Some fundamentals on globalisation
It is impossible to imagine the modern world without such phenomenon as globalisation. Generally, there are many definitions, which cover the term; although the most appropriate one is mostly related to the filed of economy and business.
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Thus, globalisation is considered to be a process “by which the world economy is fast becoming a single independent system” (Angiello & Laguerre, 2004). There is a wide range of viewpoints on globalisation: some scientists associate the process with negative outcomes; while others support the opposite opinion and speak about a variety of opportunities globalisation offers.
The thesis statement
The issue of globalisation can be regarded rather ambiguously. For this reason, it seems to be obvious that the international process should be analysed both – from the positive and negative perspectives. A detailed analysis of the consequences globalisation brings about can help clarify whether the phenomenon is considered to be a major driving force of the world economy; or it just generates significant negative effects.
The benefits of globalisation
Some historians are of the opinion that the international process leads to the so-called social inequality; for instance, they consider the gap between rich and poor societies as one of the negative consequences globalisation brought about.
However, in my opinion, it is wrong to compare different societies according to the levels of their prosperity, as the kind of comparison reminds me of comparing round items to square ones.
It should be noted that if societies are ready to accept the international trade, the outcomes will positively affect national incomes; although societies are to practice a wide range of approaches, but not to follow a regular way. In other words, there is a strong need to balance the many competing goals in order to succeed.
A competitive advantage is recognised to be one of the most important variables the benefits of trade depend upon. It is proven that the international process helps countries gain higher incomes.
Thus, in the early nineties a special investigation was conducted; according to the results of the investigation it became evident that rich countries’ GDP increased by 2% annually. That is to say, as far as more globalised countries seemed to undergo a higher increase in GDP per year, less glonalised countires underwent the opposite situation: they experienced economic downfall.
Another negative approach in relation to globalisation is associated with child labour. In poor countries, children are forced to work, as their labour is considered to be the only appropriate way to survive. Rich countries have a wide range of social services and can provide their children with medical care, education, etc. Such benefits are possible partly due to the international process.
However, as far as poor countries can be regarded as less globalised countries, it becomes evident that child labour has nothing in common with globalisation. It cannot be applied to the international influences. The same can be said about the female children’s prostitution in the developing countries.
On the other hand, it must be noted that those poor countries, which domestic conditions (political, social, economical, etc.) are more favourable, have more chances to reduce poverty through globalisation (Srinivasan, 2002).
Generally, one can probably notice that countries have different approaches to globalisation. For instance, China’s attitude to the international process differs from the Western attitude to the concept of the international influence. However, more globalised countries’ higher incomes just prove that globalisation must not be practiced the exact same way.
The issue of globalisation from different perspectives: a brief overview
When discussing the effects of globalisation from the perspectives of the general buyer, one can probably notice that due to the process people are provided with much more goods and services.
Furthermore, the international process affects the pricing policy; for this reason, in most cases the opening price is determined by markets which operate in a global environment. Globalisation gives individuals an opportunity to become familiar with a number of other cultures and experiences.
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Most of consumers associate the term with certain radical changes. Of course, the international process affects consumer law in a variety of ways.
Thus, Ronaldo Macedo (2002) points out that the major influences of globalisation on regulation and consumer law involve “changes in the production process and consumption market; transformation from a consumer goods society to a consumer service society, change in the contractual consumer practices and the growth of relational contracts, etc.” (p. 3).
Of course, the influences of globalisation within the perspectives of the general consumer are not limited by the above-mentioned changes. The global economic growth is considered to be a new form of world capitalism; that is why it affects buying attitude in a direct way.
Higher levels of production became possible due to the international process; although such changes in the production process require more financial expenditures. The offer of the standartised goods can be regarded as one of the most common effects the form of the modern capitalism brought about.
Flexible forms of production allow producing goods with unique qualities: as far as buying attitude marks up, higher levels of profitability occur. The flexible form of goods production is a modern industrial technique, which tends to satisfy a variety of consumers’ requirements.
On the other hand, it must be pointed out that the new techniques of production give an opportunity not only to increase the productive capacity, but also to respond to a wide range of alterations in the globalised market in a fast way.
The economic dualism as one of the consequences of globalisation gives an opportunity to combine different consumer markets. Thus, mass consumers along with highly sophisticated ones can satisfy their needs.
When speaking about the effects of globalisation from the perspectives of the company, it becomes evident that the international process can be regarded as the key to competitive advantage.
Of course, the extremely high demands of the modern business world are complicated by globalisation; however, on the other hand, nobody will deny the fact that new business practices appear, technological growth allows reducing the costs of transportation, exchanging of information, etc. Thus, globalisation can be also regarded as a beneficial process in relation to organisations.
Furthermore, it should be noted that the modern business world is deeply interested in globalisation. Thus, capital owners accept globalisation as a business process, which allows making more money. For this reason, the main purpose of a variety of decisions capital owners take is to affect cultural, social and economic approaches of other stakeholders, in favour of the international process.
