Economic Standpoint of Globalization [Final]

Globalization refers to a novel phenomenon that is reverberating across the world. Yet, to set this evolving process to a clear-cut definition is an arduous task. Swedish journalist, Thomas Larsson, states in his book The Race to the Top: The Real Story of Globalization (2001), that globalization “is the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world.” Naturally, it entails a myriad of viewpoints, be they cultural, political, or economical. The scope of this paper is to assess the drawbacks posed by the increasing interdependence of world economies, due to soaring cross-border trade and ubiquitous technology.

             The expanding market frontier is a distinguishable trend of economic development. Countries once protected their rarities, such as certain seeds and eggs, by barring their exports (Chanda, 2008). Over the millennia, barriers and tariffs were lifted as economists deemed it an unmitigated “good”. The transformation from centralized to market economies has further promoted the assimilation. Encouraging the dependence of developed countries on developing countries to obtain cheaper labor and raw materials has led to severe levels of unemployment in America (Chanda, 2008). Critics argue that this has positively impacted the income in developing countries, by increasing opportunities for earning. However, as the dependence increases, local labor markets are pushed to produce more and more. Nevertheless, their resources maybe limited, resulting in the economic exploitation of children. For instance, child labor in Mozambique in 2010 was at an alarming rate of 22.5%. These children were subject to physical abuse, dangerous occupations and taxing working hours. Several were also forced into prostitution, such that many were trafficked internationally for commercial sexual exploitation (Mozambique, 2011). Hence, the irreversible integration of markets, stemming from globalization, has in some ways created a cruel life for many innocent children in developing countries. 

                  Several developing countries are experiencing overwhelming foreign direct investments. This process has heightened the competition in an international level. Acquisitions and mergers have been used as techniques to improve a company’s position on a global scale. However, there is little to no evidence that an inward investment will benefit the developing country. Often, the revenue returns to the country of origin of the multinational corporations (MNCs). Walmart’s expansion plan into India is a prominent example of an MNC disturbing the local retail environment (Walmart in India: A Case Study, 2012). Globalization and the influx of foreign direct investments cause these many of these family owned and operated businesses to fall by the wayside (Catholic Online, 2012). 

             The prevalence of globalization results in a “race to the bottom” in terms of currency value. In order to acquire a competitive edge, a country will use several tactics to sell its exports at the lowest price possible, including paying low wages to laborers, using non-eco-friendly fuel and degrading the value of its currency by printing money (Tverberg, 2013). Consequently, inflation strikes and lowers the country’s currency relative to others. Consider the case of the Indian Rupee’s plummeting exchange rate (Somalkar, n.d.). It is experiencing a worrisome devaluation against the dollar because foreign investors have sold their bonds due to the fear that US might take military action in Syria (The Times of India, 2013). A developed country, like the US, affects other economies because of its ensuing actions. Hence, globalization has tied countries and their economies together; a domino effect is witnessed when one country’s potential feud ripples an economic meltdown in other countries.

               From Madras to Madrid, one cannot evade the sight of someone talking on their cell phones, thanks to globalization. The transmutation of technology is attributed to the increasingly interconnected globe. Many supporters of globalization, however, fail to recognize the turbulent repercussions of the rapid exchange of information across boundaries: terrorism. In attempts to reach the global superpower status, developing countries, like Afghanistan, launch violent attacks on the US. Therefore, greater accessibility of technology has not only rendered distances meaningless, but also paved way for illicit uses of global communication. 

                A handful of preexisting resolutions aim to tackle these issues. Developed nations enforce rules on developing countries, such as cutting wages and imposing sanctions. This neither resolves the issue nor has the welfare of children in mind. To compensate for their decreased wages, poor families will be tempted to force more children to work. On the other hand, the current policy by the IMF allows a huge flow of finances, thereby causing fluctuations of currency exchange rates, weakening the financial sovereignty and leading to the monetary suffering of developing nations (“Globalization and emerging economies”, 2009). Permanent solutions to these rampant issues may not be attainable straightaway. It is feasible to henceforth mitigate the dreadful effects of economic globalization on society. To combat child labor, developing countries should be provided with incentives for letting children stay in school and refrain from joining the workforce. It is crucial to ensure the benefits acquired from international market integration positively impact the poor. According to Edmonds (2002), “child labor could virtually disappear if the developing world could attain living standards that are even quarter of that currently enjoyed by wealthy countries like the United States and Switzerland.” To prevent the risks caused by economic globalization, the following measure should be considered. International economic organizations, such as the IMF, ought to regulate economic development by perfecting a caveat system against financial crises, restoring the confidence in foreign investments and international investors, and overseeing the flow of international capital (Chanda, 2008).

