Effects of Globalisation
Globalisation..or rather Globalization.. My spell check shows both of them wrong! I’ll stick with the one containing ‘s’ as that’s considered correct in the UK English. I guess ‘flattening of the globe’ will be one practical definition for it. Sure,physically the earth is round as it has always been, but many other changes taking place are making it flat (of course, not physically!). I suggest you to read ‘The World Is Flat’ by Thomas L. Friedman, which is basic book on globalization, it’s positive/negative effects, what caused the flattening process, and an unbiased look over how different countries can benefit from it, and a chapter devoted to terrorism (which is opposing the flattening process).
According to Friedman, though flattening process is going to benefit majority of the nations across the globe, that’s a big threat for USA. The book gives an indepth look on this. The worst year for many nations of the world, and particularly for USA was 2001. Not because of any bullshit 9/11, but because China joined WTO that year!
There’s been a lot of hullaboo regarding this and how it has impacted India and China positively is of prime importance. Apart from this, think over what other effects globalisation can possibly have.
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Effects of Globalization
The spectacular change which we have seen in the Indian economy last decade is all credited to globalisation. Particularly, software/IT sector is credited to be the most global. This makes us to think on what good and bad effects globalisation can have. Globalisation has various aspects which affect the world in several different ways. I’ve tried to enlist a few, and please note I’m not an expert to get all these on my own. The major points such as ‘industrial, financial, etc.’ were derived from Wikipedia and I have added my own content and understanding to the same.
• Industrial (alias trans nationalization) – emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies. We have so many foreign brands available here. Be it Nike from US, Adidas from Germany, Nokia from Finland, Samsung from South Korea or Sony from Japan, we don’t really differentiate.
• Financial – The advent of so many foreign finance firms are a live example of this. ABN-AMRO, HSBC, Barclays, ING Vysya, Citibank and many have established a strong foothold in the Indian market. As a result, the BFSI [banking, financial services and insurance] is seen as growing sector of business.
• Economic – realization of a global common market, based on the freedom of exchange of goods. The co-operation among countries has definitely increased due to globalization. The Euro as a single currency to represent the whole of European Union is a testimony to this. The affiliations among different nations for economic growth is becoming common. Countries like Sudan (where one of the worst ever humanitarian crisis took place), Angola, Egypt, Morocco and several other African, American countries are showing an average of 12% economic growth every year, thanks to the flattening process. The middle classes across the globe are growing rapidly. So,there’s more demand of goods in the market, and space for more industries to come. If human desires are infinite, sure the scope for trade and business is infinite.
• Political – Politically, the US has enjoyed a position of power among the world powers; in part because of its strong and wealthy economy. With the influence of globalisation and with the help of The United States’ own economy, China has experienced some tremendous growth within the past decade (since 2001) to be precise. 2001 was a very important year for globe,not because of a 9/11, but because China joined the world market. If China continues to grow at the rate projected by the trends, then it is very likely that in the next twenty years, there will be a major reallocation of power among the world leaders. China will have enough wealth, industry, and technology to rival the United States for the position of leading world power. The European Union, Russia and India are among the other already – established world powers which may have the ability to influence future world politics. Hegemony of any one country will go down. Particularly, the US.
• Informational – increase in information flows between geographically remote locations. The Internet is acting as a fuel to globalisation. People from two remote corners of earth, can interact without hassle using the Internet. A website of any Malaysian college is accessible from any place, Mauritius, Estonia or even the Antarctica!
• Cultural – growth of cross-cultural contacts; advent of new categories of consciousness and identities such as Globalism – which embodies cultural diffusion, the desire to consume and enjoy foreign products and ideas, adopt new technology and practices, and participate in a “world culture”; loss of languages (and corresponding loss of ideas). People of entirely different cultures and traditions will have more interaction. This will lead to fusion of cultures, and differences will be lost with time. The East has to meet the West, the Conservatives have to adjust with the Liberals. Liberal values will spread more due to globalization, and let’s hope fundamentalism gets non-existent as kids in future will grow knowing the cultures of various places of earth, and not merely there own.
• Ecological – the advent of global environmental challenges that can not be solved without international cooperation, such as climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species.
• Transportation – fewer and fewer Indian cars on Indian roads each year (the same can also be said about many countries) and the death of distance through the incorporation of technology to decrease travel time. Newer concepts like video conferencing, online file sharing, remote desktop control, online shopping and bill payment makes us to hit the roads less frequently, and results in reduced travel costs and time for the corporates. This is of more advantage to people considering the oil price hike by OPEC.
• International cultural exchange
o Greater international travel and tourism
o Greater immigration, including illegal immigration
o Spread of local consumer products (e.g. food) to other countries (often adapted to their culture).KFC,McDonalds,Subway,Taco Bell all have set up shops in India.
o World-wide fads and pop culture such as Pokémon, Sudoku, Numa Numa, Origami, YouTube, Blogging, Orkut, Facebook, and MySpace.
o World-wide sporting events such as FIFA World Cup and the Olympic Games.
o Formation or development of a set of universal values.
• Technicalo Development of a global telecommunications infrastructure and greater transborder data flow, using such technologies as the Internet, communication satellites, submarine fiber optic cable, and wireless telephones. Lets imagine a world when cell phones will have no roaming. Your range is not your state or city, but the entire globe! Something similar to the internet. This may not be feasible, what does it take to dream?
oGlobalisation is very likely to create an equality throughout the universe, be it equality of opportunity, social or financial equality, or an uniformness across the globe. Most importantly, globe will be a level-playing field where only the best can come up.