Globalization Cause And Effect Essay

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NAME :SyazrulIkhwan Bin Zainol STUDENT ID :7E0B8184 GROUP :1E3 COURSE OF STUDY :Foundation in Engineering LECTURER :BaEllisonLudan Mayan TITLE OF ESSAY :Globalization DATE OF SUBMISSION :12th November 2010


I declare that this project does not incorporate without acknowledgement any materialpreviously submitted for any institution of higher education; and that to the best of myknowledge and belief, it does not contain any material previously published or written byanother person except where due reference is made in the text.

Miri, 12th November, 2010 SyazrulIkhwan Bin Zainol 7E0B8184


NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Contents Abstract

Page 1 2

Introduction 3-5 Background 6 Cause Paragraph 1 7 Cause Paragraph 2 8 Cause Paragraph 3 9 Transition Statement 10 Effect Paragraph 1 11 Effect Paragraph 2 12 Effect Paragraph 3 13 Conclusion 14-15 Reference List 16-18 Bibliography 19 Appendix


The principle of this essay was to study the causes and effects of globalization. To accomplish this essay, secondary research method was used. Resources such as Internet and books were used as the research materials. This essay was done in techniques like researching, drafting, writing, editing, planning, proof reading and brain stor ming. After reading on the research materials gained, it was found that the three main causes of globalization were the efficiency of international transportation, the growth of information technologies (IT) and making international trade and enterprise pr ofitable. Meanwhile, three main effects of globalization were corruption, air pollution and the spread of education. In conclusion, the concept of globalization is world without borders promises a future to change the social, political and economic things as we know them will be radically different and probably threatening in many ways. Thus, globalization must be interpreted precisely if it is ever going to bring about a improved life for everyone in this universe.



Globalization from the word global means the spreading throughout the world and the intend of having a globalised community is to have interdependence of the world and its people with the concern of self -development and self -interests. Now days, people can easily connected to each other than before. In fact, information and money transferring quickly than ever. Besides, services and good manufactured in certain country are increasingly spread to all parts of the world. This tremendous phenomena can be d escribed as globalization. Basically, globalization is the interaction among countries in order to develop the global economy and society. Moreover, process such as regional economies, societies and cultures that had contributed significantly to the deve lopment of global network of communication, transportation and trade is classified as globalization. Globalization is fast ever growing force that changed the world into better living place and key factors that contribute to globalization are the efficienc y of international transportation, growth of the technologies and making international trade and enterprise profitable.



Globalization is the process that has been growing on for the past 5000 years, but it had increased drastically since the corruption of the Soviet Union in 1991(Riggs.2000). AT the beginning stage of globalization concept is referred to restructure the world economy during the late twentieth century. The globalization strictly emphasis on the rapid change in the technical, social, political and territorial organization of investment, production and trade. Besides, the most obvious change that caused by globalization are the transnationalization of communication, commerce production and politics which had increased the volatility of the market demand and the strategic ascendance of financial capital also specialised services. In fact, the key factor of (NGOs) and alternative government organization (AGOs). Globalization is also known as a process along four dimensi ons which are economic globalization, the formation of world outlook, democratization and political globalization. Noticeably, globalization is a comparer and controversial trends that include technological developments, cultural dynamics and organizationa l strategies for global competition which had increasing since 1980s. Currently, the globalization wave has been driven by the policies that economies to be opened domestically and internationally so that international industrial and financial business structure to grow rapidly in all countries. In fact, the key factor that triggers globalization is the advanced information technologies that changed peoples life.


Cause 3

One of the causes of globalization is the efficiency of international transportation as a fundamental element supporting the global market. Inter national transportation refers to a factor that causes international trade to extendmore rapidly because international trade req uires infrastructures which can support trade between several companies. Since, half of the global trade occurs between locations of more than 3000 kilometres away, most international goods movements involve several modes especially when the destination ar e far away from each other. Maritime shipping and air transport are one of the transportation modes which concerned with international trade. One of the advantages of Maritime transportation is, it handles about 90 percents of the global trade whic h includes a series of getaways granting access to main production and consumption region (Jean, 2010). Meanwhile, the importance of air transport is, it carries international air freight which is about 70 times more precious types of good than its maritime counterpart (Jean, 2010).


The driving factor that leads to the process of globalization is the growth of the information technologies (IT) which had changed the world dramatically. In the early 1990s, the development of computer hardware, so ftware and telecommunication had caused the wide spread improvements in access to information and economical potential. Information technologies provides the communication networks that facilitates the innovation of products, ideas and resources among nati ons and people throughout the world (Bestshy,2010). Since, application of IT spread extraordinarily rapid almost every aspect of life in this industrial societies are depend on the product based upon and enhanced information technology. For instance, only scientists were using the internet had transformed into commercial networks, which allows users to make transactions, for businesses to manage the flow of production inputs and markets products. IT makes life easier for people as it provides websites, chat room, instant messaging, systems, e-mails and other internet based communication system to collaborate and exchanging ideas with each other.( Information, technology and globalization ,2006). Briefly, the innovation of IThad changed society drastically and have created new jobs promoted the growth of new markets and increased international trade and investment.


