Positives and Negatives Associated with Globalisation - Example

Positives and Negatives Associated with Globalisation Student’s Name Institutional Affiliation Positives and Negatives Associated with Globalisation Weinstein (2005) claims that globalization is the greatest thing that has happened in the 21st century. In fact, globalization is arguably the most debated issue in the 21st century. This is because globalization appears to affect almost every aspect of human life, including economic, social and political aspects. The globalization that has been witnessed in the past has been accelerated mainly by technological advancements and financial liberalization. Although globalization is common on the lips of many presently, scholars and theorists have not reached a consensus as to the right definition of globalization. This has resulted in the emergence of a variety of definitions of the word globalization. The first and most recognized definition of globalization is that globalization is the integration of the different parts of the globe. Globalization is also defined as moving away from a single contained country towards a more interested plant. Weinstein (2005), however, define globalization as an event that has made businesses and people operate as if the world was a single market or place without boundaries. Although there is no agreeable definition as to what constitutes globalization yet, the common denominator that emerges from the three definitions is that globalization is an event that is characterized by free flow of information, people, businesses and technology from one country to the next. More importantly, globalization simply means that the world has become borderless due to globalization. Currently, it is acknowledged worldwide that globalization has had both positive and negative effects economically, politically and socially. This document seeks to examine the positive and negative effects of globalization. In so doing, the paper will discuss the extent to which globalized economic integration has impacted the social, political and economic landscape. Globalization is the greatest thing that has happened to the world in the recent past. Today, information, people, businesses and information flow just as if the world is borderless. However, globalization has had both positive and negative impacts on the world. Firstly, the greatest positive impacts of globalization have been felt in the business world. The greatest positive impact of globalization in the business world is that it has opened up new markets for businesses. Schifferes (2007) notes that the globalized economic integration that has occurred in the recent past has made it possible for domestic businesses to operate freely in the overseas markets. In the past, businesses were confined to operating only in the domestic markets. However, this has become a thing of the past, thanks to globalized economic integration. Today, large companies have the opportunity to open up subsidiaries in the overseas market where greater market opportunities are presented. For instance, Virgin Atlantic, which is one of the Australian Airline do not have to operate only domestic flights. Instead, globalization has made it possible for companies such as Virgin Atlantic to operate flights in different countries across the globe. In fact, organizations, such as the World Trade Organization has been actively involved in regulating and promoting international trade to ensure economic growth and development. Secondly, globalization has been beneficial in the sense that businesses can explore new markets without necessarily having to open up a business in a foreign country. Orozalieva (2010) observed that the propagation of the internet has made it possible for firms to conduct businesses overseas through e-commerce. E-commerce is a concept that allows people to view and buy products online without necessarily having to travel to the physical store to make a purchase. Accordingly, this has benefited most businesses because it means that a business does not have to depend on local customers alone, but also overseas customers. Additionally, globalization has been of benefit in that it has increased the efficiency with which goods are distributed to customers. This is because today, businesses can easily procure goods in a foreign country and have them delivered to the right destination promptly without necessarily having to travel to the foreign country to procure goods. In the economic landscape, globalized economic integration has been beneficial to businesses in the sense that it has resulted in the emergence of global sourcing. Coleman and Underhill (2012) define global sourcing as a concept that involves sourcing products or services from an international market. Today, it has become a lot easier for companies to source for services, such as skilled labor and products that are not available in the domestic market from overseas to take advantage of low cost. For instance, there are quite a number of Australian firms that are currently sourcing for labor in low labor cost countries such as China to ensure low cost of production and high profitability. On the same note, the global economic integration has made it possible for firms to avoid taxes by shifting their taxes to foreign subsidiaries in low tax countries (Volz, 2011). Such tax avoidance tactics have benefited a number of large firms with international operations, such as Apple, Wal-Mart, and Google just to name but a few. Additionally, the globalized economic integration has had a positive impact on the economic landscape by promoting trade (Schifferes, 2007). Today, trade plays a critical role in the development of economies of most countries, Australia not an exception. Currently, Australia being a member of the WTO trade heavily with foreign countries, where it imports large quantities of products and services, which she does not produce and in turn exports those products and services that it produces in