MORE GLOBALIZATION VS.

BETTER
GLOBALIZATION
INTRODUCTION:
Globalization is the process of international integration arising from the interchange of world
views, products, ideas and mutual sharing, and other aspects of culture. Advances
in transportation, such as the steam locomotive, steamship, jet engine, container ships, and
in telecommunications infrastructure, including the rise of the telegraph and its modern
offspring, the Internet, and mobile phones, have been major factors in globalization, generating
further interdependence of economic and cultural activities. Though scholars place the origins
of globalization in modern times, others trace its history long before the European Age of
Discovery and voyages to the New World. Some even trace the origins to the third millennium
BCE. Large-scale globalization began in the 19th century. In the late 19th century and early
20th century, the connectivity of the world's economies and cultures grew very quickly.
The concept of globalization is a very recent term, only establishing its current meaning in the
1970s, which 'emerged from the intersection of four interrelated sets of "communities of
practice": academics, journalists, publishers/editors, and librarians. In 2000, the International
Monetary

Fund (IMF)

identified

four

basic

aspects

of

globalization: trade and transactions, capital and investment movements, migration and
movement of people, and the dissemination of knowledge. Further, environmental challenges
such as global warming, cross-boundary water and air pollution, and over-fishing of the ocean
are

linked

with

globalization. Globalizing

processes

affect

bybusiness and work organization, economics, socio-cultural resources,

and
and

are

affected
the natural

environment.
Globalisation is the new buzzword that has come to dominate the world since the nineties of
the last century with the end of the cold war and the break-up of the former Soviet Union and
the global trend towards the rolling ball. The frontiers of the state with increased reliance on
the market economy and renewed faith in the private capital and resources, a process of
structural adjustment spurred by the studies and influences of the World Bank and other

International organisations have started in many of the developing countries. Also

Globalisation has brought in new opportunities to developing countries. Greater access to
developed country markets and technology transfer hold out promise improved productivity
and higher living standard. But globalisation has also thrown up new challenges like growing
inequality across and within nations, volatility in financial market and environmental
deteriorations. Another negative aspect of globalisation is that a great majority of developing
countries remain removed from the process. Till the nineties the process of globalisation of the
Indian economy was constrained by the barriers to trade and investment liberalisation of trade,
investment and financial flows initiated in the nineties has progressively lowered the barriers to
competition and hastened the pace of globalisation.

Positives Of Globalization

Due to increased globalization in developed countries, there is more scope for

developing countries to benefit from it. This way they can lead themselves towards

economic success and ultimately achieve better standard of living as well.

Globalization also boosts the ongoing competition between countries all over the world
as well as within any particular country; hence making sure that prices of commodities
are lowered to a considerable extent. This is a great chance for all end- users to procure

goods at low rates.

Thanks to the reach and influence of media these days, increased media coverage helps
in drawing attention towards those parts of the world where human rights are violated

for the benefit of the rich and powerful. This leads to improvement in human rights.
When globalization takes place across a nation, it gets wider worldly exposure in the
form of food, movies, art, music, clothing, culture, etc. This is a great way of forming

closer bonds with the rest of the world.

Globalization in one country/ community leads to a sense of competition in others;

hence helping in keeping the prices of commodities under check during all times.
All developing countries can benefit from the already existing technologies without the

need to undergo the stress of developing any particular technology.

Globalization helps in bringing different governments together so that they can work
together towards achieving common goals; which is a great way of spreading global
awareness regarding common concerns and issues.

Negatives Of Globalization

The most common drawback of globalization is that it is widening the gap between the

rich and poor; where rich people are becoming richer and poor are becoming poorer.
As a result of outsourcing, globalization may deprive an entire country of its jobs and
resources. This is because globalization takes jobs away from one country and provides
it to another country; hence leaving lots of people without the opportunities that they

deserve.
Although people belonging to different cultures and countries get a chance to interact

with each other, it causes a loss in tradition and values.

