Global developments

Over the era 1950-1973, the volume of world deal (in goods and services) augmented at an yearly rate of nearly 8%, while world GDP rose yearly by 5% in volume. In the decade following the desertion of the Breton Woods fixed exchange rate government and the first oil price shock, the rate of growth of both world deal and world GDP slowed down considerably.
Since 1983, the pace of world deal has accelerated again, reaching an standard annual rate of 5.7%. This well outpaces the growth of world GDP, which has risen at a standard of only 3.4% per year. However, the pace of world deal has been slower than the pace of FDI, which has risen at 14% per year since 1985.

In 1996, world goods exports accounted for $5.1 trillion and gainful armed exports $1.2 trillion. The own figures for imports were $5.2 trillion (merchandise) and $1.2 trillion (services). (World Trade Organization (WTO) Secretariat, Report on Trade Developments 1997) In 1996, global deal (based on exports) rose 3.3% from the previous year. This represented a major slowdown compared with the 20.4% rise seen in 1995. (Japan External Trade Organization (JETRO), White Paper on International Trade 1997)

Developed and developing countries

With stare to the role of person regions in the enlargement of worldwide trade, there was a extraordinary drop in the aid of the EU and East Asia to sell abroad growth, compared to the preceding year. The EU's payment to trade growth was down from 8.9% to 0.9%, and East Asia's fell from 3.7% to 0.7%. Furthermore, Japan's payment to worldwide export increase was unenthusiastic in 1996. Even its payment to import increase came in at a low 0.3%. Latin America, for now, had little effect on overall trade growth since the region first represented only a minor part of global trade. 
One of the reasons for the slow enlargement in global trade as compared with the enlargement rate of the worldwide economy was a shift in the countries heavy economic enlargement, both in developed and developing countries. Specifically, Japan became the major heavy force among the developed countries in 1996, rather than the EU (with the growth rate of the EU falling from 2.5% to 1.6%, and that of Japan rising from 1.4% to 3.6%). Among developing countries, the increase rate in Asia slowed a bit, but this was made up for by faster enlargement in Latin America, the Middle East, and Africa. However, the deal of Japan and these other countries and regions did not produce commensurately. (JETRO, White Paper on International Trade 1997)

DRUG TRADE

DRUG AND TRADE:

 

The United Nations Office on Drugs and Crime (UNODC) issued a story that the global drug deal generates more than $320 billion a year in revenues. Worldwide, the UN estimates there are more than 50 million usual users of heroin, cocaine and fake drugs. The international deal of rare type is next only to drug trafficking. Traditional Chinese drug often incorporates ingredients from all parts of flora, the leaf, stem, flower, root, and also ingredients from animals and reserves. The use of parts of endangered type (such as seahorses, rhinoceros horns, saga antelope horns, and tiger bones and claws) has shaped argument and resulted in a black souk of poachers who hunt limited animals. In 2003, 29% of open sea fisheries were in a state of collapse.

Phenomenon

Core Elements of Globalization

Basically, globalization rests on a stand namely, the growth of markets (economic), challenges to the state and institutions (political), and the go up of new social and following actions (cultural). Economically, technical changes and management deregulation have allowable the institution of transnational network in making, trade, and money creating what is referred to as a “borderless world.” The new making network describes firms and international enterprises (MNEs) who use higher means of infrastructure and new technologies to increase their behavior across the globe.

The second part affects States. Political control and actions expand cross ways the limitations of nation- states while rule making on issues such as human rights, ecological squalor and nuclear security have necessary global accord. The third constituent of globalization affects more than markets and states. It is changing the lives of people crossways the globe. Fast distribution of media, books, music, international ideas and values has shaped a rather global civilization.

