Effects of Globalization, Its Advantages and Disadvantages - Coursework Example

Name Course Instructor’s Name July 16, 2010 Effects of globalization Globalization is a term that describes a system or a procedure by which various cultures, regional economies and societies have become incorporated via a global network of transportation, trade and communication (Harrison 67). This term may sometimes be used to refer particularly to economic globalization which is the incorporation of national economies into economy international through capital flows, direct foreign investment, migration, trade and the wide spread of technology. Thus, globalization is specifically noted as being motivated by a grouping of economics, social cultural, technological, biological and political factors. Globalization can also be defined as the abolition or lessening of state enforced limitations on exchange transversely and the increasingly incorporated and complex global pattern of production and trade that has come out as a result. Advantages of globalization Increased competition; the global competition has led to the product quality improvement which is the most notable positive effects. Customer service approaches to the produce have contributed to a high quality commodity and services (Mayer 75). As most domestic organizations have to rise against foreign competition, they are forced to upgrade their standards and clients satisfaction levels so as to survive in the market place. However, when a global product gets an access in a new country, it presents itself as riding on a goodwill that it has to stay up to. This in return develops competition in the market place and a condition of the survival for the fittest. Creation of employment; with the increased globalization, most companies have forayed within the developing countries and thereafter generated employment opportunity for them (Bussolo & Round, 71). This is one of the advantage or disadvantage effects of globalization basing on the mark of perception you wish to have. It has led to investing opportunities in the up-and-coming markets and valve up the talent that exists there. In various developing countries, lack of capital is a major concern for it hinders the development of domestic companies and thus, employment (Harrison 69). In this kind of cases, due to the global nature of some businesses, people in developing countries can also obtain profitable employment opportunities. However, jobs in the developed countries have somehow lost on account of the movement of jobs to the growing world and thus most people within the first world feel it as a pinch. Capital flows and investment; the flow of overseas capital has become the most notable positive effect in some countries like India. Many organizations have openly invested in India, by commencing production bodies in India (Bordo, Taylor & Williamson, 66). Most companies that are performing very well in India and across the borders, will eventually attract a number of foreign investments, and hence pushes forward the reserves of foreign trade available in India. This is a major advantage in the United States and in other developed countries because developing countries offers them a better investment proposition. Foreign trade; comparative positive effect has been a notable factor even in ancient days. As trade emerged in times of ancient kingdoms, globalization made it to be institutionalized. In the past, human beings had to resort to unjust modes and damage of countries and kingdoms in order to get hold of what they needed (Bussolo & Round, 71). However, in this present world, it is always done in a humane way and mutual cooperation. People who function in uncivilized means are now facing world trade organization plus other organizations that were developed with an aim to regulate and control the trade affairs of several countries. Spread of knowledge; because of globalization, majority assumes that most innovations take place within the western world; the aspect of knowing how also originates into various developing countries out of globalization. No much benefits would be achieved without globalization even the knowledge of latest inventions, most medicine could remain cooped in the countries it emerged from, hence not many would profit. Due to the improved political activities, the information is flowing both ways, and at such a point the distribution of knowing how, can be expounded to involve political and economic knowledge, that has also spread extensive and far (Prasad & International Monetary Fund, 24). The most example of the wide spread of knowledge is the western flooding the markets in India with antibiotics which are of great help in quality of life improvement of Indian people. Culture widespread; globalization has brought about a positive effect on culture for not every good practices originates from one civilization. The present world we are living in came as a result of various cultures joining together. People of a single culture, if amenable, tend to view the flaws within their culture and embraces up the culture that is more correct or somehow in tune with the present times (Bordo, Taylor & Williamson, 56). Communities have expanded for they have receipted people of different background and civilizations and thus created a full new culture of them. Globalization has led to the spread of customs, new languages and cooking styles. The same too can be said concerning movies, art forms and other musical styles. They have also shifted from one country to the other, leaving