The Phenomenon of Globalization - Example

The Phenomenon of Globalization Globalization is the process of removing barriers to trade and commerce, communications, social cultures and travel at the international level. Under the process of globalization, international trade in goods and services grows rapidly. It aims to establish free international markets to improve capital transfers between nations. Globalization engenders the growth of large multinational corporations, while eliminating the traditional concepts of national boundaries. One of its objectives is to integrate the people of different countries under a single global village (Davis, 2007). The process of globalization has brought about rapid communication. The exchange of information has become very important, and several networks for sharing information have been established. As the requirements of and barriers to cross border travel have decreased, international travel has increased. Due to globalization, there has been an increase in the movement of workers, goods and services between countries (Boutaleb). Thus, globalization has brought about a dilution in the long established concepts of national sovereignty and state authority. International relations between nations have improved and the new concepts of international unity and legality have come to the fore. Globalization has influenced social customs and attempts to establish a common system of social principles. Eventually, globalization will dominate the world and national cultures (Boutaleb). As the age old adage goes, “it is an ill wind that blows no good”, thus globalization, with all its shortcomings – real and perceived – has a number of benefits to offer. For instance, despite the petrifying recession that the world is presently witness to, a number of groups of varying nature have come together. The economic crisis has been unable to hinder their attempts to connect with each other (Naím, Mar/Apr 2009, Pp. 28 – 34). An instance is provided by international charitable organizations, which are certain to be requisitioned for their munificence, as the economic crisis spreads much wider. Moreover, there will be greater demand for religious services, which a large number of people will approach, because of the interest generated in life after death, on account of the current economic difficulties (Naím, Mar/Apr 2009, Pp. 28 – 34). Globalization is not a new concept. It was in practice in the past, and existed whenever and wherever people used to carry out trade with other countries. Subsequently, there were corporations, which performed business with different countries. An important example is provided by the Silk Road, which connected China and the European countries, during the medieval period ( What Is Globalization?). The present concept of globalization is based on the features of past international trade. Many countries have commenced free – markets in their countries, during the past two decades. They have adopted the concepts of free economy, and relaxed the barriers to trade and commerce. Many international agreements have been signed by countries, so as to promote the free movement of goods, people and services ( What Is Globalization?). Many transnational corporations have established their factories and manufacturing units in other nations, in joint ventures with corporations in those countries. These initiatives have served to promote globalization. In addition, the rapid advancement of technology played a major role in hastening the process of globalization. The economies of several nations have been influenced by the increasing sophistication of technology. In particular, advances in information technology have provided a wide array of opportunities to people, consumers, foreign investors and governments ( What Is Globalization?). By the end of the year 2008, demand for imported goods, in the US, had reduced to a great extent. China’s imports reduced by 21%, while its exports dropped by 3%. As of November 2008, emerging markets experienced their lowest capital inflows in 13 years. Nevertheless, there has been a significant increase in the flow of public funds across the globe. Some of the wealthier nations like the US, South Korea, Singapore, Mexico and Brazil made currency arrangements, in order to stabilize their economy. Subsequently, a number of such mutual financial arrangements have been finalized between the central banks of countries in Asia, the Middle East and Europe (Naím, Mar/Apr 2009, Pp. 28 – 34). People in developing countries are influenced by globalization. Their ideologies and perceptions have changed drastically. This can be witnessed in many of the eastern nations. A majority of the people in these countries are attracted to the western lifestyle and culture. Consequently, their aims and outlook have changed. In the past, people in eastern societies had ignored materialistic values, and had been opposed to western morality. However, globalization changed all this. At present, these people are more than willing to adopt a materialistic and westernized lifestyle (Bliss). As such, globalization changed the lifestyle of people all over the world. There are new products in the markets of every country. The media has become vibrant due to better communication and better availability of information. Companies use the media for advertising new products. The people are attracted by these advertisements and purchase these products, as soon as they come into the market. The purchasing capacity of people had improved due to better incomes, and people did not hesitate to purchase these new products. This is the effect of globalization, which has provided several purchasing alternatives to the people.Many