The Benefits and Disadvantages of Globalisation - Essay Example

THe benefits and disadvantages of globalisation by The of the The of the School The City and State where it is located The Date The benefits and disadvantages of globalisation Introduction It would not be a mistake to suggest that living in society should be regarded as one of the irreplaceable prerequisites for the development of the inner potential of a human being. Indeed, if it had not been for the social environment, a considerable number of features that are regarded as characteristic would not have developed. Nevertheless, it is important to note that just like the human civilization evolves, so does the society. Therefore, it is not an exaggeration to suggest that the current stage of development of it should be carefully examined in order to gain a better understanding of the contemporary human culture. Thus, at the present moment globalisation is thought to be guiding technological, economic as well as cultural development of the humanity. This paper explores the positive aspects that this phenomenon has and the negative impact that it is able to cause. The definition of globalisation To begin with, one should take a close look at the very concept in question in order to develop a correct understanding of it. Globalisation is often defined as a process of integration between the countries in various areas that facilitates exchange between them (Lechner, 2009, p. 15). Some people argue that the process of globalisation is a relatively novel development. However, if one takes at the tendencies that can be witnessed in the ancient world, one will be able to see that long ago societies tried to facilitate globalisation with the means that were available to them. In spite of the fact that they did not really succeed, one might make a conclusion that people have always wanted to make the world integration. Nowadays, when there are adequate technological means, this can be achieved. That is why there is no wonder that the process is thought to largely affect the contemporary culture. When it comes to understanding the nature of globalisation, it becomes evident that there is no single dimension that should be emphasized. In other words, the phenomenon is question is not strictly economic, technological or cultural. In fact, it is a combination of these facets (Pande, 2012, p. 2). Indeed, if it had not been for advances in technology, particularly transportation and information technology, the dream of the globalised world would still remain to be a dream. In addition to that, pursuing economic interest has always been one of the major driving forces of globalisation, but it is only now that large corporations are able to cross national boundaries. Finally, one can hardly dismiss the importance of the cultural element of globalisation: while technology brings new economic opportunities, it also brings new cultural patterns that may or may not be integrated into the existing cultural framework. The benefits of globalisation Free trade As it has been noted, globalisation is a process that should be viewed from different aspects; however, there is no doubt that the economic constituent of it often prevails. That is why when it comes to examination of the benefits that it brings, the concept of free trade is the first that is being mentioned. The notion is question holds numerous positive consequences for the consumers. To begin with, it provides people with a bigger choice of products as more countries are participating in the trade. Secondly, because of the tense competition as well as elimination of various restrictions, the prices on the products will go down (Goldstein, 2007, p. 57). Finally, since the companies will not be able to compete with the help of setting the prices lower, they will focus on the other elements – the quality. In other words, globalisation will gradually contribute to the improvement of quality as this will be one of the major areas that will provide competitive advantage. Free movement of labour Another benefit that should be discussed in detail is the free movement of labour. Within the framework of globalisation people will always be able to find places where their skills are most needed contributing to their self realisation. What is more important is that this will also allow them to fix the ‘gaps’ that exist in the labour markets of different country which will lead to harmonisation of the market (Conaghan, 2002, p. 381). Finally, with the development of the technology, companies may be willing to save money on the office space and engage people from different countries, allowing them to work remotely. In other words, it may be quite realistic to live in one country and work for a company that is located overseas. Opportunities for developing countries It would not be a mistake to suggest that prior to globalisation there were specific routes in the world and some countries were too far to participate in them. However, nowadays trade may be facilitated all around the world which means that the countries that were outside the traditional areas of trade can be included. There is no doubt that this is likely to give a significant boost to their economy. Furthermore, some companies might be interested in the resources that these, previously not engaged countries have (Kiggundu, 2002, p. 270). In other words, the latter will be able to be included in the global framework that will facilitate their fruitful interaction with the rest of the world making sure that they become active participants of the global trade. Evolution of the government Finally, one should also explore the impact that globalisation will have on the societies and their government. Thus, since there will be many interactions with foreign partners, the parties will have to agree on mutually acceptable standards that may require introduction of reasonable changes into the current legal frameworks. Moreover, the societies will require their governments to be more open to the foreign contact which will