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Westminster

International College
Assignment of International Political Economy

Mavlonbek Soliev

0086MWMW0612

Bachelor of Arts Business Studies

International Political Economy

The first semester of course

Submission is on 20th of August, 2013

The lecturer is Mr. Gopal

Individual assignment

Table of Contents
1.0 Introduction .............................................................................................................................. 3 1.1 Globalization of Economies ................................................................................................. 4 2.0 Issues of Globalization .............................................................................................................. 5 2.1 Education and Globalization ................................................................................................. 6 2.2 Technology and Globalization .............................................................................................. 7 2.3 GDP and Globalization ......................................................................................................... 7 2.4 Globalization and movements of industry ............................................................................ 8 3.0 Globalization with developing countries .................................................................................. 8 3.1 Globalization and Developed countries ................................................................................ 9 4.0 Globalization and France .......................................................................................................... 9 4.1 Economic growth of France. GDP rate ............................................................................... 10 4.2 France and Globalization of Technology ............................................................................ 11 4.3 Economic Position of France .............................................................................................. 12 5.0 Conclusion ............................................................................................................................. 13 6.0 Bibliography.14

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1.0 Introduction
The globalization is rapidly covering the whole world and no doubt around that. It changed the forms of history and existing conjuncture is different. Globalization has not been practiced in this step of greatness in the past or at rapidity that converting and incorporating the public. The main intend of this assignment is to give information about globalization of economies, issues of globalization and how it is affecting the countries and one specific country that is Singapore through focusing on exact connected questions. Globalization talks about to the growing independence of countries resulting from the growing assimilation of trade, individuals, finance and thinking that in one global marketplace. Crossborder outlay and international trade are the key components of this integration. It represents the huge marines in defining the upcoming progression of the domain. Globalization made a started after World War 2 but has speeded up extensively since first half of 1980, focused by two main factors. The first one implicates technological improvements which have put down the cost of communication, transportation and computation. The second aspect must do with the growing liberalization of line of work and capital marketplaces. The globalization has completely supported trade and industry development in Asian economies that is Singapore. One thing here, there are only few developing countries that equally involved in globalization. But the countries that strongly involved in globalization, advantage comes with new risk and also challenges. (Shangquan, 2000)

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1.1 Globalization of Economies

Globalization has various measurements that are; economic, security, health, political, environmental, cultural, social and others. Many people understand the means of globalization major developments in international line of work and interchange in more and more integrated and no border across many countries economy. It is said always there were growth only in

outmoded intercontinental line of work in goods and also service area, but there has been similarly in interactions of monies, in principal engagements, in machinery transfers, migration, flows of information and ideas. For the most currencies is the best time when rates floating. The risky crisis would be predicted by them. It is the fact that exchange rate is changeable, people would take a chance on them, the most of the times fluctuations is unfriendly for the economies affected. Foreign moneylenders are watchful they know that exchange rate is not guaranteed. Caused events that Asian crisis brought down currencies this has been floating, they jumped in the scared free falls after the breaking down of fixed rates. The countries, like Singapore that may tie itself permanently to a complex currency, the reason is it dollarized. The idea is to expense probable of monetary and fiscal policies for the protection of the exchange rate. No doubt the dollar might substitute local currency like unit of payment and it shows how currency board essence is. One well enough awarded with reserves of hard currency to persuade the world of exchangeability and influentially found out to defense that reserves. There are many bases of globalization above the previous some periods. Technological improvements which have importantly pushed down the costs of transportation and communication affectedly brought down data dealing out and evidence storages cost. The later stanches from improvements in excess of the last rare periods in electronics, particularly computer revolutions. The World Wide Web is some of the appearances of this innovative technology, where currently $2,500 notebook computer is more influential than a $15 million mainframe computer of twenty years before. (Global Policy Forum, 2010)

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The next basis of globalization is trade liberalization, further structures of financial liberalization which have controlled to decreases in trade safety and further liberal world trading system. Procedure made start one century before, but Greta Depression and two world wars disturbed it. The process restarted later Second World War, in 1946 Overall Agreement on Tariffs and Craft /GATT/ which progressed in to the World Trade Organization /WTO/.

