Key Challenges Posed by Globalization for National Governments - Essay Example

Running Head: Globalization Globalization Customer’s Name: Customer’s Course: Tutor’s Name: 20th March, 2012. Definition of globalization Globalization has been defined by a number of people all coming up with different definitions for the same word ‘globalization’. Various key words stand out in every single definition of same. In general globalization refers to a process in which people all over the world are incorporated into one common society called global society (Clark & Ian, 1997). In the definition, the key words are people, common, process, and society. From the definition, people mean all the human being that in one way or another interact internationally. Common refers to interest which is general to all people. Process means the mode of interaction of people; it can be either through communication, or direct interaction. The society refers to a group of people with a common interest or something else in common. Therefore, from this definition globalization is a complex interrelation of people from all walks of live. Globalization can also be defined as the interaction of people all over the world by social relations who, in one way or another intertwined and hence one happening in a certain local place can affect another society at the opposite side of the world. In this definition, the way of live of people such as culture, socioeconomic activities, political landscape, technological aspect are put under one ‘roof’ of happening. Therefore, the happening can be either one or more aspect of live. The happening is influenced by increase information flow from one corner of the world to another through different means of information transfer (Rodrik & Dani, 1997). The most detailed definition of globalization is globalization is political, cultural, economic, technical, voluntary and inevitable interaction through transactions which are financial between different countries (financial foreign exchange transactions). Consequently, globalization is one of the new phenomena which have emerged in the past few years, since the invention of new technology which is facilitating the transactions. Globalization has affected everything even the way people are thinking from local to global. This has evolved to invention of a new motto of ‘thinking globally and act locally’. The motto brings in two more processes. First, that every local problem is caused by globalization and two, the solution to the problems should be solved globally. In summary, globalization refers to a multiplicity of relations and international connections among states and communities that in one way or another constitutes to the present world system (Mittelman & James, 1996). In these respect, process like events, activities and decisions are influenced either directly or indirectly by happening in another different part of the world. Therefore, globalization embraces integration of every phenomenon in live from one corner of the world to the other. From whatever perspective one may look at it, whether positive or negative, it is clear that globalization has influenced the world systems and that it has both challenges as well as opportunities. Globalization as has been mentioned earlier has many impacts on mainly the national economies in the sense that it affects the production of goods and services in a country. It also affects the inputs in production as well as the labor. Consequently, it has affected investments in both physical and human capital, technology, and finally it has affected productivity and competitiveness. In this respect, globalization is a topic and a phenomenon to be discussed since the effects will affect and determine the future of the nation and the world at large. The cost of globalization Cost of globalization can be attributed to the potential benefits and the challenges associated with globalization. If the costs are not well managed, they can be threat to regional, local and even international level. If the benefits are not well distributed, among regions, nations, organizations and even individual level it can be a big disaster. The costs are directed to developing countries since they are developing at a faster rate as compared to the already developed countries. Therefore, the developing countries are the chief beneficiaries of globalization at the expense of the developed countries. However, some of the countries say, in the Africa and Asia are developing at a slower pace compared to again the developed countries. The poor developing countries as a result, are becoming marginalized. Consequently, the incomes of the world are becoming decentralized rather than centralized. Though the increase in growth of economy due to globalization in the rich countries, the poor ones are continuously ragging behind due to this effect of globalization. However, there is an ever increasing need by the marginalized countries to join in the club of the rich, which has evoked mixed reaction among the different countries. This diversity between the developed countries and the marginalized is now becoming a challenge in the economy of the world (Mittelman & James, 2000). Due to different forms of governance and the effect of globalization which can affect any part of the world after a miss happening at another different locality, one fall of economy in a nation can cause a global economic crisis. This is no longer a theoretical assumption, but with the recent past fall of economy in countries like Thailand and South Korea which eventually spread to other parts of the world like Russia, it is now evident that globalization has a negative effect on economy of whichever county it may be. The effect is again calling for the individual countries to consult wisely and to learn from the past