Writing Feedback / The influence of globalization on the world's economics [2]

Globalization is making the outer space into a single zone, where information, goods, service and capital exist and move freely.You know what they say: "Every medal has its reverse''- and globalization is not an exception. It has a huge effect on the global economics and can be viewed as either a positive or negative phenomenon.

No one can deny that globalization affects the world in a positive way. First, it contributes to the intensificationof international competition which is the critical factor of rise in production on national and global levels. Second, it is conducive to the economy of production scales which is the reason of reduction of costs and decrease in prices, that, in turn, lead to a stable economic growth. Third, it promotes a fair trade, satisfying all sides, i.e individuals, companies, states, trade unions or even continents.

However, there are also negative aspects of the influence, such as unfair division of globalization welfare, leading to conflicts both on regional and international agendas. Moreover, national economies depend on each other, which makes them unstable as local economic crisis in a state can have regional or even global consequences. For instance, financial crisis begun in Thailand in 1997 spread all over the South-Eastern Asia, indicating the vulnerability of inter-dependance. In addition, the danger that economics' control can be transferred from a sovereign country to a stronger power is inevitable, and, in fact, some specialists establish a fact that globalisation is, in some way, used as a means of national sovereignity's undermining.

To conclude, I may state that globalization is an inevitable process which gradually leads to the destruction of the "Old world order'' and I think measures are to be taken in the field of world economics.