          The aforementioned evidences prove globalization a pitfall due to the lack of proper governance. In essence, the whirlwind of globalization is swaying the stems of society; it is crucial to dissolve the disadvantages posed by economic globalization and efficiently convert the drawbacks to benefits through regulations and measures.

The Next Stage of my Learning [Edited]

  As the English for Academic Purposes module comes to an end, it is needful to reflect upon my learning and to envision my future plans. The passionate writer in me provokes an egoistic outlook on the development of my writing since this course began. Although the style of my writing has remained consistent, I did appreciate the intricacies of English through this course. Being an enthusiast and an overachiever would be my greatest drawbacks of my writing. Unfortunately, the word count curtails my creativity and prohibits me from delving into the topic too deeply. Nevertheless, the more rational and modest side in me reminds me that there is always room for improvement. This includes overlooking small but critical details such as parallel structures. This can be prevented through peer review and proofreading my work.

      I aspire to write a novel in the near future. Though I am unsure if this is a far-fetched idea, it has definitely been a desire of mine since a young age. As for more academic purposes, this module will empower me with the confidence to write research papers. The techniques taught in this module have definitely proved beneficial thus far and will aid me in the future too. Did I go over the word limit again? Aw shucks!

The Next Stage of my Learning

        As the English for Academic Purposes module comes to an end, it is needful to reflect upon my learning and to envision my future plans. The passionate writer in me provokes an egoistic outlook on the development of my writing since this course began. Although the style of my writing has remained consistent, I did appreciate the intricacies of English through this course. Being an enthusiast and an overachiever would be my greatest drawbacks of my writing. Unfortunately, the word count curtails my creativity and prohibits me from delving into the topic too deeply. Nevertheless, the more rational and modest side in me reminds me that there is always room for improvement. This includes overlooking small but critical details such as parallel structures. This can be prevented through peer review and proofreading my work.

         As I contemplate on the next stage of my learning, I aspire to write a novel. Though I am unsure if this is a far-fetched idea, I has definitely been a desire of mine since a young age. As for more academic purposes, this module will empower me with the confidence to write research papers. The techniques taught in this module have definitely proved beneficial thus far, and will continue too. Did I go over the word limit again? Aw shucks!

Economic Standpoint of Globalization (edited)

                Globalization refers to a novel phenomenon that is reverberating across the world. Yet, to set this evolving process to a clear-cut definition is an arduous task. Swedish journalist, Thomas Larsson, states in his book The Race to the Top: The Real Story of Globalization (2001), that globalization “is the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world.” Naturally, it entails a myriad of viewpoints, be they cultural, political, or economical. The scope of this paper is to assess the drawbacks posed by the increasing interdependence of world economies, due to soaring cross-border trade and ubiquitous technology.

             The expanding market frontier is a distinguishable trend of economic development. Countries once protected their rarities, such as certain seeds and eggs, by barring their exports (Chanda, 2008). Over the millennia, barriers and tariffs were lifted as economists deemed it an unmitigated “good”. The transformation from centralized to market economies has further promoted the assimilation. Encouraging the dependence of developed countries on developing countries to obtain cheaper labor and raw materials has led to severe levels of unemployment in America (Chanda, 2008). Critics argue that this has positively impacted the income in developing countries, by increasing opportunities for earning. However, as the dependence increases, local labor markets are pushed to produce more and more. Nevertheless, their resources maybe limited, resulting in the economic exploitation of children. For instance, child labor in Mozambique in 2010 was at an alarming rate of 22.5%. These children were subject to physical abuse, dangerous occupations and taxing working hours. Several were also forced into prostitution, such that many were trafficked internationally for commercial sexual exploitation (Mozambique, 2011). Hence, the irreversible integration of markets, stemming from globalization, has in some ways created a cruel life for many innocent children in developing countries. 

