The Causes and Impacts of Globalization - Coursework Example

Globalization Name: Institution: Date: Introduction The global market has experienced a number of changes and issues in the last three decades. In this case, each of the global issues have in their own way arose as a result of different factors, impacted the global market differently, and had their challenges. One such change is globalization. Although many definitions exist for globalization, it can be described as the process of creating an interconnected society across the global nations (Homann, Koslowski & Lütge, 2007). It is commonly referred to as the emergence of the globe as a small interconnected village. This essay offers an analysis of globalization as a global issue. It evaluates the factors that propelled globalization, its impacts, both positive and negative, as well as any challenges to globalization in the past, present and foreseeable future. The causes of globalization There are a number of the causes of globalization. In this case, the causes are mainly determined by the type and nature of globalization. As Robertson (2012) noted, globalization can be categorized into a number of ways. Among them is economic, social, and political globalization. On one hand, economic globalization includes economic relations and the spread of international trade. On the other hand, social globalization includes culture change and integration process. Finally, political globalization includes the emergence of international political ties and alliances. The main use and stimulation for globalization and its continued spread is technology developments. In this case, the aspect of technology development could be classified into two main aspects, namely communication, and transport developments. On one hand, the emergence of new communication channels such as satellite TVs and communication signals allowed for real time global communication. Moreover, technology developments have advanced internet adoption. In this case, Zinkina, Korotayev and Andreev (2013) noted that the global market, including the developing nations in Asia and Africa have increased their internet connectivity. As such, this supports global communication platforms such as emails and video conferencing. As such, this supported and facilitated organisations to develop and advance their global operations. The management and customers as well as supply chain partners could communicate and receive feedbacks on a real time basis. Thus, the communication developments advanced and bridged the geographical gaps in the market. On the other hand, technological developments in transportation have enhanced international trade. In this case, the emergences of modern ships and aircrafts as well as electric trains have facilitated cargo movement. In this case, organisations are able to manufacture products in different nations, and eventually deliver them to customers globally within reasonable lead times. An extension to infrastructure IT development has also advanced storage and warehousing facilities. This has in turn allowed for the development of regional warehouse and storage facilities in the market. The impacts of globalization The impacts of globalization are immense. In this case, globalization has both positive and negative impacts. This essay section evaluates all the impacts, both positive and negative on the global markets and societies respectively. On one hand, globalization allows for the adoption of a comparative advantages strategy. This theory and production approach as Keuschnigg (2012) argued, involves a nation specializing in the product they have a competitive production edge. This is the product they can produce at a lower cost with equal materials access with other nations. As such, through globalization, nations are able to optimize on their production potential. As such, they produce what they have a competitive edge on and export it to other nations for earnings. On the other hand, they import what they lack a competitive edge on manufactured and produced in other nations. This has been the explanation and rationale behind the ever rising levels of imports and exports in the international trade. Consequently, globalization has had a positive effect of allowing for available resources optimization globally. Nevertheless, this reliance of comparative advantage heralded by globalization has its challenges. In this case, it creates reliance and dependence on nations on others. As such, nations rely on the production capability and goodwill of the others to acquire key products for the society. Although it is good for trade, it exposes such nations to risks in the events of natural disasters and wars. On one hand, if a natural disaster strikes a nation with the comparative edge of producing a given product, then the product supply in the global market is disrupted creating the risk of shortages. On the other hand, if the two dependent nations are at war, such exchange of vital products is limited. Consequently, this leads to a shortage and the risk of living standards deterioration in the affected nations. Thus, an evaluation of the globalization impact on comparative advantages production process depicts a positive and negative impact aspect. A second impact of globalization is cultural change and integration. The cultural integration process is a social impact of globalization. This is caused by two main factors, namely multinational organisations development, and tourism. On one hand, as MNCs expand to the global market, they require a globalised workforce. As such, they mostly use expatiates. These are foreigners sent out of