an idea on a culture that has espoused them. Improved education; a major powerful advantage of globalization on both males and females is the widespread of quality education. Nowadays, one can transverse in search of the most excellent educational facilities across borders with no hindrances. A person residing in the United States can visit other continent for a new course or experience that may not be present in their home country (Prasad & International Monetary Fund, 23). An example is the American managers who went to Japan to study on the best practices in area of mass production and they have incorporated that same knowledge in their very own production sections. Ethical and legal effects; in the old days, limited jurisdiction was a hindrance in criminal prosecution. In this modern world due to existence of international courts of justice, the criminals are unable to seek refuge in a foreign region, but they will be presented forward and justice will be done (Mayer 81). Global terrorism can now be curbed due to the coalition between the police and security agencies from different countries. Disadvantages Globalization has resulted to labour exploitation. Child workers and prisoners are working in inhumane situations and no safety standards. The price increase has minimized the government capability to maintain social welfare system in developed countries (Bordo, Taylor & Williamson, 56). most deadly diseases such as AIDS are highly spread by travellers across the globe there is increased human trafficking most local industries are taken over by multinationals foreigners the internet can be used by the enemy to spread propaganda Terrorists can access sophisticated weapons enabling their capacity to inflict destruction. Most of them make use of the internet to communicate with other terrorists. Most companies/organizations have come up with industries that are polluting the environment in countries with poor limitation of pollution. Globalizations benefits are not universal; the poor are getting poorer while the rich are getting richer. The local cultures are being affected by bad aspects of western cultures via the internet and television. Political decisions are increasingly being influenced by multinational corporations and companies that were previously limited to commercial activities. Increase of job insecurity, in the past people enjoyed permanent and stable jobs, but in the present world people live in the dread of loosing jobs due to competition. Evaluation and solutions As globalization has brought about positive and negative effects in most countries, it is the responsibility of the organizational management to evaluate and weigh out the outcome of commencing businesses across the globe (Harrison 70). They should make sure that every business application would work out effectively in the chosen countries, and consider a favourable strategy that will ensure every new application will perform well globally. New jobs should be distributed equally among the people living in that region; this will in return balance the gap between the poor and the rich, as it also gives access to proper utilization of the available resources. Negative use of technology should not be encouraged especially the internet and media, this can only be done by employing strict regulation governing these two bodies. People in a new region should be willing to learn and cope up with the new culture especially the language and behaviour (Mayer 85). In case of a new product in the market, the concerned party must make wise decision to determine the product features in the new region and translate their language to fit the new language. Conclusion My opinion is that, due to the negative effects brought about by globalization, every sector providing goods or services in any way to every person should enforce new laws or procedures to minimize the effects. As overall economic policy varies, changes at the lower business sectors are also vital for inclusion of the less privileged people in the process of development and growth. The less privileged people can be involved in economic affairs within institutions, which are designed to involve them as owners and earners but not only as customers. Big businesses that have been established should also change some of their organizational culture and behaviour. The organizational management needs to adapt to new concepts and devices to make their organizations more sustainable and inclusive. Business management institutions have a crucial role to offer the solutions. Another opinion that is very necessary and effective is the mode of individual thinking and reasoning capacity. Due to the fact that globalization has led to a macro change in the economy, people should also think beyond the scope and come up with new approaches to cope with the changing world, but we hardly continually examine, channel our established approaches to management and economics. References Bordo Michael, Taylor Alan & Williamson Jeffrey. Globalization in historical perspective. Chicago: University of Chicago Press, 2005. Bussolo Maurizio & Round Jeffrey. Globalisation and poverty: channels and policy responses. London: Routledge, 2006. Harrison Ann. Globalization and poverty. Chicago: University of Chicago Press, 2007. Mayer Florian. Examination of the Cultural Effects of Globalisation. Sydney: GRIN Verlag. Prasad Eswar & International Monetary Fund. Effects of financial globalization on developing countries: some empirical evidence. New York: International Monetary Fund, 2003. Read More