                  Several developing countries are experiencing overwhelming foreign direct investments. This process has heightened the competition in an international level. Acquisitions and mergers have been used as techniques to improve a company’s position on a global scale. However, there is little to no evidence that an inward investment will benefit the developing country. Often, the revenue returns to the country of origin of the multinational corporations (MNCs). Walmart’s expansion plan into India is a prominent example of an MNC disturbing the local retail environment (Walmart in India: A Case Study, 2012). Globalization and the influx of foreign direct investments cause these many of these family owned and operated businesses to fall by the wayside (Catholic Online, 2012). 

             The prevalence of globalization results in a “race to the bottom” in terms of currency value. In order to acquire a competitive edge, a country will use several tactics to sell its exports at the lowest price possible, including paying low wages to laborers, using non-eco-friendly fuel and degrading the value of its currency by printing money (Tverberg, 2013). Consequently, inflation strikes and relatively lowers the country’s currency. Consider the case of the Indian Rupee’s plummeting exchange rate (Somalkar, n.d.). It is experiencing a worrisome devaluation against the dollar because foreign investors have sold their bonds due to the fear that US might take military action in Syria (The Times of India, 2013). A developed country, like the US, affects other economies because of its ensuing actions. Hence, globalization has tied countries and their economies together; a domino effect is witnessed when one country’s potential feud ripples an economic meltdown in other countries.

               From Madras to Madrid, one cannot evade the sight of someone talking on their cell phones, thanks to globalization. The transmutation of technology is attributed to the increasingly interconnected globe. Many supporters of globalization, however, fail to recognize the turbulent repercussions of the rapid exchange of information across boundaries: terrorism. In attempts to reach the global superpower status, developing countries, like Afghanistan, launch violent attacks on the US. Therefore, greater accessibility of technology has not only rendered distances meaningless, but also paved way for illicit uses of global communication. 

                A handful of preexisting resolutions aim to tackle these issues. Developed nations enforce rules on developing countries, such as cutting wages and imposing sanctions. This neither resolves the issue nor has the welfare of children in mind. To compensate for their decreased wages, poor families will be tempted to force more children to work. On the other hand, the current policy by the IMF allows a huge flow of finances, thereby causing fluctuations of currency exchange rates, weakening the financial sovereignty and leading to the monetary suffering of developing nations (“Globalization and emerging economies”, 2009). Permanent solutions to these rampant issues may not be attainable straightaway. It is feasible to henceforth mitigate the dreadful effects of economic globalization on society. To combat child labor, developing countries should be provided with incentives for letting children stay in school and refrain from joining the workforce. It is crucial to ensure the benefits acquired from international market integration positively impact the poor. According to Edmonds (2002), “child labor could virtually disappear if the developing world could attain living standards that are even quarter of that currently enjoyed by wealthy countries like the United States and Switzerland.” To prevent the risks caused by economic globalization, the following measure should be considered. International economic organizations, such as the IMF, ought to regulate economic development by perfecting a caveat system against financial crises, restoring the confidence in foreign investments and international investors, and overseeing the flow of international capital (Chanda, 2008).

          The aforementioned evidences prove globalization a pitfall due to the lack of proper governance. In essence, the whirlwind of globalization is swaying the stems of society; it is crucial to dissolve the disadvantages posed by economic globalization and efficiently convert the drawbacks to benefits through regulations and measures.

Economic Standpoint of Globalization

Globalization refers to a novel phenomenon that is reverberating across the world. Yet, to set this evolving process to a clear-cut definition is an arduous task. Swedish journalist, Thomas Larsson, states in his book The Race to the Top: The Real Story of Globalization (2001), that globalization “is the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world.” Naturally, it entails a myriad of viewpoints, be they cultural, political, or economical. The scope of this paper is to assess the drawbacks posed by the increasing interdependence of world economies, due to soaring cross-border trade, heightened flow of international capital, and ubiquitous technology.

