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The Phenomenon of Globalization Essay
4454 Words18 Pages
The fast pace of globalization is creating serious issues and questions for many developing countries to deal with, such as should they join a free trade bloc or not? What will they gain by being a member and what will they lose?
Since the creation of the European Union, first formed by 15 Western European countries and most recently expanded to 10 additional European nations, have influenced many countries around the world to follow the European example and worked together in order to expand their marketplace and increase economical and political power. NAFTA, Mercosul, CAFTA, CARICOM, and CAN are good examples of such economic blocs. The North America Free Trade Agreement (NAFTA) is formed by United States,…show more content…
Corporations such as Coca-Cola, Ford, McDonald’s, Gillette, GM, Mitsubishi, and many others looked for different markets outside their country’s borders in order to increase their profitability. These kinds of corporations are called transnational corporations, and they have tremendous power and influence on the world’s economy. As pointed out by the nonprofit organization CorpWatch Holding Corporations Accountable (http://www.corpwatch.org/), the 300 largest transnational corporations in the world control one quarter of the whole world’s productive assets, which is worth US $5 trillion. Also, of the 100 largest economies in the world, 51 are corporations; only 49 are countries (based on a comparison of corporate sales and country GDPs).
The influence of these corporations is driving a phenomenon called globalization.
What is Globalization?
Globalization is the creation of international rules by governments and corporations in order to facilitate and regulate trade between nations. The goal is to ease the international trade laws, which will clear the way for these transnational corporations to exchange goods and services between two or more countries, thereby increasing their profitability.
There are three major categories of globalization: Corporate Political, Economic, and Technological.
Transnational Corporations are driving