Potential Benefits and Risks of Deeper Globalization for Guidia Assignment

Potential Benefits and Risks of Deeper Globalization for Guidia - Assignment Example This essay declares that globalization therefore is considered as multi-disciplinary in nature with its roots in politics, economics, technology, sociology etc. It is however, critical to understand that major emphasis of globalization is through the economic integration where economies integrate with each other through free and unrestricted trade. As a result of this trade, not only technological transfer becomes possible but more foreign direct investment also arrives. As a result of these changes, economic growth can actually quicken. This paper stresses that term globalization has emerged during 1960s however it was during so called roaring nineties that it started to take the serious public attention. Over the period of time, the early literature on globalization however gave it a connotation that globalization is actually westernization vs. the rest including nationalism etc. Post 9/11 scenarios have made this impression much stronger with globalization taking different meanings and assumptions. The emergence of rationalism as a major framework for knowledge is considered as the first element which encouraged the development of globalization. Over the period of time, rational decision making has made it more important for nations and societies to actually expand their activities in order to grow and evolve. Capitalism is another important factor which has actually made it mandatory for producers to actually look for new markets to increase their sales volumes. Under capitalist ideology, producers of the goods a nd services actually attempt to obtain more therefore in pursuit of profits, firms attempt to expand globally. (Scholte, 2002) Technological innovation is another important factor which has resulted into the globalization. Rapid changes in the communication technologies, transport as well as other technologies have allowed better integration of economies across the globe. It is however, important to note that the changes in the way capitalism have progressed and emergence of rational thinking has actually created a social order which has fostered the technological innovation. Technological innovation therefore is considered as the result of capitalist development and rational thinking. Globalization however, gained more momentum with the spread of technological innovation. Supportive regulatory framework has also resulted into the creation and speeding up of globalization also. Supportive regulatory frameworks have actually eased out the entry and exit barriers thus allowing domesti c as well as international firms to become more proactive in entering into and maintaining their presence in the global market. Supportive framework however, has been made possible only due to the economic development and r