Factors that Have Accelerated the Globalisation Process in the Past Two Decades - Coursework Example

Introduction Globalization is all about economies in the world integrating. This is mostly in terms of flow of finances and trade. In cases where there is flow of technology, knowledge and labour across international barriers, it can also be termed as globalization. Other people define it as a situation where market capitalism is expanded and accelerated. It is always associated with increase in liberalization. Aspers (2005, p. 80) Globalization implies a process of aggravation of political, economic, and cultural interdependence amid the different actors within the global system. Globalization is more systematic in the economic field where it signifies a process of intensification of national economies with the purpose of developing the capacity of the global economy to work as a unit. Friedman (1999, p. 481) This integration comes with certain socioeconomic conditions as well as policy mechanisms. Therefore, understanding globalization necessitates the description of the underlying context that makes it viable, as well as the institutional set up and policy frameworks that promote it. Research shows that globalisation move has been quite evident all over the world. This is in the developing and also the developed nations. There are however some disparities in the two in terms of the trend and the levels of globalisation. The past two decades have shown acceleration in the globalisation trend in both developing and the developed nations. This paper is dealing with the factors that have accelerated the globalisation process in the past two decades. Scholte, (2004, p. 26) Over the last two decades, some significant changes in the global system have precipitated globalization. One is the changes in power distribution on a global level where the United States emerged as the sole superpower. This development has per se eliminated the competition among nations for global leadership and dominance; it would be difficult to have a common economic space while there are competing superpowers. However, in this regard, globalization is perceived as a United States dominated set up. In addition, it implies that if another superpower emerged, then the process would be reversed. Snarr (2004, p. 12) Technological advancement This factor has had a great impact on globalisation in general. Technology has greatly advanced in many nations over the past two decades. This is in communications and even the transport sector. Information technology has undergone remarkable transformation. Earlier on, there were very few people who owned mobile phones especially in the developing nations. During the past two decades, there has been development and this has enhanced penetration of information technology even in the remote areas. Many people own mobile phones while one out of three families has a landline phone within the house. There are various households that have internet and computers within the house. This is according to a survey that was carried out in the year two thousand and seven in United States, Australia, United Kingdom, Democratic republic of Congo and Uganda. This means that communication can be carried out any time of the day irrespective of the different time zones that the two people communicating are in. Initially, there were no proper transport mechanisms like airplanes in developing nations. This greatly hindered globalisation. In past two decades, technology has been advanced in the communication sector such that it is currently very easy to seek for market in the overseas nations. Scholte, (2004, p. 28) This is quite evident in the way internet technology has actually permeated throughout many parts of the world. This means that companies can easily market themselves online. It is no longer necessary for the marketing team to travel to other nations in order to carry out the marketing. Through the internet, one can order, and also purchase for products online. The manufacturing company then simply delivers the assets to the recipient provided that correct address is given. Through this, globalisation has been highly accelerated especially in the marketing industry. One simply has to log in onto the company’s website and carry out any transaction that they so wish. There has also been technological advancement in the banking sector. Initially, it was very hard to carry out transactions in international currencies. It used to take a very long time for money to be transferred from one nation to another in different currencies. In the past two decades, technology has highly been advanced such that there are many services where money can be transferred from one nation to the other. There are also different payment systems within banks that are internationally recognised. This includes different credit cards. They include; Williamson (2000, p. 112) Prepaid credit cards Secured credit cards All these have greatly enhanced transactions even as one travels all around the world. One does not have to go through the process of changing currencies now and then. This is also one of the advantages of using credit cards. For instance if a person decided to travel from United Kingdom to Australia then need he needs to change Sterling pounds to Dollars. This has made trading between nations to be a very fast venture. Policies Initially, there were various policies in different countries that hindered globalisation in the production and the marketing sector. However in the past two decades these policies have been changed altogether. These policies included heavy taxes for non-local based investors. Research has shown that many nations have shoved off any unnecessary taxes on such businesses. This has in the long run encouraged or accelerated globalisation all together. This move can also be described in other words as free trade. Stiglitz (2002, p. 20) Free trade can be defined as business transactions between countries without any restrictions that are imposed by the government. There are various restrictions that exist in trade. They include non tariff trade barriers, tariff, legislation and taxes. In this trade all the stakeholders have to benefit. Free trade has got very many advantages to the countries involved in the trade. Free trade in terms of economics means that there is trade in both goods and services without having any trade barrier. This also means that policies that can distort trade or make one country have an advantage over others do not exist. These policies include laws regulations, subsidies and taxes. In free trade there is free access to markets by any country or a nation that wishes to do so. Another aspect of free trade involves easy accessibility to any market information. Market information is very important to countries that engage in international trade. Williamson (2000, p. 100) Several policy instruments have been created to act as mechanisms of globalization; this is after the establishment of the acknowledged underlying conditions. There has also been creation of fresh multilateral institutions with the restructuring of the older ones so as to manage and promote the mechanisms of globalization; a few key examples include the International Monetary Fund (IMF), The World Trade