Globalization Essay Example | Topics and Well Written Essays - 500 words - 5

Globalization - Essay Example However, financial integration exposes countries to the risk faced by their trading partners. The crisis in Mexico, where its trading partner US shed $6 billion to cover its debt, manifests how a superpower like US become extremely concern of the economic affects of Mexico’s default which is expected to bring negative spillovers. The Asian financial crisis in 1997, is another reminder of how globalization ties nations together in facing risks. Through the effort of World Bank, the financial crisis in Asia was contained boosting the confidence of investors. However, the risks present in the financial market were highlighted by the collapse of Moscow stock market. The real effects of globalization in world economies cannot be significantly measured by the inflow of goods, services, and capital within trading partners. It can be ascertained by looking at its long term effect on environment, income distribution, and other aspects in society. The late 1990s witnessed the proliferation of anti-globalization groups which reveals the consequences of having a free market. Accordingly, globalization widens the income disparity between the upper and the lower class. In developing countries, this is highly elucidates as globalization becomes a tool in destroying the balance in income distribution. Anti-globalization groups argue that globalization is only beneficial to first world countries like the US. In developing countries, globalization provides opportunities only for the elite class.