New look on Globalization - Essay Example

GLOBALIZATION IS NOT SOMETHING NEW Globalization as a process is looked from a broad perspective. It had come about due to the continuous strong influence by the economy worldwide, social and cultural aspects weighing out the national and regional processes (Beck, 2000). This process is not new. It has historical roots running deep. However, a change in the world in the form of space and time due to the revolution in communication and information signifies a qualitative breakthrough from the past. Globalization has therefore greatly underway globally (Mittelman, 2000). The support got a high rate of change in technology, by price, trade liberation, and through growing advantages of supranational rules, exposing national economies to an intensive competition. Globalization has therefore been seen as being caused by a change in the views of the world, products, ideas, and cultural aspects (Weinstein, 2005). Transportation and telecommunication advancement, including telegram and internet development are all main factors of globalization, forming more interdependence of cultural activities and economy. From the advancement achieved by the countries nationally and internationally, I view globalization as something with historical background, evolving culturally and economically, forming ancient, early modern and late modern stages. Beck (2000) is one of the people who have talked extensively on this concept of globalization, and he argues that globalization is a process that existed many years ago, and it began with the voyages of Vasco Da Gama. Mata (2007) on the other hand denotes that globalization is a new process, and it is characterized by advances in technological and industrial innovations. Others trace globalization origin to the past millennium BCE, that is, the third one. Globalization at large-scale started in between the 19th and 20th century, where world economies and cultures connections grew at a high rate (Chase-Dunn, Kawano & Brewer 2000). It has form a buzzword for the past two decades. The abrupt increase in knowledge exchange, capital, trade all over the world pushed by technological innovation, as from internet to containers shipping, placed globalization in the limelight (Osterhammel & Petersson, 2005). Some viewed globalization as something good. Amartya Sen, an economist, once a Nobel-Prize winner stated globalization as an enrichment of the world scientifically, culturally and with economic benefits. The UN even made predictions on the forces of globalization as to reduce poverty in 21st century. Other came up with disagreement on globalization. Critics have been formed to attack globalization from the free market economy. Galor & Moay (2000) also talks extensively on this concept of globalization, and they view it as a process that made it possible to create economic and political inequality in the world. Some supported him. The IMF, for example in 2007, brought evidence of inequality level increase through new technology introduction and foreign capital investment in the developing countries (Galor & Moav 2000). The developed nations also did not trust globalization. They argue that globalization allows for the movement of jobs to places that are cheaper. In France, they were able to equate the term globalization to derogation. This derogation led to the survey by IFOP, pollster, in April 2012, giving 22% of the citizens in France viewing globalization as something good to the country. The economic historians passed the question of the advantages of globalization outweighing the disadvantages which was viewed as more complicated (Olukoshi, 2004). These historians were interested in the time the process of globalization began, whether 20, 200 or 2000 years ago. They disagree on one seeing something to be good in history without telling the period for which it has been going on. Economists in the earliest times were certainly familiar with the concept of markets and people in the world becoming more integrated as time passes (Chiswick & Hatton, 2003). Globalization is characterized by the division of labor. Labor division enabled the expansion of work output, driving for the search for specialization, expanding trade, hence community from different parts of the world are brought together (Mittelman, 2000). This trend forms the same age with civilization. Expansion of villagers and networks of trade involved included wider specialization leading to the growth of primitive labor division between hunters and herders. Furthermore, there were shifting of armorers into arrows and bows, carpenters to house building and clothing from the seamstress. These all formed specialist artisans, exchanging their items for foods by the hunters, gatherers, and shepherds. The beginning of the trading of goods by the villagers and countries with those they were not efficient in making a formed market that was more integrated, due to increasing specialization and trade. Muthu (2008) argued that the beginning of globalization is set back to the 19th century when abrupt transport cost drop allowed for the convergence of Europe and Asians commodities prices. They argue that the discovery of America by Columbus and Asian route by Vasco Da Gama had minimal impact on the prices of commodities (Mata, 2007). However in the analysis, Mathu (2008) was not able to identify and explain an important market for silver that silver was the major currency in the European trade, and a minor change in the value would have affected price level for Europe widely. This is because it was a major currency, used across Europe, and it can be equated to the dollar, in the modern times, which is an agent of