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The world is facing a rapid growth in economic, social and political integration. Globalisation has resulted to movement of factors of trade among countries. Globalisation has been favoured by scientific invention and innovation of communication and transport networks. Globalization is a process of integration of regional economies and cultures into a global network of trade. In most cases, the term globalization is used in economic terms.
Economic globalization refers to the increase in national interdependence of economies through an increment in international trade. It is the process of promoting economic integration between economies of different countries with the aim of establishing a global market. The main issue facing the world is how to manage globalisation and litigate negative effects it brings to humanity (Schulte, 2000).
Dimension of the problem
Although globalisation has brought numerous advantages to the world, other areas are affected negatively. In the competitiveness of producing, resources have been over-exploited, secondly the availability of goods from other countries have resulted to slow growth of domestic companies especially in countries where the level of technology is lower.
Developing countries are seen to be lagging behind because of globalisation since they lack the curiosity of developing means of producing better commodities since what they want can be gotten from the world market. With the differences in economic potential, some countries are lagging behind economically (Manfred, 2003).
Evaluating the problem
Globalisation is on a high rise with an increasing number of countries accepting to open its borders for trade with other countries. The move has created a larger market of goods and services in the world domain. With an increased demand, countries and companies are working hard to produce goods that will feed the markets and remain competitive.
The demand for goods in the world market have positive and negative gains, it has lead to more customer sovereignty since a customer has a large access to goods and services from different parts of the world. Globalisation started in the form of an F.T.A. (Free Trade Agreement), whereby international bodies like W.T.O. (World Trade Organization) discouraged restrictions to trade. Globalisation has made international trade easier through the removal of trade barriers and tariffs.
Globalisation is not a current issue but can be traced from early days. Pre-modern globalization was evident in the 19th century; the era of industrial revolution that utilized economies of scale to produce low priced household goods. During the time, population grew rapidly and living standard reduced drastically; the situation of the world triggered international and national policy makers to come up with strategies to cure the world’s economic problem.
With the start of world war one, pre-modern globalization began to break and some economies believed that the financial forces that were as a result of globalization had led to the emergence of the war. In early 1930s, came the great depression that affected economies of many countries especially those which had embraced globalization (Schulte, 2000).
Globalisation discourages protection of investors in order to promote their capital investments; it calls for economic integration where good and services, labour and capital find their way in the country where they can be put into maximum use. Today, the global economy has increased to significant levels and all this have been facilitated by trade agreements.
Several factors influence globalization that includes socio cultural, technological, economic and political factors. Globalization can also be used to refer to the national movement of culture, languages and ideas. This paper looks into the history of globalization, international trade, international financing and gives the merits and demerits of globalization (Manfred, 2003).
What type of evidence is offered?
The two chapters are introductory chapters in the topic of globalisation. They have considered historical trends in the world market and used textual information to explain the trend in the world. The writer tries to connect what was happening in yester years to what the world is going through. The uniqueness of the chapters is how simple they bring out the issue of globalisation in the current context deviating from past performances in the world.
Interpolation of the chapters
The chapters introduce the issue of globalisation in a starlight forward way, in chapter one, the writer puts much emphasis of macro or general explanation of the world situation and trade. As the chapter unfolds, he brings the trend that the world has come through to reach to the current position.
In the second chapter, having given a background of the topic, the writer goes back in time to examine the situation from past occurrences in the world. The writer discusses some historical issues that might have been ignored but in real sense, they contributed to globalisation. Although people have different interpolations, what the chapters are bring out is the trend that globalisation has taken to bring the world to its current level (Manfred, 2003).
In both chapter one and two, the writer introduced the topic of the book that is globalisation. He creates background information from a macro perspective and explains the topic in a straightforward manner using historical and modern trend in the world. In the chapters, the writer discusses elements globalisation as well as their role in the world current economic, social and political situation.
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Manfred, B.(2003).Globalization: a very short introduction. Oxford: Oxford University Press.
Schulte, J. A. (2000). Globalization: a critical introduction. New York: Palgrave Macmillan.