Impacts of Globalization on Development Notions - Essay Example

Impacts of Globalization on Development Notions Table of Contents Introduction 3 Impact of globalization on the economic sector 3 Impacts of globalization on agriculture 5 Impacts of globalization on education 7 Impacts of globalization on the health sector 9 Impacts of globalization on technology 10 Impacts of globalization on the political and social sector 11 Conclusion 13 Bibliography 15 Impacts of Globalization on Development Notions Introduction Globalization refers to the process that embodies transformation encompassing the spatial organization pertinent to social transactions and relations. The aspect of globalization receives an assessment in terms of intensity, extensity, and velocity. In addition, this concept generates interregional or transcontinental flows and networks of various activities, the exercise of power, and interactions. Evidently, the impacts of globalization are dynamic as opposed to being static, and they vary in the intensity, extensity, and velocity (Zajda & Rust, 2009, p.78). Zajda & Rust argue that largely, globalization tends to move from a centre to a periphery from heavily industrialized to less industrialized countries. Further, globalization labelled as a process that involves international integration that arise from the interchange of products, worldviews, ideas, and varied cultural dimensions. Globalization is inevitable since it encompasses every field of the contemporary life. Contextually, globalization is the increased integration of the world economies and communities that transcends the boundaries of the separate nations. It happens due to international trade and the constant flow of goods and capital, people and ideas, and the exchange of cultures. Moreover, the widespread and rapid diffusion of information technology entwined with the establishment and creation of transnational regulations account for increasing globalization (p.288). Essentially, globalization has diverse impacts on various developmental dimensions including the agricultural sector, education, health, political, economic, social, and the environment. Impact of globalization on the economic sector Globalization enhances the prosperity of the economies and leads to efficient resource allocation. Prosperous economies and proper allocation of resources result in increased employment opportunities, high outputs, lowered prices of goods, and high standards of living. Due to increased trade, direct foreign investments, flexibility of countries to operate across borders, and enhanced communications, there is an easy access to information, and easier delivery of goods and services. Realizing this situation, the people in various countries get fast access to goods and services saving time and concentrating to develop their economies. When more investors come to an area, the people get employment opportunities leading to increased income thus boosts their living standards. Similarly, better access to information allows the people to realize the global market price of goods and services to avoid unnecessary expenses. However, critics of globalization emphasize that the concept fosters offshoring and outsourcing, which leads to the destruction of the manufacturing sector of the developing nations. Globalization stimulates reforms in institutions and supports financial developments. The conception of economic globalization in relation to capital accounts and trade elevates the quality of the financial institutions. Further, these institutions create and uphold robust property rights, better financial guidelines, and sound legal systems that are critical in the promotion of financial development. For instance, the countries in East Asia have experienced trends toward increased openness to a high degree of finance and world trade integration due to greater economic developments. Economic globalization motivates direct foreign investors, cross-border capital investment flows, and trade volume. Hence, involved countries undergo rigorous institutional and structural reforms to align themselves with the needs of globalization thus hiked developments. Economic globalization also boosts the country’s GDP and guides the production of goods and services in the free market economy. The concept of globalization reduces imposed customs duties, policies, and restrictions on the flow of goods, services, and capital. Further, it accentuates the gradual exchange of the international economies. In the other words, globalization leads to an increased value of foreign investments and henceforth regulates the liberalized markets. Through increased international investments, the host country receives better economic opportunities in respect to job opportunities. The inhabitants of such nations utilize the opportunities by acquiring jobs in such institutions and get remunerations that further augment their livelihoods and raise the GDP. The competitions created due to open markets enable the business enterprises to heighten their business strategies in the attempt to win more customers. In this regard, there is the adoption of numerous working policies that develop the economic sector. Thus, globalization boosts the development of the economy and stabilizes the competition in the international sphere. Impacts of globalization on agriculture Globalization enhances optimal utilization of the available agricultural lands and maximizes efficiency and productivity. The theory of neoclassic economy postulates that free trade underpins typical globalization that produces maximal land use distribution. In so doing, production of goods and services occur to provide benefits throughout the supply chains. The situation indicates that there is a separation of sites of production and the consumption of such goods and services. The aspect of globalization affects the creation of policies that have foci on ensuring food security, notably, in the