Critical Factors that Has LED to a Change in The World Economy

Globalization and Its Causes

Globalization is one of the critical factors that has led to a change in the world economy. In the past, people used to do better trade and they needed to travel long distances so that they can exchange their goods and services. One of the significant causes of globalization is modern technology, innovations in the sector have led to critical changes in communication and in the way people do travel and work (Lane & Mark E, 3-25). Mobile phone services and the internet enable organizations and individuals to exchange ideas; persons, and business organizations all over the world are interconnected. Through technology, there has been digitalization, which has changed the way business organizations work, how they deliver their goods and services, and how they associate with their customers. Due to modern technology, organizations have become more effective in their activities, and they can reach a wide range of customers.

The other factor which has led to globalization is the development of transportation. Unlike in the past, where means of transportation were very poor making it very difficult for people in business to do their activities, this is because they could only carry a limited number of products and it was tough to transport goods in bulk. Due to development in transportation, business organizations can distribute their products and services all over the world (Lane & Mark E, 3-25). Through growth in infrastructure, business activities have become more comfortable and less costly, goods both in bulk and in small quantities can be transported to and from any part of the world through various means of transportation without many difficulties leading to globalization.

Poverty and Its Causes

Poverty is a situation whereby a person cannot sustain his or her needs, and it can generally be defined as the state of being sick. Lack of food and clean water is one of the causes of poverty. Due to lack of enough food, a person is not able to work or engage in any productive economic activity because he or she does not have the energy and strength that is required to work. As a result, people end up dying due to hunger and starvation.

Lack of clean water, especially in rural areas, leads to waterborne diseases (Ananat 34-66). Families end up spending the little amount of money they have on the hospital to cater for medicine and other hospital expenses. In some situations, there might be sources of clean water, but they get located far away; young girls and women end up spending a lot of time to fetch water which could have been used to get education and work.

Conflicts are also one of the causes of poverty; due to violence, people end up dying, especially males, which results in households that are female-headed. It causes difficulty for the families to proceed because it is challenging for women to get jobs which are well-paying to sustain their family needs leading to increased levels of poverty. Children from these families end up not going to school and engaging in crime to survive because they do not have someone to provide for them (Ananat 34-66). Also, due to conflicts, people end up being displaced from their homes, and infrastructure gets destroyed, a lot of property gets destroyed, people end up selling and leaving their assets. It drags society backward and the whole nation at large, leading to increased levels of poverty.

Technology and Its Effects

Technology has both positive and negative effects. There has been a lot of advances in technology, especially from the eighteenth century due to the revolution of industries. Unlike in the past when the means of communications were prolonged and unreliable and means of transport inferior, due to this, there was a need to develop fast, reliable, effective methods of transportation and communication. Computers, mobile phones, and televisions have to get developed which have made communication easy, people nowadays are to transact businesses through the internet, and this has made life easier because technology has benefited the survival of humanity. Transportation has also become more comfortable because persons can nowadays export and import goods from any part of the world without many difficulties.

Despite all the benefits in technology, especially in the media, there are numerous negatives of technology. There has been a lot of health problems arising from the use of different technology; wireless devices and computers produce electromagnetic waves which are very harmful. The Internet has led to the deterioration of moral values, especially among the youths because through the internet, they can access some contents which are misleading as they try to emulate the lifestyles of celebrities.

There has been an increased rate of global warming due to deforestation and timber logging; this has led to the destruction of the ozone layer, which prevents ultra-violet rays from the sun. Sun rays are harmful to humankind because they cause cancer (Shivakumar et al.). Through technology, electricity, oil, and gas have been discovered to reduce the rate of deforestation and the effects of global warming. Despite all the advantages of these means, they have some disadvantages, and they are very delicate as they are prone to fire. Technology has also led to the unemployment of these machines, which are fast and efficient, have replaced the workforce.

Work Cited

1. Lane, Henry W., Martha L. Maznevski, and Mark E. Mendenhall. "Globalization: Hercules meets Buddha." The Blackwell handbook of global management: A guide to managing complexity (2004): 3-25.
2. Ananat, Elizabeth Oltmans. "The wrong side(s) of the tracks: The causal effects of racial segregation on urban poverty and inequality." American Economic Journal: Applied Economics, 3.2 (2011): 34-66.
3. Shivakumar, Premkishore, et al. "Modeling the effect of technology trends on the soft error rate of combinational logic." Proceedings International Conference on Dependable Systems and Networks. IEEE, 2002.