Eco Projct

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SUMMARY OF CONTENT

As a task this was a very broad assignment with lots of material, insights andopinions to be covered and considered. To give a grounded account of

Globalisation it was very important to cover differing viewpoints, definitions

and opinions.

Globalisation is in effect the breaking down of barriers, whether they be trade,

logistical, cultural or otherwise that may have previously prevented cross border

trade and relationships. The continuing development and advancement of most

notably internet technologies have allowed for a rapid progression of

globalisation which manifests into daily life across the world. It is suchadvancements along with free trade agreements and other public policies that

have proven to be the main drivers of Globalisation.

In the regard for Globalisation opinion and favour are very much divided with

some highly critical of its effects worldwide claiming that it is detrimentally

making the rich richer and the poor poorer while the flip side of the argument

claiming it opens up opportunities for poorer countries to develop. This is clear

to be seen in the case of countries such as China and Brazil but these countries

have been able to, and could afford to, invest heavily in the infrastructure

necessary to facilitate the large amounts of FDI and trade that have created their

large growth rates. In the case of 3rd

world countries, particularly those in

Africa, they simply cant afford to invest as is necessary and as such the effect

is the reverse, with continued decline and rich nations taking advantage of and

gaining increased wealth from their natural resources. This report does not lean

either way in this debate but outlines both advantages and disadvantages that

Globalisation presents while highlighting the battle to balance Globalisation to

which end should exist a more universally positive outcome.

Further to this insight into this topic and the poles that exist within it, this

report outlines Globalisation in action with focus on the case of Ireland; from

becoming globalised and first opening its doors to external trade and FDI to the

current struggle it is enveloped in to continue to attract FDI and compete on the

global scale. Ireland in its essence, due to its developed dependence on external

investment and proportionately large volumes of export trade, is very much a

country that is highly susceptible to the effects of Globalisation with these


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effects almost magnified due to its nature. It is for this reason that Ireland is the

perfect example to outline a complete overview of what may be considered the

cyclical impact Globalisation has had.

All in all this report does not try to conquer the non-existence ofagreement/universal definition within Globalisation but more-so to engage the

reader in its dualities.


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INTRODUCTION

This report aims to give a comprehensive overview of Globalisation as a

topic of international interest and application. This will be done by firstly

answering What is Globalisation? and how it is measured to show the different

considerations that are placed upon it and the different opinions that are

prevalent within.

Following this by explaining the impact globalisation has on the world as a

whole, particularly trade and social aspects, this report will help garnish a fact

born opinion in the reader as to their favour of this topic. Added to this a case of

globalisation in action with reference to Ireland as an example, this report will

highlight the benefits, efforts and challenges faced within the globalisation

endeavour of a developing/developed nation.

Finally by reviewing the developing scope of globalisation and factors that are

now emerging within this, this report will give an understanding of the current

standing of globalisation world-wide and the implications this may have on a

countrys governance of this interest and also on the entity of this topic as awhole.


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WHAT IS GLOBALISATION?

Globalisation refers to an evolving pattern of cross-border activities of firmsinvolving international investment, trade and collaboration for purposes of

product development, production and sourcing, and marketing. These

international activities enable firms to enter new markets, exploit their

technological and organisational advantages, and reduce business costs and

risks. Underlying the international expansion of firms, and in part driven by it,

are technological advances, the liberalisation of markets and increased mobility

of production factors. (Organisation For Economic Co-Operation And

Development, 1994)Globalisation is a process of interaction and integration among the people,

companies, and governments of different nations, a process driven by

international trade and investment and aided by information technology. This

process has effects on the environment, on culture, on political systems, on

economic development and prosperity, and on human physical well-being in

societies around the world. (Levin Institute, NY State University)

in its simplest sense globalisation refers to the widening, deepening and

speeding up of global interconnectedness. (Held, McGrew, Goldblatt,

Perraton, 1999)

As seen from the quotes above, globalisation can be and is defined in a

number of ways, but it can be generally understood as the movement of people,

goods, capital, and ideas due to increased economic integration which is driven

by increased trade and investment. It is a process by which the people of the

world are gradually being unified into a single society and function together.