EU CAP. The CAP intends to maintain a situation of self-sufficiency in the European countries by providing agriculture in Europe at the expense of more efficient productions in the world. Maximizing the levels of production and land use efficiency through global free trade leads to sub-optimal outcomes via the reduction of global influence on the localized change of land use. Thus, the resulting use of land configuration become less efficient, less productive, and profitable than those configurations that arise from an unfettered trade in the agricultural goods. On the contrary, there is overproduction of foods within a region, which damages the environment. It occurs by intensified agriculture due to abandoning of large tracts of land in the marginalized areas (Brown et al., 2014, p. 2). Globalized nations have increased access to information and communication about the best methods of agriculture leading to its development. In the realm of globalization, there is a sharing of experiences and knowledge from the developed nations leading to the adoption of agricultural methodologies in the developing countries. Due to the evolutions in information and communication, the developing world can realize how their counterparts in the industrialized nations deal with agricultural-related problems in similar economic, institutional, and social conditions. Because of an interchange in experience and knowledge between the developing nations, there is a utilization of more cost-effective and sustainable solutions to the shared agricultural challenges. Due to globalization, rural households benefit from their inclusion in the rural networks including associations of water use. The situation helps both the irrigators and no-irrigators to cope with the fluctuations in output and input markets. However, the antagonists of globalization argue that globalization saddles the developing nations with the Western institutions and paradigms that are out of context. Realization of these kinds of paradigms comes long after spending vast useful resources. Nevertheless, the problems are more likely to aggravate, become more complex and acute (Ringler, Biswas, & Cline, 2010, p. 9, 10). Technological advances resulting from globalization boosts agricultural production and reduces rural poverty. In most of the agrarian economies, many countries hail in abject poverty more so the populations live in the rural areas. Due to increased globalization, international bodies such as NGOs penetrate the areas of the developing nations to assist the inhabitants. As more organizations find their ways into the marginalized rural areas, they bring with them advanced agricultural technologies that aid both the large-scale and small-scale farmers. The situation allows for better utilization of the farms and raises the productivity of the participating farmers. The participants then have more than enough and sell to the other areas to gain extra income. Therefore, there is a reduction in the rural poverty indices and improved livelihoods. Impacts of globalization on education Contextually, globalization seeks to standardize the accounting education by ensuring developments in transparency and the independence in content. The IAESB establishes a series of globally relevant standards and numerous pronouncements that reflect good practice pertinent to learning, assessment, and development of professional accountants. In addition, the IAESB develops the benchmarks of education to measure the implementation of the standards of education in the international sphere. Henceforth, there is increased delivery of a quality education to the learners boosting their personal development. Further, the IAESB advances international debates on global issues that relate to learning, assessment, and development of the accountants. The situation leads to formulation of favourable education policies that enhance learning and development of the professional accountants (Needles, 2010, p. 602). Needles note that, globally developed accounting standards create a common framework that fosters the globalization of the capital markets leading to a greater understanding of the financial performances. Similarly, the globalized standards strengthen the auditing and accounting standards as professionals only familiarize themselves with a distinct set of standards. Additionally, there is facilitation in the allocation of the global capital into the education sector. The circumstances attract investments via transparency leading to reduced costs of capital and increased worldwide investment. Thus, the global standards that result from globalization lead to the reduced costs and an increase in efficiency due to the standardization of the information systems and abolition of wasteful intercontinental reconciliation. Further, there is a realization of audit efficiencies, education synergies, and improved training of the accounting professionals (p. 603). Globalization has led to the increased investments in the human capital. The US census data and the IPEDS indicate that immigration and offshoring contribute to increased enrolment in the community colleges. In this context, the workers in the USA are responding to globalization in the bid to develop the skills necessary for global economic competence. Hickman & Olney (2011, p. 654) affirm that because of the increased competitions in the integrated global markets, the US workers respond by investing in their human capital to allow them succeed in the global economy. Wages in the labour market are dependent on the level of education of the individual employee. Therefore, higher levels of education increase wages leading to a shift in the decisions of investing in the human capital. Because of the high demand for skills and knowledge, there a massive establishment of the education institutions to accommodate the growing numbers of students. Eminently, there is an observation of policy changes to allow open