Introduction

In recent years the world has been enjoying the considerable benefits resulting from progressive integration of the world's economies. Economies that had been autarkic and closed have opened up and are being integrated into a truly world economy. A global capital market has come into existence, allowing huge movements of capital and generating a world interest rate.

The benefits deriving from this process of globalization are many, and some are obvious: (1) World resources are being more efficiently allocated, and thus output and standards of living are on the rise. (2) Because of greater access to foreign goods, individuals are enjoying greater ranges of choices in goods and services. (3) Because the costs of travel have fallen significantly (in terms of time and money), many people are now able to travel to faraway places. (4) The quantity and range of information available to individuals have increased enormously, even as the costs of obtaining information have fallen dramatically.

The significance of these benefits can be easily appreciated. But, as is often the case, these new developments can be associated with some negative aspects. Globalization can create new problems or aggravate existing ones. Therefore it is important to try to control these negative developments so that the problems they entail will not become so serious as to cast a bad light on the entire process of globalization and thus provoke governmental policies aimed at reversing the recent trends.