The Risks and Opportunities for Globalization - Coursework Example

Globalization 1. Introduction As technology advances and populations across the globe increases, the world has shrunk rapidly due to globalization. According to (Eriksen, 2007), globalization refers to the increased fusion, integration and linkage of global societies, economies and people by allowing ease to transverse across national, regional, and international boundaries with intent to allow inflow and outflow of goods, information, people, services, ideas, culture, capital and technology. Globalization is a mega trend that has and remains to influence all aspects of life, market forces and shifting political, social, economical, religious, ecological, technological, legal and political paradigms (Steger, 2010). Globalization is a controversial element in modern society that has contributed to impacts that are currently being severely felt and will remain so in the days to come, if not worse. This report will examine the risks and opportunities for globalization. The report will begin by highlighting the impacts and opportunities of globalization in environmental areas, economic areas, social areas and technological areas. In addition, this report will establish scenarios for each area establishing and evaluating the risks and opportunities that are associated with each one. The report will form a response plan for each of the high priority of risks and opportunities. Finally yet importantly, a summary of the priorities for action and subsequent monitoring will be, discussed. 2. Environmental Area Globalization has negatively influenced the environment despite international current efforts to conserve the environment through sustainable developments. Since globalization has opened up new markets for sale of products and services, there has been an increase in need for raw materials and resources up to 75% to help sustain production of the goods and services to meet the rising demands (Schaeffer, 2005). This places sustainability of resources for future utilization at great jeopardy. This is, seen in over-exploitation and misappropriation of available resources especially in developing nations and over use of available resources such as land, water and energy. This has seen increased deforestation to give way to urban housing and developments, increased use of water for industries and over reliance on oil as a supply of energy. (Frumkin, 2010) states that this has led to negative consequence of drying of water catchments areas, soil erosion and destruction of vegetation and animals in the wild. Over reliance on oil has led to emission of toxic gaseous elements such as greenhouse gases and carbon dioxide into the atmosphere (Mol, 2003). Globalization has encouraged a boom in production of motorized systems and equipments such automobiles and industrial machines that emit toxic gases to the air that leads to destruction of the ozone layer, hence global warming (Eriksen, 2007). Increased usage of water systems and air systems for transport has increased air pollution and water pollution. Industrialized economies through globalization are dumping their over-used technological gadgets and equipments and low quality technical equipments into developing nations (Mol, 2003). It includes over-used cars, computer systems and electric gadgets. This causes a problem of pollution as these materials are not recyclable and they are non-renewable and non-biodegradable. In this area, the scenario that will be, identified and analyzed will be “exploitation of available resources”. The risks and opportunities that are associated with this scenario are, shown below Categories Likelihood Impact Level Priority Risks Diminished reliable supply of energy 75 85 63 2 Reduced land resource 60 70 48 3 Drying up of water catchments areas 94 98 85 1 opportunity Using alternative energy supply 90 95 92 2 Developing stringent measures on resource utilization 80 84 88 2 Improved use and allocation of available resources 95 98 90 1 Figure 1:- identifying and analyzing the risks and opportunities for the scenario: “over exploitation of available resources” Drying up of water catchments areas forms the highest priority risk in the Environmental area. The response plane is to improve the situation is in the utilization of available resources and avoid overuse of land and water resources. Improved use and allocation of alternative energy during production, marketing and transportation of goods, services, technology and people to and from international markets is the high priority opportunity. The response plane is creating awareness and expertise to aid in implementing alternative energy supplies such as installing wind turbines, solar panels, biogas systems and developing regulations and policies to guide during use of resources. 3. Economic Area The effect globalization has on the global economic area cannot be over emphasized. As markets have become, integrated, it has created an increased overdependence on economies, which exposes them to collapse if one of the economies does so (Schaeffer, 2005). In addition, globalization has led to brain drain and outsourcing, which is expected to increases the rates of job insecurity and unemployment to more than 74% by 2030 as companies seek cost effective, effective and efficient supply of labor. As developing economies are eager to attract international investors, they disregard regulations and may subject its workforce to unfavorable working conditions, poor pays, decreased benefits and low protection for workers. Globalization has led to modern day slavery and human trafficking as women and children are, traded across borders to supply cheap labor and become income earners through sex trade and are used to transit drugs (Chen, 1998). Safety regulations are, discarded in a bid for a company to make cheaper products and remain feasible in the competitive market environments. Poor economies are getting poorer while wealthy ones are getting wealthier, while increasing competition puts local companies at the mercies of multinational companies that put them out business. A wealthy economy is dependent on having a healthy nation (Schaeffer, 2005). Globalization puts the economy of states at risk with increased chances of rapid spread of incurable diseases such as Ebola and high exports of cash crops hence, shortage of food supply (F.A.O.U.N. 2001). This puts economies under pressure as money that would be, invested in sustainable developments is focused on treatment and prevention of such illnesses. The hike in inflation and prices on consumer