What Do You Understand by the Term Globalisation - Coursework Example

The world economies are working in tandem with each other and have engaged into trade relations which have increased the relevance of globalization. Globalization has been taken from word global which intends to create an economy where every economy works with one another and have a sense of interdependence. This gives rise to self development and interest which makes organization pursue a common purpose. This has been fuelled by the development technology has provided which has simplified work and increased the pace with which work is accomplished. The process is seen to be at its maximum speed when money and information is concerned as technology has enabled both money and information to be passed on over long distances within a few seconds. Economies have been able to bank on it and increase the transportation of both goods and services over long distances. Globalization is thereby a wide concept which has a purpose of improving the living condition of the people through interaction and results in the transfer of knowledge, culture and technological integration. Globalization has impacted human life immensely and completely transformed their style of working as more and more focus is being laid to improve the living condition and ensure a proper mix between the different cultures of the world. This paper examines the manner in which globalization has impacted the world economies and the manner in which it has positively and adversely affected all economies. In addition to it this paper also focuses on the different factors which have led towards the transformation of economy and the future impact it will have on all organizations. Globalization is an old age concept and has its root beyond 5000 years which has seen constant changes and the impact have been higher especially after the corruption which Soviet Union highlighted (Agenor, 2004). The impact of globalization can be seen in all direction especially in the field of technology, social, political and so on which has created both positive and negative impacts on production, investments, trade relations, and dependency on others. One of the major contributors towards globalization is the transnationalization of communication and the changes in politics and culture integration which has changed the outlook of the market. The impact has thereby been such that economic changes, a change in the outlook of the entire world, changes in government formation as democratic form has gained prominence, and more influence of politics is seen as major developments which globalization has provided. Globalization has strengthened the domestic industry as opening of the economies has increased the degree of competition that domestic players face from international players and has brought the best out of them. This has created changes in the life style of people as the different benefits has created a positive impact and has helped to improve the standard of living. The impact of globalization can be seen on all organizations as they had to develop new process and strategies to deal and combat the level of competition which has increased. Domestic companies had to think on a global scale and bring a transformation in their mind set and take decisions after looking at the manner international players perform (Agenor, 2004). This has improved efficiency in the use of resources and has made organizations work harder and ensure that none of the resources are wasted as it would otherwise make it difficult to have the same efficiency in the use of resources. The transport system as a result of globalization has undergone complete changes. It was difficult previously to think of engaging into trade relations with other countries due to problems associated with distance but technology has developed the transport system and has made it possible to commute over 3000 kilometers easily. This has become possible due to the development of different mode of transport like air, road, rail, and water ways. The most important contributor in terms of volume of trade has been maritime as it has enabled any objects of any size to be transported from one corner of the world to the other (Bhagwati and Srinivasan, 2002). The fact that maritime is cheaper and ensures wide delivery it is widely used. Airways on the other hand are 70 times more expensive and account for the transport of those goods and equipments which are expensive (Bhagwati and Srinivasan, 2002). Air transport is also used to transport goods which are of perishable nature and has contributed positively towards the growth of all economies. Technology growth is another area which has become possible due to globalization as it has enabled the transfer of knowledge from one place to the other. This has facilitated the development of new products and services and has provided the required innovation through which the different resources are being used optimally and in the best possible manner (Eskeland and Harrison, 2003). The integration of technology as a result has been so strong that it has its use and presence in all field and directions. Communication has also developed due to the development technology is witnessing and has reduced the time and effort through which the different activities are carried out in the organization (Eskeland and Harrison, 2003). This has improved the social condition of the people as it has multiplied the job opportunities and has identified the different paths and directions based on which the economies can prosper. The impact has been so strong for some economies that they are witnessing huge