Globalisation and Identity Crisis - Essay Example

?Globalization and Identity Crisis Introduction Globalization is a process by which businesses and enterprises cross the national borders to develop their existence in other countries. In other words, it is the process of the transfer of capital, resources and information across borders to form a world which is not restricted by national boundaries. In my opinion, it is the reason why we know about the entire world and also use goods produced there without actually visiting it. This concept is not a new one but has existed since the time the Romans started trading goods and shipping them to other parts of the world. However, according to me it has gained momentum in the past couple of decades due to the advancement of technology and evolution of the ways of communication especially the role of the media. Since its mere existence, it has provoked controversies and debates all across the world. Some people are true proponents of this philosophy and they have various reasons for their beliefs, for instance, they believe that it has accelerated the sharing of information and transfer of knowledge from one pole of the world to the other. On the other hand, there are people who view this phenomenon with suspicion and see it as a method by which the developed countries are reaping the poor ones of their valuable resources. Some claim that this is the modern form of barbarism that the British practiced in the subcontinent and many other parts of the world in the 19th century. This essay is written to discuss both sides of the coin and to evaluate the effects of globalization with facts and figures. We will separate on this work into three parts to see the holistic picture and be able to evaluate it in a better way. These three divisions will be as follows: Individual, micro level and macro level. Examples will also be given at each level to support the point of view presented. In the end, there will be a brief conclusion to sum up our finding and to express my own opinion this particular topic. Individual Level Under this heading, we will discuss both the advantages and disadvantages that are there for a simple citizen from the advance of globalization. I will also share some of my personal opinions and view points with regards to globalization and its influence on students such as me. The aspects of globalization are important to touch base with because these bring to surface the necessary pointers which will mean success for the sake of the business. My viewpoints are based on the understanding that customers need to move ahead with the passage of time, and for that their expansion is a must (Harvey, 2005). This will ensure that they grow and develop their own selves and thus the organizations that they are reporting to, be it an institution of global repute or simply a street business that they have come to be a part of. 1. Individuals as Customers: Globalization has tremendously increased the options that an individual has. He can obtain any good from any part of the world. Online shopping is just an example of this aspect of globalization. Also as discussed later in this essay globalization also results in healthy competition which in turn provides the customers with improved product and services. For instance, when I go online I even have the option of purchasing from Monsoon which is a Bangladeshi brand. It is a wonderful opportunity for me to view what new products and brands are available online and how I am able to make the best use of these brands for my own benefit. 2. Knowledge Workers: All the universities’ curricula now include a course on global management and cultural diversity. This is due to the global challenges that the current workforce has to face inevitably. This is an interesting challenge for the global savvy individuals and a hurdle for ethnocentric ones. The outlook is made more global with each passing day which helps the people to grow beyond their means and gives them an opportunity to look at areas where they have still not paid any heed as such. The knowledge workers help the basis of growth and development beyond a certain point as it facilitates in fostering up strengths from one end to another. 3. Global Opportunities: When it comes to learning or acquiring knowledge or with respect to gaining diversified work experience globalization offers unique opportunities. Every ambitious person has the aim of being able to work abroad for a couple of years and experience the world out there. Further, in the less developed nations multinational offers an exclusive opportunity to gain experience with the more modern and developed management styles. Alongside, it also gives the opportunity to interact with a diversified range of people which I personally find very enticing (Hardt & Negri, 2006). The opportunities are endless. It is up to the people how best to make use of them and derive the kind of benefits that shall reap rich dividends as far as the future realms of growth and development are concerned. Micro Level With respect to this section of the report, we will be discussing the effect that globalization has on individual organizations. This will cover both types of firms, those that have successful crossed the border and have made their existence prominent even in international grounds and also those who are conservative in their approach and have chosen to stay close to their roots. Even the latter ones are not isolated from the effects of globalization. Let us consider the various effects under the following headings along with examples to better understand the point of view being highlighted. 