The expanding market frontier is a distinguishable trend of economic development. Thousands of years ago, countries protected their rarities, such as certain seeds and eggs, by barring their exports (Chanda, 2008). Over the millennia of interaction, barriers and tariffs were lifted as economists deemed it an unmitigated “good”. The transformation from centralized economies to market economies has further promoted the assimilation. Encouraging dependence of developed countries on developing countries to obtain cheaper labor and raw materials has led to severe levels of unemployment in America (Chanda, 2008). Likewise, the developing countries are also influenced by the rich countries. Critics argue that it has positively impacted the income in those countries, by increasing opportunities for earning. However, as the dependence increases, local labor markets in developing countries are pushed to produce more and more. Nevertheless, their resources maybe limited, resulting in the economic exploitation of children. 

For instance, child labor in Mozambique in 2010 was at an alarming rate of 22.5%, and another 22.4% of children who combined work and school. These children were subject to physical abuse, dangerous occupations and taxing working hours. Not only were the kids forced to work, but also forced into prostitution. In Mozambique, children were trafficked internationally for commercial sexual exploitation (Mozambique, 2011). The irreversible mutual integration of markets, stemming from globalization, has created a cruel life for innocent children in developing countries. 

Globalization has also set its footprints on the financial sector. In order to the serve the needs of cross-border trade and international investments, international finance was developed. The cross-border flow of capital has been swiftly escalating; to put things into perspective, the average daily transactions of foreign exchanges has risen from US$ 200 billon to presently US$ 1,200 billion. This is roughly a 70 fold elevation as compared to the value of the commodities exported (Tverberg, 2013). 

It should not be astounding if a shift is investment is seen from the country with a competitive disadvantage to the country with a competitive advantage – an obvious choice. This process has heightened the competition at the international market. Acquisitions and merging have been used as techniques to improve their position on the scale. However, there is little to no evidence that an inward investment will benefit the developing country. More often than not, the revenue return to the developed country that the multinational corporations (MNCs) originated from. Sometimes, this even results in local businesses closing down and MNCs dominating. Walmart’s expansion plan into India is a prominent example of an MNC disturbing the local retail environment (Walmart in India: A Case Study, 2012). India is home to bustling marketplaces and several small businesses, commonly family owned and operated. Globalization and the influx of foreign direct investments cause these feisty businesses to fall by the wayside (Catholic Online, 2012). 

The prevalence of globalization results in a “race to the bottom” in terms of currency value. In order to acquire a competitive edge, a country’s export must be sold at the lowest price possible. To execute this, a country will use several tactics including paying low wages to laborers, using non-eco-friendly fuel and degrading the value of its currency by printing money (Tverberg, 2013). Consequently, inflation strikes and lowers the country’s currency relative to others. Consider the case of the Indian Rupee’s plummeting exchange rate (Somalkar, n.d.). It is experiencing a worrisome devaluation against the dollar. India’s foreign investors have sold their bonds due to the fear that US might take military action in Syria (The Times of India, 2013). Not only has the Indian currency debased, but also the Indonesian rupiah, Malaysian ringgit and the Thai baht hit three-year low (Moon, 2013). A developed country, like the US, affects other economies because of its ensuing actions. Hence, globalization has tied countries and their economies together; a domino effect is witnessed when one country’s potential feud ripples an economic meltdown in other countries.

From Madras to Madrid, one cannot evade the sight of someone talking, texting, or surfing the Internet on their cell phones, laptops or tablet PCs. The transmutation of technology and capital is attributed to the increasingly interconnected globe. This technological revolution and capitalist market system has significantly reduced the costs of communication and transportation. Many supporters of globalization, however, fail recognize the turbulent repercussions of the rapid exchange of information across boundaries: terrorism. In attempts to reach the global superpower status, developing countries like China and Afghanistan launch violent attacks on the US. The greater accessibility of technology, thanks to globalization, has not only rendered distances meaningless, but also paved way for illicit uses of global communication. 

A handful of preexisting resolutions aim to tackle these issues. Developed nations enforce strict rules on developing countries, such as cutting down wages, sanctions and punishments. Yet, this hardly resolves the issue as these policies do not have the welfare of children in mind. Poor families will be tempted to push more children as laborers to compensate for their decreased wages. To combat child labor, developing countries should be provided with incentives for letting children stay in school and refrain from joining the workforce. It is crucial to ensure the benefits acquired from international market integration positively impact the poor. According to Edmonds (2002), “child labor could virtually disappear if the developing world could attain living standards that are even quarter of that currently enjoyed by wealthy countries like the United States and Switzerland.”

