What are some of the characteristics of globalisation and their implications?
If globalisation is seem as a historical process, we have to speak of not one globalisation bunt globalisations. Five centuries age, Spanish and Portuguese royalties sponsored explorers who went to different parts of the world and established European power. Muslim and Chinese explorers came for trade to the different parts of Southeast Asia. What we witness today, the new epoch of globalisation, is the spread of a system that promotes free market Some of the aspects of globalisation today are international trade, foreign direct investment, international finance, intellectual property rights and international economic Governance.
These have resulted in the economic transformation of much of the world. The beneficiaries of modern globalisation have been mainly the developed nations. Within nations the beneficiaries are the small elite. The benefits of globalisation have created inequalities and the ojaio between the rich and the poor isIf globalisation is seem as a historical process, we have to speak of not one globalisation bunt globalisations. Five centuries age, Spanish and Portuguese royalties sponsored explorers who went to different parts of the world and established European power. Muslim and Chinese explorers came for trade to the different parts of Southeast Asia. What we witness today, the new epoch of globalisation, is the spread of a system that promotes free market Some of the aspects of globalisation today are international trade, foreign direct investment, international finance, intellectual property rights and international economic Governance. These have resulted in the economic transformation of much of the world. The beneficiaries of modern globalisation have been mainly the developed nations. Within nations the beneficiaries are the small elite. The benefits of globalisation have created inequalities and the ojaio between the rich and the poor is widening. Some countries like the sub-Saharan African states are left to languish at the bottom of the development ladder. Globalisation is blamed for homogenisation of cultures which means that national identities of countries are threatened. It is important that scholars critically examine the issues created by globalisation and provide solutions to the problems so that the overwhelming majority of mankind, wherever they maybe, will benefit from globalisation. Globalisation is to help the world advance as a single unit unaffected by geography.
We are living in a world in which we have a rapidly globalising world economy that is based on transnational private firms. Globalisation has led to interconnections, interdependence, global flows of capital, labour, consumer goods and information. Globalisation has compressed time and space with the result that the click of a mouse links distant locations. Declaration of War on Terror after 11 September 2001 is interpreted as the new age of imperial hegemony of the US. The erasure of boundaries adds a cultural dimension to globalisation as what happens in one part of the world is instantaneously known in other parts.
Globalisation is an integration process and it is often understood in terms of international trade and investments. In theory, it removes barriers to the movement of goods and capital across national boundaries. It makes possible for a Japanese automobile manufacturer to sell his products in India. Conversely, an Indian manufacturer can sell his goods in Tokyo. The same system applies to investment. At present, in many cases, the globalisation process is not complete and the movement of goods and investments is not without restrictions. There are restrictions based on environmental protection, health protection, public safety, etc. Globalisation, apart from the movement of trade and investment, involves money, labour and markets and in these areas governments are active in resisting their negative effects on national identity and national sovereignty. English is promoted as the language of globalisation and it is blamed as the carrier of Western culture, especially the American.In the process of spreading foreign culture, divisions can be created in countries.
Globalisation dilutes the power of the nation-state which had in the past developed unaffected by foreign influence. The transnational organisations make state governments ineffective to control national economies. States are now abandoning their traditional activities like postal services to private organisations whose motive is profit. If is said that, with the easy availability of weapons after the Cold War, the armed forces is now beyond state control. State legitimacy is questioned as the obedience of the citizens to the government erodes. Countries become vulnerable to attacks by outside forces. Globalisation produces unbalanced growth; there are regional disparities. Developments within a country can also be asymmetrical as in India where globalisation has spawned many businesses but the rural sector continues to be neglected and poverty continues to stalk the land.
Pressures of globalisation have led to an increased flow of labour from the developing world to the developed. International mass migration has swelled the population of the US, Canada and Australia and these three countries are said to have received about 12 million immigrants between 1974 and 1998. The accelerated influx after 2000 has had the effect of making wealthy European countries cosmopolitan.
Observers have pointed out declines in the terms of trade or the relative prices of goods of developing countries exchanged on the world economy. This view is particularly true of primary commodities in comparison with manufactured goods. In general, the trend of declining prices of products from developing countries negates the general perception that countries would develop through trade liberalisation. If trade liberalisation continues, the productive capacity and employment opportunities in developing countries will be lost.