globalization because it enables international trade (Kamen, 2000). Frank (1998) argues that globalization beginning can be traced back in the third millennium BC from trade growth and integration of market between Indus and Sumer civilizations. China and European trade link grew during Hellenistic Age that is at 16th century and rapidly in the globalization modern era. The growth was majorly due to transport costs drop leading global market convergence increase, which was described by Williamson as after 1750. Looking at globalization, it has been more than one-way process. There is evidence of the existence of market disintegration or deglobalization in Dark Ages periods, the 17th century and the 20th interwar periods (Chiswick & Hatton, 2003). Evidence also exists in the retreatment of globalization in recent crisis since 2007. It is, however, clear that globalization did not begin two decades or centuries ago. It forms a history that extends thousands of years ago beginning from hunters and gatherers of Smith forming trade bond with the adjacent village and gradually developing into recent interconnected global societies (Mazlish, 2001). So whether someone takes globalization to be a good thing or bad, it still maintains the essential aspect of mankind economic history. Therefore, comparing the arguments by the scholars with the evidence they provide, I still maintain the fact that globalization is not something new but has its history from the ancient periods. Ideas, meaning, norms, and values were transmitted around the world so as to extend social relations and make it more intensive. This transmission was signified by the loss of ancient culture diffused through internet, media of popular culture and international travel. The transmission boosted commodity exchange processes and colonization which forms the long history of moving cultural meaning all over the world (Luke & Luke, 2000). The culture circulation allowed for the individuals partaking in social relations that are extended crossing borders regionally and nationally. Such social relation creation and expansion is not usually seen at the material level. Cultural globalization includes shared norms and knowledge formation allowing individuals and general culture collective identities. It strengthens the interconnection that exists between various populations and culture. For example, the diffusion of some cuisines like American fast food chains, formed by two companies McDonalds and Starbuck showed some examples of globalization. They had about 32000 and 18000 branches worldwide as stated in 2008 (Yang et al, 2011). There existed some cultural perspectives of globalization including hybridization, homogenization and conflict intensification. In hybridization, there are arguments by many writers who viewed cultural globalization as a long-term process historically for making different cultures come together into interrelations. Nederveen (2009) argued that it is easy for detection of cultural mixing throughout the regions and continents proceeding back to many centuries. The mixing led to the suggestion of human hybridization and integration being involved in cultural globalization (Kraidy, 2005). These writers referred to, for instance, the religious practices, cultural and language movement brought about by the colonization of Americans by the Spanish. The reveal of pluralization and cultural globalization impact and its history by the Indian experience also forms a good example. These writers traced globalization origin to modern capitalism, enhanced through advancement technologically. Homogenization on the other side had an emphasis on transfiguration on diversification worldwide into Westernized consumer culture pandemic (Short, Boniche, Kim & Li, 2001). There were criticisms of the dominance of the culture of America having an influence on the whole world will gradually lead to cultural diversity end. This process also known as cultural imperialism had been associated with cultural identities destruction formed by westernized and homogenized consumer culture (Short, Boniche, Kim & Li, 2001). The American products global influence together with business and culture in various countries worldwide has been called Americanization. This influence showed through television programs that are American based that are usually rebroadcast all over the world. McDonalds and Coca-Cola, main American companies have strengthened the spread of American culture globally (Canclini, 2001). According to Berger & Huntington (2009), interactions between people from various culture strengthen civilization consciousness that later causes invigoration of differences when the world decrease in size and interconnected (Hopper, 2007). There have been an increase in economic integration and interdependence nationally, regionally and economies locally all over the world through intensified goods movement across the border, together with services, capitals, and technology. Change in the world economy has gone a gradual change. The modern economy is far much different from the ancient economy. However, the modern economy is an origin of the ancient economy (Chiswick & Hatton, 2003). This origin is due to the similarities of various processes of making, for example, a product, the difference being the more advancement of the modern technology. These applications in the modern times are also found to have been discovered in the ancient days though their applications were minimal. Globalization forms set of processes involving economic multiple networks, cultural, political interchange. Economic globalization is represented by the faster growth in significance of information in all activities that