Economic Globalization has a huge impact on our lives in many different ways. It allows us to eat fresh fruits and vegetables in the winter time, and when buy a product in Canada, 99.9% chance that product is made in somewhere else in the world. So what exactly is economic globalization?

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Economic globalization is to increase the interdependence of the world economy by increasing the flow of goods, and communications between countries. One thing that economic globalization focus on is to increase the trade between developing countries and developed countries. In order to do that, trade barriers like tariffs are reduced and this is known as trade liberalization. And when countries decides to remove tariffs to make goods flow in and out of the countries more easily is free trade.

Because of trade liberalization,an organization is opened up to increase international trade, disputes goods from the trade between countries which is called the World Trade Organization. We will be discussing with the World Trade Organization later on.

As goods are flowing around the world more easily, many corporations are trying to seek ways to make profits from economic globalization. And this cause transnational corporations to open up around the world. And we will explore some issue that accompany with the transnational corporations.

Because of the World War I and the stock market crash in the U.S. around the 1930s, the great depression happened. Many countries got effected, increase in unemployment rate, and many people suffer in poverty. To prevent great depression from happening again, the World Bank (WB) and the International Monetary Fund (IMF) are established in the Bretton Woods meeting in 1944. The WB and the IMF help to bring prosperity to developing countries by giving developing countries short term loans. However, the countries must agree with the structual adjustment that the WB and the IMF giving to them. Most of the times, the structural adjustment reduce government spending on social services and cause social service to be privatized. We will be looking at the pros and the cons of social services being privatized and a case study about privatization of water.

We will also look at the human development index, which is basically a measure of how developed a county is based on the life expectancy, education and GDP.

In addition, we will investigate some factors that can affect the global economy and the pros and cons of economic globalization.

"Rapid economic globalization is bringing about greater market access and new partners for development, but also putting the weaker economies in a more vulnerable and disadvantageous position, and in an uneven competition."

- Phan Van


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