Contemporary World Forum Essay

1. 1. How do economic forces facilitate the deepening of globalization?
The dominant effects of globalization on different aspects of life have seized a substantial deal of
attention over history. The geographical gap seems so vast not until economic globalization takes
action. Moreover, economic forces have contributed to increasing interdependence in the
international context. The growing scale of cross-border trade of goods, services, and global capital
flows impacted the overall globalization process. For instance, we can avail products that were not
manufactured in our country. Economic barriers were eventually broken down, and market frontier
consolidations reflected economic expansion. Following this, it pioneered the economic
development and innovation that the millennium has ever experienced.
The economic integration process is not new, as historical data suggests that the first wave of
globalization in the modern era occurred in 1870 (Mishkin, 2006). According to Mussa (2000),
human migration, trading goods and services, and integration of financial markets are the three
critical dimensions of economic integration. The rapidly growing significance of information in all
productive activities and marketization are the two major driving forces for economic Globalization
(Shangquan, 2002). Moreover, multinational corporations (MNCs) have become the leading
carriers of economic globalization, and the advancement of science and technologies has
dramatically reduced the cost of transportation and communication, making economic globalization
possible. As well as this, the market-oriented reform carried out worldwide should be regarded as
the institutional driving force for this trend. Naz and Ahmad (2018) stated that technological
improvement has allowed companies to globalize their products rapidly. They also mentioned
human capital, labor, transportation and communication, and financial index as the critical drivers of
globalization in the combined panel and developed countries.
It is discernible that globalization has consciously affected our life quality through economic aspects.
Through globalization, humans can migrate, exchange merchandise, and participate in free trade.
The emergence of overseas workers and the surge of the BPO industry here in the Philippines are
among the manifestations of how labor is associated with economic globalization. The framework
of GATT and WTO has led countries to cut their tariff, aiding multinational corporations to reshape
macroeconomic mechanisms of the operation of the world economies by mass producing and
exporting their products without restrictions, which can also benefit the consumers. In the meantime,
internet growth stimulated information explosion and generated various networks across the globe.
Likewise, modernizations paved the way for convenient transportation systems and yielding
infrastructures. Furthermore, technological advancement notably reduced the cost of international
trade and investment, thus making it possible to organize and coordinate global production and
promote the culture of borderless economies.
However, economic forces may negatively afflict the consequences of globalization. The National
Geographic (2022) depicts that globalization provides businesses with a competitive advantage by
allowing them to source raw materials where they are inexpensive. Globalization also justifies
organizations taking advantage of lower labor costs in developing countries while leveraging more
developed economies' technical expertise and experience. Globalization reduces the government's
role in the economy and increases economic interdependency among nations. This
interdependency could benefit advanced countries with comparatively low-cost production
techniques and sufficient exportable capacities. Globalization is not seemed to be an effective
measure in the third world to address their fundamental economic challenges include massive
poverty, increasing unemployment, multi-dimensional human deprivations, starvation, inequality,
and environmental degradation (Sharma, 2013).

2. As economic globalization is the elimination approach of national boundaries to extend market
capitalism, such economic forces align themselves with classical economists like Adam Smith. In
this sense, globalization may open fortuity to some countries to organize production and allocate
resources according to the principle of profit maximization. But as this goes, it may facilitate an
interplay of wealthy countries' exploitation among third world countries due to cheap import of
natural resources and labor costs. As this continues, it may be the foreground of widening the
socioeconomic disparity and ascending global environmental detriments, which makes developing
countries vulnerable to its after-effect consequences.
It is observable in these contemporary times that international economies exemplify cohesiveness.
The world witnessed lively economic interactions such as escalation of market flows, investment,
capital, information expansion, and the interplay between imports and exports during the
all-inclusive globalization mechanism enacted upon identified economic globalization drivers. To
boot, the mobility of individuals has also displayed a progressive increase, for transportation and
the migrating process is made possible. In the bargain, globalization boosts economic and financial
interdependencies among countries and may affiliate social and political aspects. The integration of
economies has devised interconnectivity to take the edge of modern technologies and innovation.
Nevertheless, economic agents desire to earn formidable revenue. Thus, it may manipulate
emerging states and individual workers for profit maximization.
Implemented liberalization policies aggravate globalization. The recurring incline in competition in
the domestic market pushes organizations to venture globally. Hence, various business
organizations sell goods and services to other countries to augment their market share. Through
this, we could have a broad selection of products with the best price and quality. Globalization's
economic advantages can help us ameliorate our lifestyles and living standards at the fastest
possible rate. However, not everything regarding globalization is worthwhile, for it has
disadvantages. Any modification has winners and losers, and the people living in societies that had
been dependent on jobs deployed elsewhere often suffer.

3. References
Mishkin, F. S. (2006). The next great globalization: How disadvantaged nations can harness their
financial systems to get rich. Retrieved from
https://books.google.com.ph/books/about/The_Next_Great_Globalization.html?id=Zm2Pdw
7jbNEC&printsec=frontcover&source=kp_read_button&hl=en&redir_esc=y#v=onepage&q&f
=false
Mussa, M. (2000, August 25). Factors driving global economic integration. Retrieved from
https://www.imf.org/en/News/Articles/2015/09/28/04/53/sp082500
National Geographic Society. (2022, June 2). Effects of economic globalization. Retrieved from
https://education.nationalgeographic.org/resource/effects-economic-globalization/
Naz, A., & Ahmad, E. (2018). Driving factors of globalization: An empirical analysis of the
developed and developing countries. Business & Economic Review, 10(1), 133–158.
https://doi.org/10.22547/ber/10.1.6
Shang-quan, G. (2000). Economic globalization: Trends, risks and risk prevention.
Sharma, N. K. (2013). Globalization and its impact on the third world economy. Crossing the Border:
International Journal of Interdisciplinary Studies, 1.