Advantages and Disadvantages of Globalisation - Coursework Example

Globalisation Q: Compare and contrast the current era of globalisation with the first age of globalisation. In doing so, refer to the advantages and disadvantages of globalisation in its current context. Introduction Globalisation is the process through which most societies, regional economies as well as cultures have found integration by virtue of global networks of communication, trade and transportation. This term also refers specifically to economic globalisation, which means integration of national economies into international economy by means of trade, capital flows, technology spread, foreign direct investment and migration. However, it is notable that globalization is recognized as a concept that is driven by a combination of technological, sociocultural, economic and political. Globalisation also means the circulation of language and ideas across national borders through a process called acculturation (Croucher 2004, p.10-13). According to United Nations ESCWA the term globalisation has different ways in which it can be defined. Economically, this term means the reduction and the removal of any barriers that exist between national borders to aid in the facilitation of the flow of capital, goods, services and even labor. However, there are still considerable barriers in the flow of labor across borders of nation. Globalization is an old world phenomenon. It started in late 19th century. It then slowed down from the beginning of the First World War to the third quarter of 20th century (Croucher 2004, p.15- 16). This slowdown was due to policies that were inward looking advanced by some countries in an attempt to protect industries that existed within their borders. However, the pace at which globalization grew picked up fast during the last quarter of the 20th century. This essay thus seeks to critically compare and contrast the current era of globalisation with the first age of globalisation (Croucher 2004, p.19-22). First age of globalisation The origin of globalization is a subject of a debate that is still ongoing. Although it is taken to be a product of the modern era, many see it as phenomenon, which has quite some history. Perhaps one of the best proponents of the origin for first age globalization was the economist known as Andre Gunder Frank who came up with the theory of dependency. He said that a given form of globalization experienced today has existed since links of trade rose between the Indus Valley and Sumer Civilization (Croucher 2004, p.9-11). The global economy of the first age of globalisation was a development of the tremendous technological innovations made in the Industrial Revolution. Most important were novice forms of transport, which overcame the challenge of distance. During the Industrial Revolution, creativity in technology eliminated natural barriers to international trade occasioned by distance. In addition, it brought about possibilities in enacting beneficial global exchange of products. At the base of this new world economy, factories produced a variety of manufactured goods that the globe population required. Such factories in western countries relied on natural resources present in the developing nations. Such resources were also cheap (Croucher 2004, p.22-28). Globalisation enabled the manufacturing nations import the resources they needed with much ease. Here, it is notable that the first age of globalisation is the same as the current era of globalisation because the developed world still exploits the developing world in an attempt to acquire raw materials for their industries (Croucher 2004, p.15-21). The first era of globalisation ended with the two world wars, the totalitarian dictatorships that characterized many nations and the great depression, all of which were the major catastrophes’ that plagued the 19th century. The first era of globalisation had such a bad end and questions arose which are not just for the sake of historical inquisitiveness. Such questions pivotal in understanding the many controversies that surround the current era of globalisation. Critics of global affairs see inherent dangers in today’s unregulated global markets (Croucher 2004, p.23-30). This fate befell the first era of globalisation. Just like back in the day, the current era of globalisation the economic forces are slipping through all the proper market constraints. The first age of globalisation was tragic, with the presence of unregulated markets, which have volatility and extreme brutality there was no better end than that of totalitarianism, economic depression and world wars (Croucher 2004, p.31). In the current era of globalisation, the faith in the unregulated markets of the globe is a series of disasters in waiting. The current form of globalization developed in the 19th century. Industrialization advanced the cheap production of items by use the economies of scale. The increased population growth created a sustained demand of such commodities. Imperialism shaped globalization in this era. It was in this period that many nations of the world became consumers of European exports. This period also saw the incorporation of many regions of the Pacific Islands sub Saharan Africa into the global system. (Croucher 2004, p.43).The Europeans conquered new colonies in Africa and the Pacific, which