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GLOBALISATION AND MARKETS.

Globalization is a dynamic, world wide process of opening,liberalization and international integration through a vide variety ofmarkets: labor, goods, capital, technology, services. (Guillermo de laDehesa, 2007).

Speaking of markets let us consider some areas such as:

industrial= emergence of wor ldwide product ion markets andextended access to foreign products for both consumers andcompanies;

financial= worldwide emergence and expansion of f inancialma rkets wi th bet te r access to external financing;

economic= building up a global common market, based on the freedomof exchange of goods and capital.

technical= more efficient co-operation, exchange and implementation oftechnology;

The enumerat ion may cont inue wi th many more elements and/or areas which cannot be overlooked when approaching the issue ofglobalization, which is more and more seen as a constructive

process of our modern t imes . One may equally include hereconcepts and relationships relating to areas like politics, the social context,culture, the legal system, ethics, environment, ecological considerations andmany others.

Speaking about the gradual emergence and consolidation of thesecommon denominators, the problem mainly rests with theconsequences and the ways in which they have affected a possibleglobalized world, still affect it nowadays and will carry on exertingtheir impact in future.

At first sight, being most diverse, complex and abundant in variables and inter

dependencies, any process of unification of such amplitude may seem


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almost impossible. This appears all the more evident if we draw aparal le l with the concept of cul ture and what essent ial lyunderlies it: diversity, specificity, relativity, uniqueness and, especially itsremnant force (its memory).

The existence and the relevance of cultural differences may be affected byglobalization, even if only partially. One should not forget that thesedifferences range from very low levels, such as the members of the samefamily, to higher ones, like those between nations.Looking back in time, if hundreds of years ago all these specificities may haveseemed most hard to spell out and deal with (unless power as force wasthe main intervention instrument)nowadays, things have substantiallychanged.

Globalization remains a concept still comfortably easy to define, in broadterms, yet very difficult to forecast, categories or capture against neatlydefinable patterns. Future directions of development, changes at varioussocietal levels, the nature of interrelations, the impact on the culture

physiognomy (and the list remains open to improvement) will still give a lot oftrouble to research. This becomes the more so evident especially whenresearch and analysis target uncertainty avoidance against the background ofthe impact of globalization on a given culture becoming.

However, prospects such as interaction, interdependence, adaptation, co-habitation, sharing or unification may no longer seem so intangiblefaraway pavilions, provided the list of for and against motivationon globalization grows richer in its for argumentation. If this turnsout to be the case, globalization has all the chances to become a sourceand creator of pleasant, profitable environments, of synergy, and less one ofmisunderstanding and conflicts.


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HISTORY OF GLOBALISATION

This is quite a debatable topic because of the various perspectives and

opinions of the globalisation time span and duration. According to DanieleConversi, the two are actually closely interrelated; and if we think, as someauthors do, that the Roman Empire entailed forms of globalisation, what use is

such an expanded definition of the concept for understanding our present

predicament? Therefore, even though some glimpses of globalisation can bedated back that far, cultural and mainly economic globalisation have beenhappening for the past 25 years but has only really accelerated in the last 15years. This is partly due to the growth in technology of transportation andcommunicationone of the driving factors of globalisation.

Globalization has been a historical process with ebbs and flows. During thePre-World War I period of 1870 to 1914, there was rapid integration of theeconomies in terms of trade flows, movement of capital and migration of

people. The growth of globalization was mainly led by the technological forcesin the fields of transport and communication. There were less barriers to flowof trade and people across the geographical boundaries. Indeed there were no

passports and visa requirements and very few non-tariff barriers and restrictionson fund flows. The pace of globalization, however, decelerated between theFirst and the Second World War. The inter-war period witnessed the erection of

various barriers to restrict free movement of goods and services.Most economies thought that they could thrive better under high protective

walls. After World War II, all the leading countries resolved not to repeat themistakes they had committed previously by opting for isolation. Although after1945, there was a drive to increased integration, it took a long time to reach thePre-World War I level. In terms of percentage of exports and imports to totaloutput, the US could reach the pre-World War level of 11 per cent only around1970. Most of the developing countries which gained Independence from thecolonial rule in the immediate Post-World War II period followed an import

substitution industrialization regime. The Soviet bloc countries were alsoshielded from the process of global economic integration. However, times havechanged.

