Different Dimensions of Globalizations - Case Study Example

Globalization Case Study Name Course Lecture Date Introduction Globalization refers to the increasing interconnectedness, integration and interaction of various communities across international boundaries across various aspects of life (Spence 2011). The world is now closer together politically, socially, economically and culturally. Through transportation, communication and trade various world community can now be thought to be one large global community. Globalization therefore affects many aspects of a person’s life regardless of where he lives in the world. The issue of globalization remains controversial with an equal number of proponents and opponent. One side of the argument maintains globalization has changed the quality of life of people both economically, socially, politically and culturally (Spence 2011). On the other side those opposed to globalization argue it is designed for western multinationals to have unfettered access to developing markets at the expense of local enterprises, culture and people (Alli, Winter and May 2011). However, it is undeniable that globalization affects governments, companies and individuals in significant ways. This paper discusses the economic, social, political and cultural dimensions of globalizations and their advantages and disadvantages using Bangladesh as a case study. Economic Globalization Economic Globalization refers to greater business interaction and integration and inter-dependability by actors across international boundaries (Steger 2009). It is can also be defined as the unification of local and international economies into one political and economic orders. It is characterized by freer movement of goods, services, labour, capital and investment across international boundaries. Economic Globalization has seen the rise of multinational companies to their current status as powerful global power brokers (Steger 2009). According to Rock (2001), economic globalization has seen accelerated economic growth as trade volumes rise. Economic globalization is associated with creation of new job opportunities particularly in third world countries. According to Rock (2001), most multinational organizations now outsource most of their non-core operation to contractors in developing countries. Lowly unionized labour environments and cheap labour are some of the factors that attract multinationals to seek labour in developing countries. On the other hand multinational are able to realize more profits as they have a lower wage bill. Bangladesh for example has been able to sustain a positive growth rate despite global economic hardships. The country hosts most of the world’s textile manufacturing factories that employ over 2 million workers (Venkatesan 2013). Before the advent of globalization in Bangladesh the country was ranked among the eight poorest countries in the world but its economy has developed rapidly over the last 10 years (Venkatesan 2013). Secondly, Economic Globalization consolidates the global division of labour. For example Bangladesh is able to concentrate and excel in producing the cheapest garments in the world. On the other hand, India is renowned as the best IT outsourcing destination in the world. However, there is a downside to the economic growth that is dependent on the investment of multinational companies (Steger 2009). First, this makes countries vulnerable to the unstable international business cycle. In an increasingly speculative financial market, global companies may pull out their investment from countries like Bangladesh anytime. Secondly, the profits made by multinational companies while trading with third world countries end up in the company’s home country. Therefore, the benefits of economic globalization are heavily skewed towards rich nations as is evident by the contrast in quality of life between developing and developed countries. Worryingly some people believe that Bangladesh may not be able to sustain it economic growth based on exporting of apparels. Apparently, the World Bank believes rich nations have the power to dictate the prices of apparel export from Bangladesh (Alli et al 2011). This is show the power that rich nations have to dictate the prices of commodities sourced from developed countries. Furthermore, rich countries can discontinue their purchases from third world countries if their price demands are not met. In contrast, developing countries give companies from developed countries unfettered access to their markets and leave them to charge exploitive prices on their citizens. Social Globalization Social globalization refers to how the forces of globalization shape the social way of life of a recipient community (Steger 2011). In the Bangladesh export processing zones women dominate the workforce. Before the advent of globalization, most Bangladeshi women were either housewives and worked in agriculture. Women were able to move from their menial jobs and contribute significantly to economic development in Bangladeshi. This particular impact of globalization means that Bangladeshi women were more empowered and could live without depending on men. Globalization also has a negative social transformation in Bangladesh where cases of human trafficking