How Globalised Economic Integration Has Affected the Political, Social, and Economic Landscape - Example

International Business Name: University: Date: Positives and Negatives related to Globalisation and how Globalised Economic Integration has affected the Political, Social and Economic Landscape Introduction Globalisation can be defined as a process through which regional as well as national, cultures, societies, and economies have turned out to be integrated by means of the global network of transportation, trade, immigration as well as communication. Some years ago, globalisation concentrated primarily on the world’s economic side, like international capital flows, foreign direct investment (FDI) and trade, but lately it has grown to entail a wider range of activities as well as areas like political, socio-cultural, media, culture, technology, and even environmental factors, such as global warming. The globalisation pace according to Competition Policy Review Panel (2008) has heightened for numerous reasons: advancements in information communication technology, communications as well as transport. Growing mobility of capital has as well doubled up as an impetus to globalisation. As stated by Islam and Hossain (2006, p. 4), when the movement of capital from one nation to another is without restrictions, it is moderately easy for companies to localise and invest overseas, and repatriate returns. The growth of multifaceted economic products, like derivatives, has empowered international credit markets to grow swiftly. Besides that, the increasing number of multinational companies as well as the growing demand for global brands such as McDonalds, Sony, as well as Microsoft, has been fundamental to the advent of globalisation. The essay seeks to discuss both the positives and negatives related to globalisation as well as how globalised economic integration has impacted the political, social and economic landscape. Discussion As mentioned by Nistor (2007), globalisation is a motivating factor in the present economic life. Although currently it cannot make certain the realisation of world economic stability, or complete environmental protection, its positives particularly concerning the development of trade as well as the new markets access are unquestionable. Concerning negatives, the problem does not lie on globalisation, but on the modality wherein actions are taken in the quest of globalisation. The most crucial irrefutable positive facets of globalisation is the chance for poor nations to develop a tremendously fast rhythm because of access to new products, technologies as well as information, loans and direct investments, high agility of every factor of production. The utmost benefits have been noted in industrialised economies holding factors of production that are more powerful on the level of productivity as compared to those in the other economies, particularly capital, which according to Nistor (2007) may cheaply achieve high levels of efficiency in nearly all areas. For developed economies, the globalisation secured their access to new markets, boosted the volume of export as well as the incidence of positive conditions for drawing foreign capital. In the past few years, globalisation has demonstrated that it is hard to achieve it through complete freedom in action for the cost-effective bodies; however, the state role in the economic activities is of much significance. While Western countries are turning out to be more conversant with the issues occurring in developing economies as attributed by globalisation, Ritzer and Dean (2015) posit that there is bigger opportunity for citizens of those countries to succeed financially and improve their lifestyle. Globalisation has increased competition, and this has forced companies to reduce their prices, which ultimately benefits the end users. Moreover, it has heightened media coverage, which has consequently increased world attention on human right abuses; this, resulting in human rights’ improvement. Globalisation promotes innovation as well as creativity, and it keeps the commodities/services prices in check. Developing economies can benefit from the present technology devoid of experiencing many of the increasing troubles related to the development of such technologies. Globalisation, as indicated by International Monetary Fund (2003), is seen as a risk mostly in the developing economies, which experience the economic power threat of the industrialised and developed nations. Globalisation appears to be resulting in the fading of the traditional values’ period. This can be evidenced by the development of cities, the heightening rate of urbanisation, which results in a substantial decline in the rural population. So as to overcome this tradition disappearance phenomenon, concentration must be directed to agriculture, particularly in the European countries so as to achieve returns from such activities and to avoid doing away with rural society traditions. Globalisation positives are not widespread since the rich are becoming richer while the poor are getting poorer. Globalisation has resulted in outsourcing, and even though it offers jobs to people in other countries, it leaves people in the other countries with less or no opportunities. Even though various cultures used to interact and share their innovations and ideas, everything has started to merge because of globalisation, and this has resulted in the loss of culture and tradition. The world capital markets liberalisation, removal of trade barriers, and rapid technological advancement, particularly in the fields of IT, telecommunications and transport, have immeasurably accelerated and heightened the movement of capital, commodities, information, and people. Similarly, they have as well widened the array of problems that overflow to the borders of countries and