As species are deprived of their non- native ecosystems, there are increased chances of
them spreading diseases and disrupting other natural ecosystems and their native
species. It is very important to strike balance between the positives and negatives of
globalization so that balance can be restored in nature

ECONOMIC GLOBALIZATION
Economic globalization is the increasing economic interdependence of national economies
across the world through a rapid increase in cross-border movement of goods, service,
technology and capital. Whereas the globalization of business is centered around the
diminution of international trade regulations as well as tariffs, taxes, and other impediments
that suppresses global trade, economic globalization is the process of increasing economic
integration between countries, leading to the emergence of a global marketplace or a single
world market. Depending on the paradigm, economic globalization can be viewed as either a
positive or a negative phenomenon. Economic globalization comprises the globalization
of production, markets, competition, technology, and corporations and industries. Current
globalization trends can be largely accounted for by developed economiesintegrating with less
developed economies by means of foreign direct investment, the reduction of trade barriers as
well as othereconomic reforms and, in many cases, immigration.
In 1944, 44 nations attended the Bretton Woods Conference with a purpose of stabilizing world
currencies and establishing credit for international trade in the post World War II era. While the
international economic order envisioned by the conference gave way to the neo-liberal
economic order prevalent today, the conference established many of the organizations essential
to advancement towards a close-knit global economy and global financial system, such as
the World Bank, the International Monetary Fund, and the International Trade Organization.

MORE GLOBALIZATION VERSES BETTER

GLOBALZATION
Economic globalization
Economic globalization echoes the views of neoliberal and neoclassicist thinkers in which
states lose prominence and the world becomes a single global market of individual consumers.
These consumers are characterized by their material and economic self-interest rather than
cultural, civic or other forms of identity. The expansion and dominance of global companies
and brands is another key feature. These corporations contribute to deepen global
interconnectedness not only by uniformly shaping consumption patterns across societies, but
by binding economies together through complex supply chains, trade networks, flows of capital
and manpower (migration).

Pros of economic globalization:

Cheaper prices for products and services (more optimized supply chains)

Better availability of products and services

Easier access to capitals and commodities

Increased competition

Producers and retailers can diversify their markets and contribute to economic growth

Cons of economic globalization:

Some countries struggle to compete

Extractive behavior of some foreign companies and investors

Strong bargaining power of multinational companies vis--vis local governments

Contagion effect is most likely in times of crises

Problems of social dumping

Cultural globalization
It refers to the process of transmission of values, ideas, cultural and artistic expressions. In
the era of the Internet and fast communications people can interact more easily with each
other. Multiculturalism and cosmopolitanism are to some extent manifestations of cultural
globalization. Communities are less insulated than ever in history, even those who cannot
travel can have today a good understanding of other cultures and meet virtually people
from other parts of the world. People change their views and lifestyle influence by global
cultural and consumption trends.

Pros of cultural globalization:

Access to new cultural products (art, entertainment, education)

Better understanding of foreign values and attitudes. Less stereotypes and

misconceptions about other people and cultures

Capacity to communicate and defend ones values and ideals globally

Instant access to information from anywhere in the world

Customisation or adaptation of global cultural trends to local environment

(mestisage)

Cons of cultural globalization:

Dangers of cultural homogenization

Westernization, cultural imperialism or cultural colonialism

Some small cultures may lose their distinct features

Dangerous or violent ideals can also spread faster

Spread of commodity-based consumer culture

Political globalization
The political dimension is a newer feature of the globalization debate, as over the last 30
years there has been a rise in the influence and power of international and regional
institutions such as the European Union (EU), Organization for Economic Cooperation and
Development (OECD), the United Nations (UN), the World Trade Organization (WTO),
MERCOSUR in South America, and the Association for Southeast Asian Nations
(ASEAN). The international and supranational actors increasingly shape domestic politics.

Pros of political globalization:

Access to international aid and support

It contributes to world peace. It reduces risk of invasions, more checks to big powers
and limitation to nationalism.

Smaller countries can work together and gain more influence internationally

International organizations are often committed to spread values like freedom and to
fight abuses within countries

Governments can learn from each other

Cons of political globalization:

State sovereignty is reduced

The functioning of international and supranational organizations is often not

democratic in terms of representation and accountability.

