Globalization can in general be described as the growing interaction amongst integration of activities. This mostly affects economic activities of human societies around the world. Nevertheless more realistically, globalization refers to the increasing economic interdependence of countries or states internationally through the escalating amount and variety of cross-border relations and transactions in goods and services and of global capital stream. It is also through the extra speedy and widespread diffusion of technology. In this case therefore, globalization includes both a description and a prescription. This paper examines the economic and political dimension of globalization and tries to link them with development and underdevelopment in the first and third world counties respectively. It outlines the role of the multinational corporations, international trade and fiscal agreements in the globalization process.
The description in globalization lies in the widening of international flows of trade, finance and information in a single integrated global market, while on the other hand prescription is brought in the sense of liberalizing national and global markets in the conviction that free flow of trade and information will be reason for production of best outcome growth and human interests and welfare. In addition, the most important aspects of economic globalization are breaking down of national economic obstacles and barriers, the international broadening of trade, monetary and production of activities and the emergent power of global corporations and international financial institutions in these processes.
The popularity of globalization has been as a consequence of two major reasons. The first of these reasons is the range and the speed and the way technology is greatly changing in the global world. Secondly is the latest sentiments and notion that has become accepted as changing the international environment and turning the whole world into a global village. Perhaps the most distinct characteristic of current globalization is the globalization of national policies and the policy making mechanisms. The national policies which include economic, social, political and technological aspects are until under the authority of the state in which they belong to. This has constituted to wearing down of national sovereignty and lessened the ability of the government and the people to make the choices from options in economic, political -social and cultural policies. This has led to political and economic implications (Kleniewski, 2010).
The World economy has become more globally integrated and has turned out to be a global village. Globalization has had many constructive, inventive and vibrant aspects all related to the increased market admission: Increased access to capital, information, technology and trade and these are projected to lead to better employment income and employment prospects. Globalization has brought about a quantum leap in...