Globalisation Pros and Cons

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(This is preferable to a remove attachment. ) Student ID Course code and title BUSS 5300 spheric seam Environment School Inter depicted object Graduate School of Business row Code DGMK Course Coordinator You-il Lee Tutor You-il Lee Assignment design 2 Due date 10 / 5 / 10 Assignment topic as aread in Course Information BookletAssessment 2 Indivi dual Report Further Information (e. g. state if extension was granted and attach evidence of approval, Revised Submission Date) I declare that the work contained in this assignment is my protest, except where acknowledgement of sources is made.I authorise the University to test either work submitted by me, using textual matter comparison software, for instances of plagiarism. I understand this will involve the University or its asseverator copying my work and storing it on a database to be used in future to test work submitted by differents. I understand that I can obtain further learning on this matter 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 bind the same permit as a signed statement. Signed Stephen Andruchowycz Date9/5/10 Date received from student Assessment/grade Assessed by Recorded Dispatched (if applicable) globalization is a force which earns an roam of put ons and costs on a spherical scale, with create countries generally tire outing the legal age of these costs. This examine will argue that while some of the usefulnesss of lobalisation are matt-up some the globe, they are more beneficial to demonstrable countries than third world countries. similarly the negative consequences of pla wagearyization are felt up more heavily in third world countries than in develop countries. These benefits and cost are incurred on economic, political and socio- pagan levels. Many see ball-shapedization as a principally economic phenomenon, involving the increasing interaction, or integration, of subject area economic systems through the ingathering of internationalist guile, investment, and capital flows. (Kirdar, 1992, p. 6) However, one can also point to a rapid increase in cross-border social, heathen, and technological systemal exchange as depart of the phenomenon of globalization.Whether peop le fear globalisation or not, they cannot escape it. It is driven, above all, by the extraordinary changes in technology in recent years particularly computer and communications technology. For a society to achieve, it must use this technology to its advantage. To be able to do that, it must be globally engaged. As Alexander Downer said in his speech on harnessing globalisation power, globalisation is an irreversible trend, it is not something that should be viewed as a juggernaut bearing megabucks on the lives of ordinary Australians. (Downer, 1998) The set up of much(prenominal)(prenominal) a phenomenon are widespread and felt in different shipway by unquestionable and develop countriesThere are many economic effects that result from globalisation that affect all nations on a global scale. Free grapple is a phenomenon closely tied with globalisation. Countries remove their championship barriers, much(prenominal) as tariffs, so that all countries can begin to set apa rt in their well-nigh efficient production areas, resulting in maximum service through global trade. Among the major industrial economies, sometimes referred to as the fundamental law of Economic Cooperation and Development, 65 part 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 new jobs created in this decade will be computely linked to the global economy. (Hopkins, 2002, p. 56). for sure these figures show that globalisation is a major benefit to unquestionable countries, besides in many third world countries, it is argued that though jobs are being created, agricultural, subsistence jobs are being wiped out and replaced with dollar per day multinational corporations, and further, that such corporations are merely widening the gap amid the well-fixed and poor. Critics of globalisation argue that despite the supposed benefits associated with throw overboard trade and in vestment, over the past tense 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 late 1990s the fifth of the worlds people living in the highest income countries had 86% of world GDP, 82% of world export markets, 68% of foreign direct investment, and 74% of world telephone lines. The bottom fifth of the worlds people take in 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 larnth in income from $1460 a charge 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). Nonethele ss there appear to be strong forces for stagnation among the worlds poorest nations as a result of globalisation. A absorb of the countries with GDP per capita of less than $1,000 in 1960 had growth rates of less than postcode from 1960 to 1995, and a third contrive growth rates of less than 0. 05 percent. (Hill, 2009, p. 31) commercialize failure is another major issue that is common in occidental economies, and impacts on other countries rather than themselves. Market failure is when those who are producing or consuming goods or services do not hire to bear the full costs of their actions, such as the cost of contamination.Free trade encourages firms from advanced nations to move manu pointuring facilities to less develop countries that lack adequate regulations to nourish labour and the environment from abuse by the unscrupulous. (Dowling, Hill and Lieche, 2009, p. 31) This effectively government agency that transnational corporations are able to pollute third world nat ions and demean their environment with marginal or no cost. Attempts to stem global pollution have been implemented such as the Kyoto Protocol, which sets binding emission targets for actual countries (Horton and Patapan, 2004, p. 86) but nonetheless, the majority of developed countries impact on evolution countries in this way to some extent. In this regard it can once again be seen that the benefits of globalisation on an economic level are skewed in favour 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 go trade barriers sanction 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 honorarium of $9 per hour and shifted manufacturing to Honduras where textile workers received 48 cents per hour (Hill, 2009, p. 27) The majority of devel oping countries continue to experience falling levels of average income. Globally, from the late seventies 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 mail service as exploitation, for many people in the developing world, working in a factory is a far better option than staying down on the farm and growing rice. (Stiglitz, 2002, p. 4) Nonetheless, it is a clear matter 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.There is evidence which shows that a make sense of developing countrie s have benefited from globalisation, and this is supported by quality of life statistics. Through globalisation, many people in the world now live longer than ahead and the standard of living is far better. Further, per capita GDP growth in the post-1980 globalisers speed up 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 annual 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 see 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 ship canal in which globalisation does bring benef its to developing 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 agriculture 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 essay of reducing cultural concerns to protecting what can be bought and sold, neglecting community, custom and tradition. (Hirst & Thompson, 1996, p. 256) it is widely 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 be tween sameness and difference, 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 cheaply from the developed countries of the North throughout the world. Consequently, despite efforts of nationally-based media to develop local television, movie, and painting programs, many media markets in countries of Africa, Asia, and Latin America are saturated with productions from the U. S. europium 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 westward culture and the potential global homogenisation of values and cultural taste. (NA, 2005, p. 1) A report by the UN Educatio nal, Scientific and cultural Organisation showed that the world trade in goods with cultural content almost tripled between 1980 and 1991 from 67 million dollars to 200 trillion dollars. (Akulenko, 2008, p. 1) At the core of the entertainment industry film, harmony and television there is a growing dominance of US products.The foundation Trade Organisation rules do not allow countries to block imports on cultural grounds, which means there is nothing 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). all the way globalisation is benefitting developed countries by allowing them to spread their culture and influence on a global scale. However, for developing countries, their culture is in many ways being eroded and replaced with the typical Western cu lture.However, supporters of globalisation argue that it does not make 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 foods from developing cultures have scram 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 small and there is the risk that Westernisation could lead to the destruction of the cu ltures of a number of developing countries. Another effect of globalisation is a global improvement in communications and technology. On the one hand, the electronic revolution 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 start out in such things as differences in accession 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 nonage who can afford them. (Hoogvelt A, 1997, p. 46) Thus, it can be seen that the technological benefi ts 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, starring(p) 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 impos e policies 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 focus more towards aiding developing countries, a number of b enefits 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 discrepancy 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 support market-related land reform, and most importantly providing investment and policy advice for effective human being beings education. There is also a need for developed countries of the OECD to thoroughly check their neo-mercantilist trade policies. (Pere, 2010, p. 1) There is enough empirical 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 cer tain conditions.These would include a solid record of laborious 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 similar extent to developed countries, as it stands, there can be no denying that globalisation is a force which favours developed countries over developing countries. Bibliography Akulenko. E, 2008, Cultural Aspects of globalization, Accessed 5 May 2010, http//emiliaakulenko. wordpress. com/2008/10/22/cultural-aspects-of-globalization/ Dollar. D and Kraay. A, 2001, Trade 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, naked York Downer. 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