admissions that seek to impart more knowledge among the students. Further, the policies developed experience flexibility in the addition or subtraction of course depending on the demand from the students. Consequently, development of policies to standardize education and reduce the time spent in institutions of higher learning will considerably take an effect. The situation will lead to more students graduating reducing the shortage of workforce in the labour market. Increased knowledge and skills will also reduce the degree of unemployment among the populations increasing their living standards. Globalization escalates the need for adult education in the contemporary arena. Due to internationalized interactions, there is a need for the adult populations to acquire communication skills. Hence, transnational bodies have established numerous institutions in different nations to integrate their languages beyond their borders. An eminent example is the Confucius Institute from China that is rapidly spreading its branches to enable more nations speak their language. In this context, there are numerous establishments of such educational institutions to boost the development of the education sector. The complexity and nature of the globalized economies demand that interacting individual understand the basics of communication; thus it is paramount for the entrepreneurs to learn the language of the multinationals they are engaged. Mindful of this situation, the people, especially the adult population go back to institutions that offer such training to learn the basic skills (Milana, 2012, p.780). Impacts of globalization on the health sector Globalization helps in the spread of Western medicine from highly industrialized states to the developing nations. For instance, the American medicine has significantly contributed to the provision of solutions to the health problems around the world because of advanced technologies, high levels of medicine science, and the vast storehouses of health knowledge. Due to international connections, universities in more developed nations educate thousands of foreign students in relation to health subjects leading to enhanced skills and knowledge about health-related problems. In fact, American research laboratories have developed links in other countries to help in basic research and determination of health challenges. In addition, the American pharmaceutical organizations and health-related companies are multinational in respect to production, employment, marketing, and distribution. Thus, globalization enhances access to the healthcare services in the unindustrialized nations. The situation reduces the burden of illness and boosts life expectancy (Cockerham, G. & Cockerham, W, 2010, p. 68, 69). Improved healthcare services attributes to the progress observed in medical technology due to increased globalization. The healthcare advances result from the transfer of medical technologies across the nations and the capacity of the domestic healthcare institutions in absorbing the health technologies. For example, in the post-Second World War period, the advances in medical technology reduced the mortality that resulted from communicable and infectious diseases in the low-income nations. The effects of the discoveries made in the healthcare sector are reliant on the factor of accessibility and in the presence of non-exclusionary channels of delivery. In the low-income economies, technological advances in health can be proxied by immunization coverage, clinic-based deliveries, and oral rehydration. Conversely, in countries with elderly populations, they can be proxied by increased rates of degenerative and chronic diseases screening. Due to increased realizations of globalization, there is a free flow of healthcare information concerning unhealthy lifestyles. In turn, the information helps the populations to avoid unhealthy lifestyles such as lack of exercise, disproportionate consumption of alcohol, smoking, and poor diet. Impacts of globalization on technology Globalization leads to the development of Transaction Processing Systems (TPSs) that integrate information flows in business management. Information Technology (IT) is widely integrated into the aspect of entrepreneurship to foster businesses in terms of efficiency and competitiveness. The essence of globalizing businesses in the IT context saves time and costs besides reduction of errors hence boosting the management and learning decisions. Due to globalizing IT, the development of the TPSs helps the businesses enterprises to be competitive in the global market. For instance, due to globalized markets, vast developments observed in IT lead to better marketing decisions in relation to market segmentation, prices, consumer behaviours, and products. In addition, there are better decisions that are applicable to business promotions, strategic planning, and distribution of the products and services (Sevrani & Gorica, 2014, p. 2). Furthermore, in the realm of globalization of IT, entrepreneurs have developed effective marketing plans for their businesses. Hence, with the apprehension of the global economy, there are fast developments of corporate enterprises to ensure competitive capacities in the global market. The situation has led to the integration and establishment of more internet-based strategies that ensure competence beyond the borders. For instance, the recent past has witnessed a massive emergence of online platforms that deal with the sale of goods and services. Considerably, there have been many corporate organizations going global through developments in IT such as online marketing, promotion, and distribution of business products. Globalization leads to the development of the teleworking concept where employees indulge in work regardless of the geographical location. Due to the technological advances in the contemporary world, businesses have evolved in the manner in which they offer their