SOLUTION: MGT 324 Saudi Electronic Week 7 Impact of Globalization on Local Governments Essay

Attached.1Impact of Globalization on Local GovernmentsStudent’s Name:Institutional Affiliation:Course Code/Name:Instructor’s Name:Institution:2Impact of Globalization on Local GovernmentsIntroductionGlobalization is not a new concept. Globalization started in the primitive age but hasevolved and gained traction in the recent past. Globalization is a concept that describes theinterdependence between economies, cultures, and the world population (GÜRÜN, 2017).Through globalization, certain institutions or organizations gain influence over a worldlypopulation. Many scholars agree that globalization in developing countries translates to enlargedmarkets, mobility of capital, cheaper goods, and enhanced competition. Countries with matureeconomies find new markets and opportunities for markets, while some find globalization asource of instability to life when companies cannot cope with global competition (GÜRÜN,2017). In essence, globalization also affects local governments at the cultural, social, economic,and political levels. Globalization causes reorganization and structural reforms that make itdifficult for local government financing and administration.Challenges that Local Governments Face Under GlobalizationThe idea behind globalization is to open the world economies and speed up capital andproduction factors. Globalization also aims at promoting political democracy. In one way oranother, many countries and local governments have benefited from globalization (GÜRÜN,2017). For example, at the local government level, farmers will complain about the influx ofcheap imported food while the same farmers enjoy cheap second-hand clothes from China.However, local governments face a big crisis from globalization, including restructuring existingpublic policy structures, disrupting economic arrangements, and ecological and environmentalconcerns (Zha, 2000).3Globalization causes the restructuring of already stable public policy and causesinstability in local governments. The major issue here is merging globalization with institutionalpolicies. Some countries see globalization as a threat to their economies and remain passiveabout multinational policies (GÜRÜN, 2017). Deregulation and struct…

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