The Impact of Globalisation - Case Study Example

Running Head: Globalisation Globalisation [Institute’s Globalisation Introduction Never in the human history, have we discussed globalisation with such intensity and devotion as we are doing these days. The reason being, that the intensity and effects of globalisation are affecting every one living on this planet in some way or the other. Economics, management, Finance, Sociology, Arts, Sports, Sciences, Philosophy, Mathematics, Law and others; in short there is no field of study that has been able to save itself from the impact of globalisation. Quite understandably, Globalisation is not a new concept. This process has been happening since the earliest times because in every age our ancestors have been trying to explore the world and bring people closer with the available tools. However, this process attainted its greatest acceleration in the past few decades with the advancement in the field of information technology and other factors. Since human growth is an exponential trend, therefore, one can expect this trend to accelerate further with unimaginable intensity in the coming years (Prempeh, Mensah & Adjibolosoo, pp. 115-116, 2004). Many experts all around the world mark globalisation as a positive and healthy process of activity in the human history. However, these people fail to look at the darker side of the picture and that the costs associated with the process that we have paid and will pay in the coming years is significant enough to consider. This paper, from this point onwards, is an attempt to look at the same. Discussion People who support and favor globalisation would firstly say that globalisation over the years has increased the productivity and output and standard of living of the people all around the world. Let us consider each of these variables separately. The first argument is regarding the productivity and output of the world that has increased with globalisation. Logically speaking, this is no big achievement. The population of United Kingdom for example was around 5.2 million in the year 1960 and today it is more than 6.3 million. Economics tells us that when there is a demand there has to be supply as well. Therefore, even if the world not had been coming closer with this process of globalisation, the output and productivity would have increased any way. Since every demand has to be met by adequate supply of the same, therefore it would be wrong to give this credit to globalisation only (Collier, Dollar & World Bank, pp. 23-29, 2002). The second part is regarding the standard of living of people. This feature has come with strings attached to it. In fact, we have paid a higher cost for it as compared to benefits. These benefits like computers, mobile phones, television, music players, video players and all other inventions that claim to make the human life simpler actually leave people with lesser disposable (Wiarda, pp. 11-13, 2007. For example, an average person in United Kingdom cannot imagine his life without machines like notebook, cell phone, LCD, automobile and others. Most of the people do not acquire them because they want to, but because of the fact that without all these they would not be able to assimilate themselves with the society (Collier, Dollar & World Bank, pp. 23-29, 2002). When we did not have these all these gadgets and machines, we were still living. Life does not stop without these machines. Nevertheless, these gadgets just increase the cost of living more than our standard of living and leave people with less disposable income (Rossi, pp. 69-73, 2007). Economics has something very important to tell us in this regard. If we increase the cost of living of the people this would have a two faced affect on the economy. On the bright side, increase in cost of living means people are spending more and obviously this increase the overall gross domestic product of the country, which is a good indicator of economic progress. However, on the darker side of the picture, when spending increases, people find themselves left with less income to save (Gannon, pp. 17-23, 2007). Lesser savings means their ability to absorb the future shocks. Obviously, savings act as shock absorber for rainy days and it also supports and facilities the investment in the economy as well (Rossi, pp. 69-73, 2007). Therefore, it not only exposes people to higher risk when something like a recession hits and also reduces the future growth of economy because lesser savings means lesser investment from the private sector and lesser investment would mean less growth of the economy (Collier, Dollar & World Bank, pp. 23-29, 2002). This explains why the British people found themselves affected with this current recession largely even if it was not a European recession but an American recession. Followed by this same point of recession, globalisation has increased the risk for economies because now in fact all the countries operate in this globalize and connected world. We all are depended on each other in so many ways. Therefore, quite understandably, we are in this recession because United Kingdom is in strong and crucial trade, political and strategic relations with the United States of America (Wiarda, pp. 11-13, 2007. The other around this recession would have never hurt United Kingdom, at least this hard. There is even another aspect of the same. When globalisation means higher standard of living for people it means that labour would now ask for higher wages and salaries. Firstly, it is not at all good for the companies, organisations since companies are always in search of cheaper labour, and costly labour would increase their cost of production (Prempeh, Mensah & Adjibolosoo, pp. 115-116, 2004). Moreover, if the companies try to avoid this by exploring cheaper labour markers in other parts of the world, this leads them to the exploitation of the labour. In fact, many Europeans have lost their jobs because of the fact that companies hire find Asian markets cheaper (Gannon, pp. 17-23, 2007). In addition, from a corporate point of view, globalisation has increased significant amount of pressure on organisations to increase quality and productivity. This recently has led to many unethical and illegal practices by these organisations, which are often reported in the media as well. Moreover, this all, over the past few years have made our life very much materialistic. People see prosperity and comfort in consumption, which is not the case. Globalisation has also affected many countries in such ways that they had to give up their national and political sovereignty. With international organisations like United Nations, World Trade Organisations and others countries many countries now face more pressure than outsiders (powerful and influential countries) to amend and manipulate polices and approaches in various fields (Prempeh, Mensah & Adjibolosoo, pp. 115-116, 2004). Globalisation is also posing threat to various cultures, cultural heritages, traditions and practices that many generations have been saving with themselves and transmitting it to their next generation. However, it is quite clear that the same would not be true for this generation all over the world. Because the generation of today already finds themselves exposed to many cultures, traditions, and specially those of the powerful countries, therefore, they do not have any further capacity to absorb their own traditions and carry it further on. On an extreme, it would mean a monoculture world, which would only bring a “full stop” to human creativity and progress (Mishkin, pp. 67-69, 2008). Throughout the history, diversity has been the human strength and the formula for progress and success. In fact, even today the best society is the one which is pluralistic and which sees diversity as strength (Mishkin, pp. 67-69, 2008). A monoculture society would mean no more progress and growth. Moreover, on the other side of the picture, it also means more violence and threat of unrest on this planet. Quite understandably, the process mentioned above would not happen in this much simple way. It would also include serious retaliation and resistance from the local cultures as well. Since this resistance would be serious and powerful, therefore it would bring destructive results as well (OLoughlin, Staeheli & Greenberg, pp. 30-36, 2004). Quite clearly, this is currently happening in many parts of this world. One of the biggest problems of today is the environmental degradation and pollution, which is, without any doubts, a product of globalisation. This increased productivity, output and standard of living has come with strings attached. Many experts and scientists have expressed their serious concerns over the alarming condition of this planet. They even predict that with this pace of destruction, within a few decades, this planet would not even remain a healthy to live. This would the biggest price that we would pay for this so-called globalization (OLoughlin, Staeheli & Greenberg, pp. 30-36, 2004). References Collier, Paul, Dollar, David, & World Bank. (2002). Globalisation, growth, and poverty: building an inclusive world economy. World Bank Publications. Gannon, Martin J. (2007). Paradoxes of Culture and Globalisation. SAGE Publications. Mishkin, Frederic S. (2008). The Next Great Globalisation. Pearson Education India. OLoughlin, John Vianney, Staeheli, Lynn A., & Greenberg, Edward S. (2004). Globalisation and its outcomes. Guilford Press. Prempeh, E. Osei Kwadwo., Mensah, Joseph, Adjibolosoo, Senyo B-S. K. (2004). Globalisation and the human factor: critical insights. Ashgate Publishing, Ltd. Rossi, Ino. (2007). Frontiers of globalisation research: theoretical and methodological approaches. Springer. Wiarda, Howard J. (2007). Globalisation: universal trends, regional implications. UPNE. Read More