The Term Globalization - Essay Example

? This paper gives a clear introduction of globalization, its effects and the reason of it being a contentious term has also been discussed in detail. GLOBALIZATION Globalization refers to the procedure through which local economies, cultures and financial systems have incorporated via worldwide network of political ideas that are transmitted and shared through communication, trade and transportation. The term globalization was initially coined by Charles Taze Russell in the year 1897 who was the founder of Student Movement of the Bible and it was through his efforts that people became familiar with this term; however, this phenomenon was widely recognized and used by the renowned economists in the late 1960. Globalization is mostly related to economic globalization however this is not the case; globalization presents a much wider concept. It is a combination and amalgamation of political, economic, biological and cultural factors which are being shared and circulated globally. Globalization is a very relative term and can be used in a number of ways depending on the factor it is being applied to. For instance, if taken from an economic perspective, globalization is the removal of hindrances and barriers existing between two nations so that the flow of services, manpower and merchandise can be enhanced and taken to a higher level for the attainment of mutual benefit and progress. The concept of globalization has changed paces; it took a start in the nineteenth century and deliberated during the era of the First World War. It again accelerated in the middle of the 20th century, the reason many economists present for its varying trends is the changing attitude of the economists who sometimes backed off from this practice so as to protect the policies and regulations of their organizations. Globalization took a turn after World War II; this was due to the combined efforts of the politicians who made deliberate attempts to eliminate the borders obstructing trade. Bretton Woods Conference further paved way for this since politicians from all over the world signed the petition to carry out foreign trade and commerce and numerous institutions were also developed in order to view and invigilate the procedure of globalization. Multinationals organizations have also taken part and are responsible for its worldwide growth and development; the corporations in Europe and United States of America exchanged strategies related to science and technology and gave birth to a new era of globalization. Radio, television, music, films and all other means of media also played a great role in the exchange of cultures especially in the western countries. Two more factors that have contributed greatly in this regard are telecommunication which greatly enhanced the effects of this phenomenon which are even prominent in the current era. One of the greatest benefits of the intervention of technology in globalization is that it has made trade and other means of communication very accessible and easy. Globalization has not only revolutionized the economic sector but has also contributed to a great deal as far as political, social and cultural diversity is concerned. (Malcolm, 2001) ADVANTAGES OF GLOBALIZATION Globalization has both advantages and disadvantages; it has become a contentious term mainly because the disadvantages seem to overshadow the advantages. Before knowing the reason behind this issue, let’s have a look at the advantages of this controversial issue. The advantages are as stated; trade has become easier due to globalization since trade and business affairs can be carried out more easily owing to the efficient means of transportation and communication. Goods and other services can be easily carried from one place to the other. The relationship between nations and states becomes more stable due to effective interaction; old rivalries can be sorted out and resolved which in turn reduces the chances of war. The trend of free trade gains popularity and affirm the terms between the concerned parties, this way the transportation of goods and services increases stabilizing the financial status. Mass communication through various media means such as radio, television, music, films etc increases connecting majority of the population effectively and efficiently. Globalization makes it possible for people to move from one place to another consequently transmitting their cultures and norms, this fusion of cultures further breaks down the barriers hence uniting everyone on one single platform. The flow of money increases which enables the larger industries and developed states to make investments in the developing countries which changes the overall financial conditions of the nations. As the business expands, communication becomes an essential component and requirement; globalization makes it convenient to do so. It empowers the nations and states worldwide making them independent and more capable of taking their own decisions, once the financial status of a country becomes better, its government automatically gains more power over its citizens hence bringing them in a better position to take their decisions and implement their plans. As the barriers are lowered, the different organizations and corporations find it more easy and approachable to share their ideas with nations that are across the border. Due to the blessings of globalization, new markets are emerging worldwide which increases the trade off between different companies and nations, more goods, services and products are transferred from one place to the other which increases the profit of the companies and individuals who have a share in the respective companies. The migration of people from one place to another brings a very good impact on the national benefits of the state since there is a difference in ideologies and thinking of individuals who are from different places, this way new ideas are introduced in the corporation which enhances its progress and development. (Cyril, 2008) WHY IS GLOBALIZATION A CONTENTIOUS TERM? The term globalization is not new owing to the changes it has brought about in the world replacing old trends and processes. This term was first used to address the revolutionary changes since then scholars and experts have argued on its meaning and application. As it gained popularity, it further gave birth and shaped up disagreements regarding the direction of transformation in the world by large and during the twentieth century, this issue was discussed by