their domestic market to operate an organsiational branch or subsidiary. Often than not, the expatriate employees interact with the domestic culture, being influenced and influencing them respectively. As such, in the long run period, there is cultural change. Moreover, the adoption of diverse workforce policies in MNCs promotes culture integration and understanding. This social impact has been a key towards global harmony and peace. Traditionally, as De Goede, Van Vianen and Klehe (2011) noted, the understanding of foreign societies and culture was based on myths. In this case, such myths were often stereotypes of perceiving ones culture as superior and the others inferior. Consequently, this always led to inter-cultural conflicts. Through a cultural integration process, mutual respect for diverse cultures, as well as the elimination of the perceived stereotypes has enabled co-existence in the global societies. On the other hand, improved transportation system has increased global tourism. To this end, Lyons, Hanley, Wearing and Neil (2012) noted that over the last two decades, the global tourism industry boomed, due to improved transport systems. In this case, people are able to tour and visit different parts of the world with ease and with increase safety and security. As the tourists interact with domestic culture, they equally influence and are influenced by the existing cultures, creating culture change and integration in the long run period. Nevertheless tourism is not only accredited with culture change, but also environmental pollution. In this case, Hinkel et al (2013) noted that increased global air and water transportation has increased carbon emissions and air and water pollution effects respectively. Moreover, in a bid to cater for the rising beach tourism demand, a majority of the beach cover has been destroyed to create room for restaurants and rest areas for the tourists. Combining these activities with increased global production, the challenge of global warming emerged. If uncontrolled, this globalization effect is bound to result to rising ocean levels and potential loss of life in the future. The challenges of globalization Although globalization has had numerous positive benefits, its development has faced a number of challenges over the years. A key challenge to globalization has been the rise of two new global issues namely terrorism. On one hand, terrorism activities have increased in the recent decade. While as it was traditionally perceived as a Middle East challenge, increasing terrorism attacks in Asia, Europe, Africa, and the USA have changed this perception. In this case, terrorism reduces international trade, as MNCs result to reducing and pulling out from such market. In addition, the rising threat of terrorism has reduced tourism globally (Epifanio, 2011). In this regard, this has the ripple effect of reducing social interactions, and consequently cultural changes and integration respectively. Finally, terrorism has been a major challenge to the development of democratic governments. This could be cited in the case of Syria and Afghanistan. As such, the lack of national democratic governments reduces the capability by international governments to unite and form political alliances. Hence, based on the above analysis, t is apparent that the threat of terrorism has been a major challenge and derailing factor to globalization. Thus, in order to promote social and political globalization, the global nations should jointly eliminate the challenge. Conclusion In summary, the essay offers a critical analysis of the globalization concept. First, the essay identifies that globalization could be categorized into three main classes, namely economic, social, and political. As such, it singled out the rise in communication and transport systems as a key motivation towards globalization. With respect to the impacts of globalization it established that there is increased international trade, tourism and peaceful coexistence. However, it noted that it leads to over dependence between nations, as well as the rising threat of environmental pollution. Finally, the essay argued that terrorism remains a key challenge to absolute globalization. Thus, it recommends a joint international strategy to eliminate international terrorism, and thus enhance and propel globalization. References De Goede, M. E., Van Vianen, A. E., & Klehe, U. C. (2011). Attracting applicants on the Web: PO fit, industry culture stereotypes, and website design. International Journal of Selection and Assessment, 19(1), 51-61. Epifanio, M. (2011). Legislative response to international terrorism. Journal of Peace Research, 48(3), 399-411. Hinkel, J., Nicholls, R. J., Tol, R. S., Wang, Z. B., Hamilton, J. M., Boot, G., ... & Klein, R. J. (2013). A global analysis of erosion of sandy beaches and sea-level rise: An application of DIVA. Global and Planetary Change, 111, 150-158. Homann, K., Koslowski, P., & Lütge, C. (2007). Globalisation and business ethics. Aldershot, England: Ashgate Keuschnigg, M. (2012). Comparative advantage in international trade: theory and evidence. Springer Science & Business Media. Lyons, K., Hanley, J., Wearing, S., & Neil, J. (2012). Gap year volunteer tourism: myths of global citizenship?. Annals of tourism research, 39(1), 361-378. Robertson, R. (2012). Globalisation or glocalisation?. Journal of International Communication, 18(2), 191-208. Zinkina, J., Korotayev, A., & I. Andreev, A. (2013). Measuring globalization: existing methods and their implications for teaching Global Studies and forecasting. Campus-Wide Information Systems, 30(5), 321-339. Read More