Positive Impact of Globalization on Society - Coursework Example

Positive Impact of Globalization on Society Name Professor Institution Course Date To what extent do you agree that globalization has had a positive impact on society? Introduction As the world advances, globalization has become one of the most talked about topic today. The intensification of globalization in the 21st century has created many factors including global interconnectedness, growth of international, economy growth in various world markets, emerging economies, business expansions, technology advancement, reviewed foreign policy and political realignment (Ibrahim 2013, p.85). Ploeg & Poelhekke (2008, p.13) claimed that Dubai, Rio de Janeiro, Beijing, Seoul, Singapore, Doha, Paris and New York among other cities have seen economic, political and social growth as foreign investors and companies flux them to invest. For instance, Seoul GDP has grown over the years and is now equal to that of Argentina (Cohen nd, p.2). Despite progress made as a result of this topic, globalization remains a contentious issue with many people citing shortcoming such as dumping of low quality goods, insecurity, competition, environmental degradation and cultural deteriorations among others. On the other hand, Steger (2009, p.56) postulated that several benefits of globalization have also been discussed including, opening job opportunities, cheap raw materials, economic growth, wealth equality, technological advancement and new solutions. In fact, the research demonstrates that positive impact of globalization outweighs the negative impacts. Therefore, this essay will agree and argue that globalization has a positive effect on society. In this perspective, the essay will focus on economic growth, job opportunities and diversity management. The first argument why the globalization has a positive effect on society is attributed to economic growth. Akram et al. (2011, p.293) argued that globalization has transformed the image of the World Economy as in the process it has raised the international trade, flow of the capital, movement of the people, flow of the information and currency exchange. As a result, globalization has created the notion of border-less markets or interconnected world economy. Countries which in the past had highly controlled and regulated their economy have since realized the importance of trade liberalization (Ying, Chang & Lee 2014, p. 27). Every country has its comparative advantage and international trade makes the nation complement each other in term of goods. For instance, the United States has the machine because of high technology while Saudi Arabia is known for the oil. The US can sell its technology to Saudi Arabia for oil extraction while Saudi Arabia exports its refined oil to US all for money. In both cases, these two countries benefits in terms of foreign exchange. Economic Nigam (2009) opined that money derived from export can be used to improve service delivery to the society. Globalization also results in economic growth in that it allows multinationals to invest in other countries and contribute to societal development. Companies which invest in other countries often contribute to various taxes, which can be used to develop infrastructure such as road, water, recreational centers in those foreign countries (Meraj 2013, p.42). Companies contribute corporate while employees contribute income which is used to improve service delivery. For instance, Coca-Cola is one of the companies which has broadly expanded its operations in other countries and has contributed to their growth through taxes. The successes of other companies like Coca-Cola in other countries have attracted more companies to invest foreign nations and increase their tax collection. The economic growth created by globalization is also called economic globalization is marked by flow of goods, capital flows and exchange of foreign currency (Akram et al. 2011, p. 295). Companies normally invest in other countries when there is a shortage or need of particular products. In the process, they increase the flow of goods which satisfy market needs. Kilic (2015, p.3) claimed that as more people consume goods there is an increase in capital flows in these countries. Globalization has also increased tourism activities as more people feel free to visit other countries to see attraction sites and unique features in other countries. Cohen (nd, p.5) contended that the tourism brings foreign exchange hence increasing financial income of a country which will trickle down to the society through government development initiatives. With tourists coming into the country, both government and private developers construct on infrastructures such as roads, historical sites, airports and hotels. Crocitti and Vallance (2011) pointed out that many people from the local community are employed by infrastructures as road constructors, tour guides, accountants, pilots, hoteliers and drivers. The Travel and Tourism industry contribution to GDP is projected to increase from 9.5 percent to 10.5 percent by 2018. This situation will also