Big countries can shape decisions in supranational organizations

Sometimes countries can veto decisions and slow down decision making processes

Coordination is difficult and expensive

REASONS FOR MORE GLOBALIZATION:

Globalization seems to be looked on as an unmitigated good by economists. Unfortunately,
economists seem to be guided by their badly flawed models; they miss realworld problems. In
particular, they miss the point that the world is finite. We dont have infinite resources, or
unlimited ability to handle excess pollution. So we are setting up a solution that is at best
temporary. Economists also tend to look at results too narrowlyfrom the point of view of a
business that can expand, or a worker who has plenty of money, even though these users are
not typical. In real life, the business are facing increased competition, and the worker may be
laid off because of greater competition. The following is a list of reasons why globalization is
not living up to what was promised, and is, in fact, a very major problem.

Globalization increases world carbon dioxide emissions

If the world burns its coal more quickly, and does not cut back on other fossil fuel use, carbon
dioxide emissions increase.

Globalization makes it virtually impossible for regulators in one

country to foresee the worldwide implications of their actions.
Actions which would seem to reduce emissions for an individual country may indirectly
encourage world trade, ramp up manufacturing in coalproducing areas, and increase emissions
over all.

Globalization acts to increase world oil prices.

Rapidly rising world demand, together with oil supply which is barely rising, pushes world
prices upward. This time, there also is no possibility of a dip in world oil demand of the type
that occurred in the early 1980s. Even if the West drops its oil consumption greatly, the East
has sufficient pentup demand that it will make use of any oil that is made available to the
market. Adding to our problem is the fact that we have already extracted most of the
inexpensive to extract oil because the easy (and cheap) to extract oil was extracted first.
Because of this, oil prices cannot decrease very much, without world supply dropping off.
Instead, because of diminishing returns, needed price keeps ratcheting upward. The new tight
oil that is acting to increase US supply is an example of expensive to produce oilit cant bring
needed price relief.

Globalization transfers consumption of limited oil supply from

developed countries to developing countries.
If

world oil supply isnt growing by very much, and demand is growing rapidly in developing

countries, oil to meet this rising demand must come from somewhere. The way this transfer
takes place is through the mechanism of high oil prices. High oil prices are particularly a
problem for major oil importing countries, such as the United States, many European countries,
and Japan. Because oil is used in growing food and for commuting, a rise in oil price tends to
lead to a cutback in discretionary spending, recession, and lower oil use in these countries.

Globalization transfers jobs from developed countries to less

developed countries.
Globalization levels the playing field, in a way that makes it hard for developed countries to
compete. A country with a lower cost structure (lower wages and benefits for workers, more
inexpensive coal in its energy mix, and

more lenient rules on pollution) is able to out-compete a typical

OECD country.

Globalization transfers investment spending from developed

countries to less developed countries.
If an investor has a chance to choose between a country with a competitive advantage and a
country with a competitive disadvantage, which will the investor choose? A shift in investment
shouldnt be too surprising. In the US, domestic investment was fairly steady as a percentage of
National Income until the mid1980s .In recent years, it has dropped off and is now close to
consumption of assets (similar to depreciation, but includes other removals from service, such
as removals because manufacturing has moved overseas). The assets in question include all
types of capital assets, including government owned assets (schools, roads), business owned
assets (factories, stores), and individual homes.

Globalization tends to move taxation away from corporations, and

onto individual citizens.
Corporations have the ability to move to locations where the tax rate is lowest. Individual
citizens have much less ability to make such a change. Also, with todays lack of jobs, each
community competes with other communities with respect to how many tax breaks it can give
to Prospective employers.

Globalization sets up a currency race to the bottom, with each

country trying to get an export advantage by dropping the value of
its currency.
Because of the competitive nature of the world economy, each country needs to sell its goods
and services at as low a price as possible. This can be done in various wayspay its workers
lower wages; allow more pollution; use cheaper more polluting fuels; or debase the currency
by Quantitative Easing (also known as printing money,) in the hope that this will produce
inflation and lower the value of the currency relative to other currencies. There is no way this
race to the bottom can end well. Prices of imports become very high in a debased currency
this becomes a problem. In addition, the supply of money is increasingly out of balance with
real goods and services. This produces asset bubbles, such as artificially high stock market
prices, and artificially high bond prices(because the interest rates on bonds are so low). These
assets bubbles lead to investment crashes. Also, if the printing ever stops (and perhaps even if it
doesnt), interest rates will rise, greatly raising cost to governments, corporations, and
individual citizens.

