Bansilan, Emmalyn U.

BABOUMN 1-2

Performance Task 1: The Contemporary World

It is believed that globalization is a long-term trend rather than a recent

phenomenon. It has existed since ancient times and is a phenomenon. Humans were
already there when they first began conversing and exchanging messages with one
another. An example of forced societal evolution is globalization. Despite being created
by humans, its growth and effects are natural in that they organically flow from the idea
itself. The human propensity to seek farther than, consider going onward, and widen his
horizons can be traced back to globalization.
Globalization is far from perfect; it has its positive and negative effects on a
particular country. Best example of this positive effect of globalization is Japan and its
relation with China. The economies of China and Japan have been significantly
impacted by international commerce. Notably, the two nations have interacted through
capital, technology, and direct investment exchanges as well as trade in commodities
and services. The analysis makes it clear that the two world economies are
interdependent. Japan's manufacturing expertise is a necessity for China, and China's
market is crucial for Japan's economic expansion. As a result of Chinese commerce
with other countries and Japanese investment in China, the economic ties between
China and Japan have become stronger. Globalization has helped to facilitate trade
between these two. Although the idea didn't really take off in the two countries until the
1970s, it has had such a huge impact that it has propelled them to the top of the global
economic rankings. Through factors like the exchange of commodities and services,
foreign investments, economies of scale, specialization, and enhancement of the
national welfare, globalization has benefited the economies of these two East Asian
nations. The foreign investment from China and Japan does, however, differ little.
China's international commerce primarily aims to increase exports and imports via a
variety of tactics. The open-door policies, which invited and encouraged the rest of the
world to involve China in business operations and to stimulate imports and exports, was
one of the strategies. Its membership in the World Trade Organization also contributed
in its economic development. Foreign direct investment has accounted for the majority
of Japan's international trade. To produce overseas revenues, the majority of its
manufacturing enterprises have established their plant activities abroad. The nation has
given these businesses a number of incentives. The cornerstone of the Japanese
economy has always been FDI. It has made it possible for Japanese manufacturing
companies to cut costs while still extending their global sales potential. Globalization
encourages capital accumulation, industry growth, trade expansion, and technological
advancement as well as national economic progress. Because they have embraced
globalization, which has improved international trade, the economies of China and
Japan have grown and expanded dramatically.
However, after all the positive effects of globalization mentioned above there is
its negative effects. One of this is unemployment, the global demand for qualified
experts has increased despite the fact that technological advancements have reduced
such employment. The majority of people in the said countries lack skills, and the few
jobs that are available pay badly because of the tremendous demand brought on by
globalization. Because the majority of people are jobless and unable to meet their basic
requirements, criminal activity such as theft, petty crime, murder, and drug usage has
intensified. Next is that outsourcing may increase rather than decrease as a result of
globalization. Outsourcing may be advantageous for some businesses because of the
lack of constraints at the national level. Even if they retained the employment close to
home, the fear of moving them to a different, less expensive country may be used to
defend lower salaries domestically. An effort to abolish borders will ultimately lead to
higher salaries in developing nations but lower wages in developed nations. If declines
in consumable prices don't take place simultaneously, many households' standard of
living may decline.

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