gave them vast natural resources including coal, diamonds and rubber. Consequently, this fueled investment and trade between the Europeans, the conquered colonies and USA (Croucher 2004, p.41-43) The globalization slowly started a slump down in the start of 20th century (Croucher 2004, p.29). This is the period of the First World War. Financial forces in the process of globalization are the cause of the First World War. The end of this era was in the gold crisis and the famous great depression of the 1930s. In mid decades of 20th century, the current era of globalization largely a result of the world’s expansion of many multi-national corporations founded in Europe and USA and the exchange of developments in areas of science and technology (Croucher 2004, p.18 -25). New products exported between nations at this time. Most inventions at this time originated from western nations. The western culture has found its way into the global nations through mass media. The development and subsequent growth of the enormous telecommunication industry and the international transport system play an important role in current globalization. Just as the first era of globalization experienced the great depression in the 1930s, the current era of globalization experienced financial recession in 2000 (Croucher 2004, p.10). Analysts argue that the globe is in an era of degblobalisation following many years of increased economic integration of global markets. Close to 50% of the global wealth was lost through the financial credit crunch that occurred in less than two years. Today China is the largest world exporter (Croucher 2004, p.29) Advantages of globalisation in its current context One advantage of globalization is the advancement of the global systems of information. The world has developed major systems of exchanging information around the globe. The telecommunication industry has experience tremendous growth as well as a better flow of data across the world (Croucher 2004, p.16) Technologies in use include communication satellites, wireless telephones, fiber optic cables and the most popular internet. This has transformed the world into a global village whereby one can have a view of the whole world within the touch of a button. The second advantage is that of competition. To survive in global business productivity there has to be improved production of goods and services which increases competition (Croucher 2004, p.19-20). National products have to be upgraded using modern technology. This calls for skills that will ensure that such products can face the stiff competition in the global market. This therefore means that consumers get the best products. The other advantage is acculturation. Acculturation occurs due to the flow of language commonly known as popular culture across the borders of nations (Croucher 2004, p.17). The population of the world learns the culture of different parts of the planet thereby making them the citizens of the world. The ability to speak common languages has created mutual understanding, peace and unity of nations. It has also brought about appreciation of the diversity of the people of the world through their cultures (Croucher 2004, p.22). A final advantage is the development of democracy in the world. This has led to better governance of the nations of the world, a rule of the people, by the people and for the people. Disadvantages of globalisation in its current context Poor countries of the world mainly the developing nations suffer the disadvantages of globalisation as it is today. Although globalisation has encouraged free trade between nations of the globe, it has adverse effects where some nations want to preserve their national markets. Developing nations usually export agricultural products. On the other hand, the developed ones offer subsidies to agricultural farmers, which in the end make the poor farmer’s products get a lower market price in comparison to what would be the price in a free market (Croucher 2004, p.25-27). This means that the developed world ends up with more benefits than the poor nations. Globalisation has brought about workers exploitation. The impoverished worker from a poor nation suffers exploitation in globally. Developed nations cannot protect workers from poor nations (Croucher 2004, p.26). This gets worse by the day. Such nations take workers from poor countries and use them as cheap labor in their industries. They do this through enticement of workers by offering them a good amount of money in wages but give them unbearable work and poor working conditions. Such workers have to abide and endure employment hardships for the sake of their poor families. There are increased cases of child labor in the world today than at any other time and this is due to globalization (Croucher 2004, p.26-28). The increased labor demand in the advent of globalisation has seen children become laborers. At their tender age, they enter the labor market to cut the shortage of labor. In the process child trafficking, child prostitution, and even pornography are the vices children practice through force. In conclusion, globalisation is unavoidable since it is both beneficial and has bad effects (Croucher 2004, p.47-62). Reference Croucher, S, L 2004, Globalization and Belonging: The Politics of Identity in a Changing World. Rowman & Littlefield, pp.9-62. Read More