goods makes it hard for governments to allocate sufficient funds to maintain social welfare systems (Prasad & IMF. 2003). Additionally, globalization has weakened international financial systems as witnessed by emerging financial and economic recessions in the recent past (Chen, 1998). Many economic and financial downturns are, expected in the future by 2050 that will increase the cost of living. In this area, the scenario that will be, identified and analyzed will be “the occurrence of future financial and economic downturns by 2050”. The risks and opportunities linked with this scenario are, described as below Categories Likelihood Impact Level Priority Risks Unstable international financial and economic structures and systems 90 92 70 1 Increased rates of unemployment 87 92 64 3 Increased costs of living 90 90 70 2 Opportunity Formulate international financial and economic standards and policies 80 85 75 2 Establish global labor market reforms 78 84 49 3 Establishing local sustainable developments 98 98 50 1 Figure 2:- identifying and analyzing the risks and opportunities for the scenario: “the occurrence of future financial and economic downturns by 2050” From the figure 2 above, the unstable international financial and economic structures and systems is a high priority risk. The response plane is to establish minimize overdependence among varied global financial systems and structures. The high priority opportunity is establishment of local sustainable developments to cushion future economies against global financial crises. The response plane is to encourage growth of local industries and development and implementation of policies and frameworks necessarily in aiding sustainable development. 4. Social Area The impacts of globalization on societies and the lives of people are detrimental. Globalization has allowed elimination of barriers for people, capital, information, goods and services to transverse borders (Prasad & IMF. 2003). This has resulted in social dissonance as people from rural developing countries are compelled to migrate to new urban areas and even go beyond borders in search of better lives and employment. Since majority cannot afford the cost of living in such areas, they resort in living in shanties and slums where the sanitation, drainage, health, safety and security are in deplorable conditions (Schaeffer, 2005). This puts them in the lower social status. Globalization has and is, expected to erode moral cultural values of various social groupings. This is due to the role media and advertisement plays in the lives of young people and families. Social decay associated with globalization, encourages use of illicit substances, unsafe sexual contacts, prostitution and disregard for traditional social and cultural values, practices, conduct and beliefs as implied by (Stalker, 1998). Through globalization, societies have further disintegrated based on divergence of social and political divisions that jeopardizes international peace (Eriksen, 2007). The aspects of globalization have restructured the functions and the institution of families. Parents are too engrossed in keeping pace with rapidly changing labor environments to, effectively and, efficiently cater for the emotional and psychological needs of their spouses and children. Single families are, expected to increase in coming decades (Stalker, 1998). Children on the other hand, do not participate in traditional sports and family activities and are instead engrossed in video games, social networking sites and watching television and listening to music. Globalization has led to advancement in technological solutions, systems and structures that have encouraged development of high tech weapons of mass destruction. The rates of terrorism are, expected to rise to greater heights by 2030 (Stalker, 1998). In addition, people are using the internet to spread social and political propaganda, ethnic hate, racism, stereotyping, discrimination, prejudice, fear and motivate people to fight, insult, disrespect and kill one another, elements outlawed in social and community settings (Prasad & IMF. 2003). People have lost faith and belief in religion as they have become more empowered and are able to influence tragedies and events, create and modify natural creations. This includes issues such as cloning, production of robots, creation of genetically modified products, traveling to other heavenly bodies and finding cure to diseases among other (Stalker, 1998). People are more susceptible to contract deadly diseases and urban centers are prone to increased rates of crime, as high number of people move to urban areas. In this area, the scenario that will be, identified and analyzed will be “increased future social decay and fragmentation of family structures”. The risks and opportunities that are associated with this scenario are as follows Categories Likelihood Impact Level Priority Risks Disintegrated family systems and units 80 70 75 3 Poor urban living 90 92 95 1 Increased rates of crimes 95 90 94 2 Opportunity Uphold family and social values 85 85 56 2 Improve employment opportunities 78 85 56 3 Develop and empower rural/ local areas 65 90 50 1 Table 3:- identifying and analyzing the risks and opportunities for the scenario: “increased social decay and terrorism by 2030” Poor urban living is a high priority risk in the increased social decay and terrorism by 2030 scenario. The response plane is to develop more employment opportunities for locals. Development and empowerment of rural/local areas is high priority opportunity for the stated scenario. The response plane would be developing sustainable infrastructures and reliable systems in rural areas to minimize rural to urban migration and to alter the mindset that life is much better in urbanized areas. 