Globalization is a critical trend that has expressed the potential of revolutionizing trade regionally and globally. It involves the global l integration in commodity, capital and labour markets. Various factors including technological development in transport and communication have quickly transformed the world into a global village where trade and interactions occur easily every day (Rikowski, 2005). The realization of the interconnectedness of local economies with the broader international economy has resulted in countries improving their participation in global markets, forming new trade agreements and negotiating favourable terms of trade. It has the potential of broadening export markets for countries that produce a surplus of various commodities, improve the mobility of human capital, and eliminate poverty (Christensen & Kowalczyk, 2017). Conceivably, if existing barriers to globalization such as unfair terms of trade and unnecessary customs are removed then it provides a critical avenue of promoting competitiveness in the commodity market but also fostering crucial harmony between participants that is necessary for maintaining a stable geopolitical economy.
Like any other process, globalization is rife with multiple challenges such as conferring more benefits on the rich countries than the poor ones, the existence of various trade barriers including taxes, loss of jobs from developed countries to lower cost ones, and unfair trade (Christensen & Kowalczyk, 2017). Based on this background, it is deceptive to overwrite the fact that globalization portends only benefits and no challenges, but the logic behind its sustained implementation will depend on whether the pros are more than the cons and if the problems can be successfully leveraged to confer further benefits (Rikowski, 2005).
Improper terms of trade among globalizing countries tend widening the gap between well-established economies and the developing ones (Christensen & Kowalczyk, 2017). For instance, the United States of America has a stronger economy and currency with various export commodities, exceptionally high-value products that compete unfairly with the countries that mainly export raw materials and unprocessed agricultural produce (Bissessar, 2004). It is implicit that with proper leadership, balanced trade, renegotiation of trade agreements, and enforcement of international trade rules, globalization will attain some sense of regulation hence overcome the glaring controversies surrounding its conduct (Dutt, 2014).
If globalization continues unregulated, then it results in an ever-widening gap between the rich and the poor. It leads to only a few individuals controlling the economy at the expense of the rest. As a result poverty, unemployment, despondency, political instability, crimes and a general negative attitude towards economic integration thrive (Dutt, 2014). Ideally, globalization can only succeed and attain the desired outcomes if each participant, as well as their nationals, perceive it as a fair deal as opposed to a strategy used by developed economies to deprive them of their little resources. Therefore, with a widening rift between the haves and have nots, it is difficult to attain not only national economic development but also a seamless global integration.
It is vital to formulate balanced trade agreements as a way of solving the various challenges that result from globalization and the problems associated with a widening gap between the rich and poor, (Gaston & Khalid, 2010). The economic policies adopted at the international level must harness the competitiveness of both the developed and developing countries but with a recognition of the fact that the former is already at a competitive advantage (Christensen & Kowalczyk, 2017). In a globalizing world, the economic policies applied should be universal in the sense that if customs and tariffs are to be eliminated on imports, then it should be done across the board (Gaston & Khalid, 2010). If such controls are formulated and strictly enforced, then it results in higher GDP for developing countries that contribute to improved living standards, increased availability of employment and expansion of the market and high value for surplus commodities.
Bissessar, A. M. (2004). Globalization and governance: Essays on the challenges for the Small States. Jefferson, N.C: McFarland & Co.
Christensen, B. J., & Kowalczyk, C. (2017). Globalization: Strategies and effects.
Dutt, S. (2014). India in a globalized world. Manchester: Manchester University Press.
Gaston, N., & Khalid, A. M. (2010). Globalization and economic integration: Winners and losers in the Asia-Pacific. Cheltenham: Edward Elgar.
Rikowski, R. (2005). Globalization, information and libraries: The implications of the world trade organization's gats and trips agreements. Oxford [England: Chandos Publishing
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