growth rates. This has become possible due to the different openings and opportunities that globalization has provided. The process has ensured that financing becomes easy especially for projects which have a better return as increased foreign investment has ensured that the new proposition will be accepted. This can be seen by the growth in foreign investment which was $157 billion in 1997 from $2.2 billion in 1970 (Eskeland and Harrison, 2003). This has also ensured that economies which have a distinctive or a comparative advantage in some product or services can provide the same to the entire world fraternity and ensure positive gains from it. Economies as a result have been able to witness changes all around the working fraternity and have been positively impacted by the different opportunities which globalization has provided. The education sector has also witnessed changes due to globalization as it has enabled the development of new tools and mechanism through which education is imparted (Hanson, 2005). This has developed the process of passing education as new tools and process has been developed which has further ensured that children becomes global citizen who have the required knowledge in different directions and are able to understand the different international factors in a better way (Kabeer and Mahmud, 2004). The process not only looks towards imparting knowledge but has helped in the development of the required fundamentals, skills and values which will make them responsible citizens of the globalized world. This has created a ripple effect and has helped poor countries to ensure that the education system improves so that people are able to find jobs to sustain their livelihood thereby facilitating in the process of development of the economy and the world on a whole (Kanbur, 2001). Globalization has provided different benefits but has also increased the complexities and has adversely impacted economies is some way or the other. The major problem due to globalization is the increased corruption which is seen in all direction. This can be attributed purely to the fact that globalization has increased the flow of money and the greed to hoard more and more money has increased the level of corruption. The most impacted economies have been one which are developing as increased assistance from other countries has increased the flow of money which has made government and other organization associated with it use the funds in the most inappropriate manner. Strong economies have been able to develop a process which ensures that the funds are used in the correct and stated purposes which has made them gain and ensure positive returns for the organization but the impact for developing countries has been huge as the negatives in this case outweighs the positives. The financial condition as a result has been impacted and has created huge debts on the government (Hanson, 2005). The poorer countries which has huge minerals and resources are thereby been exploited as corruption doesn’t allow the correct market prices to prevail and people at higher authorities look towards filling their pockets with the additional funds (Kabeer and Mahmud, 2004). This makes favorable projects looks incorrect and thereby creates a situation where the poorer countries find it difficult to deal with the intensifying competition and the manner in which decisions are taken. The other impact which can be seen to be directly attributed towards an impact of globalization is the growth in the pollution level i.e. air and water pollution. This is due to the fact that industrialization has made more and more machineries to be used in the production process which has increased the waste from industries being dumped in water, air and air. This has been supported by studies which state that the growth in the per capita income has a direct relation with the level of pollution that is being emitted and as economies have witnessed better standards of living the impact has led towards an increase pollution level (Kabeer and Mahmud, 2004). This has increased the number of disease and has adversely affected natural habitat and animals. The effect of the increased pollution level will continue in the near future and for generations which will thereby deprive the future generation of the different benefits which they could have availed from the use of resources. This will thereby have an impact in the future and will make it difficult for economies to have the same growth rate as the impact will be seen on the growth rate that the economies look towards projecting for the future. Despite the different effects that globalization has it has ensured that the people in the economy are provided with better opportunities to work. Globalization has opened the doors through which people can look towards employment opportunities in different part of the world and has an increased option through which they will be able to improve the standard of living (Kanbur, 2001). The impact has been so strong that it has ensured that both skilled and unskilled employees are provided with increased opportunity to act on different situations which will multiply their effectiveness and will create a positive impact on the long term future of the concerned person. This has definitely helped to create new opportunities but has also impacted certain economies as it has resulted in increased brain drain. Many developing and poor economies are witnessing the fact that the younger generation instead of working in their country and contributing positively towards the growth of their country has chosen some other destinations. This has made it