Globalization has been considered as a significant source of both economic and social change. It has been achieved through development of sophisticated systems of communication and technology.
Today, the ability to understand, incorporate and ultimately embrace globalization towards stabilization of the global economy remains the central facet in leveraging social-economic development, political stability and fostering of peace. Internationally and locally, globalization has created a unique link between states and communities in a highly progressive model of production and consumption.
However, emerging scholars have cited vital problems resulting from operations of international businesses with respect to globalization. Additionally, leadership and regional integration have been critical in facilitating global economic development by providing the right environment for change.
However, global crime in society, low assumption of technological development and low illiteracy levels are greatly obstructing global economic and social progress.
Globalization has become an essential and standardized process characterized by massive diffusion of ideas, commodities as well as everyday life experiences. Sociological studies indicate that numerous factors have contributed towards globalization.
They include international agreements which are vital in minimizing costs for business operations in foreign countries, economic groupings, high levels of economic activities, mass movement and migration of people, sophisticated transportation services, technologies and refines communication systems.
Inglehart (2000) points out that even though globalization has immensely changed the society by offering nations and companies substantial potential profits, it has also affected many social systems.
As this paper analyses using conflict, functionalism and symbolic interactionism theories, globalization has brought complications such as global-cause-and-effect linkages, wide differing legal systems, cultures and values, standards of living and expectations. It is on this front that this paper examines globalization as a change process.
While globalization is a term that has been used by many scholars to mean global relationships of economic activities, people and culture, neoclassical economists point out that it mostly refers to economics, whereby the production of services and goods is globally distributed through reduction of import quotas, export fees and tariffs among other barriers of international trade.
In agreement with both the neoclassical economists and the scholars, Bernauer (1995) reiterates that globalization is a term that covers wide array of ideas such as transnational circulation of popular cultures, languages and ideas.
He posits that as a change process, globalization has contributed as well as accompanied colossal economic growth in developing and developed nations through comparative advantage and increased specialization.
Koster (2007) observes that society was formed and shaped to have concrete existence, and was intended to assume and follow a particular order. This assumption, besides emphasizing the need to understand how stability, equilibrium and order are vital to society and why they should be maintained, seeks to generate regulative sociology and provide explanations which are rational on social affairs.
The approach to globalization given by functionalists has its foundation on traditions of positivism which uses natural science to identify, provide empirical measurement and study the social world as a concrete unit.
In the mainstream academic fields and academic sociology, functionalist theory by Talcott Parson has become dominant as it strongly expresses that the social world is a concrete reality that be comprehended by understanding the regularities and uniformities that characterize it, and the various causes and effects of change.
In their publication, Marcuse and Kempen (2006) argue that change process due to globalization with respect to functionalist theory has been observed by the manner in which different structures, both economic and social, have over the years related and gone through immense changes.
Many attempts have been made using the customs union theory to create and establish regional arrangements and trade diversions, and which through regional trade liberalization; have enhanced economic efficiency gains and ambiguous overall benefits.
Globalization has enhanced economies of scale, which is an idea that many analysts have added into their theoretical analyses since it has brought changes in the marketing arena by creating larger and advanced regional integrated markets.
While Parsons’ functionalist theory maintains that all structures and the social system should meet particular functional prerequisites like stability to operate efficiently, the process of globalization has proven that certain aspects of change like liberalism open up societies to growth and development.
Hansen, Andersen and Clark (2001) point out that due to globalization, liberalism has spread across the world, which was not a reality in the early twentieth century.
Today, countries in the organization for economic cooperation and development (OECD) are benefiting from liberalism through economic policies that give nations favored market mechanisms through tax reforms, privatization, deregulations, improvement of business efficiencies and reduction in size of the public sector.
(Panitch, 2002) They add that internationally, even though changes are taking effect at a slow pace and trade liberation is limited, private direct investments and capital flows are happen faster than in the last century, and are far-reaching.
According to Bartelson (2000), regional and international integration is an amalgamation of different economies to form a larger one. Though regionalism first took a highly imperialistic mode in the mid-twentieth century, a new impetus that saw more significant need for international businesses strengthening emerged during the last two decades of the century.
This has been linked to new understanding of benefits attached to it. Due to globalization, almost all regions have some form of regional integration. Bartelson (2000) further explains that European Union has created a strong bond for member states to run their businesses effectively.
European Union is built on critical standards for businesses operating in member states to facilitate high products quality and acceptable labor operations. In this case, international businesses get an equal competing platform which has been linked to the fast growth and development of this economic block. In the year 2003, China was barred from trading some of products in the European Union due to poor quality.