Globalization Phenomenon Continues

Tom Friedman defines globalization as the lively addition of the world’s systems. Joseph Stieglitz, ex- World Bank Chief Economist and Clinton Administration mentor, terms it “the addition of the countries and peoples of the world … and the breaking down of false barriers to the flows of goods, military, capital, knowledge, and (to a lesser extent) people across borders.” Complementary to this, yet a bit more advanced, is the explanation by Micklethwait and Wooldridge of The Economist, that globalization is based on liberty and is, “the free movement of goods, services, ideas, and people around the world.” A fresh United Nations panel on the crash of globalization “… confirmed that globalization was not just a phenomenon of the market rest or financial contact. It had also been spreading internationally following paradigms, educational patterns and social ideas. It has led to standardization of the world’s security systems. This way, globalization had been moving the dominion of nation states and many of the established political, economic and social structures. Globalization is ambitious by both push-up and push-down trends.” Rena to Ruggiero in his article, Next Steps in Strengthening the Global Trading System explains, ‘Globalization is not an option. It is a reality. Globalization is a high-speed teach that is running very fast previously. Anyone who believes that globalization can be stopped has to tell us how he would envisage stopping economic and technological progress. This is tantamount to trying to stop the revolving of the earth.’ Friedman in his book ‘Lexus and the olive tree’ compared globalization with a high-speed train, which cannot be slowed down to allow its future traveler to board in. The only cause for this hysterically movement of the globalization train is because: it does not have anybody at its controls.

There are now two major points of view on the crash of globalization throughout the world. One talk in good turn of the globalization while others opines next to it. Those who favor globalization tend to use the international analysis to support their arguments.

Critics Argue that (G)Results

Critics Argue that Globalization Results:

Poorer countries suffering disadvantages: While it is factual that globalization encourages free deal amongst countries, there are also unenthusiastic penalty because some countries try to save their national markets. The main export of inferior countries is usually undeveloped goods. Larger countries often subsidies their farmers (like the EU Common Agricultural Policy), which lowers the souk price for the poor farmer's crops compared to what it would be beneath free trade.

The exploitation of foreign poor workers: The worsening of protections for weaker nations by stronger developed powers has resulted in the use of the people in persons nations to become contemptible work. Due to the lack of protections, companies from influential developed nations are clever to offer workers enough pay to attract them to bear very long hours and dangerous working situation, though economists question if agreeable workers in a spirited employers' market can be decried as "exploited". It is true that the workers are free to depart their jobs, but in many inferior countries, this would mean hunger for the worker, and likely even his/her family if their preceding jobs were engaged.

The shift to outsourcing: The low cost of offshore workers have enticed corporations to buy goods and military from foreign countries. The laid off manufacturing division workers are required into the repair sector where wages and payback are low, but turnover is high. This has contributed to the worsening of the center class which is a main factor in the rising financial disparity in the United States. Families that were once part of the center class are compulsory into inferior positions by huge layoffs and outsourcing to one more country. This also income that people in the inferior class have a much harder time climbing out of scarcity because of the nonattendance of the center class as a stepping stone.

Weak labor unions: The extra in cheap work joined with an ever rising number of companies in change has caused a weakening of work unions in the United States. Unions misplace their efficiency when their association begins to refuse. As a result unions hold less power over corporations that are clever to easily restore workers, often for inferior wages, and have the alternative to not offer unionized jobs anymore.

An augment in utilization of child work: for example, a country that experiencing increases in work insist because of globalization and an increase the demand for goods produced by children, will experience better a insist for child work. This can be "hazardous" or "exploitive", e.g., quarrying, save, cash cropping but also includes the trafficking of brood, children in bondage or required labor, prostitution, pornography and other illegal activities.

In December 2007, World Bank economist Brando Milanovic has called much preceding experiential study on global scarcity and disparity into query because, according to him, better estimates of purchasing power equivalence indicate that developing countries are worse off than before believed. Milanovic comments that "literally hundreds of learned papers on meeting or deviation of countries’ incomes have been published in the last decade based on what we know now were defective numbers." With the new data, perhaps economists will amend calculations, and he also supposed that there are substantial implications estimates of global disparity and scarcity levels. Global disparity was predictable at around 65 Gina points, whereas the new numbers indicate global inequality to be at 70 on the Gina scale.

The critics of globalization typically emphasize that globalization is a procedure that is mediated according to business interests, and typically raise the possibility of alternative global institutions and policies, which they believe speak to the moral claims of poor and working classes throughout the globe, as well as environmental concerns in a more equitable way.

The group is very broad, including minster groups, nationwide liberation factions, peasant unionists, intellectuals, artists, protectionists, anarchists, those in hold up of delocalization and others. Some are reformist, (arguing for a more moderate form of capitalism) while others are more revolutionary (arguing for what they believe is a more caring system than capitalism) and others are reactionary, believing globalization destroys nationwide business and jobs.