In the last two decades, the process of globalization has proceeded with greatervigour. The former Soviet bloc countries are getting integrated with the globaleconomy. More and more developing countries are turning towards outwardoriented policy of growth. Yet, studies point out that trade and capital marketsare no more globalized today than they were at the end of the 19

thcentury.

Nevertheless, there are more concerns about globalization now than before

because of the nature and speed of transformation. What is striking in thecurrent episode is not only the rapid pace but also the enormous impact of new


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information technologies on market integration, efficiency and industrialorganization. Globalization of financial markets has far outpaced theintegration of product markets.


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NEED FOR GLOBALISATION

Indias experience in globalization could be divided in to two phases. Thefirst phase of economic liberalization began in 1981, under pressure from theInternational Monetary Fund and the World Bank. During this phase, Indiareceived the U.S. $5 billion loan that was conditional on an adjustment

program me from the IMF. The second phase of globalization began in1991Where the economic measures initiated were based on the World BanksStructural Adjustment Program me (SAP) designed to restructure the economyHowever, India sentry into globalization is relatively later than most of otherthird world countries After independence, India followed the policy of plannedgrowth and for this it pursued conservative policies. The public sector wasgiven dominant position and was made the main instrument for growth. Thefiscal policy was framed in a way that it mobilized resources from the privatesector to finance development programmed and public investment ininfrastructure. Similarly monetary policy sought to regulate financial flowsinaccordance with the needs of the industrial sector and to keep the inflationunder control. Foreign trade policy was formulated to protect domestic industryand keep trade balance in manageable limits.These conservative policies continued for decades, but it was noticed as early asin 1980sthat there was:

Excess of consumption and expenditure over revenue resulting in heavygovernment borrowings;

Growing inefficiency in the use of resources; Over protection to industry; Mismanagement of firms and the economy; Mounting losses of public sector enterprises; Various distortions like poor technological development and shortage of

foreign exchange; and imprudent borrowings from abroad andmismanagement of foreign exchange reserves.


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MEASURES OF GLOBALIZATION

1. Devaluation: The first initiative towards globalization had been taken themoment there was an announcement of devaluating the Indian currencyby a hoping 18-19% against all the major global currencies. This was amajor initiative in the international foreign exchange arena. The Balanceof payment crisis could also be resolved by this measure.

2. Disinvestment: The core elements of globalization are privatization andliberalization. Under the privatization scheme, bulk of the public sectorundertakings have been/ and are still being sold to the private sector.Thus the concept of PPP (public private partnership) came up.

3. Allowing Foreign Direct Investment (FDI): Allowing FDI inflows is amajor step of globalization. The foreign investment regime has been quitetransparent and thus the economy is getting boosted up. Various sectorswere opened up for liberalizing the FDI regime.
http://business.mapsofindia.com/fdi-india/http://business.mapsofindia.com/fdi-india/


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Effects of Globalization

According to economists, there are a lot of global events connected withglobalization and integration.

It is easy to identify the changes brought by globalization.

1. Improvement of International Trade. Because of globalization, the numberof countries where products can be sold or purchased has increaseddramatically.

2. Technological Progress. Because of the need to compete and be competitiveglobally, governments have upgraded their level of technology.

3. Increasing Influence of Multinational Companies. A company that hassubsidiaries in various countries is called a multinational. Often, the head officeis found in the country where the company was established.

An example is a car company whose head office is based in Japan. Thiscompany has branches in different countries. While the head office controls thesubsidiaries, the subsidiaries decide on production. The subsidiaries are tasked

to increase the production and profits. They are able to do it because they havealready penetrated the local markets.

The rise of multinational corporations began after World War II. Largecompanies refer to the countries where their subsidiaries reside as hostcountries. Globalization has a lot to do with the rise of multinationalcorporations.

4. Power of the WTO, IMF, and WB. According to experts, another effect ofglobalization is the strengthening power and influence of international

institutions such as the World Trade Organization (WTO), InternationalMonetary Fund (IMF), and World Bank (WB).