Permanent solutions to these rampant issues may not be attainable straightaway. However, it is feasible to henceforth mitigate the dreadful effects of economic globalization on society and life. The current policy buy the IMF allows a huge flow of financial and capital markets, which causes a disorder in the fluctuation of currency exchange rates.This weakness the sovereignty in terms of finances, leading to the monetary suffering of developing nations. (“Globalization and emerging economies”, 2009) The following measures should be considered to prevent the risks caused by economic globalization. International economic organizations, such as IMF and World Bank, ought to regulate economic development by perfecting a caveat system against financial crises, restoring the confidence in foreign investments and international investors, and overseeing the flow of international capital (Chanda, 2008). Although political reformations are beyond the scope of this paper, a strong government is key in readjusting economic structures.

The aforementioned evidence prove globalization a pitfall due to the lack of proper governance. In essence, the whirlwind of globalization is swaying the stems of society; it is crucial to dissolve the disadvantages posed by economic globalization and efficiently convert the drawbacks to benefits through regulations and strict measures. 

 

References

1. Catholic Online. 2012. “India’s Small Businesses Tremble With Introduction of Wal-Mart, Others”.
URL: http://www.catholic.org/international/international_story.php?id=44610
(accessed on 10 Oct 2013). 

2. Chanda, N., 2008. “Runaway Globalization Without Governance”, Global Governance, 14: 119-125.

3. Edmonds E.V. and Pavcni, N., 2002. “Does Globalization Increase Child Labor? Evidence From
Vietnam”, Working Paper. URL: http://www.nber.org/papers/w8760 (accessed on 9 Oct 2013).

4. “Globalisation and Emerging Economies”, 2009. OECD Policy Briefs: 1-7.
URL: http://www.oecd.org/tad/tradedev/42324460.pdf  (accessed on 10 Oct 2013). 

5. Larsson, T., 2001. The Race to the Top: The Real Story of Globalization, Cato Institute, Pg. 9.

6. Moon, A., 2013. “Syria pushes oil prices up; Wall Street rebounds.” Reuters. URL:
http://www.reuters.com/article/2013/08/28/us-markets-global-idUSBRE96S00E20130828
(accessed on 10 Oct 2013).

7. “Mozambique”, 2011. 2011 Findings On The Worst Forms of Child Labor. United States Department
of Labor’s Bureau of International Labor Affairs. URL:
http://www.dol.gov/ilab/programs/ocft/2011TDA/mozambique.pdf (accessed on 9 Oct 2013). 

8. Somalkar, P. n.d., Impact of Globalization on Indian Economy. Abhinav, 1(8): 5-11.

9. The Times of India, 2013. “Sensex closes 651 points down on Syria fears and rupee fall”.
URL: http://timesofindia.indiatimes.com/business/india-business/Sensex-closes-651-points-down-
on-Syria-fears-and-rupee-fall/articleshow/22255766.cms (accessed on 10 Oct 2013). 

10. Tverberg, G., 2013. “12 Negative Aspects of Globalization”. Oil Price. URL:
http://oilprice.com/Finance/the-Economy/12-Negative-Aspects-of-Globalization.html (accessed
on 10 Oct 2013) 

11. “Walmart in India: A Case Study”, 2012. Fuzzy World. URL: http://fuzzyworld.in/walmart.html#!/
(accessed on 10 Oct 2013) 

Reader Response

        “The Effects of Media Globalization” by Mary Hickman, as the title suggests, addresses the impact of globalization on the media industry. It superficially seemed as just another paper condemning media. However, Hickman provides an insightful and unbiased view of new communications technology. In the first two paragraphs, Hickman appreciates the ease and affluence that globalization has created and assures the reader that she does not criticize every aspect of media. From the third paragraph on, Hickman unravels her arguments; she asserts that the advantages posed by media globalization are shrouded by greater drawbacks. In today’s dynamic milieu, the role of globalization in media influence and global reception ought to be analyzed.  

          Media globalization is an incessant result of technological advancements. Connecting with people across the hemisphere is very simple, thanks to global communication platforms. Although the Internet is at one’s disposal, providing access to an abundant amount of information, the society is not necessarily well-informed. American media is breaking down cross cultural boundaries, thereby causing friction in foreign relations. As such, wealthy countries are defining media and influencing the developing countries. Moreover, due to the decrease in political involvement, the free market capitalism essentially creates a monopoly or an oligopoly. Furthermore, consumers are constantly bombarded with commercials. This advertisement oriented media deteriorates the quality of journalism. When all of these dangerous trends are imitated on a global scale, overpowering media corporations will threaten democracy by silencing freedom of speech. 

