Issues of our Times Globalization Era

Question: Discuss about theIssues of our Timesfor Globalization Era. Answer: Introduction In todays globalization era, each and every country is connected to each other. The interconnection can be in any form like financial support, food, trade, and many more areas. It is very difficult for a country to run itself on alone. As when something is happened in one nation it automatically affect the other nations through which it is connected either by the distance, trade, foreign transactions and many more. Ever country is dependent on other countries in some ways (Jain, Girotra, Netessine, 2011). Global Connections on Basis on Inventory Countries are connected to each other in one way or another. Countries can be connected in the form of trade, sports, communications and events and many more. There is not nay country which runs itself on the basis of its own. Everything that had happened in one country would automatically affect another country in some ways (IMF). Inventory is considered as one of the important assets in case of globalization in many industries. The inventory structure would affect the number of suppliers, impact of lead times, uncertainty in demand, and cost of procurement on inventory. On the basis of inventory it can be said that each country is dependent on another country may be knowingly or unknowingly. This can be understood by quoting an example, an individual wakes up from his/her bed designed in Italy, he took a cup of coffee where coffee is made in America, and cup is made in Germany. Hence the people of a nation dont even know sometimes about adaptation of another country culture. As in case of global connections 90% if the inventory are traded through shipment. This lead in many advantages to the trade countries as in case of economies of scale, increase in specialization in one key area. Countries that most Benefitted from Globalization and which least Benefitted Many countries have got benefitted from globalization. India GDP has increase from 3.6% as in 1990 to 7.3% in 2016. In case of china in terms of purchasing power the GDP has increase from 4.1% as in 1990 to 17.86% in 2016 as shown in the figure below. The main reason for this big increase was growth in globalization. By analyzing on the table it can be said that globalization index is highest in case of smaller economies that have benefitted the most such as Ireland, Belgium and Netherlands. While in case of highly developed economies like Spain, France, Germany they are on the mid scale of globalization index. While countries such as Brazil, China, Argentina, and India though developed to a great extent but have low globalization index (Chakravarty, 2017). Impact on Trade Independence due to U.S Trade Policies In the early period of trade, the businesses were concentrated on their country only by ignoring to what happened in other nations. But after World War II the countries have started reducing the trade barriers and coordinating with the world economy. In context to United States it has concentrated in not only increasing the economy interest but also started focusing on making relations more peaceful. US president Donald trump has promised to regain the glory of American manufacturing. This can be done by imposing import tariff duties on China, Mexico and other countries. As imports have affected manufacturing companies and workers of U.S. this has made an impact on trade. Import in U.S. has impacted in a negative way to workers and local markets of U.S. due to direct competition with exporting countries(United States economy). Is Deglobalization easy? Deglobalization is a kind of re-empowerment of national and local. Economic growth of that particular country and countries related to that if Deglobalization is adapted. In case of deindustrialization it would majorly affect the job opportunities as many people would be jobless. Globalization has made a negative effect on least developed countries. The motive of Deglobalization is to motivate the traders to production not for the export but for the local market. The process of Deglobalization is very complex. But it has many advantages too as it will increase the possibilities of trade, finance, and others in one own country (Bohmer, Funke, Sachs, Weinelt, Weib). Conclusion After analyzing the report it can be concluded that though the globalization has raised the economic growth. Countries that have mostly benefitted from the globalization are Ireland, Netherlands while countries like India, china are considered as emerging countries for globalization. Besides from the advantages of globalization it has some disadvantages which can be overcome by focusing on Deglobalization. References Bohmer, M. Funke, C. Sachs, A. Weinelt, H Weib,J. Globalization report 2016: who benefits most from globalization? Retrieved by https://www.bertelsmann-stiftung.de/fileadmin/files/BSt/Publikationen/GrauePublikationen/NW_Globalization_Report_2016.pdf Chakravarty, M. (2017) Which countries have benefitted the most from globalization? Retrieved at https://www.livemint.com/Money/cNmmQJZdnMhbk3Ydbs26wI/Which-countries-have-benefited-the-most-from-globalization.html IMF, International monetary fund, Globalization: A brief overview. Retrieved at https://www.imf.org/external/np/exr/ib/2008/053008.htm Jain, N. Girotra, K Netessine, S. (2011) Managing global sourcing: inventory performance, Faculty research working paper, retrieved by https://sites.insead.edu/facultyresearch/research/doc.cfm?did=48597 United States economy, Foreign trade and global economic policies. Retrieved at https://countrystudies.us/united-states/economy-10.htm