One of the key points complete by critics of fresh financial globalization is that profits inequality both flanked by and within nations is rising as a result of these processes. One editorial from 2001 found that significantly, in 7 out of 8 metrics, income inequality has augmented in the twenty years ending 2001. Also, "incomes in the inferior deciles of world income sharing have almost certainly fallen absolutely because the 1980s". Furthermore, the World Bank's figures on total scarcity were challenged. The piece of writing was cynical of the World Bank's maintain that the number of people living on fewer than $1 a day has held steady at 1.2 billion from 1987 to 1998, because of biased methodology.

A chart that gave the inequality a very visible and understandable form, the so-called 'champagne glass' effect, was restricted in the 1992 United Nations Development Program Report, which showed the distribution of global income to be very uneven, with the richest 20% of the world's population controlling 82.7% of the world's income.

Distribution of world GDP, 1989
Quintile of Population	Income
Richest 20%	82.7%
Second 20%	11.7%
Third 20%	2.3%
Fourth 20%	2.4%
Poorest 20%	0.2%

Source: United Nations Development Program. 1992 Human Development Report

Economic influence by fair trade theorists claim that clear free trade reimbursement those with more financial leverage (i.e. the rich) at the expense of the poor.

Americanization connected to an era of high political American clout and of important growth of America's shops, markets and object being brought into other countries. So globalization, a much more diversified occurrence, relates to a many-sided following world and to the augment of objects, markets and so on into each other’s countries.

Critics of globalization talk of Westernization. A 2005 UNESCO report showed that educational exchange is flattering more recurrent from Eastern Asia but Western countries are still the main exporters of educational goods. In 2002, China was the third largest exporter of cultural goods, after the UK and US. Between 1994 and 2002, both North America's and the European Union's shares of cultural exports declined, while Asia's cultural exports grew to exceed North America. Related factors are the fact that Asia's population and area are several times that of North America.

Some opponents of globalization see the phenomenon as the endorsement of corporatist interests. They also claim that the increasing independence and strength of corporate entities shapes the following policy of countries

Reward & Difficulties

Reward and Difficulties of Globalization:

•Increased free trade between nations
• Increased liquidity of assets allowing investors in urbanized nations to spend in developing nations
• Corporations have better flexibility to function across limits
• Global mass media ties the world together

• Increased flow of communications allows vital information to be shared between individuals and corporations around the world
•Greater ease and speed of transportation for goods and people
•Reduction of educational barriers increases the global village effect
• Spread of democratic ideals to developed nations

•Greater interdependence of nation-states
•Reduction of probability of war flanked by developed nations
•Increases in environmental protection in developed nations
• Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest work
• greater than before likelihood of economic disruptions in one nation effecting all nations
• Corporate power of nation-states far exceeds that of civil society organizations and average individuals
•Threat that manage of world media by a handful of corporations will boundary educational expression
• Greater chance of reactions for globalization being violent in an attempt to preserve cultural heritage
• Greater risk of diseases being ecstatic by mishap flanked by nations

• Spread of a money-oriented lifestyle and approach that sees use as the path to prosperity
• International bodies like the World Trade Organization infringe on national and individual sovereignty
• augment in the chances of civil war within developing countries and open war flanked by developing countries as they vie for resources

• Decreases in environmental honesty as polluting corporations take advantage of weak narrow rules in developing countries

Dash of Globalization in ASHIA

Removing Restrictions on Foreign Investment in ASHIA

Understanding the idea that growth comes from increasing capital and more competent use of on hand capital is necessary to understanding that, short of going to war, overseas direct asset is now the best way to get new capital. In this stare one of the main problems in ASHIA is the immature communications. This piece will draw round a few of the key areas that most extra-national, and many ASHIA, corporations are involved in as a basic communications to support competent and effectual business practices. Both in order and logistic communications of ASHIA will be analyzed to distinguish whether ASHIA has the necessary ability to offer compensation to multinational enterprises bringing in overseas direct asset into country and creating better financial growth possible. “Investors pending in ASHIA find a lot of difficulties in organizing their safety and expenses. I mean asset in ASHIA looks good, but very difficult in practicing it. There are too many obstacles, especially, in obtaining phone line, transport and so on.” This comment by the Italian Ambassador in response to a press question asking how more Italian asset could be directed to ASHIA sets the tone for this passage. More than 1000 firms lately indicated that power (electricity), ports; telecommunications and business system constrain the asset climate. Clearly, the lines of communication within ASHIA need to get better to draw more globalization.