5. Technological Area Globalization lies on the backbone of technology advancement (Schaeffer, 2005). Using the media as an aspect of technology, global economies can mobilize and compel trading partners globally to conform to set international standards on labor, employment, use of available resources and conservation of the environment. The press, electronic media and the internet are useful technological solutions for spreading good social, cultural and moral values and denounce oppressive, corrupt and demeaning practices and ideals. The media is a powerful tool in compelling developed economies to stop electronic dumping in developing nations and in facilitating for better working environments, wages and benefits for workers (Eriksen, 2007). Developments of technological infrastructures in rural/ local areas are essential in increasing productivity, hence, controlling migration of people, goods and services to urban areas thus, minimizing the rates of crimes, drug use and poor urban living. Technological applications and systems can be, used to create innovative methods and means of averting future instability of financial and economic systems and help develop and implement sustainable developments (Prasad & IMF. 2003). Using advanced technology available through globalization, economies globally can be able to use alternative energy supply that is essential to conserving the environment, preserving the ecosystem and prevents air, land and water pollution (Prasad & IMF. 2003). Technologies are available that help process oil nuts to produce oil, which does not emit smoke or any toxic gases. Technology is bound to help to effectively and efficiently harvest and use waters thus, allowing proper use of available resources (Eriksen, 2007). In this area, the scenario that will be, identified and analyzed will be “the use of media, as a technological tool will be, increased by approximately 50% by 2020”. The risks and opportunities that are associated with this scenario are, as described below. Categories Likelihood Impact Level Priority Risks Increased social decay 50 70 80 1 Spread of propaganda through the media 65 85 50 2 Increased fragmentation of social systems 60 60 60 3 Opportunity Establish alternative supply of energy 74 85 86 2 Improve international policies and regulations 80 85 80 1 Reduced rural to urban migration 60 85 50 3 Table 4:- identifying and analyzing the risks and opportunities for the scenario: “the use of media, as a technological tool will be, increased by approximately 50% by 2020” The high priority risk for this scenario is increased social decay. The response plane is to minimize the negative effects by putting in place media regulatory measures and adherence to media law, thus, presenting fair, objective facts. The high priority opportunity for this scenario is improved international policies and regulations. The response plane for this opportunity would be developing standardized regulations and guidelines that govern international trade, sourcing, and the labor markets. 6. Summary of priorities (i) Environmental area Priority Outcome Preserving water catchments areas Priority actions Using alternative energy supply Developing stringent measures on resource utilization Improved use and allocation of available resources Monitoring action utilization of available resources and avoid overuse of land and water resources creating awareness and expertise to aid in implementing alternative energy supplies (ii) Economic area Priority Outcome Stabilize international financial and economic structures and systems Priority actions Establishing local sustainable developments Establish global labor market reforms Formulate international financial and economic standards and policies Monitoring action establish minimized overdependence among varied global financial systems and structures Encourage growth of local industries and development and implementation of policies and frameworks necessarily in aiding sustainable development. (iii) Social area Priority Outcome Improve on the poor urban living Priority actions Develop and empower rural and local areas Uphold social values Improve employment opportunities Monitoring action Develop more employment opportunities for locals. Developing sustainable infrastructures and reliable systems in rural areas to minimize rural to urban migration and to alter the mindset that life is much better in urbanized areas. Technological area Priority Outcome To reduce social decay Priority actions Establish international policies and regulations Establish alternative supply of energy Monitoring action Minimize the negative effects by putting in place media regulatory measures and adherence to media law, thus, presenting fair, objective facts. Developing standardized regulations and guidelines that govern international trade, sourcing, and the labor markets. Conclusion Mega trends are a modern day reality that may negatively influence present and future systems of societies. They influence how a person reacts, think, associate, relate, socialize, play, believe, perceive, work and transacts. Globalization has negatively influenced environmental, social, economic and technological areas. Environmentally, it has caused over-exploitation of available resources, air, and land and water pollution with increased reliance on oil. Economically, it has caused brain drain, global financial and economic crises and increased inflation rates, unemployment and unequal income status between developed and developing economies. Socially, it has resulted in social and moral decay, increased human trafficking, crimes and drug use. Technically, globalization has helped develop sustainable developments in local areas thus, limiting rural to urban migration and increased populations in urban areas which causes increase in crimes and pollution. Technology offers alternative to energy supply. Technological tools such as the media can be, used to mobilize support to adherence to set standards and guidelines to prevent oppressive labor practices, spreading good social, cultural and moral values and denounce corrupt and demeaning practices and ideals. The media is a powerful tool in compelling developed economies to stop electronic dumping in developing nations and in facilitating for better working environments, wages and benefits for workers. References Chen, J. 1998. Economic effects of globalization. London: Ashgate. Eriksen, T.H. 2007. Globalization: the key concepts. Sidney: Berg Publishers. F.A.O.U.N. 2001. Report of the Regional Workshop on the Effects of Globalization and Deregulation on Fisheries in the Caribbean, Castries, Saint Lucia, 4-8 December 2000. Geveva: Food & Agriculture Org. Frumkin, H. 2010. Environmental Health: From Global to Local. London: John Wiley and Sons. Mol, A.P.J. 2003. Globalization and Environmental Reform: The Ecological Modernization of the Global Economy. New Delhi: MIT Press. Prasad, E., & IMF. 2003. Effects of financial globalization on developing countries: some empirical evidence. Washington DC: International Monetary . Schaeffer, R.K. 2005. Understanding globalization: the social consequences of political, economic, and environmental change. London: Rowman & Littlefield. Stalker, P. 1998. States of Disarray: The Social Effects of Globalization. Melbourne: DIANE Publishing. Steger, M. 2010. Globalization. New Jersey: Sterling Publishing Company, Inc. Read More