individuals in non – westernized societies are purchasing CD players, high- end electronic goods and branded shoes (Bliss). The activities of people affect others in the world. For example, the effects of global warming and land degeneration are not restricted to specific nations. However, financial systems are interlinked among nations, and depend on the business of other countries. Moreover, customers’ choice regarding a product in a country, will affect its producer, who could be residing in some other country. Many problems like environmental change can be resolved through co- operation and tolerance between nations (The Global Dimension in the Curriculum – England, 2005). It is the perceived goal of global markets to ensure that people have better access to the world’s larger markets. Such access will allow people to benefit from better technology and capital flows, larger export markets and low cost imports. The policy measures necessary for globalization have to be accepted by all the countries; otherwise the benefits of an efficient market will not be available for the poorer countries (Ekwuruke, 2005). From this perspective, the poorest among the countries, will require help from the rest of the countries, in order to manage with such measures. Globalization, by itself, can bring about tremendous economic, technologic, educational and political development in third world countries. However, there are several dangers in this process that could worsen the condition of a third world country (Ekwuruke, 2005). Westernization is the process of imposing cultural dominance on the poor and developing nations by the developed nations of Europe and America. Cultural dominance is the influence of these developed societies, in the arts, literature, media and music. However, such westernization has not been uniform throughout the world; and there are a variety of responses, in the different nations of the world, to this attempt to bring in change (Westernization. In Bloomsbury Guide to Human Thought, 1993). Westernization is demonstrated by the increase in international travel and communication networks. It has transformed the world into a global village. Despite the pressure to adopt the facets of westernization, non – western countries had safeguarded their cultural and economic affairs. The reality is that these countries had integrated the beneficial principles of western culture and capitalism with their own culture (Westernization. In Bloomsbury Guide to Human Thought, 1993). As such, they did not yield to the pressures brought to bear upon them to adopt a western culture (Westernization. In Bloomsbury Guide to Human Thought, 1993) Globalization involves the movement of workers and technology around the world. Moreover, it generates a number of issues related to culture, environment and politics at the international level. As such, globalization attempts to form universal communities that have neither borders nor cultural differences. (Ekwuruke, Globalization and the developing World!, 2008). It fosters the development of science and industries to achieve better standards of life in the developing countries Markets across the globe permit people to participate in trading activities. This results in an increase of resource inflows and paves the way for the introduction of modern technology. Globalization makes available merchandise at much lower prices. It has a beneficial effect on export markets. However, there are certain rules that have to be followed, while participating in the global markets. These rules pressurise the poorer nations to obtain economic help from international financial institution like the IMF and World Bank (Ekwuruke, Globalization and the developing World!, 2008). Globalization has brought about uniformity in several areas. However, cultural identity has not been affected to any significant level. There are a number of areas, in which cultural disparities exist. Some of these are cognitive styles and self – construal. In western cultures, the self is held to be an isolated entity; in marked contrast to occidental cultures, where it is believed that the self is inescapably related to others (Alter & Kwan, Apr2009, Pp. 742 – 760)In order to address the deepening financial crisis, the 20 most industrially developed nations held at a meeting in November 2008. The recommendations of this meeting were that there should be increased transparency and accountability, better regulation, increased integrity of the financial markets, strengthening of international cooperation and reforms to international financial institutions (Bryan, Mar2009, Pp. 6 – 8). These measures are expected to enhance transparency, effectiveness and moral integrity. The failure of the markets had taken everyone by surprise and the financial sector proved to be quite different from the other industries. This difference arises, because finance networking across the globe, is cheaper and easier than any other service or merchandise networking. In addition, it is fatal to let banks fail; because of the resultant loss of confidence, among the public, regarding the financial system (Bryan, Mar2009, Pp. 6 – 8). It has therefore been recommended that certain trading practices and taxes on financial turnover should be disallowed. This will ensure the free movement of finance. Furthermore, it has been proposed that legislation should be enacted that diligently supervises the working of financial institutions and banks. Moreover, such legislation should ensure that these entities function with greater responsibility, and adopt efficient methods in respect of risk management (Bryan, Mar2009, Pp. 6 – 8). In the process of globalization, third world countries have been exploited by the