Where would Globalization be without Outsourcing Essay

Where would Globalization be without Outsourcing - Essay Example Globalization driven by trade has reached at an unprecedented pace (Wild and Han, 2009). It has laid down the path of creating new opportunities that contribute in accelerating economic growth and reduce the level of poverty. The liberalization of some of the developing countries has not translated into qualitative gains. The gains from trade in less developed countries are still not sufficient. The costs of globalization driven by trade may be unsustainable and therefore the inequalities will tend to rise further which is indeed a matter of concern. As a result the countries are becoming prone to external shocks. In order to benefit from globalization a sustainable environment is needed to be created in the context of differentiated trade policy and development landscape. The international trading system has witnessed several changes under the globally recognized challenges. The trading system has recognized the structural as well as the economic challenges that are faced by the dev eloping countries.... The process of globalization called for many multinational corporations and the control of the nation states over the economy kept on diminishing. These corporations integrate the national economies with global linkages. They have expanded drastically and the top 500 companies control a major percentage of global GNP (Lim, 2005). With the advent of new technologies at rapid rates, the whole global economy under the process of globalization is now linked. The neoliberal agenda of globalization offers minimalist for the nation states. It seems that the nation states are left with no other choice but to surrender to the demands of globalization. Some experts disagree on the diminishing role of the states. They opined that the states still play a dominant role in shaping the economy. They put forwarded the view that states implement the policies of opening up the economies to the international markets which indicates the states have the potential to manage the responses to globalization. So it can be concluded the role of the states are limited in shaping economies. Some look at the nation states as pivotal institutions and argue that globalization has only altered the situation under which the states can exercise their power (Held and McGrew, 2007). Recent developments in supra-national institutions The rules of the supranational institutions are considered superior than the national law. The demand for supranational governance tends to rise with the rise in density of international governance. In order to increase the credibility of commitment one of the logical ways is to develop supranational bodies that involves itself in resolving conflicts as well as monitor the regulations. There have been some recent notable