The various dimension of globalization - Research Paper Example

? Topic: The various dimension of globalization. Discuss. In many ways the world is becoming one large market than a series of separate national markets. The same goods and services can be found in many countries throughout the world. Globalization is the term now widely used to describe the increased worldwide competition between businesses. When investment, trade and cultural exchange happen internationally between different countries of the world and consequently bring changes to society and global economy, we call it globalization. This term is most commonly used to describe the effects of international trade but applies to trade of all sorts of industries. Steger has defined globalization as “a set of social processes that appear to transform our present social condition of weakening nationality into one of globalism.” It means to explain that it is not one process but various processes that function at the same time and even haphazardly on different levels and in different dimensions (Steger, 2009). Global village is a terminology used to describe a new kind of globalization presenting us with an interconnected world and a global collected culture. Globalization affects world economies, political situations, ecological dimensions and cultural identities. Globalization has led to more choice and lower price for consumers. It has forced firms to look for ways of increasing efficiency. Inefficient producers have gone out of business. Globalization has a positive impact on almost everybody as it generally helps to creates greater economic value. Globalization is able to provide equal distribution of the added value. The process of globalization must focus on letting go of the economic self-interest by respecting different religious, environmental and cultural values for the benefit of all classes of people. It must be beneficial for everybody by developing a global world outlook that boosts up the mutual and common values of all cultures. Accumulated forms of communication create images that cross different linguistic boundaries more quickly and conveniently than many goods and services. This global mass culture has entered, influenced and revolutionized the lives of people in modern societies. There are several reasons for this increasing global competition. Free trade agreements and economic unions have reduced protection for industries. Consumers can now purchase goods and services from other countries with no import controls. Improved travel links and communications between all parts of the world have made it easier to compare prices and qualities of goods from many countries. This has further developed as the internet has become more widely available worldwide. Business in every sector of the economy are now striving to enter the global market be it science, manufacturing or entertainment industry (Stimpson, 2006). The economic dimensions of globalization are mostly linked with economic growth of global trade and finance, economic order and multinational corporations and how they affect the formation and functioning of the international economy. It is a known fact that multinationals help in creating jobs and improving employment levels. By the year 2000, they accounted for nearly 100 million jobs created indirectly as researched by the New York Times newspaper of July 2000. It is known as the multiplier effect. When foreign direct investment comes in, both, the multinationals and domestic country become better-off. The company benefits from profits. Domestic country benefit in the form of jobs created, tax revenues generated and capital formation. The USA witnessed its lowest unemployment rate in 2000 in 30 years (Birdsall, Graham, 2005). Globalization helps in sustainable development. It provides the developing nations with much needed jobs and capital as well as equal distribution of income and wealth and help developing countries to escape severe poverty levels. They help improve the education levels, life expectancy rates and infrastructure and future markets in the developing countries. It is also important to note that if there was no foreign investment and technology transfer brought in by globalization, then the conditions could be worse. The government needs to be more responsible in terms of regulating fair and universal laws, stable political condition to benefit most from globalization. In the Washington Post, a noted economist, Paul Krugman, has put forward a very significant point that a great amount of successful economic development in the last century has been due to globalization. If it is objected that workers were impecunious by globalization then it is to note that they were in poorer living conditions before the advent of multinationals and exporting jobs. Such businesses have improved the lives of people in general with the arrival of new innovations, sensible business practices and the required investment through international trade. Globalization has led to the growth of political interrelations across the world. We will see how hyper globalization has overtaken the previous nation-state systems. It is believed that politics made globalization possible and politicians continue to hold the view that some are gainers and some are losers in the process and it is not necessary that the poor are the least to be benefitted by it like for example through hunger with rising food prices. China was the first country that made political changes to make globalization possible. It turned from Maoism to the market in 1978. Then in 1979, Britain let go of its foreign exchange controls and trade restrictions when Margaret Thatcher came into rule. This made London a global financial centre and this example was followed by countries worldwide. Tax