surplus. Accordingly, the trade has helped Australia to maintain a balance of payment and promoting economic growth. Although globalization has had many positive impacts on the business environment, it has also had negative effects that are worth noting. Today, the business environment has become competitive than ever before because of global economic integration. Coleman and Underhill (2012) explain that, with globalized economic integration, companies no longer have to compete only with local firms, but with foreign companies, as well. For instance, the entry of McDonald's into the Australian fast food market has increased the level of competition. High competition means high promotional and advertising cost and declining profitability. Globalization has also been criticized because the globalized economic integration has resulted in macroeconomic volatility. Orozalieva (2010) note that the increased economic integration among nations has resulted in increased flow of capital between underdeveloped and industrialized nations. Although the flow of capital sometimes contributes to the growth of developing countries, it sometimes results in negative economic growth and financial crisis. For instance, the recent financial crisis that began in the United States in 2007 spread very fast to other countries, including Australia because of globalization. Globalized economic integration has also had a huge impact on social-cultural aspects of life. Firstly, globalization has impacted on the social landscape through increased migration of people from one country to another. Accordingly, this has impacted positively on the social and cultural landscape by promoting socio-cultural integration of (Steger, 2013). This has made people learn about the cultures and social aspects of other people, thereby promoting cultural competence, which is good both for socialization and work. Australia currently ranks among the most multicultural countries in the word. This has occurred because of increased migration and immigration of people from other parts of the world into the country. For instance, although English is the official language spoken in Australia, there are numerous other languages that are currently being spoken because of globalization. Social integration is also important in the business world because it help businesses understand the social-cultural aspect of a given population and how best to serve them best. Currently, the global economic integration has meant that companies must promote multiculturalism by hiring workers from different cultures to ensure business success. Although globalization has had a positive impact on the social landscape by bringing people from different cultures together, critics of globalization argue that globalization has impacted negatively on other cultures by bringing about homogenization of cultures (Weinstein, 2005). This means that certain groups of communities, particularly the Aboriginals are losing their cultures, customs and traditions because of globalization. In Australia, for instance, the cultures of the aboriginals are slowly disappearing as they are influenced by the Western culture. The entry of McDonald's in Australia has also been cited as having had a negative impact on the Australian eating culture. This is because most Australians currently eat fast foods in large quantities, which is being blamed for high obesity and chronic diseases in Australia. The same Westernization of cultures is seen even in highly traditional countries, such as China, Japan, and Korea just to name but a few. In the political landscape globalization has help bring nations that were once political rivals together (Steger, 2013). In the past, war between nations was very common because of the political and ideological differences. However, the number of conflicts resulting from political differences has declined significantly due to globalization. With globalized economic integration, countries have formed trade partnerships to increase growth and development. The fact that most countries trade with each other has helped minimize political rivalry for the sake of protecting trade and international relations. In fact, today, world leaders have formed political offices, such as the G8, which is concerned with ensuring peace and economic growth on the planet. This became possible, thanks to global economic integration. In conclusion, globalization is arguably the most important thing that has happened to the world in the 21st century. Today, the world has been transformed into global villages without boundaries. However, the globalization experienced in the 21st century has mainly been facilitated by financial liberalization and rapid technological advancements. Currently, the world recognizes that globalization has had much positive and negative impact on social, economic and political landscape. For instance, globalization has opened up more markets for businesses, increased trade, promoted cultural and political integration. Nevertheless, globalization has also had a share of negative impacts, including increased business competition and the disappearance of traditional cultures. References Coleman, W. D., Underhill, G. D. (2012). Regionalism and global economic integration: Europe, Asia and the Americas. New York, NY: Routledge. Orozalieva, K. (2010). Impact of globalization on socio-economic and political development of the Central Asian countries. Graduate Thesis and Dissertation. Retrieved from http://scholarcommons.usf.edu/cgi/viewcontent.cgi?article=2729&context=etd Schifferes, S. (2007, January21). Globalisation shakes the world. BBC News, p. 2. http://news.bbc.co.uk/2/hi/business/6279679.stm Steger, M. (2013). Globalization: A very short introduction. Oxford University Press, Oxford Volz, U. (2011). Regional integration, economic development and global governance. Cheltenham, UK: Edward Elgar Publishing. Weinstein, M. M. (2005). Globalization: What's new. Columbia University Press, Chichester. Read More