5. Greater Mobility of Human Resources across Countries. Globalizationallows countries to source their manpower in countries with cheap labor. Forinstance, the manpower shortages in Taiwan, South Korea, and Malaysia

provide opportunities for labor exporting countries such as the Philippines tobring their human resources to those countries for employment.

6. Greater Outsourcing of Business Processes to Other Countries. China,India, and the Philippines are tremendously benefiting from this trend of global

business outsourcing. Global companies in the US and Europe take advantage


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of the cheaper labor and highly-skilled workers that countries like India and thePhilippines can offer

7. Civil Society. An important trend in globalization is the increasing influenceand broadening scope of the global civil society.

Civil society often refers to NGOs (nongovernment organizations). There areinstitutions in a country that are established and run by citizens. The family,

being an institution, is part of the society. In globalization, global civil societyrefers to organizations that advocate certain issue or cause.

There are NGOs that support women's rights and there are those that promoteenvironment preservation. These organizations don't work to countergovernment policies, but rather to establish policies that are beneficial to all.Both the government and NGOs have the same goal of serving the people.

The spread of globalization led to greater influence of NGOs especially in areasof great concern like human rights, the environment, children, and workers.Together with the growing influence of NGOs is the increasing power ofmultinational corporations. If the trend continues, globalization will pave theway for the realization of the full potential of these two important global actors.


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MAIN DRIVING FACTORS OF GLOBALISATION

There are three fundamental factors which have affected the process of

economic globalization and are likely to continue driving it in the future:

1. Improvements in the technology of transportation andcommunication have reduced the costs of transporting goods, services,

and factors of production and of communicating economically useful

knowledge and technology.

2. The tastes of individuals and societies have generally, but notuniversally, favoured taking advantage of the opportunities provided by

declining costs of transportation and communication through increasing

economic integration.

3. Public policies have significantly influenced the character and pace ofeconomic integration, although not always in the direction of increasing

economic integration.


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OTHER DRIVING FACTORS OF GLOBALISATION:

International Direct Investment International Trade International Inter-firm Collaboration

The characteristics of globalisation are crucially shaped by firm, industry, and

country differences. Large multinational enterprises are the main actors,

although a growing number of smaller firms are engaged in cross-border

activities. In manufacturing, globalisation involves mainly R&D-intensive and

assembly industries while labour-intensive industries are less globalised.

Finally, this phenomenon is still largely concentrated in the OECD area

although the Dynamic Asian Economies and China are rapidly becominginvolved, as are some countries in Latin America and Eastern Europe.

(Organisation For Economic Co-Operation And Development, 1994)

As a result of the different perspectives and opinions on globalisation, a

number of myths have developed regarding it.


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MYTHS ABOUT GLOBALISATION

Globalisation eliminates jobs Globalization directs capital where wages are lowest and exploits the poorest

workers

Capital is exported from rich countries to the third world creatingsweatshops, which then export lots of cheap goods to richer nations, generate

trade surpluses, and undercut manufacturing in rich countries, so all are

made worse off

Globalization creates a homogeneous American culture around the world

Globalization causes a race to the bottom in environmental and labourstandards

Globalization creates inequality

Trade leads to benefits for allOverall, globalisation is the trend toward greater interdependence and

interconnectedness of the worlds systems. A globalised world can be perceived

through an array of analogies; a borderless society, a small boat.


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GLOBALISATION AND ITS IMPLICATIONS

As identified earlier in the report, the concept of globalisation has grown in

dramatic levels over the past ten to fifteen years, leading to a variety of

positives and negatives becoming established and resulting in certain

implications being imposed on countries worldwide. Statistics gathered over

time shows the impact that the implementation of globalisation is having on the

level of international trade, everyday more than $1.5 trillion is now swapped in

the world's currency markets and around one-fifth of products and services are

generated per year are bought and sold. (Benefits of Globalisation, May 2011).

However there is substantial proof that this idea of globalisation is having adetrimental effect on people in the developing world, by only widening the gap

between rich and poor. In the book Globalisation and its discontents by

Joseph Stiglitz (2002), there is compelling and irrefutable evidence that this

aspect of globalisation is being seriously mismanaged and only succeeding in

making the wealthy richer and increasing poverty in developing nations. The

various pros and cons will now be identified below and how they relate to

specific areas in the world.

