Anti-Globalization Undervaluing the Benefits of Globalization - Term Paper Example

Anti-Globalization undervaluing the benefits of Globalization Table of Contents Introduction 3 Benefits of Globalization 3 Anti-Globalization arguments 4 Why anti-globalisation arguments seriously undervalue the benefits of globalisation 6 One need to understand the fact that globalisation has yielded several benefits for the world. Not only has it triggered an unprecedented development throughout the world, it has brought stability into the world economy. It is because of this induced stability and robust interconnectivity that one country is being able to help another during the times of crisis. Charities are being channelized at lightning speed at the places of need only because globalisation has revolutionized the way operations are conducted in the contemporary world (Beck, Sznaider, and Winter, 2003). 6 However, issues such as the global financial crisis and unethical practices of GlaxoSmithKline are unintended effects of globalisation. These occurrences are all caused by unethical human practices and therefore they do not provide substantial evidence that questions the benefits provided by globalisation (Benyon and Dunkerley, 2000). Financial crisis was mainly triggered by an uncontrolled greed for profit of various businessmen who aided several unethical practices that includes accounts manipulation, complex product development and illicit trading. 6 Conclusion 8 Reference List 9 Introduction Globalization indicates the opportunity of nationalistic and local perspectives towards a broader view of an interdependent and interconnected world with open transfer of goods, capital, and services athwart national frontiers. It defines the way people and countries interrelate and integrate (Mahajan, 2006). Globalization includes many sections and can be cultural, political, and economic. Political globalization is termed as how nations and institutions influence the entire world. Economic globalization is referred to how nations are coming collectively as one immense global economy. Cultural globalization is referred to how customs is becoming uniform, which implies that people across the world perform in a similar manner (Mott, 2004). Anti-globalization is defined as a movement to oppose the globalization’s trend and its unsafe effect, as well as to reorganize unbridled capitalism. The movement of anti-globalization places focus more on human decency and economic efficiency versus profits and corporate competition at any price (Held and McGrew, 2007). This paper will examine how arguments of anti-globalization gravely undervalue the benefits that globalization has delivered for all countries. Benefits of Globalization Some of the economists argue that globalization is considered as positive development because it will increase employment opportunities as well as develop new industries in the emerging countries. Others argue that it is considered as negative as it will compel poorer countries to do anything the developed nations will tell them (Edu, 2015). Increased competition: The most noticeable effect is the enhanced products’ quality because of the worldwide competition. As the domestic organizations have to struggle foreign competition, so they are forced to hoist their standards as well as level of customer satisfaction to survive or endure in the marketplace. Employment: With globalization, organizations have forayed in the emerging countries and therefore created employment for the people. It has provided a chance to do investment in the developing markets as well as tap the ability and talent available here. In emerging countries, there is frequently a shortage of capital that hinders the development of home countries and therefore, employment. In such situations, because of the international nature of businesses, individuals of emerging countries can also get profitable employment opportunities (Cragg, 2005). Spread of technological expertise: It is supposed that entire innovations take place in Western countries; the expertise also arrives into emerging countries because of the globalization. The most noticeable instance of the increase in awareness is summarised from the fact that today, the Western countries is awakening towards the advantages of Yoga and Ayurveda, whereas the Western antibiotics are deluging the Indian marketplace as well as improving the people’s quality of life in India (Dinello and Squire, 2005). Globalisation has revolutionized the way business is conducted in the contemporary world. Residents belonging to one country can avail products and services that are developed in another country. Not only has globalisation enhanced the lifestyle of human being around the world but it has taken the world to the next level of development. Businesses are able to get access to cheaper source of labour as well as raw materials for manufacturing their goods as a result of globalisation. By availing cheaper labour and raw materials managers are able to place a discounted price on their product. This allows people from all income groups to afford global products (Albritton et al, 2004). Businesses as well as personal investors have access to more capital markets to invest their capital and realize greater income. They have the option of hedging their risk exposure in one capital market by earning more than equivalent profit from another capital market. Therefore, it can be said that globalisation has virtually eradicated every possible boundaries between nations which in turn has enhanced goodwill and understanding between the countries (Drori, Meyer and Hwang, 2006). Anti-Globalization arguments To reduce the costs, most of the organizations in