Effects of globalization and current economic changes
Talking about globalization is to put on the table the most indispensable theme today for the entire planet, since thanks to the freedom of labor markets, goods, services, technology and capital;They give rise to world economic growth, for years.
A clear example of economic progress is found in the figures: since 1950, the volume of world trade has increased 20 times and only from 1997 to 1999 foreign investments almost doubled, from $ 468 billion to $ 827 billion dollars. But the effects of globalization are not only reflected by investments but by a set of elements, such as politics, freedom of information, socio -economic problems such as inequality, corruption and unemployment.3
The globalization
It is an economic, technological, political, social and cultural process worldwide that consists of the growing communication and interdependence between the different countries of the world. That the process is also greatly great
This process is characterized by the increase in economic transactions both in volume and in the variety of goods and services that are exchanged. However, it has some effects that are the result of the aforementioned interdependence of national economies:
- Improvement of life in developing countries: access to the government of foreign loans allows to build infrastructure (roads, dams, or ports for example) and equipment. This results in its inhabitants and increases the quality of life.
- Increase the salary gap: globalization also has its negative face. Although new opportunities in developing countries allow to reduce unemployment rate not all jobs are well paid. The difference between the workers instructed and those who have no preparation is enlarged. Other people will not have new positions because they are destined for people with studies. This could be reduced if the government invests more in education, but in the short term the differences will be more noticeable. Much of those who are poor today will be poorer.
- Employment reduction by automation: Digitization and new technologies that are implemented in all sectors make the workforce unknic is less necessary, as well as in developing countries and those already developed.
Main areas of labor development
On the contrary, the trend raises sales workers;architecture and engineering;computer science and mathematics;management and business, finance, which will be the most demanded.
This means that training will become necessary during working life.
Current economic changes
The alterations that globalization in the economy have achieved are important for world progress, therefore they are constantly revolutionizing dynamics, and thus being able to be suitable for the current pace of life.
An essential change has been that a small part of the goods is marketed at the borders, trade continues to grow in absolute terms, but now a smaller part of physical products manufactured worldwide is sold. (ICT Beat, 2019) Another remarkable transition is that the services trade is growing 60% faster than goods trade. Also the arbitration of costs has become less important thanks to the fact that in the value chains only 18% of goods is strictly based on labor costs
Companies are spending more at R&D and intangible assets such as brands, software and intellectual property as a percentage of total income. This expense has increased from 5.4% to 13.1% of income during the period 2000-2017.
The geography of the global demand is changing as emerging markets consume a higher percentage of total goods. Since 2013, intra -regional trade has increased by 2.7 percentage points, a decline in the long -term trend. This means that trade is increasingly concentrated within the regions.
This last aspect leads us to think about closed economies, which are characterized by being completely closed countries, which do not allow flow in or out of their borders of goods, services, people, animals, etc.
This is a parameter that is measured through the degree of opening, which links the volume of exports and imports of goods with the Gross Domestic Product (GDP). It is a degree of internationalization of the economy, since it relates the importance of the external sector in the national economy. But the degree of openness taken in isolation can represent little if it is not included in an analysis with other parameters, since, for example, the United States is by far the largest world importer of goods and the second largest exporter, soThe relevance of its foreign trade globally is very high. (Scarpetta, 2017)
However, the United States is a first world country its economy grows every year and perhaps the fact of no imports or exports and everything consumed is produced internally and there are also no foreign investments or international companies, it is one of the causesof its assertive economy.
conclusion
In this way we can conclude that although the main characteristic of globalization is financial relations, there are countries that close their economies, a situation that is reflected benefactor for countries that can really load with the weight of their own economy without the need to go to international relationsas is the case of the United States.
Also that world dynamics change according to the demands of the modern world and inventions that generate a scientific and technological advance that make human work more and less appreciated.
References
- Aura Roldan . (11 of the 11 of 2020). Economipedia. Obtained from Conomipedia: https: // economipedia.com/Definitions/Economy-
- Scarpetta, g. (July 27, 2017). The Andes . Obtained from the Andes: https: // www.The Andes.com.ar/eeuu-el-pais-with-la-economia-mas-cerrada-del-world/
- ICT beat . (19 of 03 of 2019). ICT beat. Obtained from ICT Beat: https: // www.Ticbeat.com/company-B2B/5-Changes-Schedules-
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