transnational corporations. A gradual decrease in the wages paid in the third world companies has been noticed. A few of these countries have been accorded preferential treatment, nevertheless, even in these countries there is wide disparity between wages paid and productivity (Guardian Online, 2001). In the developing countries, the wages are incommensurate with the level of industrial growth in these nations. For instance, in Indonesia, there had been a sharp decrease in wages, between the years 1994 and 1997, and this was approximately 12%. The corresponding decrease in wages in the Philippines was of the order of 6%, and in China it was around 5%. In addition, there were no pension payments being made to workers after their retirement from service (Guardian Online, 2001). Opponents of globalization deem it to be the destroyer of world economies. Further, they hold it to be a threat to the economical viability of developing countries. Their contention is supported by the recent economic crisis in Latin American countries. Other negative impacts of globalization include financial struggles and political instability. It was anticipated in the beginning of the process that it would bring about economic and cultural benefits to several nations of the world. In practice, it resulted in several negative outcomes, and it targeted the poor and the impoverished nations (Mejia-Vergnaud, 2003). Unfortunately, such institutions are absent in many of the developing countries. Moreover, foreign investments flow only to those nations that have sound and stable legal mechanisms. Furthermore, there should be constitutional guarantees for equality, in respect of the opportunities provided by globalization. Privatization, in the absence of such safeguards would certainly lead to unbridled corruption (Mejia-Vergnaud, 2003). There are some political implications of globalization. For instance, globalization improves economic freedom, which promotes a democratic set up. This has been seen in Taiwan and South Korea, where the unprecedented prosperity brought about by globalization, brought autocratic governance to an end. In addition, international trade and investment drastically reduce the effects of nationalism and militarism (Bandow, 2001). At times, the different societies may adapt only certain features of westernization. Some societies even integrate these western features with their own traditions. Other societies may resist western cultural traditions and revive their own traditions. The Marxist approach to westernization is based on historical transformations, political interests and economic avenues. They contend that the western nations are well developed, whereas the non – western nations have remained either as underdeveloped or developing countries (Westernization. In Bloomsbury Guide to Human Thought, 1993). The erstwhile colonial regimes are responsible for this situation. The relationship between the developed countries and the developing or under developed countries had been a colonial relationship. The colonial rulers were predators and the latter their prey. During the colonial days, capitalist institutions penetrated into the colonized nations, which offered cheap labor and raw materials (Westernization. In Bloomsbury Guide to Human Thought, 1993). The colonial countries achieved economic prosperity, by ruthlessly exploiting the countries under their power. Moreover, the cultural initiatives of westernization are nothing more than ideological systems that serve to dominate the poorer nations from the political and economic perspective (Westernization. In Bloomsbury Guide to Human Thought, 1993). Such contentions have their own detractors, who hold that it is incorrect to state that westernization results in the imposition of cultural changes on the poorer countries that intend to dominate them from a political and economic point of view. In fact, opponents to this theory argue that such ideology is a farfetched hypothesis. This perception had failed to consider the internal dynamics that helped many non – western countries to abstain from adopting the cultural aspects of westernization (Westernization. In Bloomsbury Guide to Human Thought, 1993). The last two decades witnessed an increase in international capital flows. In a similar manner, there has been a tremendous and rapid increase in the free movement of labor, services, goods and information. The concept of national boundaries has become a thing of the past. Moreover, under the process of globalization, national economies have become dependent on each other. Therefore, economic recession in a particular country would have repercussions in other countries (Damer). Governments are at liberty to decide whether to participate in the globalization process and become partners, there is no compulsion to join in this process. They can even remain free from the effects of globalization. However, staying away from globalization would mean exclusion from the global village (Damer). As such, economic liberalization promotes the economy of a country. This is the principal benefit of globalization. Globalization promotes relationships between countries and people. It brings together the companies and governments of the different nations, in order to ensure economic growth through mutual cooperation. The chief concern of the globalization process is to promote international trade and commerce. It achieves this goal by means of information and communication technologies. The globalization process affects the environment, and has an adverse effect on local cultures. Moreover, if frequently brings about changes to the existing political systems. In addition, globalization has been seen to influence the economic development