Impact of the Globalization Process in Different Fields - Essay Example

Globalization as a political, economic, social and technological force 2006 Globalization has boomed in the aftermath of the oil crisis in the 1970s and it changed the relative costs of production inputs and products, gave new impetus to technological innovations, fuelled international financial transactions, as OPEC countries invested their surging revenues in the USA, changed the structure of trade. [Douglas I., and Tervio M., 2000] The significance of globalization cannot be underestimated: being a great force and unstoppable process, it is favorably resulted in the rapidity of change, together with different priorities of nations and people. It presupposed to create prosperity and employment, to lessen unemployment and misery. By having opened up possibilities of growth in previously underdeveloped countries, by generalizing prosperity, liberalization has to be the driving force for the social progress. But in reality, the negative consequences of globalization such as mass unemployment and large-scale poverty have emerged. Globalization is devastating the millions people's lives: one billion people, that is 30 per cent of the world's workforce, and either jobless or unemployed, making globalization a long-term structural crisis of capitalism. [Hurrell A., Woods N., 1999] Economic crisis that is considered to be the greatest since the times of the Great Depression can have negatively impact on the business environment. This is particularly true in countries in transition; moreover, foreign investments can make economics more uneven, with disastrous consequences for both the developing and developed countries, thus deprived of large potential markets. This polarization must be recognized by international business structures and governments through poverty alleviation programmes and strategies designed to reposition marginalized economies to make them possible to participate in current developments. The problem is that even small American enterprises to have an impact on the global market are to think, produce and sell globally. The so-called 'global firm' have to link all the small enterprises into global webs of production, distribution and services. The process is rather long-term and complicated one, because the new business model has possess strategic flexibility, competition with co-operation, horizontal, decentralized work structures, and constant communication in real time. [Held D., McGrew A., Goldblatt D. and Perraton J., 1999] The re-organizational process has already begun, that's in why it has got an unstoppable power: it exists at all levels, including economics, politics, social and labor spheres. As economic force, globalization process makes multinational companies (MNCs) the principle vehicle of imperialism's drive to re-divide the world according to economic power. [Douglas I., and Tervio M., 2000] The process of integration of global financial markets has increased capital mobility and global production and distribution structures, but has also weakened the bargaining power of trade unions everywhere - the most key decisions are made by private business that deepened the increase of privatization; such policies have a potential negative impact on jobs and incomes everywhere. [Thomas T., 2000] Through the process of restructuring jobs in some sectors and places have been lost, but the relocation from developed to developing countries has influenced capital mobility and the locational choices of firms, which favors social stability, local infrastructure development, and market proximity. But from the social point of view, the existence of firms with a global reach and profile calls for new business ethics, and over-emphasises on efficiency and technology, that has affected the human element, causing depersonalization and spreading apathy. [Thomas T., 2000] In general, the global economy is to reform the labour market, and its outcomes are directly connected with the way these markets function, with the unionized and non-unionized sectors. There is a close correlation between unemployment and inequality and poverty - women, young people, disabled persons, rural dwellers and some ethnic groups have become the most adversely affected. So that the recent studies by the UN Economic Commissions for Latin America have found a correlation between the decline of enterprises and the increase in poverty in the Caribbean region that is caused by the absence of viable economic alternatives to provide employment and incomes. The governments here has to provide actions in the areas of human resource development, labour market flexibility and labour standards, because the labour market has shown its great rigidities in the course of economic changes. [Douglas I., and Tervio M., 2000] Considered as a totally Western movement, globalization has included most of the countries, from Wets to East. And it is not about globalized market relations, various enabling conditions depend on economic, social, and political institutions that operate nationally and globally. [Nierop T., 1994] Global policies have a role here to help the development of national institutions (defending, for example, democracy and supporting schooling and health facilities), but there is a strong need to re-examine the adequacy of global institutional arrangements, because the distribution of the benefits in the global economy depends directly on global institutional arrangements, such as fair trade, medical initiatives, facilities for technological dissemination, educational changes, ecological and environmental restraints. America as a global leader, has established American-style market capitalism, that's equally successful and dominant: Third World countries have developed at different rates according to the degree to which they have respected free markets, and left economic activity to private enterprise rather than to undertaking of the state. [Douglas I., and Tervio M., 2000] Global restructuring of economics is ties with technological changes, which also changes the way business operates by transforming relationships between supplies, producers, retailers and customers. Globalization process presupposes improved productivity and increased competition, that calls for new technologies to be implemented into the productive process. It makes a significant impact on virtually all industries, but unfortunately, a field needs people trained in new methods, and, in this case, technology itself lessens the number of workers needed in the particular fields, thus provoking the raise of unemployment. But nevertheless, that is technology that helps to make globalization possible. American enterprises therefore lack of qualified trained staff, and enrich labor sector by the foreigners' participation. Developing countries' markets are the export points for the most American enterprises. [Held D., McGrew A., Goldblatt D. and Perraton J., 1999] So, globalization has become an unstoppable process that touches upon all the spheres of governmental politics, economics, technological and social aspects, is a powerful and progressive force, but need to have carefully worked out programme, consistently integrated. References 1. Douglas I., and Tervio M. (2000) 'Does Trade Raise Income Evidence from the Twentieth Century', preliminary draft, March 2. Held D., McGrew A., Goldblatt D. and Perraton J. (1999) Global Transformations: Politics, Economics and Culture, Polity, ch. 1 3. Hurrell A. and Woods N. (eds.) (1999) Inequality, Globalization and World Politics, Oxford, OUP 4. Nierop T. (1994) Systems and Region in Global Politics: An Empirical Study of Diplomacy, International Organization and Trade 1950-1991, John Wiley 5. Thomas T. (2000) Global Governance, Development and Human Security, Pluto, London Read More