are productive, marketing and science and technology development (Lall, 2001). Globalization economically includes finance and production globalization, market, corporations, technology, and labor. This globalization has been under expansion from the time of trans-national trade emergence and grown faster for the last 30 years under the World Trade Organization framework (Levinson, 2010). The membership led to the removal of trade barriers by countries opening up capital and current accounts. Through globalization, economic growth and income has increased in less developed countries and has lowered prices for consumers in the developed countries. The developing and developed country power balance has also has been changed, affecting the culture of each country involved (Dreher, Gaston & Martens, 2008). Moving goods production to other places has enhance jobs crossing borders leading to change in careers by some employees in developed countries. The economy is composed of labor, capital and commodity markets, and this forms the economic globalization. Looking at globalization in economic development from the ancient perspective, in early 4000 BC, there were trading of livestock and tools. A token system was used as commodity money in Mesopotamia (Berger & Huntington, 2002). The labor market is composed of employers together with employees, wages and incomes, and also supply and demand. Labor market existed from the ancient times. The ancient labor markets had workers growing crops and rearing livestock which they later sold in the local markets. Capital markets existed in the industries that needed more resources as compared to an individual farmer. Coming to early 1990s, one could rarely come across a city or town that had not been influenced by the western market. Trade with various parts of the world had been easy due to advancement in electronic communication and transport by rail and ship. Many producers in various towns did not limit themselves to their produce; they traded with the adjacent towns. World War 1 caused disruption to the adjustments that had already taken place in the economic globalization. There was the introduction of trade barriers by most economic powers, slowing growth of trade to a stagnant point. These barriers slowed down trade worldwide leading to the introduction of immigration caps by other countries. Globalization resumed later on in 1970s when there was an emphasis of trade by the government. Rapid global trade expansion has been enhanced by advanced technology in the modern world (Porter, 2000). Take for instance the emergence of online payment solutions, such as Pay Pal, SWIFT, etc. These methods of payment have made it possible for people to engage in international trade. Furthermore, these technological advances have made it possible for the emergence of a virtual workforce. These are people working for companies, while in different regions of the world. Globalization in the economic sector was increased by several factors, including; science and technology advancement, economic reforms in the market, and contributions from multinational corporations. Globalization growth was enhanced by low transport and communication costs. For instance, in the 1930s, the world experienced a fall in the shipping costs of products. The cost of transporting goods by use of sea was able to decrease by approximately 85%, facilitating an increase in cross border trade (Porter, 2000). This is an aspect of globalization. There were reductions in tariff barriers to trade by the WTO member countries. There was shifting of the economy by the governments to markets from the previous central planning (Porter, 2000). These reforms led to the adaptation of enterprises quickly exploiting the opportunities that were created by the shifts in technology. There was production reorganization by the multinational corporations taking advantage of the existing opportunities. There was shifting of production that was labor intensive to areas with low labor costs. Containerized shipping in 1956 lead to ship sizes increase reducing shipping costs (Levinson, 2010). . From this, we can see that there was a gradual development of the economy that was brought about by globalization in the economy. The development shows that globalization is something that did not just start yesterday. It existed a long time ago, but technological advancement changed its face. In conclusion, from the above information given by various scholars, I still maintain that globalization is not a modern thing; it is something with a long history. It is through globalization that we have moved from the ancient world to the modern world. The fact of changing world and daily development is maintained. Experts are coming up with innovations to make the work of the human beings easier. The coming generation may be having a more advanced economy with a different culture as compared to the current generations. We should not forget that globalization is also reversible. Things like world war if worse can move the country back to the scratch. BIBLIOGRAPHY BECK, U. (2000). What is globalization? (p. 74). Cambridge: Polity Press. BERGER, P. L., & HUNTINGTON, S. P. (2002). Many globalizations cultural diversity in the contemporary world. Oxford, Oxford University Press. CANCLINI, N. G. (2001). Consumers and citizens: Globalization and multicultural conflicts (Vol. 6). U of Minnesota Press. CHISWICK, B., & HATTON, T. J. (2003). International migration and the integration of labor markets. In Globalization in historical perspective (pp. 65-120). University of Chicago Press. CHASE-DUNN, C., KAWANO, Y., & BREWER, B. D. (2000). 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