2.0 Issues of Globalization


Several global issues can be found, if they are researched in worldwide but there are some issues that are covered whole world and they are unemployment, poverty, trading issues and so on. Unemploymentseveral aspects that connected to globalization is the reason employees to migrate from motherland that lives in inferior countries to other advanced countries to earn money. No doubt they might leave of absence the families, will be some time in that place. Seldom has they gone to the far countries, mostly they move to the near sides because, going on in follow religions, sometime follow same laws, customs. Generally, it can be said that globalization has evidently helped to the unemployment, because in countries that is industrialized companies move their factories to places where they might take a low salary workers. PovertyIn the world there are no people are living in the same condition and not same comforts are covering them. In some people are struggling to be survive but there are others who are wasting the resources, wealth. According to the World Bank reports that its long held estimation of the amount of the people living on correspondent of $ 1 one day has currently become $ 1, 25 for one day. According to the poverty line of $ 1, 25 one day, the reviewed estimates determine 1.5 billion The World population lives at this line or down. Earlier estimation was 985 million, less than current estimate with the older quantity of a $ 1 one day five years before.

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Two decades ago, the estimated number of poor has been reviewed upward, from 1, 5 billion till 1, 9 billion. The World Bank reported which the occurrence of poverty in worldwide is much more than the past estimations have advised. The significant reason is that last data has subliminally undervalued the charge of living in most developing countries.

2.1 Education and Globalization


Globalization carries the education to the obverse positions. In the fundamental sermon, education is estimated to be the most important implement for incorporation in to knowledge humanity and the industrial economy. It can be thought that, they are all overstated prospects. Education is definitely democratized as many persons reach advanced stages of learning. It is single factor in economic development and education awards are limited. There are only two questions enough to think through on the topic of education that are; what is knowledge getting from globalization? And next one what is being done for the fairness guiding principle by globalization? The answer here is that knowledge, over teaching, are turning out to be article of trade. People a service bargain rendering to their predilection, financial resources. Schools and universities will be place for market, when education is a commodity. Equity policy is sidelined. Dominated the debate on new economy to highlight new chances for people of education and training, but in one time there is a varied retraction subsidy and services, like education and public education and gender equality. The going down of per capita income in many countries pushed up the opportunities budgets of schoolchildren, especially who are in not urban places, during development costs of teaching ( tuition payment, uniform, conveyance of school ) also, speeding up moving of qualified people to the northern republics. (Wood, 2008)

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2.2 Technology and Globalization


Anytime in outside one cannot going to somewhere without seeing the people who use the internet on mobile phones, tablet PC laptops, texting. It is the fact that information technology fluctuating the live people are living. Among the driving processes of globalization one of them is IT. Developments of IT show itself in last two decades in computer hardware, software, telecommunications brilliant improvement period that human capability to contact information and economic impending. Several improvements simplified efficiency achievements among all zone of economy. IT efforts inventive usage of funds to stimulate new goods and concepts through countries, humanities, and irrespective of geographic location. Generating efficient and effective stations to give-and-take material, Information Technology was the substance in place of global integration. Globalization speeds up the revolution of technology. Day by day it looks which new techno innovations is being generated. Changings are becoming too rapidly most of the people try to catch up, update new devices. Technology is playing significant role for making new occupations, innovations and networking locates to access globally. (Levin Institute, 2012)

2.3 GDP and Globalization


In different parts of the world customers wants to get more opportunities in feeding. So worldwide trade organizations contact of customers to improve variation of belongings. In the case of developing incomes to scale globalization leads to extra economic growth among all partners. A mathematical derivation shows that developing countries might gains more in terms of growth rate. It will be shown below that graphically as the case. Globalization effects on the influence and harmfully on the poor countries. (Wood, 2008)
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Generally, globalization involves growing trade, dropping tariffs, advanced technology, and growing economic combination. All of these factors have linked to developed economic improvement, so GDP will, in a normal model, be higher than if globalization has not been exist. Though, several economic happenings profit society or a lot of people, there are often 'losers' from economic fluctuations. Globalization will harmfully influence exact crowds of people and systems, but it will push up the GDP of completely countries and their societies.