Most of workers consider the process of globalisation from negative perspectives on the basis of several reasons. Thus, one is to keep in mind that it is workers’ low salary, which is recognised to be one of the major reasons of anti-globalisation positions.
For instance, “a designer jacket may sell for $190 in New York while the worker overseas gets paid 60 cents an hour” (“The Benefits of Globalisation”, n.d.). So, it seems to be evident that there is cheap labour cost, which workers may accept as abnormal.
Despite the fact that globalisation is associated with poverty in developing countries, one is to keep in mind that the supporters of the opinion are totally unfamiliar with the basic points of the international economy; the criticism of the phenomenon is probably related to certain political and economic aspects, but millions of workers go through hardship because of a wide range of domestic problems rather than international influences.
In other words, workers’ ignorance of the issue of globalisation is one of the key reasons of their non-acceptance of the phenomenon.
Most of environmentalists do not consider globalisation as a threat to the environment. On the contrary, the economic stagnation is associated with much more risks as compared with global economic growth.
Moreover, it seems to be evident that global environmental quality improvement is impossible without globalisation processes, as making long-term improvements depends upon the increased income.
Of course, the environment of poor countries is in danger, as there are no resources to implement certain environmental reforms. The fact that globalisation is needed to protect the environment is recognised to be undisputable, as global environmental protection depends upon a variety of economic activities.
Some economists are of the opinion that institutional improvements along with economic growth are needed to resolve a number of contradictions on environmental issues (Mendelsohn, 2003).
The impact of globalisation on domestic policies: a classic example with air pollution
When discussing the impact of globalisation on domestic policies, it is necessary to state that the question is considered to be rather ambiguous.
On the one hand, there is a viewpoint that national policies are greatly determined by the international process; on the other hand, some scientists suppose that globalisation causes no positive or negative outcomes in relation to internal affairs.
Keeping in mind that the global trends can be not only supported, but also neglected by national politics, anti-globalisation activists argue that the global economic growth cannot impact on the national outcomes.
To my mind, anti-globalisation activists’ position is wrong, as the case with environmental pollution shows us how globalisation affects domestic policies. Thus, everybody will accept the fact that environmental problems are of global concern.
For instance, the global character of air pollution is recognised to be “a very suitable indicator for measuring the impact of globalization on national politics” (Jahn 2002).
When analysing the emissions in the OECD-countries, it becomes obvious that national variables are more essential as compared with the international ones; although it should be noted that a variety of international trends are involved into domestic policies.
Despite the fact that national factors seem to be more significant, “a clear positive trend between EU membership and reduction of NOx and CO2 emissions” (Jahn 2002) can be observed. Thus, one can make a conclusion that international factors along with national ones affect domestic policies.
Still, the effect of globalisation on national policy outcomes cannot be rejected, as the investigation, which was conducted on the air-emissions of NOx, CO2, etc. showed the importance of international trends.
When comparing positive and negative attitudes to globalisation, one can probably notice that there are more benefits than harms the global economic growth brings about. Thus, when discussing globalisation from the perspectives of general consumers, environmentalists, workers, and companies, it was proven that the international process offers a variety of opportunities to all parties.
Moreover, the fact that globalisation affects national incomes is also considered to be of great importance, as the fact can be regarded as a proof that the international process is really a major driving force of the modern business world.
The most important argument in favour of globalisation is that “it facilitates an efficient global allocation of savings by channelling financial resources to their most productive uses, thereby increasing economic growth and welfare around the world” (Alfaro et al., 2006).
Of course, there are many other scientists, who consider the international economic integration is a negative way; however, they are unable to argue their viewpoints in a proper way. The international process seems to encourage a wide range of policies that affect people’s life.
It serves the interests of the modern world and facilitates taking decisions. In our days, it is impossible to imagine social, cultural and economic progress without globalisation. It allows greater financial freedom, and therefore, advances people’s living conditions.
Globalisation can be regarded as a natural aspect of capitalism. Competitive advantage the international process stimulates and promotes brings many desirable circumstances to both – the public sphere and the private one. Numerous financial advantages lead to improved financial policies; thus, one can conclude that globalisation contributes to a national prosperity.
Alfaro, L., Kalemli-Ozcan, S., & Volosovych, V. (2006). Capital Flows in a Globalised World: The Role of Policies and Institutions. Hbs.edu. Web.
Angiello, R., & Laguerre, P. (2004). Why Study International Business: The Importance of Globalisation. Bergen.edu. Web.
Jahn, D. (2002). The Impact of Globalisation on Comparative Analysis. Arizona.edu. Web.
Macedo, R. (2002). Globalisation, Regulation and Consumer Law. Yale Law School. Web.
R. (2003). Globalisation and the Environment. Yale.edu. Web.
Srinivasan, T. (2002). Globalisation: Is It Good or Bad? Stanford.edu. Web.
The Benefits of Globalisation. Radford.edu. Web.