The question arises if foreign direct investment is beneficial to countries when the aim of investment is to maximise profits and not to help host economies. Counties are required to attract investment to gain access to technology and foreign markets. This has led to mergers and acquisitions and in the developing world there has been an upsurge in acquisitions. Acquisition means buying assets at depreciated prices at great loss to those who sold their assests in the hope of better economic management and profit. It is a stark reality that a country may attract investment but profit will go to outside organisations with capital to invest.
The world is integrated by globalisation. An event in a part of the world can have global consequences. An event may disrupt the transport system and world institutions and affect the econimies of countries. Technology and not the size of a country that makes it a global power. America is viewed as the only superpower and the institutions associated with globalisation are said to be for the advantage of the US, but it is not so. America relies on manufactures from the developing countries. The Americans are worried that globalisation is taking away more jobs than creating. The majority of the Americans are convinced that foreign trade is bad for their country and also for the rest of the world that counts on the US.
Globalisation is an integration process and it is often understood in terms of international trade and investments. In theory, it removes barriers to the movement of goods and capital across national boundaries. It makes possible for a Japanese automobile manufacturer to sell his products in India. Conversely, an Indian manufacturer can sell his goods in Tokyo. The same system applies to investment. At present, in many cases, the globalisation process is not complete and the movement of goods and investments is not without restrictions. There are restrictions based on environmental protection, health protection, public safety, etc. Globalisation, apart from the movement of trade and investment, involves money, labour and markets and in these areas governments are active in resisting their negative effects on national identity and national sovereignty. English is promoted as the language of globalisation and it is blamed as the carrier of Western culture, especially the American.In the process of spreading foreign culture, divisions can be created in countries.
Globalisation dilutes the power of the nation-state which had in the past developed unaffected by foreign influence. The transnational organisations make state governments ineffective to control national economies. States are now abandoning their traditional activities like postal services to private organisations whose motive is profit. If is said that, with the easy availability of weapons after the Cold War, the armed forces is now beyond state control. State legitimacy is questioned as the obedience of the citizens to the government erodes. Countries become vulnerable to attacks by outside forces. Globalisation produces unbalanced growth; there are regional disparities. Developments within a country can also be asymmetrical as in India where globalisation has spawned many businesses but the rural sector continues to be neglected and poverty continues to stalk the land.
Pressures of globalisation have led to an increased flow of labour from the developing world to the developed. International mass migration has swelled the population of the US, Canada and Australia and these three countries are said to have received about 12 million immigrants between 1974 and 1998. The accelerated influx after 2000 has had the effect of making wealthy European countries cosmopolitan.
Observers have pointed out declines in the terms of trade or the relative prices of goods of developing countries exchanged on the world economy. This view is particularly true of primary commodities in comparison with manufactured goods. In general, the trend of declining prices of products from developing countries negates the general perception that countries would develop through trade liberalisation. If trade liberalisation continues, the productive capacity and employment opportunities in developing countries will be lost.
The question arises if foreign direct investment is beneficial to countries when the aim of investment is to maximise profits and not to help host economies. Counties are required to attract investment to gain access to technology and foreign markets. This has led to mergers and acquisitions and in the developing world there has been an upsurge in acquisitions. Acquisition means buying assets at depreciated prices at great loss to those who sold their assests in the hope of better economic management and profit. It is a stark reality that a country may attract investment but profit will go to outside organisations with capital to invest.
The world is integrated by globalisation. An event in a part of the world can have global consequences. An event may disrupt the transport system and world institutions and affect the econimies of countries. Technology and not the size of a country that makes it a global power. America is viewed as the only superpower and the institutions associated with globalisation are said to be for the advantage of the US, but it is not so. America relies on manufactures from the developing countries. The Americans are worried that globalisation is taking away more jobs than creating. The majority of the Americans are convinced that foreign trade is bad for their country and also for the rest of the world that counts on the US.
What are some of the characteristics of globalisation and their implications?
Reviewed by Jame Collins
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1:17 AM
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Reviewed by Jame Collins
on
1:17 AM
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