what is globalization ? for whom it is good and for whom it is bad ?

Question

Some say it is inevitable.

lets share the merits and de-merits of globalization.

Answer 1

A number of definitions abound, but all generally note the increasing convergence of markets, economies, and ways of life across the world. A broad overview definition is that globalization is the worldwide process of homogenizing prices, products, wages, rates of interest and profits . Globalization relies on three forces for development: the role of human migration, international trade, and rapid movements of capital and integration of financial markets.

The IMF International Monetary Fund stresses the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions ... free international capital flows, and more rapid and widespread diffusion of technology.

A less economic-focused definition from the Encyclopedia Britannica states that globalization is the "process by which the experience of everyday life ... is becoming standardized around the world."

Positive and negative effects
The term "globalization" is used to refer to these collective changes as a process, or else as the cause of turbulent change.

Economically, socially and ecologically positive: As an engine of commerce; one which brings an increased standard of living to Third World countries and further wealth to First World countries.
Economically, socially,politically, and ecologically negative: As an engine of "corporate imperialism;" one which tramples over human rights in developing societies, claims to bring prosperity, yet often simply amounts to plundering and profiteering. Negative effects include cultural assimilation via cultural imperialism, the export of artificial wants, and the destruction or inhibition of authentic local and global community, ecology and cultures.
It is often argued that even terrorism has undergone globalization, with attacks in foreign countries that have no direct relation with the attackers' own country.[3][4]

Since World War II, barriers to international trade have been considerably lowered through international agreements - General Agreement on Tariffs and Trade (GATT). Particular initiatives carried out as a result of GATT and the World Trade Organisation (WTO), for which GATT is the foundation, have included:

Promotion of free trade
Reduction or elimination of tariffs; construction of free trade zones with small or no tariffs
Reduced transportation costs, especially from development of containerization for ocean shipping.
Reduction or elimination of capital controls
Reduction, elimination, or harmonization of subsidies for local businesses
Intellectual property restrictions
Harmonization of intellectual property laws across the majority of nations, with more restrictions.
Supranational recognition of intellectual property restrictions (e.g. patents granted by China would be recognized in the United States)

Answer 2

hey
globalisation is integrating a nations economy with the world economy.it is businnes across the world and it transcends all national boundaries.yes globalisation is inevitable, any country that opposes it will not benefit from globalisational advantages.
the good effects of globalisation are:
1. it brings in competition from outside the territory of a country and thus domestic businesses have to improve their quality to compete with their contemporaries all over the globe.
2. it becomes a buyers market-whentheir is no globalisation most firms witness monpoly in their respective fields due 2 lack of competition as a result their isa seller's market, ie, u have to buy wateva the seller is saelling at wateva price he wants to sell it. but bcoz of globalisation the firms cant afford to da that as they will lose their customers to their competitors, so they become flexible to the demands of the buyers.
3. globalisation brings with it world class technology
4. know how, research and devlopment , etc are easily exchanged between the haves and the havenots.
5. the compensation of labour also increases so that the employers do not lose their workers to their competitors.
6. their is innovation of all kinds, product innovation, distribution innovation, etc.

but ofcourse there are the demerits:
1. since globalisation brings in a new culture, it affects traditional culture systems and values, especially in the oriental countries.
2. multinational corporations sometimes have more money than the govt of their host country and can topple the govt.
3. in the exchange between 2 countries the superior country sometimes dumps obsolete machinery into the less developed nation.
4. fast food chains, fatty foods etc increase the risks of several diseases, be it obesity, heart attacks, etc.
5.some domestic firms that cant survive in the competition due to globalisation close down leaving millions of jobless.

there are also two groups that discuss the merits and demerits of globalisation at the global level:
1) the world economic forum _it is for globalisation
2)th world economic forum-it is against globalisation.

hope this helps,
sakshi

Answer 3

One example of globalization is McDonald's! It is everywhere all over the world! The bad part of globalization is the uniformity. There is no individualization. Everyone wears the same uniforms, everything has a specific way it's done. There is no room for imagination and bored people. The up side to it is knowing things will get done and get done right. You can count on it.

Answer 4

Globalization is a phenomenon where limits between countries and nations are 'fading'. The world is becoming one 'global village'. Obvious signs of this phenomenon is multinational companies (IBM, Toyota, Coca-Cola, McDonald's, Microsoft, etc.). The development of technology also support globalization. The obvious example is Yahoo!

It is good because as consumer we have more choices. We buy shirts from China, cars from Japan, software from USA, etc. We also have more opportunities to know people and cultures from different countries.

It is bad for them who are not ready, e.g. uneducated people, because they will be swept away by fierce competition.

