The economy in a situation of globalization acquires special characteristics. Globalization is the international distribution of different products and goods, but also various flows, services, and such things as data, information, and capital. It is not only a material process, but a discourse as well. The global economy has particulars that demonstrate both the advantages and disadvantages of this system. The complexities accompanying the implementation of the international economic model are varied and always require private contextual consideration. The ambitious goals of the global economic model include plans to establish international relations and create a well-functioning trade network. Global economic models are usually divided by scientists into several levels of scale. A sales agent can function at the local, international and the largest, that is, multinational level (Coulibaly 272). It is important that having such an initiative is in itself an advantage. Transnational trading companies participate in global economic processes and, in essence, are their catalysts. By increasing competition between sales agents, companies are not just competing, but interacting. New initiatives, born in the competitive process, move this economic model forward and confirm its effectiveness.
Economic globalization should be perceived as a process that affects not only economically prosperous countries, but also less successful, only developing states. The global economy and similar updated trade rules involve developing countries in the capitalist process of interacting with goods, which inevitably increases the turnover of funds in the country. In fact, globalization is the main factor in the economic growth of many countries, sometimes even the only one relevant. Thus, globalization affects the economic growth of poor countries, as they begin to participate in large-scale processes in which serious financial resources are involved. The global economy improves the balance of financial power in the world, making it possible for the poorer countries to get rich. For example, Asia, and most of all China, raised the economy during the period of globalization to unprecedented heights.
The prosperity of the global economy, according to some scientists, also affects the improvement of the environment. Countries leading the world economically interact with developing countries, and this assistance will inevitably affect the principles of production. The methods by which goods are made are changing and the ways of their distribution are being transformed. Statistics indicate changes in the level of the ecological sphere under the influence of economic globalization (Zhike et al.). In particular, it is necessary to stipulate the development of the carbon footprint, that is, the general harm to the environment, regularly caused by each person (You et al.). This harm is inevitable, but innovative economic ones reduce the harm to the environment by a certain percent.
With regard to the improvement in the general environmental conditions that are taking place in developing countries as a result of the process of globalization, the gradual transition to biofuels should be noted. Globalization should improve interaction between all countries and allow countries to develop equally progressively, find new economic strategies that are relevant in the context of changes in the modern world. However, the impact of globalization can be not only progressive, as it has its own many-sided disadvantages. One of the problems is the financial difficulties experienced by large countries actively involved in the process of globalization. This is happening despite the fact that monetary investments that catalyze global economic processes can reduce poverty in some countries.
In particular, the process of globalization is closely related to tourism practices. Tourism and travel have existed as an important cultural value for many centuries (Song et al.). However, in the context of the process of economic interaction between countries, the demand for exotic can have the ability to solve the financial problems of many developing countries. Interest in the cultures of other countries directly affects the economic situation of the countries of the second and third world. Tourism is a special socio-cultural institution, which is sometimes the main factor in the stable economic situation of some countries. Tourism culture can provide jobs for a large number of people. At the same time, the interest of tourists in the history and heritage of a country is also often a guarantee of its financial well-being. Travel has always been the best way to get to know an unknown culture and expand your understanding of the world, therefore tourism in the context of economic globalization is clearly a testament to the benefits and effectiveness of this process.
Speaking about the inevitable shortcomings of the process of economic globalization, it should be noted that the labor force from less developed countries can be exploited due to the shifted economic balance. That is, globalization, despite the unification of peoples under the auspices of a common economy, is still able to use cheap labor and find benefits in injustice. Globalization is an important and useful process, however, it should be remembered that the absence of borders and the assumed freedom in the economy can have their dark sides. The economic expansion of other countries can also lead to a fall in the local economy, a decrease in the level of local business enterprises. Small states are usually under intense pressure to supply unprecedented quantities of goods, so poorly regulated globalization is damaging these countries.
Thus, speaking of economic globalization, one cannot but take into account the risk factors that warn us that this process is not an ideal solution. Globalization gives certain freedoms, a sense of cultural international contact, possibly economic growth. However, in another situation, this process may turn into economic expansion, exploitation of labor for little wage and the full use of the resources of a developing country. Consequently, globalization should be perceived as a serious and important process, which, however, should be treated with caution and understanding of the context of a particular situation.
Coulibaly, Salifou K., et al. “Economic Globalization, Entrepreneurship, and Development”. Technological Forecasting and Social Change, vol. 127, Feb. 2018, pp. 271-280.
Song, Haiyan, et. al. “Tourism and Economic Globalization: An Emerging Research Agenda”. Journal of Travel Research, vol. 57, 2018. Web.
You, Wanhai, and Lv, Zhike. “Spillover Effects of Economic Globalization on CO2 Emissions”. Energy Economics, vol. 73, Jun. 18, pp. 248-257.
Zhike, Lv, and Xu, Ting. “Is Economic Globalization Good or Bad for the Environmental Quality?” Technological Forecasting and Social Change, vol. 137, Dec. 2018, pp. 340-343.