Difference between the Current Era of Globalization with the First Age of Globalization - Coursework Example

Name: ID: Lecturer: Date: Semester: Introduction Globalization refers to a process of integration and interaction among people, governments, and companies of different countries. It is driven by investment and international trade and aided by information technology (Beck, 2002). Steger (2010) stated that globalization emerged out of liberalism and enlightenment; he argued that both liberalism and enlightenment were aimed at the construction of an unrestricted global arena so as to attain universal market and democracy. Globalization also refers to the collapse of borders between nations in terms of politics, trade, capital, education, and culture. It is a process of making the world appears to be one through development of communication and transportation technology such as internet, television, air transport, and television. The word Globalization consists of a broad range of categories which include technology and migration which are part of the elements that differentiate a countries lifestyle and culture. However, in spite of the different cultures and unique set up of the different countries, globalization has come to link them up as a meshed object or equipment, making them integrated in one way or the other (Schaeffer, 2011). Globalization is further broken down into five social elements which are biological, socio-cultural, technological, political and economic. This report will compare the current era of globalization with the first age of globalization as well as the advantages and disadvantages of globalization. Difference between current era of globalization with the first age of globalization Globalization is not new. For 1000’s of years, people and later companies have been selling to and buying from each other at a huge distance. However, technology and policy developments in the past few years have increased investment, cross-border trade, and migration so large that many people believe that the world has entered a qualitatively new phase in its economic development. According to Thomas Friedman, the difference between earlier and current wave of globalization is that today’s globalization is “cheaper, further, deeper and faster.” The current wave of globalization has been driven by technology and policies. Policies have opened economies domestically and internationally. In the last few years, many governments have adopted free-market system which has created new opportunities for investment and international trade, and increased their own productive potential. Moreover, governments have established international agreement to promote trade in services, goods and investment and have negotiated dramatic reductions in barriers to commerce (LCC, 2010). Advances in information technology has dramatically transformed economic life by equipping all sorts of individual economic actors with valuable new tools for identifying and pursuing economic opportunities including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with far-flung partners. Technology has also contributed immensely to the current growth of globalization. Communication which is essential during trade negotiations has improved the free flow of information even for those countries that could not be accessed easily in the earlier days. Engardio (2007) commented that even the incommunicado nations have now established telecommunication that can only be referred to as the state of the art whose aim is to improve the quality of foreign investment. The latest developments can be traced to the installation of fiber optic cables, wireless transmission systems and digital switches in Beijing and Budapest has been the way forward even for other nations. Other forms that have formed a platform for quality communication are video conferencing, digital mobile phones and electronic data interchange which have spread to major parts of Eastern Europe and Asia. The developing nations have embraced the latest technology as a reactor to accelerate their economic development. Countries like Latin America and Asia may take a decade to establish good supply of power and develop infrastructure but with the emergence of telecommunication the bottleneck will no longer be a disadvantage for the two nations. Moreover, the difference between earlier and current wave of globalization is the trade agreements between nations. In early day trade agreement were developed by each country to govern how foreign trade would be carried out but they eventually resulted to tariff wars in the 1930s. They later developed a consensus to remove the arbitrary barriers that limited their freedom in regards to trade. Some of the agreements that were developed are the General Agreement on Tariffs and Trade (GATT), the North American Free Trade Agreement and the European Community. Benefits of globalization Globalization has made it possible for Companies to pay detail attention on the level of competence knowledge of their workers. Thus Companies should be ready to set finances on training and investing more on their employee’s knowledge to stay at par with the competition which is very stiff and for any Company to survive they should focus more on the external factors which can run down the business (Schaeffer, 2011). The rate at which telecommunication is spreading the