Globalisation Pros and Cons

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(This is prefer adequate to(p) to a disrupt attachment. ) Student ID Course code and title BUSS 5300 Global Business Environment School multinational Graduate School of Business Program Code DGMK Course Coordinator You-il Lee Tutor You-il Lee Assignment number 2 Due date 10 / 5 / 10 Assignment topic as realmd in Course Information BookletAssessment 2 Individual Report still Information (e. g. state if ex strain was granted and attach evidence of approval, Revised Submission appointee) I plead that the unravel contained in this assignment is my own, except where acknowledgement of sources is made.I authorise the University to test any exit submitted by me, using text comparison softw ar, for instances of plagiarism. I understand this will involve the University or its avower copying my work and storing it on a database to be used in future to test work submitted by otherwises. I understand that I plenty obtain further information on this depicted object at http//www. unisa. edu. au/ltu/students/study/integrity. asp Note The attachment of this statement on any electronically submitted assignments will be deemed to have the same authority as a signed statement. Signed Stephen Andruchowycz Date9/5/10 Date received from student Assessment/grade Assessed by enter Dispatch ed (if applic competent) globalization is a ferocity which brings an array of benefits and be on a planetary scale, with develop countries more often than not bearing the legal age of these be. This essay will argue that while umteen a(prenominal) of the benefits of lobalisation are felt almost the globe, they are more beneficial to develop countries than triad world countries. Likewise the negative consequences of globalisation are felt more heavily in third world countries than in developed countries. These benefits and cost are incurred on economic, political and socio- heathen levels. Many see globalisation as a primarily economic phenomenon, involving the increase interaction, or integration, of national economic systems through the festering of international trade, investment, and capital flows. (Kirdar, 1992, p. 6) However, one can overly point to a rapid increase in cross-border loving, ethnical, and technological exchange as part of the phenomenon of glo balisation.Whether population fear globalisation or not, they cannot escape it. It is driven, above all, by the extraordinary changes in applied science in recent years especially computer and communications applied science. For a society to achieve, it essential use this technology to its advantage. To be able to do that, it must be globally engaged. As Alexander Downer verbalize in his speech on harnessing globalisation power, globalisation is an irreversible trend, it is not something that should be viewed as a juggernaut bearing down on the lives of ordinary Australians. (Downer, 1998) The payoffs of such a phenomenon are wide diffuse and felt in different ways by developed and evolution countries in that respect are many economic effects that result from globalisation that affect all nations on a global scale. melt trade is a phenomenon closely tied with globalisation. Countries remove their trade barriers, such as tariffs, so that all countries can begin to special ise in their most efficient production areas, resulting in maximum certainize through global trade. Among the study industrial economies, sometimes referred to as the Organization of Economic Cooperation and Development, 65 per centum of the total economic production, or GDP, is associated with international trade. Economists project that, in the U. S. , more than 50 percent of the bran- late jobs created in this decade will be directly linked to the global frugality. (Hopkins, 2002, p. 56).Certainly these figures show that globalisation is a major benefit to developed countries, but in many third world countries, it is argued that though jobs are be created, agri ethnic, subsistence jobs are being wiped out and re patchd with dollar per day multinational corporations, and further, that such corporations are merely widening the gap between the moneyed and poor. Critics of globalisation argue that notwithstanding the supposed benefits associated with set free trade and inv estment, over the past hundred years or so the gap between the rich and poor nations of the world has gotten wider. In 1870, the average income per capita in the worlds 17 richest nations was 2. 4 times that of all other countries. In 1990, the same group was 4. 5 times as rich as the rest. Hill, 2010, p. 31) By the be juveniledly 1990s the one-fifth of the worlds people lifespan in the highest income countries had 86% of world GDP, 82% of world export markets, 68% of foreign direct investment, and 74% of world earpiece lines. The bottom fifth of the worlds people realise 1% for the first three categories and 1. 5% respectively. ( waters, 2002, pp. 3-4) Of course we must be wary that there are exceptions to this trend. Chinas opening to world trade has bought it harvest-festival in income from $1460 a head in 1980 to almost $4500 in 2005, and in 1980, Americans earned 12. 5 times as much as the Chinese per capita, by 1999, they were only earning 7. times as much. (Evans, 2001, p. 80). Nonetheless there appear to be strong forces for stagnation among the worlds poorest nations as a result of globalisation. A quarter of the countries with GDP per capita of less than $1,000 in 1960 had growth rates of less than zero from 1960 to 1995, and a third have growth rates of less than 0. 