states; thus creating the need for international regulation and norm setting. This as a consequence, has led to formal negotiations and consultation on a regional or global scale. Lots of issues troubling the world currently like economic crises, climate change, pollution, poverty, and planned terrorism are naturally becoming more and more global, and it is hard to handle it at national level or through country-to-country negotiations. Superior social and economic interdependence appears to impact processes of national decision-making. For instance, it calls for a decisions transfer to the transnational level and, because of a rise in the demand for involvement it as well needs voluminous decisions so as to be conveyed to levels of local government. This according to Bertucci and Alberti (2003) connotes that the public policies are carried out at distinct levels. So, globalisation involves complex processes of decision-making, which occur at diverse levels, specifically at global, national and local level heralding a way for growing multi-layered governance system. The verity that regulation and cooperation are needed on scores of levels because of the difficulties and transnational nature of contemporary issues in the world has made numerous scholars to foresee the culmination of national government power. A number of scholars such as Bertucci and Alberti (2003) argue that the government can just change to globalisation but cannot have an active role in it; in this case, most believe the globalisation will make governments obsolete. Economic globalisation according to Bertucci and Alberti (2003) is not a blind force, and individual governments are still setting the rules and policies of the globalised financial system. In other words, economic globalization is an outcome of policy resolutions made by specific nations, which let forces of global market operate. Therefore, it is crucial to highlight the political basis of globalised economic integration so as to not understand globalisation as a deterministic dynamism. Politically, countries are trying to influence policy-making in the global platform, and try to do in a manner that will mostly benefit them. In this case, a number of countries Some countries lack much power as others in setting the global political, as well as economic agenda, because of substantial power inequities amongst countries that are reflected in globalised organisations. Globalised economic integration brings about short-term benefits from utilisation of tariffs, and the existing trade barriers are removed. Simultaneously, globalised economic integration such as European Union reduces the governmental powers of the member states such that they cannot make changes that may solely profit them. Being integrated during periods of economic growth may result in better lasting financial benefits; still, in times of reduced growth things can become worse. As mentioned by International Monetary Fund (2003), new potentials for wealth creation as well as developments are brought about by globalisation, but there are differing opinions about globalisation impact on the economy. Scholars argue that the current globalisation paradigm has augmented the issues of joblessness, unfairness and poverty, whereas others claim that globalisation has been helpful in reducing such issues. Basically, the objective of globalisation is to meet people’s need so as to improve their lifestyle, liberty, freedom and achieve a successful life. But these days, globalisation has widened the gap between poor and rich and has resulted in the discrimination of certain groups in the society. Imperatively, globalisation has tremendously reduced the significance of national governments, and this is considered by Ritzer and Dean (2015) as a major political impact attributes d by the process. Lots of these countries have integrated themselves into trade blocs. Institutionalisations of multinational institutions like the EU, the World Trade Union, the Group of Seven, and The International Criminal Court have widened or replaced the national functions so as to promote international agreement. This, as a result, has lessened the nation states sovereignty in taking crucial decisions regarding their country to such institutions or interventions of such institutions on the way the government is running the country. . Conclusion In conclusion, thanks to globalisation, trade has turned out to be open and with no restrictions. Moreover, globalisation benefits people, particularly in economies that enjoy some level of political stability, economies that have set up sufficient infrastructure, unbiased social safety nets and generally with strong independent establishments. Globalisation positives can be realised only by strong States, and countries that have joined trade blocs. The permutation of progressively more innovative technology as well as multifaceted structure of the society which were maintained by the philosophies of change has largely been attributed to globalisation. References Bertucci, G., & Alberti, A. (2003). Globalization and the Role of the State: Challenges and Perspectives. Competition Policy Review Panel. (2008, July 7). Globalization and the Pace of Change. Retrieved from Competition Policy Review Panel: http://www.ic.gc.ca/eic/site/cprp-gepmc.nsf/eng/00055.html International Monetary Fund. (2003). Effects of Financial Globalization on Developing Countries: Some Empirical Evidence. Washington DC: International Monetary Fund. Islam, I., & Hossain, M. (2006). Globalisation and the Asia-Pacific: Contested Perspectives and Diverse Experiences. Cheltenham: Edward Elgar Publishing. Nistor, C. (2007). Positive and negative effects of globalization. Economic and Administrative Series(1), 152-163. Ritzer, G., & Dean, P. (2015). Globalization: A Basic Text. New York: John Wiley & Sons. Read More