Capitalism and change of many states to market-based economies on the other hand, have also advanced globalization’s reaches.

Growing integration of national economies in most of the globally advanced and industrialized countries, since the Second World War are evident, to a point that it is clear that there is an emergence and operation of a singular global economy, is what has been referred to as globalization. This world economic activity enhances integration consisting of more diverse and extensive long and short term cross border flows capital, greater variety of increased cross-national flows of goods and services and an increasingly complex and dense transnational network of products that involve mainly independent supplier companies and multinational enterprises. Most of the major issues identified in international political economy modern study are brought into sharp relief through globalization.

Major drivers of globalization

Some of the main factors that influence globalization include capitalism, technological innovations and free trade. After World War II many barriers to free trade were removed a few trade agreements such as the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO) have helped to the spread of globalization. Through (GATT) General Agreement on Tariffs and Trade barriers to international trade have also been considerably lowered. Free trade promotion includes reducing transportation costs of tariffs, creating subsidies for global corporation’s subsidiaries and capital control of local business (Benjamin, 3).

Globalization has also been propagated through technological innovation by providing infrastructure for trans-world connections. Developments in means of communications, particularly, in means of data processing, transport and communications have produced faster, denser, more cheaper and reliable global links. Innovations of jet engines, fiber optic and coaxial cables, computer software, semiconductor devices, preservation and packing techniques have contributed to rapid globalization (Miles, and Lake, 5).

Capitalism and change of many states to market-based economies on the other hand, have also advanced globalization’s reaches. Increased profit through higher sales volumes are mostly achieved through the prospects offered by the global markets. Higher production, moreover run to feed global markets enhanced promise profits that are due to the economy of scale. Globalization is also followed by capitalism since it enables facilities for the production to be located in sites where the earnings are high and costs are low. Global accountings in addition, enable the used taxes and prices to be calculated in ways that allow for profit increase. Global connection themselves including electronic finance and telecommunications create major opportunities for profit making, capitalism one of the major drives of globalization.

Major drives impact on the Chinese economy

China is recognized as having a rapid economic and industrial development merged with growing markets that overtime have been ranked as third largest trading nation globally can identify some of its success on the implementation of innovative technology in China. In the economy technology influences two main sectors. The improving functionality of services and products and reducing unit cost of their supply. Its impact is evident on facts like in the past 30 years China has been the fastest growing major economy with an average annual 10% on the GDP growth rate of the world’s total manufacturing output around 8 % comes from China.

China’s political freedom has also helped enhanced its economic freedom, in that through the governments innovative ways of regulating the price rates and production, it has indirectly created a large bureaucracy and a powerful state which may extend into other areas of life. The capitalistic nature helps with the economic growth when individuals and firms are given incentives to encourage hard work and innovativeness this creates a climate of economic expansion and innovation. The impact of this is on the evident improved standards and on the national level increase in GDP and theoretically due to this trickling down effect of wealth everyone actually benefits from the capitalistic nature in China. Firms based on a capitalistic society and economy face incentives to produce goods and be efficient. These incentives create the pressures to avoid wastes and cut costs. State owned firms often tend to be more inefficient e.g. less incentives to try new innovative working practices and to get rid of surplus workers (Robert, 2).

In a society like China that enacts free trade policies it automatically creates its own dynamic economy. This impacts the country’s economy since it helps foster opportunities, freedom wellspring and prosperity that benefit all its citizens. The policies that enact free trades can allow the country to create policies that help it towards alleviating poverty and guide it towards the creation of dynamism.

Conclusion

Among the most powerful operating forces that shape our contemporary world economic globalization is among the top. In profound ways it affects ways that we consume, where and how business is conducted; how we employ and marshal saving; and how people talk with each other. It creates terrifying dislocations for others while for some it provides vast new opportunities. How and whether, societies in both the emerging market countries and industrialized nations manage the tension that are produced by the economic interactions that have been intensified will surely determine the sustainability and scope of economic globalization, and thus the texture and shape of the social world in which we will come to live in the future.

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