Globalization is commonly viewed as the integration of economies and societies of nations all over the world by exchange of goods and services of nation to nation Contrary to the conservative practice of economy back in history where economic activities are limited domestically, globalization is geared towards open market that involves other nationsGlobalization is commonly viewed as the integration of economies and societies of nations all over the world by exchange of goods and services of nation to nation. Contrary to the conservative practice of economy back in history where economic activities are limited domestically, globalization is geared towards open market that involves other nations. There are many issues to globalization and this includes specifically Globalization in Panama. In fact, debates from all over the world are heard about the pros and cons globalization brings to a certain nation. The subject of the debate on globalization includes American influence in nations against preservation of domestic resources; and economic growth and prosperity against environmental devastation and exploitation of natural resources.
Globalization in Panama is centered towards the activity of the Panama Canal. In fact, after Panama?s general control in the Canal in 1999, the economic activities of Panama resulted to positive growth. Gross Domestic Products of Panama have subsequently increased from 2000 to 2006 and is still growing in current years. The tourism, banking, transportation, telecommunication, commerce, trade and other services which comprise the economic activities of Panama enjoys high returns. It is due to the fact that Panama is in strategic location for these services being located in the isthmus, a border between South and North America. To add to the location, Panama Canal has been the passage way of international trade from the Atlantic and Pacific shipping, other matter for the international commerce is the benefits that brings for logistic and tax reduction using Colon ports and the Colon Free Zone. Globalization in Panama is seen to surge more in coming years.
The Panama Canal becomes the marketplace of international goods such as automobiles, technology and even agricultural goods. As the economy of Panama boomed, more traffic is seen in the Panama Canal. International shipping is crowding around the canal in several days as each shipping lines wait for their turn for trade. For this reason, there is a 5 billion dollar expansion project for the Canal awaiting its implementation. As expansion is possible, Globalization in Panama will continue to rise as it accommodates more global trade.
As there are many issues on globalization, so does Globalization in Panama is faced with list of pros and cons directed towards the Panama Canal expansion. The government faced with concerns on the rich getting richer and poor getting poorer issue. Currently, the income of Panama Canal may be producing positive economic growth but there are also issues on corruption with people handling the revenue. Other issues faced with Canal expansion is the possible increased rate of illegal trades, exploitation of nearby natural resources due to expansion, possible increase in diseases related to Canal operation, and the fact that many poor in Panama does not benefit from the revenue.
There is no doubt that there would be high return and economic growth for Globalization in Panama as there is indeed high revenues for global trade. Panama globalization is very strategic and it even has the capacity to expand with the expansion of Panama Canal.