Xue Zhang The economic impact of globalisation on the process of urban development The economic impact of globalisation on the process of urban development Taking London as an example Introduction Since the s, the international circulation of capital has been the essence of globalisation.
Unfortunately, economists seem to be guided by their badly flawed models; they miss real-world problems. In particular, they miss the point that the world is finite. Economists also tend to look at results too narrowly—from the point of view of a business that can expand, or a worker who has plenty of money, even though these users are not typical.
In real life, businesses are facing increased competition, and the worker may be laid off because of greater competition. The following is a list of reasons why globalization is not living up to what was promised, and is, in fact, a very major problem. Globalization uses up finite resources more quickly.
As an example, China joined the world trade organization in December Inits coal use began rising rapidly Figure 1, below. In fact, there is also a huge increase in world coal consumption Figure 2, below. Globalization increases world carbon dioxide emissions.
If the world burns its coal more quickly, and does not cut back on other fossil fuel use, carbon dioxide emissions increase. Figure 3 shows how carbon dioxide emissions have increased, relative to what might have been expected, based on the trend line for the years prior to when the Kyoto protocol was adopted in Fitted line is expected trend in emissions, based on actual trend in emissions fromequal to about 1.
Globalization makes it virtually impossible for regulators in one country to foresee the worldwide implications of their actions. Actions which would seem to reduce emissions for an individual country may indirectly encourage world trade, ramp up manufacturing in coal-producing areas, and increase emissions over all.
See my post Climate Change: Globalization acts to increase world oil prices. The world has undergone two sets of oil price spikes. The first one, in the to period, occurred after US oil supply began to decline in Figure 4, above and Figure 5 below. US crude oil production, based on EIA data.
This was partly done partly by ramping up oil production in the North Sea, Alaska and Mexico sources which were already knownand partly by reducing consumption. The reduction in consumption was accomplished by cutting back oil use for electricity, and by encouraging the use of more fuel-efficient cars.
Now, sincewe have high oil prices back, but we have a much worse problem. The reason the problem is worse now is partly because oil supply is not growing very much, due to limits we are reaching, and partly because demand is exploding due to globalization.
If we look at world oil supply, it is virtually flat. The United States and Canada together provide the slight increase in world oil supply that has occurred since Otherwise, supply has been flat since Figure 6, below.
What looks like a huge increase in US oil production in in Figure 5 looks much less impressive, when viewed in the context of world oil production in Figure 6. World crude oil production based on EIA data. Part of our problem now is that with globalization, world oil demand is rising very rapidly.
Chinese buyers purchased more cars in than did European buyers. Rapidly rising world demand, together with oil supply which is barely rising, pushes world prices upward. This time, there also is no possibility of a dip in world oil demand of the type that occurred in the early s.
Even if the West drops its oil consumption greatly, the East has sufficient pent-up demand that it will make use of any oil that is made available to the market.
Because of this, oil prices cannot decrease very much, without world supply dropping off. Instead, because of diminishing returnsneeded price keeps ratcheting upward.The Positive and Negative Impacts of Globalization; Financial and Other Implications By Barbara Friedberg in Economics, Investing | 10 comments Financial and Societal Consequences of Globalization.
Another positive impact from globalization is the percentage of people living in poverty. As more factories were built,more jobs were created reducing the people living in poverty from million during the year of to million in (f) To trace the impact of Globalization on Industrialized Nations.
(g) To find out the Impact of Globalization to the Developing Economies. (h) To establish the Impact of . Globalization has had many effects on local cultures and society.
While there are many positive effects, there have also been many negative effects which influence people's everyday life. Discover how globalization impacts governments and investors both in positive and negative ways, as well as some overall trends to consider.
Globalization in the Modern World An overview of globalization and it's positive and negative aspects.