Without doubt, the emergence of borderless markets has enabled countriesto increase their level of production and sales tenfold through the export market,

and outsource goods or services which are either cheaper or not available in the

domestic market and although this does bring obvious advantages, these

activities can suffocate certain countries even further.


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GLOBALIZATION IN INDIA

Globalization refers to situation marked by substantial degree of economic

activities carried out across boundaries of different countries or nations. Thenature of economic activities present in the kind globalization that is existingtoday, goes much beyond the simple import and export trading activities.Globalization today involves manufacturing as well as sourcing activities beingcarried out in multiple countries to manufacture products that may bedistributed in many countries not involved in sourcing or manufacturingcountries. Globalization also involves trans-national border ownership andentrepreneurship. Businesses and investors from one country may own andoperate business, or provide various types of collaborative support in multiplecountries.

One good example of globalization is provided by Toyota. It is a a companythat originated in Japan, but now owns and operates subsidiary and joint venturecompanies in many different countries. It operated assembly plants in manydifferent country, and typically plant in each country sources components frommultiple countries, many of which may have no Toyota assembly plants. TheToyota cars manufactured are then sold throughout the world.


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FEATURES

The features of globalization may be discussed as follows:

1. It means free access to the markets in the world without any physical (quota)or fiscal (tariff) or any other governments) restriction. Hence, global consumersemerge demanding high quality products and more value for their moneywithout any restrictions like parochial, regional or national consideration.

2. Globally standardized products need be marketed ail over the world. Thereare already many such products having world market. It includes the "lead"

products in a region taking care of dominant needs of that region.

3. Globalization requires resources like raw materials, finance and technology.Free access to quality raw materials, latest technology and cheap finance areimportant characteristics of this process at less cost.

4. In globalization. Free mobility of managerial personnel and entrepreneursresult into mergers, takeovers and structural regrouping in countries across theglobe.


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TYPES OF GLOBALIZATION

Globalization is a massive topic which is studied at length and as a result anyanswer here is going to be just the tip of the iceberg.

There are many different types of globalization, the three main subtypes are:Economical, Cultural/social and Political.

1.Economic Globalization:

Economic and technological globalization is where goods and services arenow provided by large corporations on a worldwide level. This is done byutilizing resources in countries where they are more economically viable as wellas moving raw materials to where they can be transformed into saleable goods.Through the rise of container ships, the easy transport of any type of productmakes it feasible to transport goods around the world to increase a profitmargin. This also includes the opening up of borders to allow labor forces towork outside of their home countries, as in the EU, although there are stillconsiderable boundaries for workers in the rest of the world. No national economy is an island now. To varying degrees, national

economies influence one another. One country which is capital-rich invests inanother country which is poor. One who has better technologies sells these toothers who lack such technologies.

The products of an advanced country enter the markets of those countries thathave demands for these products. Similarly, the natural resources of developingcountries are sold to developed countries that need them. Thus, globalization is

predominantly an economic process involving the transfer of economic

resources form one country to another.


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2. Cultural Globalization:

Cultural globalization comes from the rise of large media conglomerates that

saturate the airwaves with a particular point of view and corporate entities likeCoca-Cola, McDonalds and Starbucks who homogenize society and take awayfrom local culture and traditions.

This could be argued to be the western, more developed countries takingadvantage of markets which were not otherwise available. It is often done with ayoung population in the developing country who are happy to have, what theyconsider, the chance of the spoils of the West.

Culture has increasingly become a commodity. Popular books and films haveinternational markets. Harry Potter has readers almost all over the world.English movies are seen almost in all countries. Western pop music has become

popular in developing countries. The reverse flow of culture is insignificant.The flow of culture is mainly from the North to the South. In the last few yearsthe media owners of the West have shown interest in entering developingcountries.

For example, Murdoch has opened TV channels (STAR News, STAR Moviesand STAR Plus) in India. Cultural globalization has been facilitated by theinformation revolution, the spread of satellite communication,telecommunication networks, information technology and the Internet etc. Thisglobal flow of ideas, knowledge and values is likely to flatten out culturaldifferences between nations, regions and individuals.