difficult for economies to retain the talented individuals which has further increased the level of poverty and made it difficult to compete with the pace at which other economies are performing (Kanbur, 2001). Technological advancement has aided towards increased pollution as developments in different directions are making becomes become obsolete faster than expected. This has increased the land fills and has thereby increased the level of land pollution to high levels (Deaton, 2001). This will have an adverse effect on vegetation as future plantation will be chemically processed and will become unfit for consumption. This has also reduced the area which was used for cultivation as some part of the land is being used as land fills. This process will continue as development of technology has further increased the complexities as new developments has forced economies to be face an uphill task of dealing with increased level of pollution. The positives that globalization has provided has thereby been reduced as innovation has led towards increased pollution level and has made it difficult for the economies to be able to develop a structure through which maximum efficiency and growth in the different directions will become possible. Despite the different benefits and impact poor and developing countries has seen a change in trend and an improvement in the growth rate of the economy as seen from the changes in the growth rate of China which has seen an increase in the contribution of goods and services in the total GDP to 46% in 2000 from 23% in 1980. Similarly, India has witnessed an increase in the contribution of goods and services in the total GDP to 30% in 2000 from 19% in 1980 (Aisbett, 2004). This is because of the fact that globalization has multiplied the opportunities and create a new space through which organization will be able to develop new initiative and specify the route through which poor countries will benefit. This has made economies rely on the different mechanism which world economies adopt and have been able to create different positives from it. The poor and developing countries have been impacted to a certain extent by globalization as countries which have a huge population base are being exploited by developed countries. This has created a mechanism where developed countries because of cheap labor have outsourced certain functions to the poor and developing countries (Bardhan, 2004). This has made the poor countries being exploited as the wage rates are lower but still has helped the poor and developing countries as it has generated employment which the government otherwise was incapable of providing. The overall living condition has improved as it has brought about bringing a change in the living standard and has made poor and developing countries get a scope of improvement (Ravallion, 2004). The paper thereby presents the manner in which globalization has impacted the life of people and resulted in different cultural and economical changes.. Globalization is thereby a wide concept which has a purpose of improving the living condition of the people through interaction and results in the transfer of knowledge, culture and technological integration. Globalization has impacted human life immensely and completely transformed their style of working as more and more focus is being laid to improve the living condition and ensure a proper mix between the different cultures of the world. Economies have seen both a positive and negative impact of globalization but economies which have been able to mix aggression with caution has been able to develop policies which are better and matches the requirements that the globalized world required. Poor and developing countries have been able to use it and bring a change in the manner in which business was done and need to further develop policies and strategies which will provide the competitive advantage and help the economies to outperform the others. This will thereby increase the new avenues for the future and will help economies to ensure that they are able to project better growth rate which will increase the chances of being successful in the future. References Agenor, G. (2004). Does Globalization hurt the poor?, in International Economics and Economic Policy, Springer Berlin/Heidleberg, 1 (1), 21-51 Aisbett, E. (2004). Why are the Critics so Convinced that Globalization is Bad for the Poor? forthcoming in Globalization and Poverty, edited by Ann Harrison, University of Chicago Press for NBER Bardhan, P. (2004). The Impact of Globalization on the Poor. in S.M. Collins and C. Graham (eds.), Globalization, Poverty, and Inequality, Brookings Trade Forum Brookings Institution Press, Washington D.C Bhagwati, J. and Srinivasan, T.N. (2002). Trade and Poverty in the Poor Countries. AEA Papers and Proceedings 92 (2), 180-183 Deaton, A. (2001). Counting the World’s Poor: Problems and Possible Solutions. World Bank Research Observer 16 (2), 125-47 Eskeland, G. and Harrison, A. (2003). Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis. Journal of Development Economics, 70 Hanson, G. (2005). Globalization and Labor Income in Mexico. National Bureau of Economic Research Working Paper no.11027, Cambridge, MA Kabeer, N. and Mahmud, S. (2004). Globalization, Gender and Poverty: Bangladeshi Women Workers in Export and Local Markets. Journal of International Development, 13 Kanbur, R. (2001). Economic Policy, Distribution and Poverty: the nature of the disagreements. World Development 29 (6), 1083-94 Ravallion, M. (2004). Looking Beyond Averages in the Trade and Poverty Debate. World Bank Policy Research Working Paper 3461 Read More