developed countries have outsourced the manufacturing jobs to the Third-World nations like China and India, where the labour cost is low. Critics argue that globalization has increased the activities of slavery and child labour (Rama, 2003). In most of the countries with no or little accountability, organizations paying child labour can work easily through bribing the officers, which might result in augment in unlawful activities. It has been also noticed that globalization have unintentionally helped criminals and terrorists. Globalization refer to the idea that foods, humans, and materials are permitted to travel openly across borders, though 9/11 was considered as a terrible reminder that human being with wrong intentions can employ it as a chance or opportunity and results in damage (Rama, 2003). It has been noticed that anti-globalisation have taken place because of the numerous disadvantages of globalization. The interest of Wal-Mart is not for the wellbeing of others, but for their generation of profits. The Nike case also focuses that government is not taking any essential steps in opposition to the child labour (Stiglitz, 2002). Anti-globalization has also come into existence due to the issues related to the global warming such as biodiversity loss, pollution, and species extinction. Given the fact that there is a robust interlink between two countries as a result of globalisation, an occurrence of crisis in one country will severely affect another associated country. The global financial crisis that happened in 2007-08 is the most evident example of the statement mentioned above. Countries that were very strongly connected were pushed towards the brink of economic downfall as a result of this crisis (Appelbaum and Robinson, 2005). The financial crisis in the US triggered a wave of adverse reaction across the globe as a result of hefty investments made by companies as well as private investors in the US economy. Such investments have only been possible as a result of globalisation. However when the US economy went into a turmoil, investors based in other countries incurred losses of huge magnitude. As mentioned above, globalisation has increased the intensity of competition in the contemporary business environment. Companies have emphasized a lot on finding the right sources that lead to attainment of sustainable competitive advantage (Beck, Sznaider, and Winter, 2003). However, companies, in their quest to become market leaders have been found resorting to unethical practices which in turn have affected mankind by a drastic margin (Robertson, 1992). One of the most evident examples in this case is that of GlaxoSmithKline. The company was accused of falsifying test results of some of its drugs in order to make sure that it is sold without any restriction in the market (Mercola, 2012). In addition, the company had also allegedly concealed some of the detrimental side effects of its drugs so as to make sure that the prescription of this drug is not banned. In fact it was reported that the company had also relieved some of its officials from duty who had raised voice against such unethical practices being conducted at the company premises (Mercola, 2012). That is why many perceive that the negative effects of globalisation outweigh its benefits (Mol, 2003). Why anti-globalisation arguments seriously undervalue the benefits of globalisation One need to understand the fact that globalisation has yielded several benefits for the world. Not only has it triggered an unprecedented development throughout the world, it has brought stability into the world economy. It is because of this induced stability and robust interconnectivity that one country is being able to help another during the times of crisis. Charities are being channelized at lightning speed at the places of need only because globalisation has revolutionized the way operations are conducted in the contemporary world (Beck, Sznaider, and Winter, 2003). However, issues such as the global financial crisis and unethical practices of GlaxoSmithKline are unintended effects of globalisation. These occurrences are all caused by unethical human practices and therefore they do not provide substantial evidence that questions the benefits provided by globalisation (Benyon and Dunkerley, 2000). Financial crisis was mainly triggered by an uncontrolled greed for profit of various businessmen who aided several unethical practices that includes accounts manipulation, complex product development and illicit trading. Therefore globalisation should not be blamed for the immoral actions taken by human being itself. The same can be said in case of GlaxoSmithKline as well as the managers were also driven by the need to survive in this intensely competitive business environment (Appelbaum and Robinson, 2005). That is why the decided to falsify test result and conceal side effects of their drugs. Thus one need to know that globalisation does increase the intensity of competition in order to enhance the quality of goods and services but it never prescribes one to adopt unethical means to survive (Drori, Meyer and Hwang, 2006). There are several benefits of globalisation such as the increased competition, profitable employment opportunities, spread of technological expertise, etc. The ‘world system theory’ explains that incorporation of people from dissimilar localities helps to shape the international traditions through technologies, people, money, ideologies, media, and social networks. It has been analysed that the developed countries seek workforce from other nations at low prices which tends in the direction of integration of different economies. It has also been analysed that this theory or approach works in a