Essay in very simple language with the boundaries of different words here. Here you can find Essay, Speech, Paragraph on Economic Globalization in English language for 5, 6, 7, 8, 9, 10, 11, 12 or IAS, IPS Banking and other competitive exams.
Essay on Economic Globalization for Students in Very Easy Worlds
Adam Smith is considered an exponent of the concept of free market. He believed that if the state does not interfere in the economic process, production will continue to grow and an ‘invisible hand’ will bring its benefits to the lowest level.
The economic fundamentalist basis of the policy of liberalization which is nowadays was presented by Adam Smith in 1776 in his famous treatise Wealth of Nations. Globalization is a natural part of this liberalization, but also the international incarnation of liberalization. This directly implies that the economic process is an autonomous process and intervention in it impedes development.
Economically it would also be unfair because the competition in the free market will help in keeping prices down and making economic services more efficient, which will naturally result in the consumer ie society getting more efficient products or services at a lower price.
The lack of competition in the market facilitates the path of monopolistic economic process and consequently it becomes more beneficial to the producer rather than the consumer. The ideal market is one in which both the customer and producer sides have complete freedom and power to negotiate and this is possible only in the economy of the free market.
Proponents of globalization also argue that if a country subsidizes its producer market or provides more facilities than others, it is to suppress healthy competition, which ultimately has to bear the brunt of the consumer ie society. Therefore, the free market meets both ethical and economic criteria. It promotes the interests of consumer society by promoting human competitiveness, by promoting humanitarianism and by eradicating economic autonomy.
When Adam Smith spoke of free markets and healthy competition, he also warned of the danger that centralization of economic power would not allow the market to remain independent in the real sense. Just as centralization of political power suppresses the civil political rights of society, similarly centralization of economic power transcends the freedom of society in the economic dimension, because society as a consumer starts feeling poor in front of centralized economic power. goes .
Therefore, Adam Smith wanted to keep out such big rivals in the market who could be monopolists. In the system that liberalization globalization is creating, the market is getting engulfed in monopolistic tendencies rather than being free in real sense. Mutual agreements of multinational companies are not allowing the market to be competitive in real terms.
This form of globalization is being called ‘corporate globalization’. David Corten, in his study ‘Vahan Corporation’s Rule the World’, has proved that the multinational companies and national companies from outside have become so close together that they are now called competition in the real sense. Will not be correct.
The famous trade-enforcer Cyrus Freedheim concludes that the trend that will control the world economy in a short period of time should be called ‘Joint Entrepreneurship’ (Relationship Enterprise). The income of such multinational enterprises will be more than the income of most nations. It is clear that this trend of globalization is oriented towards economic monopolism. But this time this monopolyism will not be able to be controlled even by the state, because the power of the state itself will be less than this.
David Corten says that today’s corporate system disguises a organized competition, which means that companies that appear to compete in each other are mostly interconnected. On the other hand, they continue to promote competition among smaller companies living on the periphery and as a result these small companies bear the bulk of the cost and the corporate world gets a large share of the profits. Another sub-consequence of this is that small companies either dissolve themselves or become agents of them through this corporate globalization.
To corroborate his argument, Cortain cites the example of the combined entrepreneurship of two agri-market companies – Cargill and Archer Daniels Midland, which resulted in 41 per cent of every dollar spent on food that a farmer received. , He is now getting only nine percent. On the other hand, the consumer is paying more than before. This means that neither the productive farmer nor the consumer society is benefiting from this free market.
The condition of Indian agriculture and farmers is worse. This system neither confirms freedom nor is economically beneficial for the society. It does not appear to meet both ethical and economic criteria. In fact, small entrepreneurs are not able to get the same market facility as multinational companies are comfortable, so there is no real competition among them. In other words, the free market can also be called formally free, but never in real terms.
In fact, it was Adam Smith himself who pointed out this danger. He said that when the people of the same business meet each other, the center of their conversation becomes mostly the price increase, that is, their grouping takes the form of a conspiracy against society.
The truth is that if they are competitive in the real sense then they can be considered only if they provide their goods at a lower price than the other. But if they get together to raise prices, it simply means that their competition is just a virtual competition, not a real one.
Its conclusion is that the human freedom that is called for is the virtual freedom in this liberalization-globalization and the economic benefit of society is talked about.
Ironically, globalization, which asserts itself as a human freedom, rules institutions like the World Bank, the World Trade Organization and the International Monetary Fund impose their conditions on small nations encroaching on their right to political sovereignty, that is, independent decision. . It is noteworthy that sensitive people are beginning to feel this encroachment in a country like United States.
In fact, in the concept of Adam Smith, there is no scope for centralization of any kind of power, economic or political. But globalization not only centralizes the economy in some corporate institutions, but also acquires the power to control the states, which implies that the state is also centralized with the economy.
When Adam Smith spoke of free competition, he meant to reinforce the freedom of human enterprise, not to bring that freedom under corporate control. Keynes himself said that philosophy, art, literature, etc. can be seen in the global context, but the products must be indigenous – homespun – and economies are better national.
Indeed, the free market that Adam Smith is referring to is only possible in a decentralized economy and the national product that Keynes talks of is only ‘indigenous’. The real goal is human freedom. Because not only is it moral and therefore cultural, but it is also the basis of the economic-political-social welfare of humanity. In this sense, moral and economic are mutual and mutual. The economics of globalization have proved to be not only redundant but also harmful on moral-economic levels.