2.4 Globalization and movements of industry


Globalization has been accelerated in the 19 century with the industrial revolution, such as mechanical mills and firms have become more public. Several companies used raw materials from distant lands. And they also have sold their products in another country. Movements in industry are understood such as machinery and technologys coming to the industry and reducing the employment rate.

3.0 Globalization with developing countries


Globalization is progressive development like it will push up productions and creates more jobs over developing countries and many of the developing countries are establishing new several industries, occupations and result is they are improving their economy over the globalization. But there are several countries that they do not want to come to this process, why? reason is scaring of losing the culture and identity. And also quite number of them scares which developed globalization might bring to damage of monitoring through economic, political assessments and also their conducts. (Unescap, 2013) Global trade Globalization has occasioned in an enormous increase in world line of work. World trade rose at above $17 trillion during 2005, taking developed at a normal degree of 10.7 percent per annum among 1950 and 2000. Developing country trade increased quickly in complete terms, from $ 41 billion in 1950 to almost $ 6.1trillion in 2004. Nevertheless, the developing nation fraction part of total trade has continued practically unaffected during this dated, at under 30 percent. If China
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is omitted, the portion of developing nations in international trade has essentially dropped from 31 percent in 1950 to 25.7 percent in 2004, reproducing very rough involvement in the extension of trade, and weedy routine by several of the lowliest states.

3.1 Globalization and Developed countries


Globalization is forcing companies to adjust altered based on new philosophical drifts, strategies that attempt to stability the rights and welfares of folks and society as a entire. This alteration allows the company to compete on a global level, and it is also a essential modification of executives, administration of employ and lawful acknowledgment of operative involvement and management in the improvement and carrying out of programs and policies of the firm. Cut the danger by modification can be succeeded by fascinating corporations from worldwide economic societies and partnerships through resident and global concerns.

4.0 Globalization and France

France is the one of the leading and the largest country in Europe that has developed industrial economy, with nearly 68 million population and its important activities are automobile industry, chemicals, information technology and fashion. The capital of the country is Paris and the area that covered France is 635,774 square kilometers, its European part is 543,975 sq. km and it is the 40th largest in the world. (European Union, 2013) The France is always conflicted when it faces to globalization. Other side country was one of the greatest receivers of the globalization and positions for benefit more. Main globalization challenge of countrys looks to be to align famous impresses with the actualities in arrears its
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integration in to the international economy, during French capitalization strong point and helping unhelpfully exaggerated through globalization. Consumers, labors and all companies of the France have had intensions from globalization. Millions of jobs, new occupations have created in France. One people out of seven works for foreign owned company, but that number is 1 in 20 in USA. France has received more than $ 500 billion in the last decades. Country positions comparatively high such as global innovation spearhead. However, it will be able to attitude globalization from the solid disreputable: productivity, infrastructure is high and community service of the France is durable.

4.1 Economic growth of France. GDP rate

Country has the 5th largest economy in the world on a Gross Domestic Profit (GDP), placing it after United States, Japan, Germany but it is the advance of the United Kingdom. Frances GDP is worth 2.650 trillion USD bases in 2011, and the World Bank reported it forms 4.28 % of the world economy. (Vinokur, 2012) In the first three month of the 2011 its GDP reached 0.9 % per cent. There is the one fact that should be mentioned in the last four decades that is between 1978 to 2010 averages GDP of the France has been 0.49 % per cent. In the past its the highest GDP rate achieved 1.60 % per cent and five years before when it was 2008 years it has been in the lowest rate -1.60 %. In France growth rates of economies have been remain for many times due to conventional arrangement of the economies. (Daniel S, 2008) There is table below that will show Gross Domestic Product (GDP) progress rate of the France republic aimed at the previous four years.