majority and media played a great role in promoting new ideas which further aggravated the debate. Intellectual arguments gelled in with political clashes and this trend tends to reside in the minds and world at large till the affects inflicted and associated with this term exist. (Bryan, 2010) There are a number of issues and ideas that make globalization a contentious term, they are as discussed below: Process vs. Project This point is discussed as per the variety of beliefs different sectors hold as far as the meaning of globalization is concerned. According to the beliefs of some individuals, globalization is the inevitable process which has coaxed markets, economies, technologies and cultures to amalgamate into each other in a way that has never been experienced before and this process is continuously facilitating individuals and organizations to reach each other with the help of technology farther and deeper and at a much cheaper cost. On the other hand, scholars hold the view that globalization is a deliberate and intended step to liberate the economies to a larger extent so that different organizations and individuals are subjected to severe market strengths. New Era vs. Old Era Globalization is often viewed as a brand new concept and it commemorates that new changes are being introduced to the world and due to this it is becoming one place, it is viewed that new technologies, core values and ideas are altering people’s lives in such a way that they are stepping into a global era. It is often said that integration on a global level signifies that the nation-state concept is coming to an end. Disbelievers on the other hand counter this argument by saying that globalization is not a new concept and has been existing since ages. They believe that no matter how much globalization has influenced the world, nations and states still contain and exercise power in their own respective domains. Good Globalization vs. Bad Globalization This point is discussed with reference to evaluation point of view. Initially globalization was viewed as a phenomenon that originated the concept of freedom; connections and interaction with a variety of states and regions all over the world would introduce new ideas in people’s lives hence improving it, the barriers could be lowered that would give rise to international trade and exchange which in turn would boost the economy, resolving disputes between rivals and adversaries and provide power to maximum people. However later it was observed that globalization was no longer viewed as beneficial, it was regarded as an intervention in the internal matters of the state hence loosening the grip of government on their respective regions, a source of dispute among the masses and a bad influence on the wellbeing of the environment. Thus, where globalization proved to be beneficial for some states, it was seen as a threat by others. Revival vs. End of Nation-State According to the general concept, globalization limits the growth and development of the nations, due to free trade the states lose the ability to formulate policies and protect their local organizations to quite an extent, the generous flow of capital makes the nations less competitive enabling their rivals to take advantage, the global values and norms replace the nation’s own policies due to which the government loses its power in certain areas. Another school of thought implies that globalization is very beneficial for the nation’s growth and development and makes them more competitive and powerful against their rivals. Similarity vs. Difference If taken form a cultural point of view, globalization can result in sameness of cultures across the globe, frequent and constant interaction among the different nations diminish the differences that are vital and identity of any nation and global norms and values replace the domestic priorities. On the contrary, it is evoked that globalization leads to mixing and integration of cultures which may introduce several new ideas and blending of cultures can be very beneficial, secondly international trends and cultures are observed and perceived in a different manner in every state which gives an interesting combination of values on a global level. Thirdly globalization does not necessarily impose the policies and cultures, it depends on every state or nation for that matter to adopt whichever trend they want to. (Frank, 2009) DISADVANTAGES OF GLOBALIZATION Opponents of globalization have presented the following points which emphasize on the disadvantages of globalization and give them all the more reason to condemn this process which makes globalization a contentious term. They are as under: Impact on the poor countries: Globalization encourages trade among the countries, both poor and rich countries are involved in this process. This often results in negative affects for the poorer countries because the rich countries are more concerned about their national markets and try to save them. Poor countries normally offer their agricultural goods for export, rich countries promote and sponsor these products which results in the loss of farmers since they benefit more form free trade rather than export business. (Roland, 2000) Exploitation of international deprived workers: In providing support to the poor countries, the larger countries and organizations often deteriorate the condition and status of the workers belonging to weak nations. The large organizations offer jobs to the workers and in return they are required to submit themselves to long working hours which sometimes do not suit them and are not at all compatible with the wages that are being offered. Of course they are allowed to leave the job but if they do so it would result in starvation of their families consequently jeopardizing their future. This way they are forced to work for long hours without any protection prerequisites and are hence subjected to exploitation. (Ajaya, 2006) Outsourcing: Globalization has given birth to the trend of outsourcing in which the jobs of high cost positions are shifted to low cost positions with a little alteration in the wages and lesser benefits are provided to the workers. Due to this, the workers with high cost jobs are deprived of work. Due to this middle class workers are mostly affected which results in income and status inequality particularly in the United States of America. People belonging to the middle class are then categorized as lower class due to a major decline in their salaries and in other cases; unemployment. The lower