Information Infrastructure in ASHIA:

Information knowledge has shaped important changes in the connections flanked by nation-states and global markets. Globalization, or asset by overseas firms, can gain much in a networked ‘global village’ and global market. The more ASHIA becomes networked the more compensation it can offer to outside sources of funding. Potential for theatrical improvements in the message of information, as well as the facilitation of earlier and more effectual communication opens up possibilities for ASHIA businesses to attach with more moneyed sources exterior the country and the chance to make partnerships with those firms. Indeed, globalization can give many opportunities for new experiments and relationships. Present day knowledge makes globalization more possible through increased electronic dealings and augmented trade liberalization allows for better social and economic stability.

Textile in BANGLADESH

Textile and Clothing Industry in BANGLADESH:

Textiles and clothes industry jointly account for additional than 76 per cent of the country’s total export earnings as can be seen from figure 3.

Figure 3. Export Sector Performance of BANGLADESH (2001-02)

Source: Ali Md Hossain, BANGLADESH Country Paper on RMG Industry of BANGLADESH, 10.

The exports are intended mostly for the United States of America (USA) and European Union markets, to which up to recent time BANGLADESH had privileged access by the Multi Fibered Agreement (MFA) and Generalized System of Preferences (GSP). This confidential division of BANGLADESH is now facing challenges that need to conquer to uphold growth. The Textile and Clothing industry is encountering challenges from mainly two areas as described subsequently.

  MFA is in the procedure of phasing out since 2004. After it is completely phased out, BANGLADESH is likely to face greater competition in the world market from other garment exporting countries. Now, raw strand producing and self-sufficient toward the back linkage countries will compel BANGLADESH to compete on a more height playing field. For BANGLADESH, the elimination of MFA has far reaching implications in terms of loss of jobs and decrease in overseas exchange earnings in the Ready Made Garments (RMG) sector. The jobs and working situation of the RMG and fabric workers are most likely to worsen due to competitive pressures arising from other countries participating in globalization. This pressure may force the entrepreneurs to cut costs in the form of either lower wages or retrenchment of workers. Thus, not only worker’s employment will be at wager but also the working conditions are not predictable to improve38. Weak marketplace strategy, absence of backward linkage industries, lack of FDI and incoherent infrastructural facilities have further contributed concern over the future of the RMG industry. The cost of business is also increasing primarily due to port problems, bureaucratic tangles in custom department and no improvement in lead-time. In contrast, an increasing number of countries are offering low-cost products. Competing countries like Vietnam, China, and Thailand are entering the global market with products that BANGLADESH is exporting and as a result intensifying competition and dipping prices.

United States Trade Development Act (USTDA) 2000

Enactments of USTDA 2000 will also challenge the RMG sector. The USTDA 2000 provides duty and quota-free access to 48 countries of Africa and 24 countries of the Caribbean Basin for exporting textile and apparel products to the USA market. The Caribbean Basin countries are BANGLADESH’s direct competitors in the USA apparel market. USTDA 2000 is expected to cause trade diversion from BANGLADESH in favor of Caribbean Basin Initiative (CBI) countries. The value per Square Meter Equivalent (SME) of apparel exports to the USA from BANGLADESH already have the lowest value compared to three other major exporter as can be seen from figure 4. It has been estimated that Bangladeshi manufacturers will need to reduce production costs by some 15-20 per cent in order to overcome their tariff disadvantage relative to CBI countries. Further lowering of prices is likely to have a telling effect on the RMG industry. Thus, although the garment industry does lead BANGLADESH to steady economic growth but it requires being flexible and adaptive to continue to do so.

 

4. Value per SME for Selected CBI Countries and BANGLADESH to United States

Source: Azim M Tahlin and Nasir Uddin, “Challenges for Garments Sector in BANGLADESH After 2004: Avenues for Survival and Growth,” BANGLADESH Institute of International and Strategic Studies Journal 24, no. l (January 2003): 64.