Globalization encourages dependence on other countries for

essential goods and services.
With globalization, goods can often be obtained cheaply from elsewhere. A country may come
to believe that there is no Point in producing its own food or clothing. It becomes easy to
depend on imports and specialize in something like financial services or highpriced medical
careservices that are not as oil dependent. As long as the system stays together, this
arrangement works, more or less. However, if the built instabilities in the system become too
great, and the system stops working, there is suddenly a very large problem. Even if the
dependence is not on food, but is instead on computers and replacement parts for machinery,
there can still be a big problem if imports are interrupted.

Globalization ties countries together, so that if one country

collapses, the collapse is likely to ripple through the system, pulling
many other countries with it.
History includes many examples of civilizations that started from a small base, gradually grew
to overutilize Their resource base, and then collapsed. We are now dealing with a world
situation which is not too different. The big difference this time is that a large number of
countries is involved, and these countries are increasingly interdependent. In my post 2013:
Beginning of LongTerm Recession, I showed that there are significant parallels between

financial dislocations now happening in the United States and the types of changes which
happened in other societies, prior to collapse. My analysis was based on the model of collapse
developed in the book Secular Cycles by Peter Turchin and Sergey Nefedov. It is not just the
United States that is in perilous financial condition. Many European countries and Japan are in
similarly poor condition. The failure of one country has the potential to pull many others down,
and with it much of the system. The only countries that remain safe are the ones that have not
grown to depend on globalization, of which there are probably not many todayperhaps
landlocked countries of Africa. In the past, when one area collapsed, there was less
interdependence, so it was possible to let cropland rest and deforested areas regrow. With
regeneration, and perhaps new technology, it was possible for a new Civilization to grow in the
same area later. If we are dealing with a worldwide collapse, it will be much more difficult to
follow this model.

THE FUTURE OF GLOBALIZATION

Like a snowball rolling down a steep mountain, globalization seems to be gathering more and
more momentum. And the question frequently asked about globalization is not whether it will
continue, but at what pace. A disparate set of factors will dictate the future direction of
globalization, but one important entitysovereign governments should not be overlooked.
They still have the power to erect significant obstacles to globalization, ranging from tariffs to
immigration restrictions to military hostilities. Nearly a century ago, the global economy
operated in a very open environment, with goods, services, and people able to move across
borders with little if any difficulty. That openness began to wither away with the onset of World
War I in 1914, and recovering what was lost is a process that is still underway. Along the
process, governments recognized the importance of international cooperation and coordination,
which led to the emergence of numerous international organizations and financial institutions
(among which the IMF and the World Bank, in 1944). Indeed, the lessons included avoiding
fragmentation and the breakdown of cooperation among nations. The world is still made up of
nation states and a global marketplace. We need to get the right rules in place so the global
system is more resilient, more beneficial, and more legitimate. International institutions have a
difficult but indispensable role in helping to bring more of globalization's benefits to more
people throughout the world. By helping to break down barriers ranging from the regulatory to
the cultural more countries can be integrated into the global economy, and more people can
seize more of the benefits of globalization.

CONCLUSION
The Globalisation has brought not only advantages to customers by providing a large range of
imported products or by raising their standard of living, but has also had harsh effects by
destroying existing jobs, as well as by diminishing of local enterprises and culture in certain
countries and much more, too. In my opinion, governments should use innovation and research
to successfully answer industrial job losses and outsourcing of companies, as well as
maintaining a basic welfare system to help people towards more qualified jobs. The companies
who outsource should be made to pay an import duty or higher tax in order to prevent huge
cuts in wages of many peoples jobs . However, despite the identification of the risks and
opportunities associated with globalization, the phenomenon is still very difficult to predict. We
can gladly make predictions about the future effects of globalization, but this far, we would
unwise to count on them.

REFERENCES
www.google.com
https://en.wikipedia.org

www.blog.com
www.indianeconomy.com
www.globalpolicy.org

www.imf.org

www.globalization.org
www.forbes.com
www.investopedia.com