05 percent. (Hill, 2009, p. 31) Market failure is another major issue that is commonplace in western economies, and impacts on other countries rather than themselves. Market failure is when those who are producing or devour goods or services do not have to bear the full costs of their actions, such as the cost of pollution.Free trade encourages firms from advanced nations to move manucircumstanceuring facilities to less developed countries that lack adequate regulations to foster labour and the environment from abuse by the unscrupulous. (Dowling, Hill and Lieche, 2009, p. 31) This effectively means that transnational corporations are able to pollute third world nations and des troy their environment with minimal or no cost. Attempts to stem global pollution have been implemented such as the Kyoto Protocol, which sets binding emission targets for developed countries (Horton and Patapan, 2004, p. 86) but nonetheless, the majority of developed countries impact on underdeveloped countries in this way to some extent. In this regard it can again be seen that the benefits of globalisation on an economic level are skewed in opt of developed countries.However, this does not mean under-developed countries do not benefit at all. Another issue that arises for developing countries is that falling trade barriers allow firms to move manufacturing activities to countries where the wage rates are much lower. For example, Harwood Industries, a US clothing manufacturer closed its US Operations which paid wages of $9 per hour and shifted manufacturing to Honduras where framework workers received 48 cents per hour (Hill, 2009, p. 27) The majority of developing countries c ontinue to experience falling levels of average income. Globally, from the late 1970s to the late 1990s, the average income of the lowest-income families fell by over 6 percent.By contrast, the average real income of the highest-income fifth of families increased by over 30 percent. (Hill, 2009, p. 28) However, it has been argued that while people in developed countries may regard this situation as exploitation, for many people in the developing world, working in a factory is a remote better option than staying down on the farm and growing rice. (Stiglitz, 2002, p. 4) Nonetheless, it is a clear case of where the benefits of globalisation for developed countries far outweigh those that arise for developing countries. In fact the only clear indicator that suggests developing countries are benefitting from globalisation more-so than developed countries is in regards to their quality of life. at that place is evidence which shows that a number of developing countries have benefited fr om globalisation, and this is supported by quality of life statistics. done globalisation, many people in the world now live longer than before and the standard of living is far better. Further, per capita GDP growth in the post-1980 globalisers accelerated from 1. 4 percent a year in the 1960s and 2. 9 percent a year in the 1970s to 3. 5 percent in the 1980s and 5. 0 percent in the 1990s. (Dollar and Kraay, 2001, p. 1) The non-globalising developing countries have done much worse than this, with one-year growth rates falling from highs of 3. 3 percent during the 1970s to only 1. 4 percent during the 1990s.Indeed, end-to-end the 1990s till today, eighteen of the twenty-four globalising developing countries have experienced growth, many of them, quite substantially. (NA, 2004, p. 236) However, the growth most have experienced is minimal in comparison the growth being experienced by developed countries. Certainly there are ways in which globalisation does bring benefits to developi ng countries on an economic level. However, overall it is clear that the benefits are felt more heavily in developed countries and the costs are felt more heavily in developing countries. This is much the same case when regarding the social and cultural effects of globalisation.Globalisation opens peoples lives to culture and to all its creativity and the flow of ideas and knowledge. Although the spread of ideas and images enriches the world, there is a risk of reducing cultural concerns to protecting what can be bought and sold, neglecting community, custom and tradition. (Hirst & Thompson, 1996, p. 256) it is astray asserted, and indeed frequently taken for granted, that we live in a global village where national cultures and boundaries are dissolving, we consume global brands, corporations have to be competitive in a global market place and governments have to be responsive to the needs of the global economy.In any case, globalisation produces a tension between sameness and dif ference, between the universal and the particular, and between cultural homogenisation and cultural heterogenisation (Subhabrata & Linstead, 2001, p. 684) Americanisation is a major example of such cultural homogenisation, acting in many ways which destroy global culture. Globalisation has increased transmission of popular culture easily and inexpensively from the developed countries of the North throughout the world. Consequently, despite efforts of nationally-based media to develop local television, movie, and video programs, many media markets in countries of Africa, Asia, and Latin America are saturated with productions from the U. S. atomic number 63 and a few countries in Asia. (Tomlinson, 1999, p. 98). Local critics of this trend lament not only the resulting silencing of domestic cultural expression, but also the hegemonic reach of Western culture and the potential global homogenisation of values and cultural taste. (NA, 2005, p. 1) A report by the UN Educational, Scientific and cultural Organisation showed that the world trade in goods with cultural content almost tripled between 1980 and 1991 from 67 billion dollars to 200 billion dollars. (Akulenko, 2008, p. 1) At the core of the pastime industry film, music and television there is a growing dominance of US products.The earthly concern treat Organisation rules do not allow countries to block imports on cultural grounds, which means there is slide fastener standing in the way of Western culture overtaking and eradicating the cultures of developing countries. It is argued that this could mean the end of cultural diversity, and the triumph of a uni-polar culture serving the needs of transnational corporations (Tomlinson, 1999, p. 134). Clearly globalisation is benefitting developed countries by allowing them to spread their culture and act on a global scale. However, for developing countries, their culture is in many ways being eroded and replaced with the typical Western culture.However, suppor ters of globalisation argue that it does not make good sense to talk of a world of 6 billion people becoming a monoculture. The spread of globalisation will undoubtedly bring changes to the countries it reaches, but change is