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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..................................3

2.0 Issues of Globalization...............................................4

2.1 Education and Globalization..................................6

2.2 Technology and Globalization...............................6

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.........................................................................................................10

4.1 Economic growth of France. GDP rate................................................................................10

4.2 France and Globalization of Technology.............................................................................12

4.3 Economic Position of France...............................................................................................12

5.0 Conclusion..............................................................................................................................13

6.0 Bibliography…………………………………………………………………………….14

1.0 Introduction

Mavlonbek Soliev BABS SEM ONE/0086MWMW0612


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. Cross-

border 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)

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 storage’s 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)

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.

Unemployment…several 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.

Poverty…In 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 it’s 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.

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 GlobalizationGlobalization 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)

2.2 Technology and GlobalizationAnytime 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, telecommunication’s 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 GlobalizationIn 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)

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 industryGlobalization 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 technology’s coming to the

industry and reducing the employment rate.

3.0 Globalization with developing countriesGlobalization 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

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 countriesGlobalization 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 country’s looks to be to align famous impresses with the actualities in arrears its

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. France’s 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 it’s 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.



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

4.2

France and Globalization of Technology

In the global economy one of the main and transformational sector is Information Technology/

IT/. Progressively, a country’s 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 FranceFrance’s 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)

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.

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/about-eu/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].

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.


http://europa.eu/about-eu/countries/member-countries/france/index_en.htm

http://www.globalenvision.org/

http://www.globalpolicy.org/

http://www.globalization101.org/

http://www.theguardian.com/business/2007/may/07/france

http://tobaccocontrol.bmj.com/

http://www.unescap.org/

http://www.globalization101.org/what-france-thinks-about-globalization

http://www.un.org/esa/policy/devplan/cdpbackgroundpapers/bp2000_1shangquan


13. Yern, J.C.V., 2011. Asia Economy. CNBC Asia Pacific, 5 May. pp.4-6.


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