ensure an increase in the number of employment from 8.4 percent to 9.2 percent by 2018 (Padachi, Seetanah & Rojid 2011, p.1). Tourism improvement has significantly led to growth of world cities like Dubai, Rio de Janeiro, Singapore and Paris. However, some opponents of the factor argue that globalization leads to dumping of low quality products from foreign countries (Steger 2009, p. 29). In addition, these opponents of globalization claim that globalization leads to economic inequality as some countries benefit more than others. The factor is also increasing competition pressure on local companies as young companies find it hard to compete with multinationals. Nevertheless, some business analysts postulate that globalization just opened the market increasing number of goods in the market, hence providing more alternatives to choose from (Meraj 2013, p. 42). In fact, some people argue that low quality products are usually cheap giving poor people, especially from the developing countries to also afford. China is known for its role in duplicating of products and selling at cheaper prices, hence making them affordable to all social classes of the society. In addition, Steger (2009) stated that some proponents of globalization have argued instead of making it hard for young companies to compete, globalization enables them to innovate and improve their strategies so as to compete with more established multinationals. The second argument is that globalization increases the employment opportunities. Today, Spence (2011) opined that the world still struggles with the issue of unemployment. The truth the number of educated people of who are looking for jobs have risen in the US, African, and Europe over the years. The job seekers and human resource experts have often blamed the government for not creating a marketing structure and policies which can guarantee the new graduates jobs (Spence 2011). However, job seekers have found new hope in globalization. Increase in foreign direct investment has been able to create additional to job seekers so as to income some income. Multinationals have managed to create jobs in different ways in different departments including in supply chain, in production, marketing and distribution. Studies have established that multinationals play a major role in the management of global market. Spence (2011) posited that the multinationals are regarded as major players of the international supply chains as they are involved in the movement of production of products and services across the global in reaction to global market opportunities which are ever-changing. In the process, they employ people within their global supply chain as suppliers, loaders, drivers and clearing and forwarding officers. Also, Gonzalez et al. (2008, p.8) contended that foreign companies normally offer locals jobs both skilled and unskilled hence increasing number of people in the job market. In this way, locals are able to get income and use it to elevate their lives from poverty. Globalization has also opened borders for individuals to go work in other countries. In some countries, the population of the local are higher than the companies and local markets cannot offer job opportunities. As a result, foreign countries provides alternative source of jobs where job seekers can hunt for labour so as to earn income. In the current years, the growth of businesses and industries in Asian countries has created job opportunities for both local and foreigners (Gonzalez et al. 2008, p.5). The studies have found that labour demand in the recent years have been higher than the local supply prompting companies to look for foreign labour. In particular, Gonzalez et al. (2008, p.12) stated that companies from Saudi Arabia, Qatar, Lebanon, Bahrain, UAE, and Oman have been having labour shortages to meet the job demands in local and foreign companies. Another issue that compels these countries to high foreigners is the skills shortage due to less focus in education. However, critics argue that globalization in this perspective leads to insecurity and even inequalities (Steger 2009, p.34). The argument has been that foreign criminals disguise themselves as job seekers only to cause harm in foreign countries. Critics have cited increase of terrorism as one of the negative effects of depending on foreign labor. Globalization has been also blamed for increase of unemployment as foreigners take up jobs meant for locals. Nevertheless, according to Ying, Chang and Lee (2014, p.28) proponents of globalization have refuted these claims stating that if local are competent enough, companies will not hire foreign since the process is expensive. On the other hand, terrorism is a world problem of just insecurity and has nothing to do with globalization. The third argument is that globalization enables management of diversity in the society. Over the years, the world lived in “darkness” as countries were disintegrated and communities were isolated through their culture, behavior, markets and artifacts (Meraj 2013, p.41). However, as globalization is continually intensifying, the