Qn 2: From these summaries, prepare a case for globalisation and prepare a case against globalisation, integrating both the ‘Western’ & local perspectives’ Globalisation fundamentally describes the increasing interconnected nature of the world due to massive rise in economical, political, social and cultural exchanges between different countries around the globe. (Mejía-Vergnaud, 2004)
One significant advantage of globalisation is rapid economic growth for both the western and local nations. It has allowed western nations to penetrate into new markets and tap on cheaper resources like labour and raw materials, thus reducing cost and increasing profitability. (What is globalisation? – Transnational corporations (TNCs) n.d.) Globalisation propelled Wal-Mart to became the biggest retailer in the world in 2007 (Ireland, Hoskisson, and Hitt.2008, pp8).
Conversely, jobs created for the locals increase their survival, giving them a chance to break out of the poverty cycle. U.S. Ford employed about 163,000 employees internationally. (Ford Motor Company n.d.) Local governments can use revenue generated to build better infrastructure such as schools and health-care, thus improving the living standards for the poor nations (Kapur, Akash., 2010 ).
Politically, globalisation has united much of the world with the spread of democracy (Mejía-Vergnaud, 2004). The formation of The United Nations brings about harmonization of law and accountability.
However, globalisation has also caused income disparity between the world's wealthiest and poorest nations. (What is globalisation? pp1, n.d.) Globalisation generally profits the western nations, which continue to dictate world trade at the expense of developing nations by exploiting their cheap resources.
There is no assurance that the money from investments will profit the local community as proceeds are often returned to the multinational companies’ (MNCs) home countries. These corporations, with their huge economies of scale, may force local businesses to collapse. Local people may become jobless when these MNCs decide to operate in another cheaper state. (What is globalisation? pp4, n.d.)
An absence of strictly enforced international laws implies that MNCs may operate in ways that would be unacceptable by global standards. (Gatsiounis, I. 2010) They may pollute the environment, jeopardise safety or impose meager working conditions and low wages on local workers in their quest of profit maximisation. (Wood et al.2010, pp15)
Globalisation is viewed by many as a threat to local cultures and religions (Lauderdale, P. 2008, pp1836-1838), eroding traditions and languages and causing a sense of a loss of local identity. Social security is also compromised when the local to migrant ratio falls drastically (Chang, R. 2011, ppB4). Environmental degradation like pollution and global warming is an undesirable outcome of globalisation. (Speth, J.G.2003, pp 5-6) Eventually, the current business model will not be sustainable if the social, community and environment factors are neglected.
In conclusion, globalisation can be seen as a positive or negative process and regardless of whether it works for good or ill, I support that globalisation is inevitable and necessary for economic growth and prosperity. It is up to the MNCs, international bodies and individual governments to work together to ensure that international labour and environmental standards are adhered to and to strike a balance between social cohesion and economic progress.
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