lead to a gradual elimination of the traditional barriers that used to protect the domestic market. While some might this is a risky action, there is no doubt that this will be the next logical step in their development (Rondinelli, 2003, p. 29). Finally, due to the aspects that were mentioned above the interaction between the governments of different countries are likely to be reinforces which will in turn contribute to the unity between them. The disadvantages of globalisation Free trade paradox Surprisingly enough, but one of the major benefit of globalisation is able to become its major disadvantage as well. For example, there are many situations when several countries agreed to introduce the free trade framework and it brought more harm to the weak partners that good. One of the most famous cases is NAFTA: while the United States surely benefits from its participation, Mexico is often found in a negative state of affairs (Shaikh, 2007, p. 56). In other words, while free trade provides countries with equal opportunities, it is not say that some of the partners might eventually dominate the entire market. It is quite understandable that such situation is not preferable as it stuns the development of the economies and reinforces inequality between the countries which means that the humanity does not evolve, but only degrades. Labour drain As it has been noted earlier, free movement of labour allows people to move across the borders in search of a better application of their skills. However, the reality shows that people rarely care about self realisation and are willing to give up their dream or take up a new job that pays better (Farrer, 2011, p. 5). As a result, people leave their home country for a different country and the labour force of the former gradually decreases. In other words, there are few people who are willing to work. It is obvious that the government tries to influence this state of affairs and raises the taxes making sure that there is some money that is produced in the country. However, at a certain point, the taxes are so high and the regulations are so strict that people basically flee the country in order to work in better conditions. This will inevitably lead to the collapse of economy. The loss of cultural identity Globalisation does not only have economic impact on the social environment. Indeed, it often introduces new cultural patterns. As a result, people become aware of practices that are common in other parts of the world. A good example is the spread of McDonald’s fast food chain (Gentz, 2006, p. 43). This leads to the situation when people are ready to accept values that originated in a different culture and substitute their own traditions. Of course, it does not mean that eating a Big Mac will destroy the French cuisine; however, people will gradually forget how to cook their traditional dishes because of the convenience of fast food. Further more, cultures of the world often become objectivised and generalized in the course of globalisation. For example, the majority of people of the world think that Sushi is the representative of the Japanese cuisine; however, there are many other dishes that are worth being explored. The harm to environment Finally, the opponents of globalisation often argue that this process have a tremendously negative impact on the environment. Indeed, the production often required energy and the latter is primarily produced with the help of burning petroleum which releases the so called green house gases into the atmosphere (Harrison, 2010, p. 46). Furthermore, if a company finds a remote country that has a considerable amount of raw resources, the former is likely to exploit the unspoilt nature while extracting the resources. As one can easily see, the processes of production that globalisation primarily relies on are extremely not sustainable. This means that in the long perspective, the humanity will understand that now it rushed into a dead end that might have catastrophic consequences for the entire civilization. Conclusion Having examined all the points that were brought up in the paragraphs above, one might suggest that the debate about advantages and disadvantages of globalisation is still open. Some people point out the obvious benefits that it brings in the short run and argue that it facilitates the development of the humanity and contributes to the world that everyone will benefit from. Nevertheless, the opponents often note that this process ultimately leads to terrible consequences that can be avoided in case the mankind abandons this path. One of the major points that should be made is that while examining the nature of globalisation one should not forget about every dimension of it, including cultural one. In this case, one will be able to develop an objective understanding of this controversial phenomenon. References Conaghan, J 2002, Labour law in an era of globalization: Transformative practices and possibilities, Oxford University Press, Oxford. Farrer, G 2011, Labour migration from China to Japan: International students, transnational migrants, Routledge, London. Gentz, N 2006, Globalization, cultural identities, and media representations, State University of New York Press, Albany, NY. Goldstein, N 2007, Globalization and free trade, Facts On File, New York, NY. Harrison, A 2010, Business environment in a global context, Oxford University Press, Oxford. Kiggundu, M 2002, Managing globalization in developing countries and transition economies building capacities for a changing world, Praeger, Westport. Lechner, F 2009, Globalization: The making of world society, Wiley-Blackwell, Chichester. Pande, R 2012, Globalization, technology diffusion and gender disparity: Social impacts of ICTs, Information Science Reference, Hershey. Rondinelli, D 2003, Reinventing government for the twenty-first century: State capacity in a globalizing society, Routledge, London. Shaikh, A 2007, Globalization and the myths of free trade history, theory, and empirical evidence, Routledge, London. Read More