Author and economist, Jagdish Bhagwati defines economic globalization as “the integration of national economies into the international economy through trade, direct foreign investment (by corporations and multinationals), short-term capital flows, international flows of workers and humanity generally, and flows of technology…” Globalization increases economic development and seeks to reduce poverty. However, it does not seem to bridge the gap between the rich and the poor.
Extraordinary changes in communications, transportation, and technology have given the globalization process new stimulus, and have made the world and companies more interdependent than ever. Consequently, societies across the globe have established closer contacts. Over the years, businesses and organizations have become more advanced, and have sought to rely greatly on technology, thus eliminating the use of manual human labor.
Jobs that once provided opportunities for people of a lower status and who lack a formal education such as an engineering degree are now being replaced by robots, and people who have received specialized and advanced training for operating such machines. As a result, companies not only have boosted their company income, but have increased work efficiency and reliability. Globalization continues to make waves regularly. With technology being a fundamental factor, we are granted and guaranteed the resources we need to help us progress, increase productivity, and to be successful in our respective lives on a daily basis.
Globalization is a process that began years ago. Information from the Levin Institute at the University of New York, Albany sources that “for thousands of years, people – and later corporations – have been buying from and selling from each other in lands at great distances. ” However, globalization is not only limited to buying and selling or exchanging. Its core sense is economical, and concerns with how all the systems involved in the process work together to affect the global economical market. The effects of this adapt process is noticeable in all aspects of life.
From restaurant franchises being available in almost every country, to the majority of American clothing being manufactured in periphery and third world countries, and the technological capabilities that keep us connected with people around the world, the effects have completely surround us. Globalization has also affected today’s society economically positively and negatively globally. It has resulted in the increases of job opportunities, as much as it has been blamed for the loss of the jobs. Automobiles contributed to the growth of the United States.
During the 1900’s, the US economy increased much in growth as companies were hiring people to perform jobs at factories, specifically at the assembly lines. One such company was GM Motors, that later downsized its product line and began to invest heavily in automated manufacturing, which resulted in massive job cuts for many people in Flint, Michigan. It was much easier and cheaper for such a multinational and successful company to terminate its workers than to keep and pay them for their hard work and dedication, which was initially an asset to the company’s success.
This effect of globalization has resulted in increased poverty amongst global surroundings, and has produced as much losers as it has winners. With the advent of newer technology, such as the telephone and internet, Thomas Friedman has commented that “today, globalization is farther, faster, cheaper and deeper. ” Globalization information from the Levin Institute at the University of New York, Albany stated that “this new wave of globalization has been driven by policies that have opened economies domestically and internationally. Nevertheless, globalization has produced positive impacts on today’s marketing economy, and how greatly it has the influenced the accountability of world trade. Technological advancements have been the major force behind globalization, and have continued to involve and develop over the years. “Technological developments of the past few decades have spurred increases in cross border trade, investment, and migration so large that many observers believe the world has entered a qualitatively new phase in economic development. ” In addition, “advances in information technology, in particular, have dramatically transformed economic life.
Information technologies have given all sorts of individual economic actors – consumers, investors and businesses – valuable new tools for indentifying and pursing economic opportunities, including faster and more informed analyses of economic trends around the world, easy transfer of assets, and collaboration with far-flung partners. ” In this new era, the world is faced with numerous challenges. The Internet serves as a great and useful tool for the masses, and with all the technological developments consecutively, it has become available for consumption and service to everyone.
With the right equipment, people can keep in contact with friends and loved ones on the other side of the world. Computer networking, which involves cloud computing, a Web 2. 0 feature, and fax machines have allowed businesses and organizations to conduct negotiations and transactions in seconds, thus reducing and almost eliminating the “middle man” and the use of air mail. Company logos, slogans, and images, for example, McDonald’s, AT&T, and Mickey Mouse are now widely and globally recognized. Over the years, globalization has proven to be quite a controversial issue.
In some aspects of life, society, and the world at large, it has some resulted in some positive effects, whilst in other parts, negative and almost devastating effects. “Proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that the creation of an unfettered international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people. “Moderate critics of globalization acknowledge the gains and benefits of globalization but voice objections as well, mainly about the unequal distribution of benefits and about problems with the global market. ” Korten, David: When Corporations Rule the World. (San Francisco:Berret-Koehler Publishersm 2001). Second world countries such as China and Japan have benefited greatly from this process. They are now considered as the world’s manufacturing capital, as they produce much of the world’s goods, clothing, and technological inventions.
The nations have produced the majority of the items that are consumed in the United States and globally today. This opened the door for a freer market, and allows the process to serve as a frontier for international business, including importing, exporting and trading. This form of business and free market trade and economy has resulted in outsourcing got many businesses, companies and corporations. As a result, local businesses and services have slowly and continue to be debarred, as some countries have chosen to invest in international businesses rather than their nation’s own.
An example of this is the importation of produce such as carrots, which are farmed locally, yet markets import because it weighs a lot easier on their pockets to import than it might be to support local farms and businesses, and international produce equals greater marketing profit. Oil and oil consumption and production are a major source of conflict in the issue of globalization. It has sparked war in many different areas of the world as it is essential in our daily lives. As a nation, America has a great dependency on oil. It is necessary for almost every facet of modern lifestyle, from commuting, to clothing, and clean tap water.
However, as attractive as these sounds it all comes with a price. Sadly, it takes more energy from natural gas to produce the oil than we get from the oil itself. The major obstacle in using the crude oil will be the ever fast increasing price, and not just the availability. The fluctuation in the price will enable and limit the use of oil only to certain companies and countries that will be able to implement the oil in the production process. This leads to the issue supply and demand. Oil companies basically supply to other companies to meet the demand of their country, town, and city.