Answer 5

globalisation is the ability to produce any good or service any where in the world useing raw materials and components from any where in the world sell that good or service anywhere in the world and put the profits anywhere in the world. the ability to do this will mean that there will be less suppliers og goods and services but they will provide fo rthe entire globe. this means there may only be say 4 supermarket chains in the world for example, so no matter where you go the same shops and products are there. this is bad for workers as the location of production can easily be moved to where people will work for the cheapest amount. its good for the people who own the companies as it means they own at least part of a huge company that makes lots of money.

Answer 6

Here's an interesting perspective for the classic film Network...one of my all-time favorites!

"There are no nations. There are no peoples. There are no Russians. There are no Arabs. There are no third worlds. There is no West. There is only one holistic system of systems, one vast and immane, interwoven, interacting, multivariate, multi-national dominion of dollars. Petro-dollars, electro-dollars, multi-dollars, Reichmarks, rins, rubles, pounds, and shekels.

It is the international system of currency which determines the totality of life on this planet. That is the natural order of things today. That is the atomic and subatomic and galactic structure of things today! ...There is no America. There is no democracy. There is only IBM and ITT and AT&T and DuPont, Dow, Union Carbide, and Exxon. Those are the nations of the world today....

We no longer live in a world of nations and ideologies, Mr. Beale. The world is a college of corporations, inexorably determined by the immutable bylaws of business. The world is a business, Mr. Beale. It has been since man crawled out of the slime. And our children will live, Mr. Beale, to see that perfect world in which there's no war or famine, oppression or brutality -- one vast and ecumenical holding company, for whom all men will work to serve a common profit, in which all men will hold a share of stock, all necessities provided, all anxieties tranquilized, all boredom amused."

Answer 7

globalization is nothing but integration of the national economy with the world economy. free trade, foreign direct investment,collboration, acquisition and merger all are related to globalization.
globalization is good for all as it brings sharing of knowledge, improvement of technology, increase of efficiency, skill and knowhow which leads to lowering of costs of production and increase of production. the bad impact of globalization is that it increases poverty and unemployment because of more use of machinery. thus it increases the gap between the haves and havenots.

Answer 8

Considering the Globe as a village for carrying out all kinds of trade,commerce and business.

It is good for America,Briton,Canada, and other rich nations of the world.
It is very bad for developing countries like India.

Answer 9

This is my response to the question about new economic world order, but it addresses your question as well, since i take the two questions as equivalent.

The trends we call globalization are of a decentralization type, technological forces. Think of it in historical terms. From about the 13th to the 18th centuries the world economy was dominated by major world powers, and by that mean their governments. Think for example of Spain and its silver mines in South America or later on the colonies of the British. In the later half of the 18th cetury and through the 19th and 20th century we saw the rise of corporations. Originally started as state sponsord monopolies, these immortal (in the eyes of the law) entities become more and more powerful. The east India trading company was an early version, more modern companies such as the ones we know today (GM, Microsoft, et al) came later, but the central point is that economic output and production switched from government sponsored action to large conglomarates in the 19th and 20th centuries. Today what we are seeing is another change, in which these globalized companies, that previously faced competition only from one another, are starting to face strategic threats from developing countries and individuals. What I mean by this is that technology has empowered individuals and allowd small businesses and partnerships to compete with companies that in previous decades only faced competition from each other. Blogs for example are in effect competing directly with media gians like NBC for the publics attention. This can be called a new economic order, because this change fundamentally shifts economic power. Where once we had a shift from government to corporations, we now increasingly see a shift from corporations to individuals. This change has created a lot of tension, because as individuals are empowered, rich counties like the US begin facing real competition from abroad. All of the sudden a man in india can compete with an american, and thats unsettling. A lot can be said about this change and books such as "the world is flat" have been written on this subject. As far as what changes this shift has created, I can name a few: (1) increasing specialization, which we usually label as outsourcing, with companies subdividing production, marketing, etc among various groups, often in different parts of the world instead of using traditional centralized implementation trategies (2) increasing empowerment of individuals via technology using computers/internet, etc (3) decentralization and a flattening of organizational structure within companies (4) the disaperance andd outsourcing of low end jobs that can be performed abroad via communication device (telemarketing, tech support). This provides at least a partial answer, but if you really want a detailed explanation of changes going on in the economy you have to study business and economics in depth.

Bottom line: individuals benefit from globalazation, but the poor countries and their citizens wil benefit more than rich ones as the rich countries face increasing competition from countries that previously had no way to directly compete with rich contries like the US.

Answer 10

Good for: shoppers looking for best price. (Shoppers looking for more quality or "boutique" goods can still find them in...boutiques.)

Good for: workers overseas who otherwise wouldn't have jobs. The poor brown people you see working away in yellowing factories are way better off than poor brown people scrounging through trash middens, as so many of them were before Converse et. al. came to town.

Bad for: unionized labor in the US, which has collectively bargained it's way out of a job.

Kind of bad for: US workers who don't want to get the retraining necessary for the kind of work being done here.

Good for: foreign engineers who got that training and are now working in Redmond and Silicon Valley.

And so on.