According to Guill´en (2001), the North American Free Trade Agreement has seen massive economic expansion of the region. As a bloc, emphasis has largely been centered on producing high-quality products and therefore easily winning international market. Additionally, leadership in this region has always emphasized on fast assumption of new technology and economies of scale.
In all regional integrations, international businesses enjoy reduced import and export taxes. Guill´en (2001) emphasizes that some blocks such as European Union have totally eliminated custom barriers and further allows free flow of even labor between member states.
Globalization has immensely changed the manner in which individuals communicate, attach, use and interpret symbols around them. Max Webber argues in his symbolic interactionist theory that different individuals use diverse symbols that include conversation or behavior in their everyday life interactions.
Bernauer (1995) argues that culture is a phenomenon that distinguishes one group from another. Different nations have different cultures that affect how they run their affairs. A country may express its culture through concepts rituals, or beliefs. As multinational companies conduct business in different countries, they encounter various challenges brought about by culture.
Besides, people employed by these companies, as well as the individuals they serve come from different cultural backgrounds and therefore manifest different gender, ethnic, regional and national beliefs (Stiglitz, 2002).
Due to globalization, businesses and organizations are striving to useful understand cultural differences as it has become one of the most fundamental requirements since it aids in enhancing personal and business relationship through understanding cultural values of members of different cultures and interpreting their behaviors and actions.
Organizational performance of a business is greatly influenced by cultural differences experienced in the complex interaction between the environment and individuals. Bartelson (2000) points out that globalization has changed the way society regards dyadic and interconnected relationship that have diverse ties such as influence, exchange and information.
The process of change due to globalization in organizational operations and global economic development has not been without critical challenges that are strongly obstructive. Cioffi (2000) argues that the effectiveness of individuals, organizations and businesses are pegged on the literacy levels in various regions.
Karl Marx argues in his conflict perspective that due to globalization, discriminations have increased to the different levels of advancements. Regions with low literacy levels such as Africa and East Asia have been discriminated against due to their low demand for international products required for essential operations such as electronics.
Large companies such as Dell and Compaq have had to grapple with weak demand for their products in these regions (Yeung, 2002). Though significant efforts in countries such as Kenya and Philippines to raise literacy levels have been established, the levels of illiteracy still remain far below par and therefore scaring away international businesses from their jurisdiction (Yeung, 2002).
In his view, Bernauer (1995) points that slow global economic developmental rate should largely be associated with poor acquisition of technological development. Most of the developed regional economies such as the European Union and North American Free Trade Agreement have strongly embraced technological development in their production processes for services and products.
However, technology acquisition is lacking in many nations from high levels of poverty and poor prioritization by local leaders. In agreement with Bernauer (1995), Carr and Chen (2004) indicate that in majority of the developing countries, production still takes the traditional models which are very ineffective and cannot compete internationally.
In their argument, they strongly argue that developed nations lack the needed goodwill to facilitate cohesive economic developments by encouraging the status quo and therefore guaranteeing themselves a ready market for their produce. Global economies should openly support assumption of technology by other nations as an essential element to increase demand for their products and services.
Perhaps, one of the most important factors that determine the efficiency of change due to globalization and development of global economy is movement of goods and services. However, this movement, as Bartelson (2000) argues has remained a significant stabling block due to high levels of crime levels in the society.
On eighth April 2009, Maersk Alabama was hijacked in the horn of Africa with 17,000 tonnes of cargo while over 30 other cases had been reported by the end of the same year (Aharoni and Brock, 2010). While respective businesses and states are forced to pay vast sums of money to these pirates before hijacked cargo is released, the global economy is actually slowing down as opposed to advancing with speed.
With the cost of doing business becoming very high especially from the demand for armed escorts, it is no doubt that failure to address the problem may ultimately paint a bad picture on the importance of globalization.
Carr and Chen (2004) consider regional conflicts like the recent war in Iraq, constant resilience of Israel-Palestinian assaults and Russian-Georgian war, among others to have significant adverse effects on international businesses. During these events, international businesses loose their heavy investments and consequently withdraw from such regions.
Carr and Chen (2004) continue to say that in the war-torn Afghanistan and North Korea, international business investors constantly shy away as they perceive the area to be both risky for their investments and staff.
Besides, involved parties strongly embark on arming themselves as opposed critically supporting regional and global economic development. It is critical that the global community address insecurity issues since they indirectly affect them and ultimately slow down global economy.
To sum up, the discussion has clearly indicated that globalization has been an essential factor that has brought immense positive changes.
The analysis has used three theories which in comparison, symbolic interactionist theory and functionalist theory have brought out the light and importance of globalization as a change process. On the other hand, conflict theory, as the name suggests, points out that globalization has, without doubt, raised vital challenges that include global crime and socio-political and economic discrimination.
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