of many nations. The concept of globalization generates considerable controversy. Supporters of globalization contend that it improves the economic condition and standard of living of impoverished countries. To this the opponents of globalization argue that it benefits the multinational corporations of the western nations, and adversely affects the culture and heritage of poor nations. Despite these arguments, globalization promotes the free transfer of foreign direct investments between nations. This encourages the establishment of industries and generates significant employment opportunities. Therefore, it is essential to recognize the value and implications of globalization. Globalization provided a large array of choices and opportunities to the people, whilst destroying cultural diversity. People from non – westernized societies are gradually moving towards a western lifestyle. They have realized that they can improve their quality of life by adopting a western lifestyle. Although, globalization by itself cannot totally eradicate hostility and violence, it does provide lucrative incentives for harmony. Furthermore, even perceived enemies become familiar figures, and this goes a long way to encourage international concord (Bandow, 2001). Thus globalization is a combination of advantages and disadvantages, but the advantages are more numerous than the disadvantages. As such, globalization is of great benefit for the general populace of the world. Globalization has brought about tremendous movement, at the international level, in respect of goods, capital, labor, services and information. In the globalized environment, international companies have come to affect the business choices of the poorer countries. Due to this, the financial development of these countries has been affected. Nevertheless, globalization vastly improves the standard of living of the general public. In addition, it greatly enhances employment choices, as well as opens new business avenues. As such, the phenomenon of globalization improves the growth rate of the economy in developing countries. Transnational companies take an active part in globalization process. Exchange of finance has significantly appreciated, as a result of direct investments by foreign countries. The poverty stricken countries of the third world are chiefly affected by this economic inflow. These investments by foreign nations include markets related to products and finance in these countries. This combination of resources and finished goods brings together the labor markets of the world. However, some third world countries have become poorer than before. Government policies in these countries attempted to delay the globalization process and the reforms that it sought to introduce. In order to make globalization more effective, there must be liberal and democratic political institutions. As such, it is impossible to reap the fruits of globalization, in the absence of such institutions. Globalization has caused considerable harm to the culture and economy of the third world nations. As such, globalization’s negative effects on third world countries cannot be ignored, and they outweigh its advantages. List of References What Is Globalization? (n.d.). Retrieved April 21, 2009, from http://www.globalization101.org/What_is_Globalization.html Alter, A. L., & Kwan, V. S. (Apr2009, Pp. 742 – 760). Cultural Sharing in a Global Village: Evidence for Extracultural Cognition in European Americans. Journal of Personality & Social Psychology , Vol. 96 Issue 4, (AN 37236696). Bandow, D. (2001, April 25). Globalization Serves the World's Poor. Retrieved April 21, 2009, from CATO Institute: http://www.cato.org/pub_display.php?pub_id=4310 Bliss, I. (n.d.). The effects of globalization: Examining change . Retrieved April 21, 2009, from http://www.helium.com/items/433486-the-effects-of-globalization-examining-change Boutaleb, A. (n.d.). Criticism of Globalization : Positive and Negative Aspects. Retrieved April 20, 2009, from http://www.isesco.org.ma/english/publications/Islamtoday/20/P1.php Bryan, D. (Mar2009, Pp. 6 – 8). Globalisation And The World Financial Markets . Ecodate , Vol. 23 Issue 1(AN 37180019). Damer, D. (n.d.). Are Third World Countries the Losers of Globalization? Retrieved April 22, 2009, from http://www.theneweconomy.de/university/tp/sm_dd_3rdw.pdf Davis, E. (2007). Globalization or globalisation or -isation. In The Penguin English Dictionary. London: Penguin. Retrieved April 20, 2009, from http://www.credoreference.com/entry/8473118/. Ekwuruke, H. (2008, February 2). Globalization and the developing World! Retrieved April 21, 2009, from Africafront.com: http://www.africafront.com/print_article.html?id=13243 Ekwuruke, H. (2005, August 2). Globalization and Third World Countries. Retrieved April 21, 2009, from Panorama: http://www.tigweb.org/express/panorama/article.html?start=5054&ContentID=5964 Guardian Online. (2001, June 11). Globalization and the Spread of Poverty. Retrieved April 21, 2009, from Global Policy Forum: http://www.globalpolicy.org/socecon/tncs/2001/guardian0611.htm Mejia-Vergnaud, A. (2003, September ). The Effects of Globalization: AView From the Developing World. Retrieved April 22, 2009, from http://www.lindenwood.edu/academics/isee/docs/vergnaud_7-28_6-page.pdf Naím, M. (Mar/Apr 2009, Pp. 28 – 34). Globalization. Foreign Policy , Issue 171, (AN 36617676). The Global Dimension in the Curriculum – England. (2005). Retrieved April 21, 2009, from Global Dimension: http://www.globaldimension.org.uk/uploadedFiles/AboutUs/gdw_gd_in_curriculum_england.pdf Westernization. In Bloomsbury Guide to Human Thought. (1993). Retrieved April 20, 2009, from http://www.credoreference.com/entry/344948/ Read More