1. Competition: Whenever we talk about globalization the first thing that comes to our mind is competition. Toyota from Japan has to compete with General Motors of US and Mercedes Benz from Germany. Similarly, Europe based L’Oreal is up against Sheiseido from Japan and Mac from Canada. No matter what industry you are in, you are competing against specialists from other nations. This holds true for local firms also. Even if you are dogmatic and do not cross the boundaries you will still be faced with competition brought in by global firms. For instance, the small grocery shop at the end of your street has to compete with Wal-Mart stores and in some cases Lulu supermarket. Thus, not facing global competition has become a complete myth. This is no ways means that you cannot find a niche to serve to, but looking at the bigger picture you will always be faced with competition. But as it is always said that healthy competition is good and helps organization work to their optimum level. However, for younger organizations this type of competition might be overwhelming and may lead to survival issues. 2. Going Global for Survival: Globalization has changed the definition of success and growth. If we focus on the brand aspect for the sake of examples agencies such as Milverd Brown that rank brands from all around the world has redefined their criteria with a global approach. They said for a brand to be eligible for their rating 65% percent of their customer base should be from outside their host country. This means that firms that restrict themselves to national level only have no chances of making it to that prestigious list. Firms that rank high such as Google, coke and Microsoft are known throughout the world and their customer base is wide enough to cover every nation. Under such circumstances, no nation can cross out “going global” from their lists of targets to achieve. On the other hand, this can be seen as an opportunity by ambitious organizations that want new challenges and growth prospects. Globalization offers immense opportunity in the form of different ways and also different places of investment. 3. Global Strategic Management: The above two issues were applicable to both types of firms highlighted in the introduction, however this particular point is only relevant to organizations that are gambling in the international landscape. Organizations truly reap benefits from operating in different nations. They produce in the country with the cheapest factors of production, sell in the country with the highest demand and manage it from the place with the largest pool of talented labor (Gray, 2007). They can mix and match in many different ways until they find the most suitable package. However, it is easier said than done. It is very hard to strategically manage a firm with a global perspective. Organizations need to ensure that they think of the organization as a whole but at the same time not forget the cultural and social differences that exist between nations. Overcoming these challenges to benefit from the true synergy of international counterparts is a dream very far from reality. Managers who are responsible for these collaboration and coordination are known for not being able to sleep. McDonald’s also faces such challenges while operating in third world countries. To meet their quality requirements they sometimes have to develop the logistics in such a way that the meat is brought in from South Africa while the chicken from Saudi Arab and only bread produced locally. Macro Level This is the level which creates the most controversy and debate with respect to globalization. This basically involves the influence of globalization on international issues such as terrorism, the war against it and cold wars amongst several leading countries. In short, it is focused on the larger effect and not on individual companies and people. Apart from social there are many economic as well as environmental debates that have been provoked by this rising trend of globalization. Under the following headings we will discuss both the positive and the negative consequences of the world without borders. 1. Environment: There is a general belief that multinational firms go to the less developing countries to escape from the strict and stringent laws and policies of the host country. They look for opportunities to reduce the dollar cost even if it means harassing the environment. This is one of the major problems that is often covered by the media and has created immense controversies all around the global. However, now it is reducing as even though the law enforcement in developing countries remain rudimentary but people are becoming more and more aware of the importance of a sustainable environment and environmental responsibility practices. This has ensured that pressure group activities and customer reluctance persuade the organizations to act carefully and be considerate of their effect on their surroundings (Mann, 2005). Another important point in my opinion which is worth discussing here is that it is globalization that has lead to practices that ensure environmental protection. For instance, ISO certification is a system developed in Europe but is enforced throughout the world. This has made many organizations in the third world also to adopt practices that are the essence of a sustainable environment. Further, it is a path in which the world has to work together to ensure that it is suitable for the generations to come because mistakes made by one country will affect all the countries. Therefore, with respect to environmental issues globalization has produced more benefits then harm. 2. Social Consideration: Globalization is the means by which, as many believe, the western culture