As this flow of culture is mainly from the centre to the periphery, from theNorth to the South, and from the towns and cities to villages, it is the cultures ofvillages of poor countries which will be the first to suffer erosion.


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3. Political Globalization:

Since long, efforts have been on to bring the whole world under onegovernment. The League of Nations and the UN have been the efforts in that

direction. It is believed that the world under one government will be safer andfreer from conflicts: The UN has belied expectations, but a number of regionalorganisations like European Union, ASEAN, APEC and SAARC, andmulticultural economic organisations such as WTO have come up.

The member-states remain sovereign, but through their obligations andcommitments, they have, to some extent, integrated themselves to the concernedinternational organisations and groupings.


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CAUSES OF GLOBALIZATION

While it is true that state ventures (or adventures) have at times driven theprocess, e.g. the colonial conquests, the globalization process has largelyreflected market forces, specifically, the exploitation by large and smaller

businesses in the world of benefits from trade in commodities, goods, services,capital, and even labour, and of opportunities for new investments and markets.

The process of global economic integration was perpetrated at the behest ofWorld War II, when the leaders of Britain and the US helped establishing theWorld Bank and International Monetary Fund in 1944 to promote a liberal,

capitalist world to counter the shadows of Socialism and Marxism.

The loans are granted by IMF and WB on the condition that the borrowingcountry will reduce the state's role in the economy, lower barriers to imports,remove restrictions on foreign investment, eliminate subsidies for localindustries, reduce spending for social welfare, cut wages, devalue the currency,and emphasize production for export rather than for local consumption. Suchconditions imposed laid the basic foundation to open economies to steer themechanism of economic integration giving birth to the World TradeOrganization.

By mid 1950s Pakistan had become a favourite candidate for receiving thebenefits pledged by President Truman, having joined the network ofinternational defence treaties with the United States. It marked the beginning ofan enduring trend in Pakistan to follow every one of the strategies ofdevelopment devised successively in Washington and promoted globally.Pakistan's own Dr. Mahbub-ul-Haq called this trend the pursuit of "developmentfashions" and listed it among his "seven sins of economic planners."

Before development theory and practice could be redesigned in any significantway to address the lingering issue of social justice it was literally hijacked toserve the agenda of a more aggressively mobile global capital which aimed at adeeper integration of all national economies into the structures and ideologicalframework of neo-liberal globalization. Foreign debt is the main lever used bydonor countries and multilateral aid organizations to break resistance to theimposition of external economic agendas and development policies.


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CLAIMED BENEFITS OF GLOBALIZATION

World has discovered new trade routes and improved the technology oftransport to obtain the benefits from the process of openness.

Openness to foreign direct investment can contribute to economic growth bystimulating domestic capital formation and improving efficiency and

productivity, as a result of greater access to new technologies.

Increased competition and access to the domestic financial system by foreignbanks may improve the effectiveness of the intermediation process betweensavers and borrowers, thereby lowering mark up rates in banking, as well as thecost of investment, and again raising growth rates.

Financial openness helps to lessen asymmetric information problems and toreduce the fixed costs associated with small-scale lending; it can enhance theopportunities for the poor to access the formal financial system.

It is widely accepted that openness has long been seen as important element ofgood economic policy and trade liberalization as necessary step for achieving it.

Trade liberalization process often works as an instrument to combat poverty: itusually tends to increase not only incomes but also provide some additional

resources in order to overcome the issue of poverty.

Globalization or trade liberalization in general is being found to increaseeconomic opportunities for consumers and producers and to raise earnings forworkforce and that under grater openness to trade, resources tend to bereallocated towards productive activities and away from less efficient activities.

Foreign Direct Investment (FDI) is well attracted by openness to the free flowof capital, which then stimulates domestic investment and contributes toemployment generation and economic growth. Financial openness also helps to

increase the depth and breadth of domestic financial markets, leading toincreased efficiency in financial markets through lower costs and improvedresource allocation.


