The truth about convergence of living standards across the world Essay

The truth about convergence of living standards across the world - Essay Example Concerning this, reviewing the academic literature in this issue would make sense. A certain study was able to probe and contribute to the upward spiral number of economic growth literatures by employing other social indicators alternative to per capita income (Hobijn and Franses, 2001; Ciscar and Soria, 2000; Fung, 2009; Welsch and Bonn, 2008). Some of these papers found that the convergence in GDP per capita does not necessarily mean convergence in other social indicators. However, as observed the gap between rich and poor can be examined in real GDP per capita and in living standards. Another study stood in stark contrast with the findings generated by Hobijn and Franses (Neumayer, 2003). In this research, various tests of convergence were employed including regression analysis, the coefficient of variation, kernel density estimates and transition probability matrices. This study contains an argument that convergence should be measured based on the living standards and not in achi evement index. Concerning this, the proponent of the study chose to include life expectancy, infant survival, educational enrolment, literacy and telephone and television availability as important aspects of living standards. Neumayer found that there was a strong evidence to support the convergence of the mentioned aspects of living standards. ... Based on the above findings, it is imperative to consider that economic convergence remains a very important economic issue for more relevant academic explorations. Regarding this, the proponent of this paper tries to understand up to what extent is the hypothesis that there will eventually be convergence of living standards across the world supported by theoretical and empirical research. Per capita GDP (Gross Domestic Product) In many convergence studies, per capita GDP (Gross Domestic Product) is the common measure of the country’s economic growth. After all, it measures the total output of a country by dividing the GDP with the number of people in it (Todaro and Smith, 2011; Angeles, 2008; Egger et al., 2004; ). Based on this logical approach behind the meaning of per capita GDP, many economists find it useful to use it for comparing relative performance between countries. When one wants to know the level of productivity of a certain country, a rise in per capita GDP could potentially signal economic growth. Therefore, per capita income of poor countries should relatively higher than developed countries in order to realize convergence of living standards. However, this argument is widely debatable because there are also many studies trying to point out that there is continuing divergence of living standards all over the world (Cole and Neumayer, 2003; Portnov and Erell, 2004; Allen, 2012; Ravallion and Jalan, 1996; Morgan, 2009; Rakowski, 1994; Decancq et al., 2009). In the first place, there are also many empirical measures associated with finding the living standards. It turns out that per capita GDP is just one of them. Convergence

Does Globalisation Americanisation Essay Example | Topics and Well Written Essays - 1250 words

Does Globalisation Americanisation - Essay Example Another feature of globalisation is grobalisation by which â€Å"the imperialistic ambitions of nations, corporations, organisations† (Ritzer & Ryan 2004: 41) promote the imposition of themselves in various geographic areas for increased power, influence and profits. Two subprocesses of grobalisation are Americanisation and McDonaldisation. Americanisation can be defined as the further spread and establishment of American ideas, customs, social patterns, language, industry, and capital around the world. The concept of Americanisation â€Å"envisions a growth in American influence in all realms throughout the world† (Ritzer & Ryan 2004: 47). McDonaldization is the spread of the fast-food restaurant concept not only within the United States, but in increasing numbers of other societies throughout the world (Ritzer 2010). Thesis Statement: The purpose of this paper is to determine whether globalisation is synonymous with Americanisation. The Emergence and Evolution of Amer icanisation and Globalisation Americanisation is the larger conceptual framework that includes various interconnected phenomena, among which globalisation is one of the most important. The cultural impact of globalisation on Americanisation as a key 20th century transformation has great consequences. Mennell (2009) believes that globalisation and Americanisation should be examined together in long term perspective. The United States drove globalisation from 1945 to 2000; during this time globalisation was synonymous with Americanisation and Westernization, although terms such as â€Å"hybridity† and â€Å"flexible acculturation† which pertain to immigrants in the United States, prevailed only after 2001 (Nederveen Pieterse 2009). Globalisation is radically transforming all nations and the lives of billions of people all over the world. Globalisation theory characteristically accorded a great deal of significance to developments in the west, and its western bias also me ant that â€Å"the rest of the world had little choice but to become like it† (Ritzer & Ryan 2004: 41). After the Second World War, American companies with a highly efficient industrial management system expanded to locations across the globe. This globalisation of American companies had an effect on the internationalisation of German firms between 1945 to the early 1970s, and the resultant outcomes on German corporate management and competitive strategies throws light on how global corporate players evolved. The Americans tried to recapture the markets that they lost during the war, and attempted to enter new geographic markets. To withstand the American challenge, German companies resorted to new management strategies such as the adoption of American know-how, leading to a process of catching up and globalised corporate growth in German companies (Hilger 2008). Conversi (2010) argues that the consequences of cultural Americanisation is one of the least studied areas of the phenomenon of globalisation, although it is the most critical feature. The global expansion of Americanisation can be denoted accurately through distinctive stages of expansion, followed by periods of comparative and momentary recession; this in turn is followed by increased expansion. Hence, Americanisation is the broader conceptual framework that consists of various interconnected phenomena, out of which the most important is globalisation. This has established