lines of communication have opened up and the consumers are at a gaining end. Consumers can today purchase and shop online at bargain able prices. The access to internet reduces the time spent by consumers while shopping because today with the click of a button it’s possible to even order perishables and other goods and services to The access to internet reduces the time spent by consumers while shopping because today with the click of a button it’s possible to even order perishables and other goods and services to be delivered at your door step. Globalization has also improved the standard of living of workers who have secured jobs locally and internationally. Opening of lines in communication between developers and employees in Australia have contributed to the reduction in production costs by 15 per cent (Hauschild, 2001) Consumers also enjoy quite a variety of goods and services from foreign countries which are not readily available in their country. Investors who are willing to export to other countries have an open market to carry out their trade without any barriers which hindered their transactions. To a greater extent the business people in around the world have an upper hand when it comes to globalization and through the breaking of trade barriers it is possible for the economy to be transformed and be among the leaders of international world trade. The well being of the population has been changed by the rapid growth of Globalization and the standard of living has also changed than ever before in the world’s history. The more the income people can access the more they are willing to spend on their basic needs and wants. Research has indicated that the rates at which infant mortality have been on the decline averages in 1950 between 175 per 1000 births to 55 per 1000 births. The level of illiteracy has fallen in the recent decade and more than ever before in history, we have the literacy level on the rise to seventy percent. Though there has been observed that some countries continue to record high population growth rate, poverty has also been reduced. Currently as a result of the giant tiger China growth as well as India, the number of people living in less than a dollar has declined to about 200 million. The growth of these emerging markets has thus contributed to a great extent to the growth of Globalization. They include Argentina, Indonesia, Argentina, South Africa, Brazil, Turkey, Poland, and Mexico among others as tabulated by the U.S department of Commerce (Rahul 2007). Disadvantages of Globalization The growth in Globalization has not been without drawbacks such as the observed decline in fuel resources which has continued to grapple across nations. This has been as result of the rise in consumption but the reserves are still flowing with more supply despite the rise but the prices have continued to escalate which is a major concern for the developing concern. Research and development is the only major process that will initiate a breakthrough in increasing the production rate. The environment has also been on the receiving end of deterioration regardless of the efforts being made to go green by developed countries. Pollution is a major bottleneck and the hazardous toxins emanated from the industries continue to be a threat and depletes the financial resources in regards to the cleaning expenses which amount to more than 4500 dollars. Further the social and labor conditions in the developing world have deteriorated as a result of increased production with meager pay though some nations have improved the standards of their workers through increased wages, for instance a factory in Vietnam that sells footwear. Child labour has also continued to be observed where poverty in the developing countries has been the driver of such conditions. This is as a result of lack of finances to educate the children who end up in prostitution as a quick way to make money. In conclusion, as the nations continue to become more globalized, the economy will continue to increase the GDP rate because of the rapid growth of developing countries, the technology dynamism and the generation of better improved trade agreements and treaties between nations. Since the arguments against globalization are far not so disastrous and efforts being made continue to bear fruits, the growth will be fostered efficiently by the above factors which spearhead the rise of economic growth. All nations should embrace the growth of Globalization as an element of success in the breakthrough of innovation and foreign trade. References Robert K. Schaeffer, (2011) Understanding Globalization (Lanham, MD: Rowman & Littlefield Publishers, Inc Beck, U. (1999) what is Globalization? Cambridge: Polity Press Engardio P (2007) “Third World Leapfrog,” Business Week (May 18, 1994), p. 47 Hauschild, (2001), p 66, Business Review Weekly Retrieved on 16th March 2013 from http://www.brint.com/km/davenport/working.htm LCC (2010) Meaning of Globalization, Retrieved on 16th March 2013 from http://livingartsoriginals.com/meaning-of-globalization.html Louis S. Richman (2008) “Dangerous Times for Trade Treaties,” Retrieved on 16th March 2013 from www.trenton.k12.nj.us/technology/profiles/tchs/.../BoundReport-md.do Manfred Steger, (2010), “Globalization” Sterling Publishing Co. Inc. Canada Rahul Jacob,(2007). “The Big Rise,” Fortune (2011), pp. 74 -75 Read More