proper manner to ascertain that the importance as well as influence of each state is properly explained in the globalisation process. The analysis of world system theory explains that the integration of human being from dissimilar localities forms a situation where the international traditions is shaped by means of different modalities like flow of technologies, people, money, ideologies, media, and social networks (Staeheli and Greenberg, 2004). Through the world system hypothesis it becomes pertinent to realize that the country is a part of global economy. The modernisation theory lays stress on the global integration as well as the authority of external forces in order to encourage rapid change. The analysis further focuses on the fact that globalisation leads to the incorporation of national/domestic economies in the global economy through capital flows, trade, technology and migration. In spite of these benefits the movement of anti-globalization underestimates the benefits, which globalization/internationalization has conveyed because internationalization only globalizes corporations and money, but not unions and people. It is supported by the analysis that outsourcing led to millions of people lost their occupation or they have been paid less. Moreover, globalization led to the utilization of resources in the emerging nations by western nations. It is also noticed that the minority or local customs are almost disappearing. The environmental problems, for example global warming and pollution also led to the emergence of anti-globalization. It has also been analysed that globalization supports the utilization of child labour by global corporations in the developing countries. Globalization is also criticised for remaining thoughtless towards the religious principle of host country. For example, a claim was filed against the McDonalds, after it was charged of providing beef in the burgers. Environmental deprivation/degradation is considered as one of the main issue that has taken place due to globalization (Benyon and Dunkerley, 2000). Other reasons for the emergence of anti-globalization are the human rights issues. It has also been analysed that in the case of Wal-Mart, the human rights and code of conducts is encouraged to the community, but not implemented or regulated on workers. In the Nike case, it is evidently documented that the child employment is in opposition to the regulation, but then also the government does not take any enthusiasm to do something about it. Moreover, in the sweatshops of the emerging countries, overtime working and low pay are common (Stiglitz, 2002). All these factors underestimated the benefits that has been conveyed by the globalization and gave rise to the movement of anti-globalization. Conclusion Globalization has delivered several benefits to the society and nations but everyone is also familiar with the drawbacks of globalization. The ‘world systems theory’ describes the modalities which best relate to different areas across the globe. Various parameters for example culture, technology, infrastructure, social media, and religion describe globalisation in a proper manner. Globalisation is considered as one of the most considerable influences which results in the increase of global commercial transactions. However, the environment pollution, destruction of cultural identity, use of cheap labour of emerging countries in the developed nations, etc are some of the examples which has lessen the significance of globalization. Therefore, the movement of anti-globalization has come into practice to oppose the trend of internationalization/globalization and its unsafe effect on people and countries. Reference List Albritton, R., Bell, S., Bell, J. and Westra, R., 2004. New Socialisms: Futures beyond Globalisation. New York: Routledge. Appelbaum, P. and Robinson, W., 2005. Critical globalisation studies. New York: Routledge. Beck, U., Sznaider, N. and Winter, R., 2003. Global America/ The Cultural Consequences of Globalisation. United Kingdom: Liverpool University Press. Benyon, J. and Dunkerley, D., 2000. Globalization: The Reader. New York: The Psychology Press. Cragg, W., 2005. Ethics codes, corporations, and the challenge of globalization. United Kingdom: Edward Elgar Publishing Limited. Dinello, N.E. and Squire, L., 2005. Globalization and Equity: Perspective from the Developing World. United Kingdom: Edward Elgar Publishing Limited. Drori, G., Meyer, J. and Hwang, H., 2006, Globalisation and Organisation: World Society and Organisational Change. United Kingdom: Oxford University Press. Edu, 2015. Globalization – Positive or Negative? [pdf] Available at: < http://www.edu.gov.mb.ca/k12/cur/socstud/frame_found_sr2/blms/4-6.pdf.> [Accessed 18th February 2015]. Held, D. and McGrew, A., 2007. Globalization/Anti-globalization: Beyond the Great Divide. United Kingdom: Polity Press. Mahajan, S., 2006. Globalization and Social Change. New Delhi: Lotus Press. Mercola, J., GlaxoSmithKline: GUILTY in Largest Health Fraud Settlement in US History. [online] Available at: [Accessed 23 March 2015]. Mol, A. P., 2003. Globalization and environmental reform: the ecological modernization of the global economy. United Kingdom: MIT Press. Mott, W.H., 2004. Globalization: People, perspectives, and progress. California: Greenwood Publishing Group. Rama, M., 2003. Globalization and Workers in Developing Countries. Washington, D.C: World Bank Publication. Robertson, R., 1992. Globalization: Social theory and global culture. California: SAGE publication. Staeheli, L. and Greenberg, E., 2004. Globalisation and its outcomes. New York: Guilford Press. Stiglitz, J.E., 2002. Globalization and its Discontents. New York: W.W. Norton & Co. Read More