).
However, adopting a perspective of globalisation that is open-minded will invariably result in
increased economic activity. Integration with the global economy is thus more advantageous than
remaining apart from it. In order to accomplish this goal, nations will need to rid their political
systems of corrupt practises, improve their infrastructure, and free themselves from the constraints of
financial instability.