services. For instance, there has been recognition of the teleworking conception among organizational auditors. Nastase & Ionescu (2011, p. 425) hold that teleworking has profound importance to various business organizations. Consequently, the teleworkers experiences flexible working locations, enhanced work-life balance, and reduced commuting times. Such experiences aid organizations dealing with audit activities to increase efficiency and leverage expertise in the contemporary digitized society. IT in light of globalization, developments in IT helps the community to understand teleworking and boosts the economy. Also, IT establishments lead to effective communication, collaborations, and creation of IT security tools that help in the management of the business enterprises in a globalized economy. Therefore, there are increased virtual teams that assist in the development of products, customer problem resolution, delivery of services, and coordination of diverse employees in organizations (p. 427). Impacts of globalization on the political and social sector Globalization leads to the novel governance and leadership styles. With an enormous development in IT, there are new political and governance constellations of the elites that support the paradigm shift from traditional governance to digitized methods of governance systems. The anecdotal literature asserts that increased globalization enhances the development of political and governance strategic plans that are reliable and sustainable among the developing nations. With the opening up of the world around the developing countries, government institutions coherently align themselves with the organizational requirements set by the international bodies. Degenerating government policies face limitations in the light of globalization, and biased inferences curtailed due to the creation of standard governance policies. In this regard, there is a development of the political sector of a particular nation hence boosting the integration of the international capital markets (Chang & Lee, 2012, p. 6). Globalization plays a critical role in the creation of political harmony hence reducing political violence in both developed and developing countries. Social harmony has been evident in the apparent policy and academic debates due to the financial meltdown observed in the recent past. In conjunction with deepening and widening of globalized markets, liberalists see globalization as a primary factor for peace and social advances. Essentially political globalization embraces good governance systems that have worked in the developing nations and abandons the authoritative leadership that leads to oppression and civil war (Flaten & Soysa, 2012, p. 623). Vast studies show a positive correlation between globalized governments and their ways of governance. For instance, international bodies exist to prohibit oppressive governance and uphold human rights. In this context, governments that tend to suppress the rights of their citizens face economic sanctions leading improved leadership systems. Naghshpour & Marie (2008, p.2) note that in the wake of increased political inequalities, ethnic rivalries may increase and lead to protests that can underscore the legitimacy of a given nation. Economically disadvantaged groups also rise to fight for the protection from their governments, and failure of the government to offer compensation leads to ethnic protests that threaten the stability of nations. Therefore, it is eminent for governments to embrace globalization and integrate the governance structures used by the stable countries in gaining good governance. Conclusion In the realm of globalization, there are fast developments in the economic sector ranging from the prosperity of the economies, better allocation of resources, enhanced GDP, structural reforms, and supported financial developments. In addition, the agricultural sector receives favourable agricultural policies that ignite optimal utilization of the available lands leading to high productivity. Moreover, there is increased access to improved communication and exchange of agricultural information that enhances productivity as farmers can know what to integrate into the agricultural systems. Thus, the advances in the agricultural sector leads to improved livelihoods hence minimized indices of poverty. The education sector receives considerable developments because of globalization in their settings. The Department of Accounting Studies produces competent professionals due to regulations established by the international bodies such as the IAESB. Such organizations ensure transparency and sustainability of the accounting sector through the formulation of standardized guidelines the world over. The increment in salaries and wages are directly dependent on the level of education; hence, more employees enrol in education institutions to climb the ladder of the position in the jobs. As a result, they put pressure on the educational institutions that further their accommodations strategies and delivery of content. Nevertheless, globalization leads to an integration of cultures enhancing the establishment of cultural institutions in foreign nations. The situation develops the education sector by the introduction of new languages that the population learn for better communication in the business arena. The medical technology that comes due to improved globalization fosters better screening of diseases and reduces the mortality rates fostering developments from the workforce provided. The situation emanates from the spread of globalized medical education since students can learn in international medical institutions. Improved globalization leads to better technologies and ensures enhanced organizational strategies in business enterprises. For instance, technology leads to teleworking that provides a healthier working environment for workers. 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