Over reliance on oil has led to emission of toxic gaseous elements such as greenhouse gases and carbon dioxide into the atmosphere (Mol, 2003). Globalization has encouraged a boom in production of motorized systems and equipments such automobiles and industrial machines that emit toxic gases to the air that leads to destruction of the ozone layer, hence global warming (Eriksen, 2007). Increased usage of water systems and air systems for transport has increased air pollution and water pollution.

Industrialized economies through globalization are dumping their over-used technological gadgets and equipments and low quality technical equipments into developing nations (Mol, 2003). It includes over-used cars, computer systems and electric gadgets. This causes a problem of pollution as these materials are not recyclable and they are non-renewable and non-biodegradable. In this area, the scenario that will be, identified and analyzed will be “exploitation of available resources”. The risks and opportunities that are associated with this scenario are, shown below Categories Likelihood Impact Level Priority Risks Diminished reliable supply of energy 75 85 63 2 Reduced land resource 60 70 48 3 Drying up of water catchments areas 94 98 85 1 opportunity Using alternative energy supply 90 95 92 2 Developing stringent measures on resource utilization 80 84 88 2 Improved use and allocation of available resources 95 98 90 1 Figure 1:- identifying and analyzing the risks and opportunities for the scenario: “over exploitation of available resources” Drying up of water catchments areas forms the highest priority risk in the Environmental area.

The response plane is to improve the situation is in the utilization of available resources and avoid overuse of land and water resources. Improved use and allocation of alternative energy during production, marketing and transportation of goods, services, technology and people to and from international markets is the high priority opportunity. The response plane is creating awareness and expertise to aid in implementing alternative energy supplies such as installing wind turbines, solar panels, biogas systems and developing regulations and policies to guide during use of resources. 3. Economic Area The effect globalization has on the global economic area cannot be over emphasized.

As markets have become, integrated, it has created an increased overdependence on economies, which exposes them to collapse if one of the economies does so (Schaeffer, 2005). In addition, globalization has led to brain drain and outsourcing, which is expected to increases the rates of job insecurity and unemployment to more than 74% by 2030 as companies seek cost effective, effective and efficient supply of labor. As developing economies are eager to attract international investors, they disregard regulations and may subject its workforce to unfavorable working conditions, poor pays, decreased benefits and low protection for workers.

Globalization has led to modern day slavery and human trafficking as women and children are, traded across borders to supply cheap labor and become income earners through sex trade and are used to transit drugs (Chen, 1998). Safety regulations are, discarded in a bid for a company to make cheaper products and remain feasible in the competitive market environments. Poor economies are getting poorer while wealthy ones are getting wealthier, while increasing competition puts local companies at the mercies of multinational companies that put them out business.

A wealthy economy is dependent on having a healthy nation (Schaeffer, 2005). Globalization puts the economy of states at risk with increased chances of rapid spread of incurable diseases such as Ebola and high exports of cash crops hence, shortage of food supply (F.A.O.U.N. 2001). This puts economies under pressure as money that would be, invested in sustainable developments is focused on treatment and prevention of such illnesses.

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