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Q-54) What is Globalization, unemployment, recession? What is link?

What is Globalization

Globalization means there is no restrictions over the international trade. Means a business house can establish there companies in other countries which are called MNCs. Globlisation made easy for people to buy and sell products in the global market. People can communicate each others no matter in which countries they are. It improves co-ordination between countries. It also help to give employment to the country`s people means more chances for employment. It increases the immigration of people. It helps to bring sports to the global level. It increases the opportunities of the international tourism and travel.

Benefits of globalization:

• By buying products from other nations customers are offered a much wider choice of goods and services.
• Creates competition for local firms and thus keeps costs down.
• Globalization promotes specialization. Countries can begin to specialize in those products they are best at making.
• Economic Interdependence among different nations can build improved political and social links.

Drawbacks:

• Cheap imports from developing nations could lead to unemployment in developed countries where the cost of production is high.
• Choosing to specialize in certain products may lead to unemployment in other sectors which are not prioritized.
• Increased competition for infant industry.
• Selling of goods by certain countries at below cost price may harm industries in order countries.

What is unemployment?

When people are jobless or there is no work available is called unemployment. Even people are willing to work at a low wage but jobs not available which are also call unemployment. Unemployed person is not able to fulfill their financial needs. It is one of the most pressing problems of any economy specially the underdeveloped ones and developing one too.

Problems under unemployment:-

· Unemployment leads to homelessness.

· It also increases the mental stress which leads to depression.

· High unemployment can also cause social problems such as crime; if people don't have as much disposable income as before, then it is very likely that crime levels within the economy will increase.

Causes of unemployment:-

· Change in technology

· Inflation

· willingness to work

What is recession?

Recession takes place in an economy when there is a fall down in the stock market of the economy, increase in the unemployment. This recession firstly caused by the banks when they lend money to people and they were not able or not pays back to bank. And this causes banks equity value fall down sharply and become insolvant.which is a major reason for the recession.

There are many psychological aspects for example if expectations develop that the economic activity slow then firm may decide to reduce the employment and stop investment in these kind of situation because no body want to incurred lose.

Impacts of the recession:

· The full impact of the recession is on the employment.

· Productivity of the business houses effected.

· Living standards of the people who depend on the wages and salary effected.

Link between globalization, unemployment, recession.

When talking about the definitely there is a link between in these terms, firstly globalization

No doubt it enhances the chances of the international trade which benefits by many ways to an economy. but somehow it affects the nation`s own organizations where as talking about the recession its main impact on the employment as market falls down its result that organizations not able to pay their employees so they have to stay out from that organization for some time or may be they have to look for another job so its somehow these are interlinked with each other. it gives allot of depression to people who got unemployed because its very difficult to find a new job and adjust yourself there. These things affects social life of the people. when recession comes its main impact on the country`s growth rate its diminishing recession comes company`s not take risks of investing even they try to cut down there manpower which results to unemployment that's how these are linked with each other.

Conclusion:

Out of these statements we can say these terms are obviously interlinked and take place after one by one in an economy if there is globalization somehow there is recession and recession is the main cause of the unemployment.

In my opinion these terms some time give lessons to the economy that hot to overcome and what should not be done to be safe out of these. These help in many ways to development of the economy too. These brings the new ideas how to invest how to improve productivity.and how can they avoid such problems like unemployment in these type of situations.

References:

WWW.Wikipedia.org

WWW.Google.com

Submitted to:

Mr. Gurdeepak Singh

Submitted by:

Sunny Kumar

MBA 1 A