Global, political economy Essay Example | Topics and Well Written Essays - 1750 words

Global, political economy - Essay Example The many a vehicle of modernisation, international diplomacy and economic dynamism of countries catapult a certain degree of prosperity that is felt worldwide. Scope of Globalisation The phenomenon of globalisation affects society's economics and politics. Its primary processes include the forces that govern improvements in technology, advancements in transportation services, increased employment and income opportunities, and cohesive intercontinental economic cooperation (Jaffe, 2006). Most countries in the world witnessed rapid developments in the area of business in the past few decades. A global village has been created to formally launch an avenue where countries can enter economic agreements. Globalisation has been said to be at the forefront of these modern-day events. On the other hand, several critics consider globalisation as a disease rather than a solution (Kalb, et al., 2004). Most people, including numerous world leaders, deem it an organized procedure that connects com munities around the world to participate in a synchronised development process. In essence, the whole gamut of globalisation revolves around contemporary structures such as Information and Communication Technology, Trade Democratisation, Free Market, and diplomatic agreements that are openly participated in by all countries (Lawal, 2006). Employment-generating Activities Globalisation remains one big precursor for the exponential growth of employment opportunities among developed and developing countries. Due to the expanding consumer markets worldwide, various industries responded to the call of ‘supply and demand.’ Countries with robust workforces tremendously benefit from these activities, while other nations strategise themselves to be at par with their rivals. Such a healthy competition prompts the international community to generate quality products and outputs based on the labour of their citizens. Economic literature upholds that unemployment rates are primarily dependent on the domestic policies of governments (Kollmeyer, 2009). This fact incited political leaders and fiscal analysts to intensively study their economic regulations to perfectly suit the recent trends (Rama, 2003). For countries that formulate intelligent decisions on how to boost employment rates for their people, success is at bay. While countries that make the wrong decisions suffer greatly (World Bank, 2009). Empiric data confirmed that globalisation has a positive impact on countries where human capital is above average. In some African countries, wages are projected to increase for skilled workers, especially in the light of rising demand due to technological advances (World Bank, 2009). Increased Income The relationship between employment and income were noted by several economic authorities (Lecaillon, 1984; International Labour Office, 2000). Recent studies suggest that globalisation is also a massive contributing factor to the increase of income among workers worl dwide (Mishkin, 2008). Even though there is a disparity of income distribution among countries, the fact that wages are solely based on the skills of workers cannot be downplayed in the aspect of a globalised workforce. It was noted that the skilled industries and the advanced production mechanisms of developing countries are likely to have a strong impact on their competitive advantage (Sachs,