Globalization
Introduction:
According to the Oxford dictionary, globalization is when organizations begin to
develop international relations and or trade at an international level. The economic crisis, which
began mid-2007 due to the housing bubble burst in the United States, has affected not only the
United States but countries all over the world because of economic globalization. Globalization
has its benefits and unfortunately it also has its issues: one of the main issues is the economic
downfall which occurred during the 2008 market crash. This crisis not only occurred in the
United States but because of globalization it also affected the entire world negatively.
Technology is a major factor in globalization as it allows the world to communicate soundly;
sadly it plays an important role in the spreading of the crisis. We are still recovering from the
2008 recession but the are some remaining issues which will be covered in this paper.
Why is financial globalization good and why is it bad:
Financial globalization is in its nature a wonderful concept. Not only does it allow the
true concept of the invisible hand to take hold, but it also gives way to financial freedom,
technological innovations, and allows free circulation of capital which all of these together are
needed for a nation’s economic growth (Tuca, 2014). Financial Globalization is a key factor
which promotes the development of nations financial markets( De la Dehesa, 2007). By allowing
a healthy competition and innovation between various international fiscal institutions and
making the mobility of funds an effortless concept, declining interest rates, diminishing liabilities
and raising revenue, the globalization of the financial markets allows certain nations to benefit
from economic growth (Tuca, 2014). However, while it allows all these benefits to occur
because it connects many financial markets worldwide it can also negatively impact those who
trust in it. If, for example, a negative financial issue hits one country, all of the global economy
will suffer the consequences as it eases negative shock communication from part A to part B (De
la Dehesa,2007).
The role of technology in globalization:
Technology, particularly information technology, has helped tremendously in the
spreading of the 2008 crisis. Because of information technology the world assisted to an outburst
in productivity. This outburst was responsible for the continual GDP growth certain nations
incurred from 1992-2007(Tuca, 2007). However, due to globalization, information technology
made it easy for fiscal institutions to allow funds transferred in a rapid manner all over the globe,