mistakes, since a single fall of economy in a certain country can lead to a global economic crisis. If worthwhile measures are not put in place, the effect of globalization in economy can eventually lead to military war, and that would be a repeat of history. In addition, since the globalization is calling for global firm kind of governance, the sovereignty of the individual countries and their governance is been compromised by the effects of globalizations (Rodrik & Dani 1997). This is a potential threat to the national leaders and their citizens since the decisions are no longer in their hands, but with the global firm i.e. the decisions are determined by other leaders somewhere else and the sovereign countries are supposed to adhered and implement them. The cost of globalization has been associated with the unemployment challenge by the individual countries. The increased technology is viewed by many as the result of unemployment. The reason been that things like telecommunication and the use of mobile phone is replacing people who could have otherwise been working as message deliverers and postal attendants. Moreover globalization has been attributed with the population increase in some countries as well as policy failure. There are other none economic effects of globalization, the most eminent one been that globalization can affect the political landscape of such countries. Again, this is not a theoretical phenomenon again. In the recent past, people of countries like Egypt and Libya have undergone a political revolution through mass actions against their leaders and the form of governance. The move was instigated and pioneered through Facebook, one of the social networks in the internet. The internet is one of the positive globalization effects, but when used to such extents it can be a threat to not only a single country but also to other countries. In worse situations, globalization can lead to territorial war and again internet can be used as a means of mass destruction (Hertz & Noreena, 2001). In conclusion, it is worth noting that there are many other positive and negative non-economic effects of globalization. Almost in every area and field of human relations, globalization is one foot head with its many effects. It is affecting even the unexpected areas of live like marriages and family relationships. Finally, since globalization with its many positive and negative effects is inevitable and it’s upon the people of every country to come up with measures that will minimize the negative effects and maximize the positive ones. Key challenges posed by globalization for national governments The link which has been created in relation to the transport sector and the communications systems have a played a major role in facilitating globalization in terms of social, economic as well as political forces. Based on a clear look on the three forces one is able to support the notion that the three forces have an impact on individuals, national governments and the communities. Nevertheless, divergence arises over the attractiveness of the costs associated with globalization and ways in which the national governments, individuals and communities should retort in relation to the ever changing international environment. A great number of individuals claim that globalization has brought new payback and potential to national communities by the opening of markets and the exertion of pressure upon regimes that tend to violate the basic human rights. Nevertheless, globalization has also disenfranchised national communities; it has done this by conciliating the governments' ability to manage the domestic economic, political and social situations (Opeskin, 1997). The criticism of the concept of globalization by a great number of individuals has made it readily attributable as the cause of a range of grievances within national communities. fastidious groups, for example those working in areas where low level of expertise is needed, blame the concept of globalization to be accountable for their prohibition to access the economic benefits which are enjoyed by the others. In essence there exist three common areas in relation to national governments where globalization has aggravated the loudest blame and these areas include: compromise of national identity, compromise of national economic interest and compromise of sovereignty (Keohane, 2001). The first challenge that is posed by globalization of national government is compromise of economic interest. Compromise of national economic interest is generally termed as the conviction that in a global world a country is not able to embody the economic interest of the national community because of trade liberalization, mobility of international capital as well as the financial strength of intercontinental corporations. Comprising of sovereignty is another challenge that is posed by the globalization of national governments. Based on critics global forces have a lot of effect on the sovereignty of the state. In relation to globalization, the sovereignty of the state is endangered by two major developments. These two developments are the surfacing of global crime and the ever changing nature of international laws (Alston, 1995). In reference to these two developments there is escalating demands on national governments to apply legislation that caters for the international community. The third challenge that is posed by the globalization of national governments is the erosion of social cohesion among the communities and social cohesion is termed as a vital aspect in maintain national communities. There exists two way in which globalization is claimed to place pressures on the national identity; one of the ways is the increased mobility as well as advancements in the communication networks around the globe. In reference