Old and New Waves of Globalization - Coursework Example

Running Head: Globalization Globalization Name: Institution: Date of Submission: Introduction By definition, globalization implies a phenomenon where the activities of a large number of business enterprises are performed across borders of different nations. By large extend, it is the fast and continuous process of inter-border movement of goods and services, cultures, and information across nations. However, the globalization concept extends far beyond the movement of export and import from one geographical border to another. Instead, globalization encompasses the activities of firms procuring, manufacturing, and selling goods and services to other firms across borders. Increased observations of globalization trends have been characterized by factors such as increased trade across national boundaries, a single firm procuring several materials demanded by several countries, and a single organization extending markets in many countries (Lewis & Karl, 2009). Globalization and brought about a fast communication and transportation systems, increased joint ventures and mergers between companies from different countries, and minimized trade barriers that facilitate efficient and effective import and export procedures. Furthermore, globalization did not just start yesterday and thus wrong to believe it as a recent phenomenon in the current world. Over the decades, the world continued to experience a successive trends and rapid changes in globalization, sometimes interrupted by various challenges. In fact, some academicians and scholars maintain and argue a very long view, with a strong argument that globalization is an ancient phenomenon dating back to the time when the Ottoman Empire moved to Europe (Lewis & Karl, 2009). Similarly, other observers consider globalization as starting during the Iberian conquest of the Americas. Certainly, such ancient historical occurrences contained similar features associate today with the idea broad idea of globalization. Such characteristics include diffusion of technology, significant migration of individuals across borders and territories, assimilation of cultures, and an expansion of trade. A great contrast however occurs when some observers consider the current globalization as quite different from the old age globalization with some observing strongly pointing out that current globalization is a total new paradigm from what happened in the old age. Hobson (2004) for instance salutes and acknowledges globalization as a new world system with its origins after the fall of the great Berlin Wall. The difference in these views is indeed important in unraveling the question of difference between the ancient and present globalization. To answer this question, we shall not only consider the historical patterns of globalization but also the nature of current international globalization as compared to the ancient globalization. Old Wave of Globalization Recently, several research papers have been struggling to point out the innovations of globalization since the end of World War I. It is a time during which, businesses, shipping costs fell dramatically resulting in a low distance of natural barriers and hence facilitating the rise of merchandising to heights similar to what is experienced in today’s world (Lewis & Karl, 2009). The experience also facilitated massive migration and movement of labor from one country to another. In fact, in the fall of the 19th century, estimates have it that over a million people migrated to the United Nations per year. It also facilitated the migration of European workers to other parts of the world. However, the interwar periods experienced a strong backlash against integration. The political arena is the most profound of this category. By large extend, it included the fiasco that surrounded the League of Nations while at the same time the United States brought into effect the enactment and enforcement of its National Origins Act of 1924. This Act in its effect introduced unprecedented and borderless barriers to immigration. Furthermore, the depression that greatly shook and destabilized the world led to the led to nations imposing barriers to trade. One of such profound barriers includes the Smoot-Hawley Act (Steger, 2009). The overall effect is that trade and migration fell down significantly, financial markets experienced repressed periods, and politics turned inward. New wave of Globalization The new wave of globalization began in the fall of World War II. Most important features of this wave include a significant expansion of global business, faster communication and transportation systems, and high levels of income across the globe (Hopkins, 2004). Indeed, in the mid twentieth century, world GDP experienced a rapid growth with an estimated rate of over 4% per annum. International financial institutions such as the World Bank, GATT, and the IMF played a major role in contributing to this trend. This was achievable for such institutions helped countries across the globe to embrace globalization and integration as an idea of great importance and providing such nations with a safety net to help them embrace and appreciate the openness. The expansion of MNCs, beginning in the 1960s, is another very crucial characteristic of this new wave of globalization. Basing it with the story and origins of Standard Oil, this type of corporation (MCN) was not a new phenomenon, as it existed even before. However, it is worth noting that since World War II, the expansion of MNCs has been greatly dramatic (Daniels, 2007). As evidence for this, the case of US direct foreign investment in overseas countries contributed almost 6% of its GDP in the early six decades of 29th century yet in the mid-1990s jumped to 20%. This triggered a revolution in the organization of corporations with the motivation to work against barriers such as trade imposition, trade policies, and language among others (Lewis & Karl, 2009). As a result, from the early 1990’s onwards, human beings have been living in a new wave of globalization. The most salient features of this new wave of globalization are the technological revolution. Technological revolution resulted in an unprecedented ease with which processing and the passage of information are carried out (Ritzer, 2011). This is because of new developments in computer and telecommunications technologies. These developments in technology keep on expanding and thus greatly influence the range and quality of the services traded across the globe. Advantages of Globalization It is with no doubt that globalization has many advantages. Firstly, globalization brings about much easier and quite effective access to foreign products that allow consumers to have a range of goods and services to choose from. Worldwide financial markets will also enjoy adequate formation through effective processing of information. Issues of war developments among nations would also be greatly minimized due to interdependence in business while at the same time fostering environmental protection initiatives (Bridges, 2002). Investors in the already developed country will also have the ability to invest in third world countries due to increased liquidity in the capital. Globalization also offers room for companies and corporation to concentrate their product productions in low-cost locations thus helping them minimize their cost of productions. This allows room for movement of employment opportunities to areas of low incomes (Ritzer, 2011). Finally, different assimilation of cultures can easily be achieved across the globe. However, diffusion of different cultures can either be good or bad. Disadvantages of Globalization Globalization leads to talent drive away from poor countries due to great opportunities concentrated in rich countries. This phenomenon is commonly referred to as brain drain and cost poor countries a lot of money and labor (Juris, 2008). Since globalization facilitates movement of people from one country to another, transfer of diseases becomes even faster. A good example is the widespread of HIV/AIDS. Drug trafficking will also increase with globalization. Conclusion According to the foregoing argument, globalization is not something of recent but something that humans have lived with for a long period dating back to the first world war ad even before then. The analysis also indicates that globalization is an international view taut aspires to bring the world together in the interest of capital and business. The analysis clearly indicates that the origin of globalization is as old as the human race. At the peak of modern globalization is the technological revolution that has facilitated communication systems and integrated business across borders (Lewis & Karl, 2009). This is effective with new developments in computer systems and information technology. To conclude, the current globalization is an improvement of the old age globalization and a significant factor to consider that globalization is still under the revolution and therefore we should expect more changes. There are various positive impacts of globalization such as assimilation of culture, offering new opportunities for investment, access of foreign products, and growth in financial markets. However, globalization has some negative impacts such as widespread of diseases, rampant drug trafficking, and brain drain among other factors. Reference List Bridges, G. (2002). Grounding Globalization: The Prospects and Perils of Linking Economic Processes of Globalization to Environmental Outcomes. Economic Geography 78(3), p. 361–386 Daniels, J., Radebaugh, L., Sullivan, D. (2007). International Business: environment and operations, 11th Edn. London: Prentice Hall. Hobson, M. (2004). The Eastern Origins of Western Civilisation. Cambridge: Cambridge University Press. Hopkins, A.G. (ed.). (2004). Globalization in World History. London: Norton, pp. 4–8. Juris, Jeffrey S. (2008). Networking Futures: The Movements against Corporate Globalization. Durham: Duke University Press. Lewis, D. & Karl M. (2009). The origins of globalization: a Canadian perspective. Ivey Business Journal, p. 34-78. Ritzer, G. (2011). Globalization: The Essentials. NY: John Wiley & Sons. Steger, M. (2009). Globalization: A Very Short Introduction. New York: Oxford University Press. p. 11 Read More