Globalization and the Great Rebalancing the Great

¶ … Globalization and the Great Rebalancing

The great rebalancing - or the shifting of the global economy toward developing nations - is important for globalization. However, just because it is important does not mean it is easy or that everyone involved thinks it is the best idea. As with any change or development in the business market, there are both pros and cons to the rebalancing of power and the way the economy operates. This is important to note, and each person or business can be affected by it. Improving the economy in some nations can lead to a worsening of the economy in other nations. When that takes place, there may not be a net benefit to the global economy. Many factors go into the rebalancing of the world's economy, and some are factors about which many people do not even think.

Trend Analysis

In order to understand the issue of globalization as it pertains to the great rebalancing, it is necessary to examine the pros and the cons of the issue. These also have to be looked at from the point-of-view of the developed nations and the point-of-view of the developing nations, since they will experience benefits and pitfalls for various (and often quite different) reasons. For the developing nations, the largest pros in the growth and development that is seen in the economy (Barbara, 2008; Kitching, 2001). Any developing nation that is struggling can be helped financially by an influx of cash and jobs to the country. This can be a little or a lot, but anything causes improvement in the most destitute of nations. Eventually, this can turn developing nations and well-developed nations.

Another pro-for developing nations is the pride the citizens feel as things start to improve. Once the economy begins to pick up and more people have opportunities, these same people become much more likely to move forward with their lives and show others it can be done (Chanda, 2007). That is a side of globalization and rebalancing that many people do not consider. They are deeply focused on how much money is going into a country and how that is helping the finances of that country, but they fail to look deeper and see how that improvement in finances actually affects the citizens. Foreign direct investment and other global improvements can play a strong role in the way citizens feel about a country that is developing and improving (Murray, 2006; Wolf, 2004). The changes provide them with hope for the future and a desire to do more in order to see their country continue to improve.

Of course, there are cons for the developing nation, as well. The largest one is that money changes things, and it changes people. It can allow for a greater divide among citizens when some have money and others do not. It can also cause issues with globalization because of the corruption potential of those who are in power (Barbara, 2008). It is unfortunate that money causes these kinds of issues, but it is also important to be aware that they could take place. Awareness of problems and a commitment to avoid them is vital in developing countries when globalization and rebalancing are taking place. Sometimes, countries can also have trouble keeping up with the growth that comes along with rebalancing (Murray, 2006). Sometimes, rebalancing can take a huge toll on infrastructures and systems within a country that is unprepared. That is well worth considering, because it is one of the ways that developing countries can continue to struggle, even though rebalancing is taking place and growth is being seen (Barbara, 2008).

Like the countries that are developing, the countries that are already developed can also experience pros and cons with rebalancing and globalization. Developed countries, for example, are seeing many of the jobs that they previously had available being sent overseas because it is cheaper for the company that way (Barbara, 2008; Chanda, 2007). That may be great for the developing countries, but it is obviously not good for the countries that are losing the jobs. Those countries can also end up with many inferior products, because the products are being created in countries that are not as developed and not as prepared to create high-quality items (Wolf, 2004). When that occurs, the developed countries lose out. There are few pros for developed countries when it comes to rebalancing, since most of the benefit goes to the developing countries as they get more of what they need to grow their economies.