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THE CONSEQUENCES OF GLOBALIZATION

Mainly, the general views about globalization can be categorized into four mainperspectives that are economic, technological, development, and societalrespectively.

The Economic Perspective: of globalization is the growth of world trade as aproportion of output (the ratio of world imports to gross world product, GWP,has grown from some 7% in 1938 to about 10% in 1970 to over 18% in 1996).It is reflected in the explosion of foreign direct investment (FDI): FDI indeveloping countries has increased from $2.2 billion in 1970 to $154 billion in

1997. It has resulted also in national capital markets becoming increasinglyintegrated, to the point where some $1.3 trillion per day crosses the foreignexchange markets of the world, of which less than 2% is directly attributable totrade transactions.

The Technological Perspective: involves Information CommunicationTechnology (ICT) what explains this globalization? It certainly lies in thedevelopment of technology. The costs of transport, of travel, and above all thecosts of communicating information have fallen dramatically in the postwar

period, almost entirely because of the progress of technology

The Development Perspective: is the most controversial and important of all.It touches the heart of dichotomy which today globalization phenomenon faces.It tries to find the clues of the increasing divide between the rich and the poor,the existing cleavage between the ICT haves and have-nots, under the umbrellaof one world concept of integrated markets and capital flows. Above all itchallenges the greatest protagonists of globalization, the global institutions ofWorld Bank, IMF, and even WTO one hand. One the other it has created amassive wave of antagonists threatening the industrial nations through anti-

globalization relays, protests, and strikes.

The Societal Perspective: focuses on some key factors which have becomepivotal to ensure the longevity of success of developed nations and that are theirsensitivity to the community, cultural norms, and environmental care. Thisincludes the condition of human rights, women empowerment, gendersensitization, civic education, status of women in the society, political status

becoming more democratic, freedom of speech, rule of law, equal access toresources and level of education.


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ADVANTAGES ARISING FROM GLOBALISATION

Countries which operate successfully within the international economy havegrown much faster than those who wish not to trade international. Countrieswhich embrace globalisation see their economy grow by an average of 2.5

percent more than the closed economies.

This level of economic growth in these particular countries improves theliving standards and reducing poverty. For example, India has cut its poverty

rate in half over the last 20 years as a result of international trade.

Through the increase in wealth, the standard of healthcare and access toclean water had increased life expectancy. Over 85 percent of the worlds

population can expect to live to at least 60, twice the expectancy 100 years

ago.

The level of Foreign Direct Investment has accelerated due to increasedglobal income and reduced investment barriers. FDI in 1973 totalled $23

billion, increasing to $575 billion in 2003.

Environmental awareness and accountability has improved leading to the useof more efficient, less polluting technologies and the importation of

renewable substitutes.

Increased co-operation and interdependence between global institutions suchas the World Trade Organisation and the World Bank, has enabled

international political and economic tensions to be resolved, on a rules basis

instead of greater economic or political power basis.

Technological advances has reduced costs in the way world communicates,learns, does business and treat illnesses.


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DISADVANTAGES OF GLOBALISATION

Freedom of trade awards competitive businesses and penalises theuncompetitive thus forcing many businesses to restructure. Although thismay prove beneficial in the long run, there are serious implications

associated in the immediate to short term.

Some countries have not embraced globalisation for various reasons,resulting in a further decline in their standards of living.

Economies can become over reliant on the international market which in turnmakes them more vulnerable to economic problems such as the Asian

financial crisis in the late 1990s.

As a result of globalisation, major economic powers have a strong influenceover institutions such as the World Trade Organisation. This then can work

against the interests of the world by only beneficial to these major

economies. For example, the level of agricultural protection by rich countries

is estimated to be five times greater than what aid is provided to poor

countries.

Trade liberalisation and technology improvements can change the economyof countries, destroying traditional agricultural communities through the

importation of cheap manufactured goods. If not managed correctly, this can

lead to unemployment as traditional jobs become scarce and people may not

have the necessary skills for the new jobs created.

Due to the increased level of competition, there can be a race to the bottomlevel regarding wages and labour standards due to the availability of locating

wherever is least expensive for businesses.


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As a result of the borderless markets, countries can experience the concept ofa brain drain, where educated people will leave to find better job

opportunities overseas.