class which is also connected to this network, suffers badly. (Eric, 2006) Staggering labor unions: The rising trend of cheap labor accompanied with the introduction of new companies has weakened the position of the labor unions. Labor unions that were once strong and effective and had large number of members start to decline as their membership count decreases. Consequently the labor unions lose their power over the organizations which exercise their illegitimate powers and gain the right the right to hire and fire whoever they want to and also offer low wages with long working hours which clearly exploits the environment making it unhealthy and hostile. Exploitation of child labor: With globalization, the demand for work increases and in the case where the demand for child labor increases, child exploitation, child trafficking, prostitution, porn and other illegal ways of bringing in more children for work increases. REASONS WHY GOBALIZATION IS A CONTENTIOUS TERM It is not easy to come to a conclusion as far as the issue of globalization is concerned. While some people debate on the idea that globalization has resulted in the integration of cultures, traditions, economies and trade through interaction and communication, others categorize it as economic globalization rather then overall globalization hence differentiating it from the general phenomenon since they regard it as an attempt to globalize the economy of the world at large. Eventually, globalization can be simply defined as the process which turns the entire world into a global village granting development and progress in different fields. Organizations who understand its true meaning are continually making changes and developments in their course of action so that the advantages of globalization can be put to use to their best. (Joseph, 2003) So what is the reason that provokes scholars to debate on the good and bad effects of globalization? What if the entire world is coming together on a common stage? What makes it a contentious issue? As stated earlier, everything has a good and bad side to it. Similarly globalization has had its good and bad effects which vary from nation to nation and coming to a conclusion becomes very difficult when too many factors and personnel are required. One of the basic hindrances to globalization is the difference in the status of nations that are facing the issue because no matter how much the rich states want to provide benefit to the poorer ones; they will never forgo their own national concerns. (Pradumna, 2009) The bad effects of globalization that have ignited this debate are discussed below: Economic Problems By now it is an understood fact that globalization endeavors to integrate the systems of various and states so if the world becomes a global village and combines on one single platform, any sort of financial disturbance and recession will automatically have an adverse affect on the other nations which are closely linked to it in terms of economic dealings. Hence it will lead to a chain of disruption and disturbance. Cultural Problems Through years it has been observed that culture and globalization never go side by side and are always contrasting with each other. Opponents of globalization have always stated that this process has obstructed the cultures which are being followed all over the world since years. Worldwide nations will never compromise on the culture, tradition and religion since these are the norms and values that are adopted from their ancestors and in practice since years. This will result in large number of people migrating due to which the trends and cultures will start to diminish. This tendency has strengthened the beliefs of globalization critics. Unemployment Generally it would seem as if globalization contributes to employment however this is not the case. Globalization has increased the rate of unemployment particularly in the developed countries and this is majorly due to outsourcing. Several developed countries such as various states of United States of America and United Kingdom have contracted out their jobs in the third world states and also to a few Asian countries which has resulted in unemployment crisis in their own state. Outsourcing should be done in a very calculated manner so that mutual benefits are gained rather than depriving one state from the advantages and providing the other one with its benefits. Spread of Diseases With the advent of globalization, the flow of individuals will increase which can lead to severe health issues and problems. Researches have shown that when a disease breaks out in some part of the world, owing to globalization it spreads throughout the world. This is a very serious issue which should be addressed immediately so that the health issues can be resolved and the environment is liberated from such nuisance. (Moses, 2002) CONCLUSION There are a lot of other disadvantages of globalization but they are not as severe and serious as compared to the ones that have been mentioned above. The point that most of the critics of globalization emphasize on is that the repercussions of globalization that are observed on economic situation, trade, health and cultural issues are of serious nature and need to be paid attention so that the possible solutions can be worked out. This needs special attention since the nations that face the consequences and the opponents of globalization are not ready to accept the disadvantages. Therefore there is a need to evaluate the merits and demerits of this process in order to take the necessary steps and procedures. The disadvantages of globalization need to be toned down a bit so that the debate discontinues and the world at large recognizes the mutual benefits that are being achieved due to this phenomenon. REFERENCES Ajaya, Kumar. (2006) Sociological Perspectives on Globalization. Gyan Publishing House. Bryan, Turner. (2010) Globalization East and West. Sage Publications Ltd. Cyril, Alias. (2008) The Impact of Globalization. GRIN Verlag. Eric, Lane. (2006) Globalization and Politics. Ashgate Publishing. Frank, Lechner. (2009) Globalization: The Making of World Society. Wiley-Blackwell. Joseph, E. (2003) Globalization and its Discontents. W.W.Norton. Pradumna, Rana. (2009) Rising the Challenge of Globalization. World Scientific. Roland, Robertson. (2000) Globalization; Social Theory and Global Culture. Sage. Malcolm, Waters. (2001) Globalization. Routledge. Moses, Kiggundu. (2002) Managing Globalization in Developing Countries and Transition Economies. Read More