cuts, import controls and deregulation policies boosted the international market to a new level in the 1980’s. Thus, a single market, European Union was created. The Indian economy also set off its protectionism and regulation policies in 1991. So gradually the whole world adapted global business and market economics. The political dimension of globalization saw a great upheaval in history with the war of 1914 and the advent of dictatorship in 1930’s. What the modern world fears is a threat of crisis over trade between US and China having the most vital political relationship across the world. Terrorism and climatic changes also impact the norms of globalization. Globalization is dependent with the convenience of travel. So if there is terrorism or global warming, immediately going from one place to another can be risky. But if politicians fail to support the globalization consensus then it could be the biggest risk. Recently when people of America were surveyed, the poll showed that 58% of Americans were against globalization. Ten years ago the percentage was smaller. Politicians are worried of this sudden change and take actions like illegal immigration is not supported by republicans and democratic presidential candidates hesitate in doing free trade. Globalization also brings with itself the exchange of cultural identities. This has lead to homogeneity in global culture with concepts like Americanization or McDonaldization. People now continue to be influenced by foreign cultures and ideologies creating global cultural diffusion. They desire for better living standards, use imported products and ideas and adopt new technologies. This process is making them aware of health benefits, gender equality, better lifestyles and then importance of human rights. This makes them a part of the world culture and transformation and dislocation of their own. Individual cultural, traditions, language and identities are often neglected with the foreign influence of music, movies, consumer goods or clothes. Bad behavioral habits like smoking and alcohol are encouraged. This is also affected with the growing trend of travel and tourism. Today, there are over 200 million migrants worldwide. Greater immigration gives rise to multiculturalism through cultural diversity. Cultural diversity possible through internet is only accessible for those who can avail the service and be a part of worldwide fads like Pokemon, Sudoku, Face book, and YouTube etcetera (Titley, 2008). I agree that amongst all the dimensions of globalization, ecological is the most important and should be the most stressed upon by looking at the speed and scale of Earth’s environmental degradation. If we continue to be oblivious of this underlying fact and go on with our social, economic and materialistic purposes and accumulating wealth caring less for the environment that we live in, we won’t be left with much to sustain on in the near future. Small environmental issues can lead to major global challenges in the long term. With the advent of this ‘borderless world’ the human race and its practices have become global increasing human integration in all aspects, be it population growth, increased consumption or new technology innovations. The adverse effects from ecological point of view include depletion of scarce natural resources, deforestation by cutting down land to form factories, ozone layer depletion through pollution and toxic hazardous waste, increasing pollution levels by urbanization, and exploiting cheap labor. Globaliztion does not necessarily contribute to environmental damage; instead it helps multinational corporations to invest money in the production of environmentally safe products and the spread of green marketing and technology. They maintain high environmental standards and social responsibility which also encourage their affiliates and fellow companies to follow the same trend. The production and consumption of food has improved over the last 15 to 25 years in developing countries at all levels of human development. There have been improvements in food and diet intake and the malnutrition rates in the Sub-Saharan African district has also gone better. With strict child labor laws and health activists’ pressure, multinationals have curtailed their child employment to quite an extent. When globalization is criticized for being responsible for environmental degradation and negative ecological impacts, it has also brought quite positive impacts. Global environmental challenges like climate change around the world are now better studied and decisions are solved through international cooperation. Other major issues like water and air pollution, deforestation, over-fishing of the sea and protection of endangered species are also solved through international organizations. . The point is to regulate new environmental laws and regulations to restrict the ecological problems associated with globalization rather than controlling the globalization practices. References: Steger, Manfred B. Globalization: A Very Short Introduction, second edition, Oxford University Press, 2009. Brian Titley and Dan Moynihan. Economics: a complete course. Oxford University Press, 2008. Daveri, F., Manasse, P. and Serra, D. “The Twin Effects of Globalization”, Centro Studi Luca D’Agliano Development Studies Working Papers, N. 171, November. 2002. Karen Borrington and Peter Stimpson. IGCSE Business Studies. London, John Murray publishers. 2006. Michael Parkin. Economics, university of Western Ontario, fifth edition. 2006. Fernando, Salvetti (ed.) "Global" Working. Living and Working across the World with Cultural Intelligence. Milan.  2010..  Barzilai, Gad (2008). Beyond Relativism: Where is Political Power in Legal Pluralism. The Berkeley Electronic Press. 2008, pp. 395–416. Read More