Globalization and the associated developments in goods, finance and labor markets are the subjects of controversial discussion. They can hardly be stopped, but they can be shaped because they are the result of political decisions.
Effects of globalization on economic and social developments
The last decades of rapidly increasing international networking are known as the age of globalization. The associated economic and social developments on goods, financial and labor markets influence the living situation of every individual and the economic and social development of every national economy. In addition, globalization has become a catchphrase that is used by many developments in all areas of life that are perceived as positive or, more often, negative is used. Globalization is a controversial topic in private discussions, in public and in politics. The growing importance of fair trade products is an example of how the decisions of individuals can have a noticeable impact on international economic relations. On the other hand, people who need cash can request for personal loan funding at Cash.com.
The dynamics of globalization cannot be stopped in principle, but the process can be shaped by economic policy and needs to be shaped.
Process of globalization
The process of globalization can be shaped because it does not obey the laws of nature, but because the liberalization of trade and the movement of capital, deregulation and the development of technology are the results of political decisions. Even if they have autonomy lose, states retain political options for action – at national and international level – and can gain new ones, for example through international agreements, regional integration and international organizations.
The process of globalization needs to be shaped because, according to the knowledge of the economic order theory, market processes basically require an institutional framework. In contrast to the national context, this framework is not yet available in many areas at the international level or it does not meet the requirements that must be met today.
According to the wish of many economists, it should be supplemented by institutions that are specifically assigned to each field of activity, since function-specific institutions, according to the assignment rule developed in theoretical economic policy, are considered to be more efficient than those that pursue several goals at the same time.