has spread and that of the eastern is being lost. Further, others are of the opinion that many social problems are actually increasing instead of diminishing as claimed by the multinational chains. For instance, the problem of child labor and labor molestation. The classic example is that of Nike in China. Nike had outsourced its shoe making process to the contractors in China in order to reap the benefits of lower labor cost. However, at these plants there were not only under aged employees but they were also being abused. This is just one the million similar stories that happened but is popular because it was highlighted by the media. However, globalization is also the cause behind the increase in awareness amongst people about labor issues and labor rights. It is also important to mention here, as an extension of the example discussed earlier, that it was the Western media and the western customers due to whom these practices were curtailed and rectified and would have never been possible if the developing company was to take a stand alone. 3. Economics: This is the aspect with which the effects of globalization are considered most. There is no doubt about the fact that globalization has enabled the transfer of technology and expertise. Also for developing nation it means creation of jobs and contribution to the state in the form of taxes. Other than this, improved quality products, knowledge transfer and development of infrastructure are also some of the economic advantages that are brought about by globalization. However, on the other side of the coin there are many economic consequences that are questionable. For instance, using all resources of the host country and then sending back revenues generated through that to the parent nation. This adds pressure on the exchange rate also. They are also sometimes accused of raising the cost of borrowing by obtaining investment from the local capital market. 4. Terrorism: The most popular topic of discussion over the news channels currently is the acts of terrorism and the war against it. Terrorism as mostly inferred is the act by extremist groups to create terror amongst regular citizens. Multinational chains have been a special target of such activities because of their origin in the western world (Baudrillard, 2003). For instance, during the riots in Pakistan in 2007 one of the outlets of KFC, which is an American based franchise chain, was destroyed completely. On the other hand a lot of terror has also been created due to the actions being taken against these heinous acts by the western nations. It was claimed by Thomas Friedman who said that two nations who have McDonald’s will not fight. However this was soon proved wrong as Belgrade was attacked where there was already a branch of McDonald’s. 5. Intellectual Property Rights: As the countries start ignoring the boundaries many legal issues come up which requires laws and regulation. This creates problems as to which ones to follow due to the involvement of many countries. This has given the rise to international laws and intellectual property rights. This is still a developing aspect but several advancements have taken place in the recent past. Copyright and patents issues are also on the rise which is the cause behind the latest hype about intellectual property rights (Klein, 2007). My Opinion As discussed throughout this text there are both advantages and disadvantages of globalization. Everyone will choose their own stand regarding this phenomenon, as far as I am concerned, unfortunately, globalization does not stop the acts of terrorism, battles or even the World War 3. However, it is inevitable that it will be one of the causes if not the only one which would lead to future catastrophes as people fight over scarce resources and the rich ones reap the poor ones of their limited possessions. Therefore, in my opinion though the economic bounties are plenty the social and political aspect is a very dangerous one. What the super powers cannot obtain through global business practices they will take by force. And in this process rebels will rise to protect what belongs to them. They will be called freedom fighters or terrorist but it all is expected to end up in bloodshed. Conclusion As discussed in the beginning, globalization is not a new phenomenon. It has been around since centuries and has been evolving there. At present is at the place where turning back is not an option. The countries might revise their liberal trade policies or impose harsh tariffs but the bullet has already left the gun. Moreover, even those who are not proponents of boundary less world are still enjoying McDonald’s hamburger all around the world and they are not ready to stop now. Further, according to the utilitarian principle the larger good should be considered while making any choice and with respect to that we can see that globalization benefits a large group of people. All said and done, it can be easily said that globalization is here to stay and we can only form policies and find pathways to protect and safeguard the rights of all the parties involved and counter and prevent its present and expected harmful effects. Bibliography Baudrillard, J., 2003. The Spirit of Terrorism. London: Verso Gray, J., 2007. Black Mass: Apocalyptic Religion and the Death of Utopia. London: Allen Lane Hardt, M & Negri, A., 2006. Multitude: War and Democracy in the Age of Empire. London: Penguin Klein, N., 2007. The Shock Doctrine: The Rise of Disaster Capitalism. London: Allen Lane Harvey, D., 2005. The New Imperialism Oxford: OUP Mann, M., 2005. The Dark Side of Democracy: Explaining Ethnic Cleansing. Cambridge: Cambridge University Press Read More