THE
CHANGES OF OUR WORLD ECONOMY
The changes that occurred in our
world, both in terms of culture and economy is inseparable from globalization.
Cited from Merriem-webster dictionary, Globalization is the development of an
increasingly integrated global economy marked especially by free trade, free
flow of capital, and the tapping of cheaper foreign labor markets. And
according from thatexplanation, Globalization was not be denied again has
happened in our world. Because there are many real examples of an increasingly
integrated global economy marked by free trade, free flow of capital, and cheap
foreign labor markets.
Free trade itself is a policy
between nations about trading without much rules in import and export within
the nations. The WTO is one of the many examples of globalization in terms of
free trade. The WTO is an organization consisting of its members in matters of
international trade. WTO followed by 158 countries who follow regulations as
well as international meetings held by the WTO. Already it is clear that the
WTO is a real example of globalization because it was followed by many of the
countries that will be interconnected in trading activity. Free flow of capital
is also a tangible form of globalization in the world economy, as everyone from
different countries can play their share in the international world. Does the
money flow occurs on a global scale that are influential in the world economy.
In addition, the tapping of cheaper
foreign labor markets are also evident in the present era. For this one, I am
rather against it. Because of cheap foreign labor markets are very detrimental
to those who work as laborers but very lucrative for owners of companies that
use their services. It also became a controversy when a documentary that lifts
the story of one Labour's clothing products from United States. The documentary
tells the story of the workers who are unfairly treated by the company such as
hours of work that greatly exceeded the maximum hours of work and wages that
are below average. In this documentary, they also reviewed that the price of
clothes that were later sold for very high compared to the wages of the
workers. This is one of the consequences of globalization.
And ofcourse, i believe in the
existence of globalisation in the world nowadays. And globalization are indeed
provide an advantage for all countries, but not the possibility that
globalization harmful for some countries. On my own thinking, globalization is
pretty unfair for developing countries, because sometimes they like less effort
in maximazing their resources and instead
letting other countries take advantage of their resources. As an example that
occurred in Indonesia, Freeport is an American owned company located and take
Indonesia's natural resources (copper and gold). But Indonesia itself is only
have a slight profit. All this happened because Indonesia as a developing
country who can’t cultivate its own
natural resources and in the end resulting other countries taking over.
However, globalization could also be a profitable thing when developed
countries help developing countries in terms of trade, when the countries
involved trading are complementary to each other and not self-centered.
As a conclusion, first I believe the
existence of globalisation in the world both in terms of culture and economy. Second,
there are alot of real forms of globalization that has occurred in our world.
Third, globalization can be good or bad, it all depends on each country's
action.
By :Stephanie Diani
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