         Media globalization is characterized by the convergence of old and new media technologies. As a consumer of mass media, I initially challenged Hickman’s claim in her thesis, that the consequences of media globalization “ironically [included] hindrance of free speech” (Hickman, 2007). I believed that new media platforms such as Facebook and Blogger endorse the freedom of speech. For instance, Reddit’s tagline is “where your votes shape what the world is talking about.” Such a social network elicits one’s thoughts to be publicized, without discretion. On the contrary, the Media Development Authority’s law in Singapore censors the very independence granted by online media. This regulation requires online news sites, with 50,000 and more viewership, to obtain “an individual license from Media Development Authority…[placing] them on a more consistent regulatory framework with traditional news platform” (MDA, n.d.). Such censorship contradicts any freedom of speech remaining, despite the advancing technologies which are shaping new media; for this reason, I finally agreed with Hickman’s assertion. 

            International mass media has hastened cultural homogenization. Since the wealthiest countries have the global dominance over the rest, the media too will “promote the culture of the wealthiest countries” (Hickman, 2007). However, Hickman falls short of addressing the result of this strong influence on cultural diversity. Developing countries are attempting to assimilate and integrate their culture into a more westernized society.  Kraidy (2002) identifies this cultural imperialism and notes that it has existed for a long time. Yet, with today’s transnational media, cultural imperialism has only intensified the hybridity across the globe. I do not consider such imperialism to be entirely harmful. For instance, the crowning of Nina Davaluri, an Indian-American, as Miss America has led to a revolutionary change in India. A “Dark is Beautiful” campaign has been initiated to combat the prejudice placed on women of darker complexions. Therefore, the promotion of an open-minded culture, with America as its role model, is indeed beneficial to developing countries. 

            Albeit, the process of media globalization is laden with several ambiguities. After a closer examination of the merits versus the limitations that global media poses, I conclude that media must be regulated, but minimally, in order to secure our freedom of speech and to leverage positive consequences with the global dominance that social media possesses. With proper awareness, media influence can be tailored to evoke a favorable global reception.

Effects of Media Globalization – Summary (Edited)

Media globalization is an incessant result of technological advancements. Many Americans believe that the benefits of new communications technology outweigh the disadvantages. Little do they know the underlying consequences which ironically restrict their very own freedom of speech. Connecting with people across the hemisphere is very simple, thanks to global communication platforms such as Skype. With the Internet in the palm of our hands, we have access to an abundant amount of information. However, this does not translate to a well-informed society. For instance, American media is breaking down cross cultural boundaries. This is causing friction in foreign relations. GE, specifically, took over NBC;  henceforth, the bias of GE’s actions will be seen in NBC. The profit-driven media is also relevant to wealthy countries which are defining media and influencing the developing countries. American media is establishing the foundations for pop culture. Moreover, jobs are being outsourced and the American middle class is gradually disappearing. Due to the decrease in political involvement, the free market capitalism essentially creates a monopoly/oligopoly. Furthermore, consumers are constantly bombarded with commercials. This advertisement oriented media deteriorates the quality of journalism. When all of these dangerous trends are imitated on a global scale, overpowering media corporations will threaten democracy by silencing freedom of speech. In essence, the advantages posed by media globalization are shrouded by greater drawbacks.

Week 4 – Summary

With reference to B3 Summarizing Practice, Paragraph 1: 

Sociologists determine the disparity between the poor and the wealth by obtaining data from World Bank and United Nations. These data reflect upon quality-of-life indications such as wealth, health, sanitary conditions, etc. 

Week 4 – Paraphrasing

Declan Butler presents the much-awaited features of the nuclear reactors in his paper “Nuclear power’s new dawn”. The new reactors prove to be more efficient as they operate at higher temperatures. Moreover, these reactors have automated cooling system which switch on in case of an accident. Unlike the previous versions of nuclear reactors, the newer ones are much more simplified. This also entails higher productivity.