Module 2- Assignment 1
Is Economic Globalization Irreversible?
Economic globalization comprises to increasing economic
interdependence of national economies across the world through
a rapid increase in cross border movement of goods, service,
technology and capital leading to the emergence of a global
marketplace or a single world market.
Economic globalization is an irreversible process due to the
growing demands in every facet of globalized markets from both
developed and developing nations and economic policies of
various nations have suppressed the impetus for their own
economies to move forward thus debunking theory of economic
globalization as a primarily irrevocable phenomena. Globalization
is praised for bringing unprecedented prosperity and the
accelerating pace of globalization is having a profound effect on
life in rich and poor countries and in transforming regions.
The world trade has been the engine of globalization in last 50
years and in the post war years more and more of the global
production has been carried out by big multinational companies
who operate across borders. Organizations which operate
worldwide must redefine their ventures beyond borders in Red
ocean and Blue ocean strategies. Multinational companies have
identified to invest rapidly in developing economies to achieve
cost advantages and expand their operations mainly targeting
customers at the top of the wealth pyramid but they were not
affluent to extract the full value of their investments.
As the trend towards globalization continues the business
expansion would be fueled by improved market penetration,
geographic expansion, mergers and acquisations and often across
borders which will further accelerate India’s growth. India has
been ranked fifth in wielding economic clout globally after the US,
China, Japan and Germany, and ahead of European powers France
and the UK.
The key question is whether the growing globalization of the world
economy will lead to an increase in global economic growth and
equality.