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In here chart below shows France GDP per capita from 2004 till 2008:

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4.2 France and Globalization of Technology


In the global economy one of the main and transformational sector is Information Technology/ IT/. Progressively, a countrys rank lengthways the information technology camber define its rank in the worldwide economic striking order. Technology also is called a strategic economic differentiator that a durable which divides higher economies afterwards the relaxation of the world. Present and Upcoming technological competences of the France, in the quickly globalizing IT world, will be involved in defining the economic richness of it since any economies long term growing probable is led by technological invention. The general agreement is that information technology of the Europe substructure not only lags Overdue the United States and Japan, but also which the technology opening is speedily concluding among Europe and China, India and South Korea. Europe hazards actuality clasped among the in elevation end trial modeled by the United States and Japan and the catch-up challenge modeled by the quickly developing nations. Inspite of particular essential assets, France is extra of a technology supporter than a technology lead. (Vinokur, 2012)

4.3 Economic Position of France


Frances labor marketplace is so deprived and it presentation is familiar and was a problem for periods. But until lately the economy was sustained up by little attention tariffs and strong customer expenditure. It has identified, particularly when the inactive growing of country economy is compared with the bestselling achievement of Germany. Germany has risen more than France. And also France is the lowliest performance economy in current time in Europe. (Seagar, 2007)

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5.0 Conclusion

To sum up it can be said here, globalization is the main motivating energy of the world economy internationally. In there even one country cannot be shown, not even the solitary territory of north Korea, has been already touched and affected by globalization. For 23 years, all walls have dropped, borders already removed and six continents have been connecting such as never in the past. Globalization is the important material internationally, hemming nations and all parts of the world together in extraordinary methods. It is easy to see France is ahead among some European countries. Moreover, France economy is unmoving recovering leisurely and need inventions. Investment rate, education stages, population growing are playing a gradually role in thriving the economy. And it can be recommended for the country here that France should focus on its own education system because unemployment rate of it high and it is affecting badly to the labor market and no one can deny peoples who are educated contributing to decrease an employment rate. Today country has not been placing much power in to early stages unemployment difficulties, like more than 15 % of populations who are aged 20 do not have occupations. But overall, it can be said France have been one of the winner from the globalization.

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6.0 Bibliography

1. Daniel S, H.a.J.P.Q., 2008. France and Globalization. Washington: Washington, DC 20036

The John Hopkins University. 2. European Union, 2013. France. [Online] (1.15) Available in: http://europa.eu/abouteu/countries/member-countries/france/index_en.htm [connected 09 August 2013]. 3. FAO, 2003. specific globalization issues of developing countries. 3rd ed. Rome: Agriculture and Consumer protection. 4. Global envision, 2013. developing countries and globalization. [Online] (1.15) Available at: http://www.globalenvision.org/ [Accessed 03 august 2013]. 5. Global Policy Forum, 2010. Globalization of The World Economy. [Online] (1.15) Available at: http://www.globalpolicy.org/ [Accessed 30 July 2013]. 6. Levin Institute, 2012. Technology and Globalization. [Online] Levin Institute (1.15) Available at: http://www.globalization101.org/ [Accessed 1 august 2013]. 7. Seagar, A., 2007. France's unhappy position. [Online] (1.15) Available at: http://www.theguardian.com/business/2007/may/07/france [Accessed 05 August 2013]. 8. Shangquan, G., 2001,Economic Globalization, Trend, Risk and Risk Prevention. [Online] 2 United Nations Plaza, Room DC2-2170 (1.5) Available at: http://www.un.org/esa/policy/devplan/cdpbackgroundpapers/bp2000_1shangquan [Accessed 29 July 2013]. 9. Tobacco controll, 2013. Globalization of tobcco industry. [Online] (1.15) Available at: http://tobaccocontrol.bmj.com/ [Accessed 02 August 2013]. 10. Unescap, 2013. Globalization opportunities and challenges. [Online] (1.5) Available at: http://www.unescap.org/ [Accessed 04 August 2013].

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11. Vinokur, 2012, what France republic thinks about globalization [Online] (1.15) Available at: http://www.globalization101.org/what-france-thinks-about-globalization [connected 04 August 2013]. 12. Wood, J,S,M, 2008. The Impacts of Globalization on education reform. A case study of U, pp.76-80. 13. Yern, J.C.V., 2011. Asia Economy. CNBC Asia Pacific, 5 May. pp.4-6.

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