Although there are a variety of advantages and disadvantages relating to

globalisation mentioned above, there are still more areas which are important

to highlight. According to Buzzle (2011), there are other positives relating to

international trade which are of vital important. This states that as a result of

globalisation the possibility of war between the developed countries

decreases due to relationships being built and continuously improved. This

business concept also allows for the global media to connect to all the people

of the world which in turn will aid the level of international trade and finally

the level of international travel and tourism increases, having a positive

effect on the chosen economy. Some of the negative effects associated with

globalisation which have not been mentioned include an increase in

unemployment in areas due to companies moving to countries with cheaper

labour costs. In some countries environmental laws are not as strict, resulting

in exploitation and environmental destruction and due to international trade

human, plant and animal diseases can be spread more easily (English Online

N.D).


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29

THE BATTLE TO BALANCE GLOBALISATION

Within the concept of globalisation it is imperative that an element of equality

is implemented worldwide. At present it is evident that there is a huge gulf inthe class and equality of countries currently embracing globalisation and so

these countries must strive, with the aid of global institutions such as the WTO,

to achieve a balance or worldwide equality. A lot of responsibility of ensuring

this equality falls on those economies that are making the greatest strides in

globalisation with the following quote from Kofi Annan, the former Secretary-

General of the United States, encapsulating this theory we cannot not afford to

ignore the condition of our fellow passengers on this little boat. If they are sick,

all of us risk infection. And if they are angry, all of us can easily get hurt.

An example of a country that encapsulates this ethos within globalisation to its

fullest potential, while also striving to close the gap between the developed and

developing world is Australia. Australia is availing of the advantage of

borderless markets to export its products such as wool, wheat and minerals.

The level at which it exports is resulting in the standards of living being

continuously improved through the creation of further employment and the

influx of wealth from these sales. Australia is also now able to borrow capital

internationally which can either be used to cover deficits which might occur or

for investment purposes thus again improving living standards. Although this

aids the development of their own economy, Australia is aware of the

inequalities present in the developing countries. Due to Australia being

surrounded by developing nations a lot of their products will either go to or

through these countries. The government as a result, provides technical

assistance, capacity building initiatives and investment, and information

communication technologies to promote active participation in the global

community. Australia is currently working to maximise the benefits and

minimise the challenges faced by these developing nations. (Global Education,

January 2011)


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CONCLUSION

Having given a comprehensive overview of what is globalisation, how its

measured, the impact it has globally and its developments this report still finds

it difficult to sway fully towards one definite side of favour for this topic. Yes

globalisation has numerous pros and lots of rewards for those that embrace and

encourage it but it also pulls on morality and ethics in a negative way by the

seeming effects it has on the poorer and less developed countries, not only this

but its malignant application seems to deepen inequalities with its misaligned

distribution of wealth.

It also seems to be not only a global consideration or practise, not only a

definite article as such, but also a philosophy in a way, that can be understood

as is applicable to oneself or to suit one own companies/countys needs or

favour. There is many different definitions of Globalisation, many different

breakdowns of what it basically is and also many different analogies of it,

from a ship to a borderless worldwide market. So could this uncertainty/lack of

nailed down recognition be the reason for its negative application? Could it be

intrinsic greed on the back of the 80:20 principle (80% of the worlds wealth

belongs to 20% of the worlds population) that has generated a global agenda

towards deepening the pockets of the already rich by deepening the poverty and

suffering of the already poor?

If this were the case would such an agenda, although guised under the pretence

of a global focus on borderless trade and equal distribution of wealth and

resources, be truly globalisation as the concept it is in its fundamental essence?

Is it not a general threat amongst conceptual ideals that are aimed towards a

new (better) world order that it is in its essence virtuous but often

disproportionately adaptable for greed and corruption? But still this is all

effectively wanderings of thought due to the uncertainty that exists withinglobalisation, as who can say what is right and what is wrong. Some things for

certain however is that there is a definite increasing gulf between the rich and

poor and a definite misappropriation of wealth in a time when globalisation

should be creating the opposite scenario, compounded by advancements in

technology that accelerate this crises.

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