to mobility of individuals around the globe, a lot of people are moving from one continent to another. Mobility has over time provoked worries that certain individuals who once possessed comprehensible standards and acknowledged certain cultural practices and beliefs must try to cope and adopt with ever augmenting numbers of individuals with different beliefs as well as cultural practices. How globalization has impacted on the aviation industry The effects associated with globalization are diverse form one continent to another and also from one business type to another. The concept of globalization has had a major effect on the aviation industry and more so on Qantas airlines. Aviation is seen as been a major driver to globalization for a century the aviation industry has aided the movements of individual and goods across boarders. In the present day a lot of people are working, playing and the same living on a truly global world, this has created a very efficient and effective environment for the aviation industry Globalization has many demonstration and most profoundly for the intercontinental air transport industry, this has not been just only on the demand side (since the size, geography and nature of demand in overall global markets has led to changes) but also on the supply side where inherent and clear international harmonization of rules by governments in regard to safety, environment and security and the private sector have impacted the institutional and industrial surroundings in which air transport services are offered. Another major impact of globalization on the industry is the deregulation of the industry. There has been regulation of the industry by the government of Australia so as to increase competitiveness in the industry. International air transport is less than a century old, but it is termed as major player and contributor to globalization and over time the industry is slowly reshaping itself to convene the demands of the financial and communal integration that globalization encompasses. Based on economic terms, globalization take place so as to enable the superior divisions of labor and at the same time enable states to make use of their comparative advantage. Globalization enhances labor and technology transfers and also enables vitality that escorts consumerist actions to arouse technology of new technologies and procedures that augment global warfare. Air transport has played a vital and important role now, in he past and in the future some of these roles includes: the quick flow of information and people and this in one way facilitates efficiency on a global scale. Worldwide competition is another effect of globalization on the industry and more so on Qantas airlines. Worldwide competition which is as a result of globalization in the airline industry has positioned huge strain on company’s operating costs. According to the international transport workers federation (1992), predominantly heavy strain on labor costs has led to poor working condition for the workers which have over time increased the workloads. Labor constitutes to a considerable amount of total costs in airline industry and more so in Qantas airlines, and dissimilar to fuel charges as well as the landing charges, labor is categorized under the direct management control. Qantas has put into practice the CM strategies such as retrenchment, annual leaves, a freeze on the hiring of new staff and change of full time work into part time work (Easdown and O’Brien, 2003). Qantas beliefs that by the use of Gialloreto’s (1998) hypothesis, that states that during economic depression, companies may opt to put incentives in place so as to reduce the operating costs of their companies. The move made by Qantas airlines proves that globalization has in one way changed the management perceptions and attitudes towards the employees working under them, and that human resource manager’s unitarist design had made employees to be more essential and compatible than ever. Another effect of globalization to the airline industry and more so to Qantas is the deregulation of the labor market. Between the year 1980 and 1990 the industrial relations endured noteworthy changes. Structural competence standards were initiated so as to make certain that earnings increase accounted for market effectiveness. References Alston, P. (1995). 'Reform of Treaty-Making Processes: Form over Substance' in P. Alston and M. Chiam, Eds, Treaty-Making and Australia: Globalization versus Sovereignty, The Federation Press for Faculty of Law Australian National University, Canberra, pp. 2. Clark & Ian (1997).Globalization and Fragmentation: International Relations in the Twentieth Century, New York: Oxford University Press. Easdown, G. & O’Brien, S. (2003). “Job Axe Falls at Qantas”, The Herald Sun, April 10, p. 12. Gialloreto, L. (1988). Strategic Airline Management: The Global War Begins. London: Pitman. Hertz & Noreena (2001). The Silent Takeover: Global Capitalism and the Death of Democracy, London: Heinemann ITF (1992). The Globalization of the Civil Aviation Industry and its Impact on Aviation Workers. London: International Transport Workers’ Federation. Keohane, R (2001). 'Governance in a Partially Globalized World', American Political Science Review, 95 (1), pp. 1-13. Mittelman & James H (1996). Globalization: Critical Reflections, Boulder: Lynne Rienner Publishers. Mittelman & James, H (2000).The Globalization Syndrome: Transformation and Resistance, Princeton: Princeton University Press. Opeskin, B. (1997). 'International Law and Federal States' in B. R. Opeskin and D. R. Rothwell, eds, International Law and Australian Federalism, Melbourne University Press, Melbourne, p.6. Rodrik & Dani (1997). Has Globalization Gone too far? Washington, DC: Institute for International Economics. Read More