Organization (WTO), and the World Bank. It is important to note that these organisations are recognised worldwide. The policy mechanisms developed in harmony with neo-liberal ideology also aim to foster globalization; disengagement of state in economic activity especially in regard to regulation and institutional changes like trade barriers restriction, privatization, and capital mobility liberalization are some examples of these mechanisms. In developing world, the World Bank and IMF through their sponsored programs has been the vehicle behind the adoption of these mechanisms. Lee (2005, p. 124) There are two major reasons, in regard to globalization, that explain the harmonization of economic policy with neo-liberal ideologies. First is that it would be close to impossible to think of convergence of national economies into a common space controlled by hegemonic power where countries are not prevented from exercising their powers such that they single handedly design economic policies in line with their specific circumstances. Aspers (2005, p. 89) Second, the identified underlying shift stands for a change in power balance amid the social classes in support of capital at the world level. This change coupled with the United States hegemony has resulted into a condition suitable for the integration of capital's goal of the world economic system. The goal involves trade and capital flow liberalization as well as labour markets deregulation keeping in harmony with the interest of capital. In relation to various policies that have been put in place there are also international treaties. These international agreements have also played a big role towards globalisation for the past two decades. These treaties are evident amongst both the developing and the developed nations. Kotare (2004, p. 111) Education Education and civilisation have also accelerated globalisation since the past two decades. Through education, people all over the world have learnt foreign languages and this has made communication easy. There is no way globalisation would be effective without communication and understanding among people from different nations. Friedman (1999, p. 483) The past two decades have seen non French speaking people learn French. Those who are not English speakers enrolled for the classes. It is quite evident that during this time people strived to know more than their native language. There was a great civilisation move that positively impacted globalisation. In the past two decades, the literacy levels have steadily continued to increase. This is especially in the third world nations. Education ha played a big role towards acceleration of globalisation. This is due to the fact that with education, there is faster understanding of the jargon in the global business sector. Knowledge is a very key issue when it comes to understanding business terms and regulations. Through education, many stakeholders have had confidence in globalisation. This has therefore highly enhanced the overall growth in the sector. In the past two decades, there was much educational sponsorship for students to study in other nations. This enhanced interactions among different communities. International relations were highly enhanced during the past two decades. Through this, trust was cultivated among people from diverse cultures. This highly enhanced globalisation all over the entire world. Dole (2003, p. 400) Effects of globalisation on individual Globalisation has also positively affected me in the financial sector. Through globalisation, jobs have become very easily accessible. Initially, it was very hard to secure a job in the nation because there were very few opportunities and the market had many qualified candidates. This was considering the fact that I only had to secure a job that was based in my nation. Through globalisation, I have benefited by having a wide range of job opportunities to choose from and not those that are just based within my nation. I have had the opportunity to work online. This is in a marketing company. This is a foreign based company but I simply applied online and got the job. It is far more advantageous because I simply work during evening hours from my house. This is quite convenient considering that I am still continuing with my studies in my nation. This means that I have had financial gains because from the job I am in a position to meet my daily needs. With globalisation, there is also stiff competition among the employers and this has resulted in better salary packages. This has also benefited me because I earn a reasonable salary package unlike when the competition emanating from globalisation was not there. The entire globalisation move has had different effects on me as a person. The first one to mention in this case the fact that globalisation has highly increased competition among producing companies. Initially, companies would easily enjoy the benefit of monopoly and would charge any price that they so wish. This is no longer the case as company products compete across the geographical regions. This has benefited me since I can easily access good quality products at a much cheaper price. Through the internet, I can order and purchase for books that are quite essential in my studies. This is done by a simple click of the mouse. As an individual, I have benefited by not only having easy access to products only but also services. This includes online classes that I take at my own convenient time. This has made me to be equipped with knowledge at a faster pace than what would occur in case globalisation never existed. Source; Stiglitz, J. (2002): Globalization and its contents; pp. 30 The graph above shows that with increase in globalisation, there is also increase in accessibility of various products all over the world. Conclusion Globalisation has been described as the integration of various economies all over the world. It is sometimes described as acceleration of market capitalism all over the world. In this entire process, there is intensification of national economies with the overall aim of creating a global community that works as a single unit. This means that the policies that govern the entire unit are the same all over the world. The past two decades have had various factors that resulted in the acceleration of the globalisation move. These factors include technological advancements in various sectors like communication, banking and the transport sectors. Other factors include education and change in international policies. All these have played a great role in the hastening of globalisation. Globalisation has had several impacts on me as an individual. This includes the ability to access various products like books easily at a cheaper price. Financially, globalisation has also positively affected me through job opportunities. Due to globalisation, I was able to get a job with an international based company though I am still based in my nation. Globalisation has also increased competition in the market and this has resulted in employers offering better remuneration packages. Through this I am able to get reasonable income that sustains my day to day needs. All in all, globalisation is a positive venture that will automatically result in myriad benefits all over the world. Read More