| The increasing economic integration of the world is | | | | The dizzying pace of change in the new world of |
| having profound effects on rich and poor countries | | | | globalization is unprecedented, and can be an awful |
| alike. BBC News has initiated a major examination of | | | | risk. A recent poll by Deloitte in November 2006 |
| the subject. For some, their business is at brisk but for | | | | showed a sharp increase in worries about outsourcing |
| some, their business is not booming well. Globalization is | | | | of white collar jobs in the UK. |
| condemned for many of the ills of the modern world, | | | | Meanwhile in the US, the Democratic victory in the |
| but it is also acclaimed for bringing unprecedented | | | | November Congressional elections had a lot to do with |
| prosperity. | | | | worries about the effect of globalization on wages |
| Many economists have opinion, that globalization may | | | | and jobs. |
| be the explanation for the key trends in the world | | | | The speed and scale of economic change has made |
| economy such as: | | | | it increasingly intricate for governments to keep their |
| | | | economic destiny in their own hands. And what is |
| 1. Lower wages for workers, and higher profits, in | | | | most dismaying for many people is that no-one seems |
| Western economies. | | | | to be in charge, or be able to agree with fair rules for |
| 2. The flood of migrants to cities in poor countries. | | | | the new global economic order. |
| 3. Low inflation and low interest rates despite strong | | | | The international institutions meant to deal with the |
| growth. | | | | globalizing world which is all in trouble. For example, the |
| Trade has been the engine of globalization, Since 1960, | | | | World Trade Organization (WTO) is now under the |
| increased trade has been made easier by international | | | | fire for failing to take into account labor standards or |
| agreements to lower tariff and non-tariff obstacles on | | | | the environmental impact of trade. And its efforts to |
| the export of manufactured goods, particularly to rich | | | | break down global trade barriers are faltering. |
| countries. Countries which have managed to increase | | | | And the IMF has found it increasingly difficult to |
| their role in the world trading system have seen | | | | influence the world's capital market to correct the huge |
| substantial increase in their standard of living. | | | | global imbalances that arise from trade. It has come |
| It is not only the Western manufacturing industry which | | | | under criticism for not giving a bigger role to emerging |
| is under the threat of globalization. Many service sector | | | | market countries like India and China. |
| jobs are now under the threat from outsourcing and | | | | The moot question is whether the growing globalization |
| offshoring, as global companies attempt to save | | | | of the world economy will lead to a parallel increase in |
| money by shifting many functions that were once | | | | global regulation or not; and whether it would be good |
| done internally. | | | | or bad for world economic growth and equality. |