Managed Globalization Essay

While imperialist thinking wreaks havoc around the world, the trend toward greater globalization offers hope, provided that adequate efforts are made to ensue that globalization is managed well. Globalization is the most popular trend in international economics. Increasing integration of world markets and exchanges of information and technology are definitely expected to help the least developed nations, thereby bridging the gap between the haves and the have-nots. Thus, the thesis of Bhagwati’s book, â€Å"In Defense of Globalization† – that, in fact, globalization helps the poorest people of the world – must be agreed with. After all, foreign direct investments are an extraordinary boost for the economies of the developing world. Moreover, by importing and exporting more goods and services than before, a developing nation may very well increase its income and also improve the standard of living of its peoples. It is generally believed that an increase in international trade is accompanied by an increase in income inequality, seeing that the majority of the people in developing nations are poor and cannot afford to purchase relatively expensive foreign goods in the local market, nor form gigantic enterprises to sell to the foreign public. Furthermore, globalization involves the risk of foreign companies taking advantage of the undeveloped regulatory structures in developing nations. As an example, a foreign water company in Argentina, after the mass privatization of Argentinian business, was said to have been very ethical before it entered Argentina. The company had connections with France and the United States. All the same, the company turned to poor service in Argentina soon after privatization. The water company was eventually taken over by the Argentinian government for its careless, irresponsible behavior. If managed correctly, though, globalization is expected to help our world in significant ways. The famous observation of Thomas Friedman must also be considered in this analysis: â€Å"No two countries with McDonald’s have fought a war against each other since each got its McDonald’s. † Indeed, peace is conducive to global economic growth. But, so is equality. Even though the gap between the haves and the have-nots has been widening in recent years, good management of globalization may work wonders for the global economy. BOOK REFERENCES Bhagwati, J. N. (2004). In Defense of Globalization. New York: Oxford University Press. Friedman, T. L. (2000). The Lexus and the Olive Tree: Understanding Globalization. New York: Anchor Books. WEBSITES Hacher, S. (2007). Argentina Water Privatization Scheme Runs Dry. Global Policy Forum. Retrieved from http://globalpolicy. igc. org/socecon/bwi=wto/wbank/2004/0226argwater. htm.