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March 20, 2009

Globalization, Good or Bad?

Are you with or against globalization?

Politics nowadays is the most popular topic; while sports news take 15 minutes, weather forecast extends to 3 or 4 minutes, we can still notice that politics’ news never ends.

Everyone criticizes everyone; I mean noone is satisfied. Nore citizens, nore the best politicians are capable of reaching an agreement to let go the power.

Who can deny that politics are the main cause of the world’s problems?

The Middle East conflicts can be resolved in a simple agreement, but still, power and control issues are put to the test; same in Africa and other nations where conflicts arise because of a difference of opinions or interests.

We can not pass by politics without linking it to economics and globalization!

The politics and economics are so linked to each other that they became complimentary; they complete each others in a way or another.

How?

All the political decisions, on the international level, are meant to increase the potential and to develop the economy of the concerned nation. For instance, the NAFTA (North American Free Trade Agreement) agreement that was signed between the USA, Canada and Mexico, meant to improve the trading between these nations, all by reducing costs; the main benefit is dropping the charge of American products or Canadian inventions in order to use it and export it in a competitive manner. This is where politics of nations interfere, to put on the pressure upon less developped nations by signing them for agreements such as the no tarrifs, reduced taxes or free transit!

The only winner, eventhough it is done on the long term, is by far the strong nations that get stronger on behalf of poor countries. Imported good and services into less developped nations, at the same price of local goods, will form a competition within this latter market, causing local firms and companies to shut down.

On the other hand, globalization has emerged and expanded; it has caused a change in culture, style of living, education and manners in almost every country. Multi national firms, backed by the governments, are seizing control upon the local markets of coutnries, making the world look like a small village for them. Either via franchising, merger or direct investments, the MNC (multi national corporations) are becoming as powerful as nations and are capable of putting the pressure upon a country’s economy, urging its government to set rules in its favor.

Globalization, however, has its own advantages.

It improved the styles of living by the introduction of new health care products, new institutional factors, better hospital equipments, internet, computers and more know how than any time before. major companies such as Coca Cola, Pepsi, McDonalds or burger King are all finding themselves a place to invest directly of via a franchisee just to expand and cover the biggest area possible.After all, what really matters is the market share!