are on the increase. As a poor country, competition for work remains high in Bangladesh despite the opportunities brought about by the apparel export opportunities. Bangladeshi women are tricked by traffickers from Pakistan and other Asian nations that they will get job in foreign nations as dancer and models (Muqtada et al 2002). Instead they are sold to prostitution rings where they are kept as slaves. This brings grief and shame to their families who sometimes live to never see their loved ones again. According to Muqtada et al (2002) over 200,000 Bangladeshi women are trafficked out of the country every year. Cultural Globalization Cultural globalization refers to intensified and expanded cultural flows across international boundaries and actors (Tsui and Tollefson 2007). Cultural globalization refers to how global forces change behavior of individuals, shape identities and desires in a recipient country. It also refers to the spread of global languages and the influence of global media on local cultures. Many cultural transformations have occurred and Bangladeshi culture is more westernized than ever before (Alli et al 2011). First, English versions of popular songs are used to celebrate most holidays in Bangladeshi including the New Year. The Bangladeshis are also changing their dressing with their clothes now more ornamented that before. Bangladeshis young girls have also started to wear pants and T-shirts which is viewed as unacceptable in the majority Muslim culture. Culinary habits have also changed significantly and in place of the traditional Kebabs, rice and vegetables are being replaced by Pizza and French fries. According to Tsui and Tollefson (2007), the most popular downloads in Bangladeshi internet sites are for English songs and other English media items. Access to pornography and violent media has also been credited with the rise of pervasive behavior like rape and adultery in Bangladeshi society. Political Globalization This is a reference to the intensification of political interrelations between nations and companies and the global public (Geppert and Dörrenbächer 2011). Political globalization means in most cases the political power of the state is waning while the power of multinationals is also rising. In Bangladeshi the rising power of business entities is very evident. For many years, the Bangladeshi workers in the textile industry were not permitted to join trade unions. Wages remain among the lowest in the world but the Bangladeshi government is unable to do anything about it due to the pressure from multinational manufacturer’s to keep Bangladeshi a low-cost garment producer (Venkatesan 2013). The Bangladeshi government is unable to impose stringent safety measure and demand fair remuneration of textile workers as it does not want the Textile exporters to move to other nations. However, globalization can also limit the political power of a national government over its citizens in a positive way (Oatley 2012). Textile retailers and consumers in developing countries have been able to pressure the Bangladeshi government to put in place policies that offer its over 2 million textile workers better employment conditions (Venkatesan 2013). Conclusion Globalization can both be a force for good or evil. As is evident in this case economic globalization has been able to bring about accelerated economic growth to Bangladesh. However, the country has become exposed to economic shocks happening elsewhere. Bangladesh has also been impacted by social changes such as women participating more in the paid employment. On the contrary, Bangladeshi society has been hit increased cases of human trafficking. Bangladeshi culture has been eroded across many dimensions including dress, food and sexual attitudes. Finally, globalization has eroded the political power of the Bangladeshi government to protect its people against oppression by businesses. However, the Government still has to factor in global voices that call for greater protection of citizen’s rights. References Alli, AM , Winter, GS, & May, DL 2011, Globalization: Its Effects. International Business & Economics Research Journal (IBER), vo. 6, no. 1 Geppert, M & Dörrenbächer, C 2011, Politics and power in the multinational corporation: An introduction. Politics and Power in the Multinational Corporation: The Role of Institutions, Interests and Identities, pp.3-38. Gokhale, J 2010, Globalization: Curse or Cure? Cato Institute. Muqtada, M, Singh, AM, & Rashid, MA 2002, Bangladesh, economic and social challenges of globalization, University Press. Oatley, T 2012, International political economy, Longman, Boston. Rock, M 2001, Globalisation and Bangladesh: The case of export‐oriented garment manufacture. South Asia: Journal of South Asian Studies, vol. 24, no. 1, pp. 201-225. Spence, M 2011, Impact of Globalization on Income and Employment: The Downside of Integrating Markets, The. Foreign Aff. 90, 28. Steger, M 2009, Globalization: A Very Short Introduction, Oxford University Press, New York, p. 11 Tsui, A & Tollefson, JW 2007, Language policy, culture, and identity in Asian contexts. Mahwah, NJ: Lawrence Erlbaum Associates. Venkatesan, R 2013, Clothing Garment Workers in Safety: The Case of Bangladesh, Economic and Political Weekly. Read More