an essential part of life. It must also be noted that globalisation is not all one-way traffic. Global products are absorbed into and change western life including such phenomena as Latinisation and Japanisation. (Hopper, 2007, p. 82) Similarly many of the arts and provenders from developing cultures have become natural into Western society, presenting opportunities for developing countries to increase their cultural exporting.For example, curry, an Indian cuisine has become a global food eaten world-wide. However, Americanisation is a far greater cultural force which brings many benefits to Western countries. The impact of developing countries cultures is far downcaster and there is the risk that Westernisation could lead to the destruction of the culture s of a number of developing countries. Another effect of globalisation is a global improvement in communications and technology. On the one hand, the electronic transmutation has promoted the diversification of information as people in nearly every country are able to communicate their opinions and perspectives on issues, local and global, that impact their lives. (NA, 2005, p. ) Political groups from Chiapas to Pakistan have effectively used information technology to promote their perspectives and movements. On the other hand, this expansion of information technology has been highly uneven, creating an international digital select in such things as differences in access to and skills to use the internet. (NA, 2005, p. 1) Often, access to information technology and to telephone lines in many developing countries is controlled by the state or is available only to a small minority who can afford them. (Hoogvelt A, 1997, p. 46) Thus, it can be seen that the technological benefits of globalisation are also being felt much more by developed countries than developing countries.This is the same case when regarding the effects of globalisation on a political level One of the biggest political issues surrounding globalisation, which particularly impacts on developing countries, is that many sovereign countries have lost control of their economies and that such control has shifted to more powerful countries, multinational firms, and international financial institutions. The logic of this concern suggests that national sovereignty has progressively and systematically been undermined by globalisation, preeminent to growing cynicism among political elites and their citizenries, especially among poor developing countries. (Pere, 2010, p. ) Critics argue that todays increasingly interdependent global economy shifts economic power away from national governments and toward supranational organisations such as the WTO, the EU and the UN. Unelected bureaucrats now cut down po licies of the democratically elected governments of nation-states, thereby undermining the sovereignty of those states and limiting the nations ability to control its own destiny. (Hill, 2009, p. 30). Globalisation has seen state power decline as transnational processes grow in scale and number. The power of TNCs, with annual budgets greater than that of many states, and is the most visible sign of this change. As economic and political life becomes more complex, many traditional functions of state are transferred to global and regional international organisations. (Gupta, 1997, p. 6) In this environment, developing countries are losing their influence on a national and global scale towards organisations largely controlled by developed countries. In this way, it is again clear that developed countries benefit from globalisation more so than developing countries. However, if these supranational organisations turn their tension more towards aiding developing countries, a number of be nefits could result. At the international level, supranational organisations such as the World Bank and IMF must pay more attention to the reality that globalisation has generated extremes of inequality of assets and income across the spectrum of developing countries. (Gupta, 1997, p. 06) International lending and grants could be more explicitly focused on cutting subsidies that benefit the rich, on encouraging and financing market-related land reform, and most importantly providing investment and policy advice for effective public education. There is also a need for developed countries of the OECD to thoroughly review their neo-mercantilist trade policies. (Pere, 2010, p. 1) There is enough verifiable evidence to show that protection of agriculture and textiles discriminate against the poor of developing countries. The poor and vulnerable in developing countries could also benefit from international financing of countercyclical safety net programmes, subject to certain conditions. These would include a solid record of sound fiscal policy the political capacity to undertake such programmes free of corruption and a long-term fiscal capacity to service any debt that might be incurred. (Pere, 2010, p. 1) If these policies were instated, developing countries would benefit from globalisation in ways that match or exceed the political benefits that developed countries receive as a result of globalisation. Clearly globalisation is a force which brings an array of benefits and costs on a global scale. However, it is also clear that developing countries are, in many cases, bearing the majority of these costs while developed countries are feeling the majority of the benefits.While there are a number of economic, socio-cultural and political actions which could be taken to ensure developing countries benefit from globalisation to a akin(predicate) extent to developed countries, as it stands, there can be no denying that globalisation is a force which favours developed c ountries over developing countries. Bibliography Akulenko. E, 2008, Cultural Aspects of Globalization, Accessed 5 whitethorn 2010, http//emiliaakulenko. wordpress. com/2008/10/22/cultural-aspects-of-globalization/ Dollar. D and Kraay. A, 2001, guile Growth and Poverty, Accessed 5 May 2010, http//www. imf. org/external/pubs/ft/fandd/2001/09/dollar. htm Dowling. P, Hill. C and Liesch. D, 2009, International Business, Mc-Graw Hill, New York Downer. 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