Global governance essay

Document Type:Essay

Subject Area:Politics

Document 1

The dynamism which is being experienced in the world nowadays has been fostered by technological advancement. The developing countries have enjoyed the fruits of technology through international trade where investors engage in foreign direct investment in these nations. This has encouraged the transfer of innovation from developed nations to poor countries which has assisted to improve productivity. For business firms to boost their performance, efficiency and effectiveness through technology are crucial since it reduces the wastage of resources and improves quality. According to my opinion, I agree that the global economy is just in the way it impacts on society. Further, the comparative advantage associated with the global economy has encouraged specialization. This has led to high-quality products which meet the consumer preference or choice.

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Accordingly, the rate of wasting resources is downgraded since a country produce goods which demand less cost, Beukering, P. J. V. 27), world market creates a platform for many market players which increases competition favouring the consumer. Through the competition, the quality of products goes up and at the same time, the prices of the products reduce which improve the purchasing power of the final consumer. In fact, globalization was initiated with the geopolitical idea in which some countries can obtain some finances which could assist in purchasing some of the commodities. Most countries like the United States spearheaded the idea to market capitalism as a way of global management. This was seen as instrumental in the development agenda of most nations.

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According to Nakagawa, Junji, (2012, p. 45 ), superpowers like the United States and the United Kingdom develop new regulations concerning world market enabling them to enter and leave the market easily. On the other, developing nations don't contribute to the formulations of these policies hampering their economic status. This is to mean that, there are economic tariffs which are applicable to developing nations which hinder them to participate in the world market freely. They noted that their counterparts in the superpower circle have greater influence in the determination of policies since they are the main financiers of the global economy governing institution. The external debt's burden has become a trap which has rendered many countries bankrupt since the debt level has reached an unsustainable level.

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The loan is expressed in foreign currency which has made the servicing of the loan hard due to huge interests accumulated. He further argued that economies of these countries are in worst conditions unlike the time they wouldn’t access the debt. This has increased their vulnerability to dictations and tough policies which are encouraged by developed countries. For example, valuable minerals are to be refined by developed countries since they have sophisticated expatriates which the developing countries lack. Furthermore, harmful goods like hard drugs have gotten entry to other countries because of the international market with weak policies. These drugs have destroyed many youths since they are visionless. This is a clear indication that most countries in the future due to lack energetic and focused generation.

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According to Oxfam, (2000), it is unhealthy competition for an underpaid farmer to play in the same platform with subsidized farmer in the developed countries. (Philip McMichael, 2003, P. In addition, economic freedom promote creativity which has fostered productivity among the workers contributing directly to the GDP of the country. Being an economic advisor in a developing nation, I wouldn’t change my recommendations because they allow each market participant to enjoy the freedom in the world market. And that should be the main agenda carried by the global governing body to ensure equality regardless of economic status. In conclusion, most of the policies made in the global market don’t favour weak economies. Even these countries are not given the chance to participate in forums where regulations are made.

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