diverse world has seen transition surfacing as countries continue to open their borders for trade and other activities. In the years of 20th century, more countries opened there borders for trade increasing transport and communication among communities (Cohen nd, p. 5). In other words, a face to face meeting has an increased among people of different cultures. Some of the instances where people meet with other people of diverse background is where some cross boarder to work, school and settle abroad. In the process, Ewoh (2013, p.108) claimed that globalization has exposed people to different cultural values, way of thinking and norms. From this perspective management experts have argued that globalization has enabled people to change their mindset about other and appreciate the differences. New methods of work leant from other communities has led to innovation, new way of life and good governance among communities. Ying, Chang and Lee (2014, p.28) pointed out that Globalization has also improved management skills of contemporary managers has they can now guide employees of different culture to achieve organizational and personal goals. In a bid way, managers have adopted global management techniques including teamwork, communication and cultural intelligence to reduce organizational conflicts. Globalization has taught employees on how to relate with members of the organization from diverse cultures without offending (Ewoh 2013, p.110). The staff has done this through desisting from stereotypes and discrimination. The whole concept enables harmony in the general society. However, some analysts argue that globalization has led to erosion of people’s culture leading to bad behavior like prostitution and other forms of immorality. This reasoning has been refuted by advocates of globalization saying that if one culture has strong values on morality, it becomes so hard to influence someone to accept the immoral culture (Ewoh 2013, p. 112). In conclusion, the essay has revealed that globalization has made people now more connected than ever. Similarly, companies, supply chains and market economies are now interconnected for proper course. The interconnectedness of these factors has had different positive impact on the society, including economic growth, increase in job opportunities and diversity management. The essay has found out that foreign direct investment and multinationals offer job opportunities and also pay taxes hence leading to economic growth. On the other hand, globalization enables people to seek employment in other countries. Lastly, globalization enables people of one community to meet with people of other communalities thus they learn how to manage diversity. Therefore, this essay concludes that globalization has several positive impacts and cannot be overlooked. References Akram, M, Faheem, A.M, Dost, M.K.B, Abdullah, I 2011, Globalization and its Impacts on the World Economic Development, International Journal of Business and Social Science, Vol. 2 No. 23, pp. 291-297. Cohen, M nd, The impact of Global economy on cities, World Bank, Viewed 20th June 2016, from http://info.worldbank.org/etools/docs/library/115504/toronto99/assets/t-cohen-mod01.pdf Crocitti, J. J & Vallance, M 2011, Brazil Today: An Encyclopedia of Life in the Republic, South Dakota State University. Ewoh, A 2013, Managing and Valuing Diversity: Challenges to Public Managers in the 21st Century, Public Personnel Management, Vol.42, No.2, pp.107–122. Gonzalez, G, Karoly, L.A, Constant, L, Salem , H & Goldm, G.A 2008, Facing Human Capital Challenges of the 21st Century: Education and Labor Market Initiatives in Lebanon, Oman, Qatar, and the United Arab Emirates, Rand-Qatar Policy Institute, p.1-299. Ibrahim, A 2013, The Impact of Globalization on Africa, International Journal of Humanities and Social Science, Vol. 3 No. 15, pp.85-93. Kilic, C 2015, Effects of Globalization on Economic Growth: Panel Data Analysis for Developing Countries, Economic Insights – Trends and Challenges, Vol.4, No.3, p.1-11. Meraj , M 2013, Impact of globalization and trade openness on economic growth in Bangladesh, Ritsumeikan Journal of Asia Pacific Studies, Vol.32, pp.40-50. Nigam, M 2009, Impact of Globalization, Viewed 20th June 2016, from http://monikanigam.articlesbase.com/science-articles/impact-of-globalization-1095770.html Padachi, K, Seetanah, B & Rojid, S 2011, Tourism and Economic Growth: African Evidence from Panel VAR framework. University of Technology, Mauritius, vol. 1-22. Ploeg, F.V.D & Poelhekke, S 2008, Globalization and the Rise of Mega-Cities in the Developing World, CESifo Working Paper No. 2208 Spence, M 2011, Globalization and Unemployment: The Downside of Integrating Markets, Council on Foreign Relations, Viewed 20th June 2016, from https://www.foreignaffairs.com/articles/united-states/2011-06-02/globalization-and-unemployment Steger, M. B 2009, Globalization: A Very Short Introduction, Oxford University Press, Hampshire Ying , Y.-H, Chang, K & Lee, C-H 2014, The Impact of Globalization on Economic Growth, Romanian Journal of Economic Forecasting, Vol.2, pp.25-34 Read More