Cause Paragraph 3

Another cause that triggers rapid globalization is making international trade and enterprise profitable. Economist bel ieved that globalization increases the economic opportunity and prosperity to the developing world. International trade become significantly profitable throughout the process of openness to foreign di rect investment stimulating of domestic capital formation and enhancing efficiency and productivity by the foreign direct investment can contribute to the economic growth. Indeed, trade liberalization is being found to increase economic opportunities for consumer and producers to lift up earning for workforce and that under greater openness to trade, resources tend to be reallocated away from less efficient activities and towards productive activities. Surprisingly, F oreign Direct Investment (FDI) managed to attract the openness towards the free flow of capital, which leads to the development of domestic investment and contribute to employment generation for economic growth. For instance, the growth of world trade can be reflected by the explosion of Foreign Direct Investment (FDI) in developing countries which had increased from USD 2.2 billion in 1970 to USD 154 billion in 1997 and resulted in national capital market to become integrated drastically (Zaher,2008). Financial openness certainly helps to increase the de pth and breadth of domestic financial markets which cause to increase the efficiency in financial markets through lower costs and improved resources allocation.

8Key Words

Globalization- Globalization is the integration of the countries and peoples of the world. Globalization also cause the gigantic reduction of costs of

transportation and communication, and the breaking down of artificial barriers to the flows of goods, services, inve stment, knowledge, and people across margins(from Globalization and its Discontents,2004).

Corruption - The act of corrupting or making decomposed, or state of being damage orputrid, decomposition or disorganization(Brainy Quote,2001). Restructure construct or form a new or provide with a new structure. territorial organization of investment - The definition of space and spatial organization as being produced, and structured through the organization of social relationships, has been thoroughly developed(Swyngedouw,1992). Transnationalization- transnationalization is essentially related to the rise in the importance of markets and their dependence ( Transnationalization, Globalization and their effects on mid career mobility transitions,2008). Volatility of the market demand - volatility refers to a variables degree of unpredictable change much more towards standard deviation of an assets price over time based on market demand(What is volatility?,n.d).


International industrial and financial business- Industrial international competitiveness is an important

branch in the research field of international competitiveness (Chuang Li, 2008). Cultural dynamics -dynamising role of cultural heritage and interaction between culture and society: past and present(Cultural Dynamics,2009) .

Democratization-isthe institutions and practices evolve and are spread both within and across nationwide and civilizinglimits(Democratization,2010).

Political globalization - Political globalisation refers to the increasing number and power of human links which influence or direct the world as a whole.


Transition Statement

These are the three causes that planted the seeds for rapid globalization and the effects of globalization that people will f ace are the corruption, pollution and the spread of education.


Effect Paragraph 1

The first effect of globalization is the corruption of economic and political in the particular developed country. As developing nations increases the involvement in world economy, the strengths of the financial and governmental institutions are put into test. If the institution are strong, the economic gains from globalization but if they are weak, bulk of gains are lost which leads to the corruption of the nations. In fact, the bankruptcies of so many companies also affect the government becaus e banks will accumulate loans while losing values of clients due to recession -government which depend on companies taxes and banks will suffer terrible reduction in revenue and development expenditures which lead s to the corruption of a nation (Mahathir,2002, 230). Besides, corruption affects the poorest country the most, especially poorer countries as they usually export agricultural good which does not make a lot of profit as larger countries provide all sorts of financial aid such as subsidise for their farmers to lower the market price under the free trade ( Shah,2008). Corruption of a nation would probably destabilize development and worsen inequality, distorting the decision for making in favour projects that benefits the nation and increase the debt of the nat ion as a result of lost in global economy.


Effect 2

One of the badeffects of globalization is pollution that is caused by factories such as chemical waste and air pollution. Most of the manufactures nowadays are just throwing the waste chemicals into the nearby river and producing air pollution without considering about the cleanliness of the environment.All that co me into their mind is the profits without bothering about the consequences of doing such things. A number of researchersconsider that there is a bond between income per capita and the environment where negative an effect rising with per capita income well developed nations where per capita is low, and more pressing social needs enjoy priority over environmental regulation (Ruan , 2010). Negative effects on the environment such as air pollution still occurs although the governments in some developed countries enforced rules on the protections of the environment. In addition, globalization contributes air pollution beca use big industry takes opportunity from careless environmental controls in developing nations and moves its manufacturing facilities to such pollution asylum from where air pollution travels around the globe of world without obstacles (Pollution Effects on Humans, Animals, Plants and the Enviroment, 2008).


Effect Paragraph 3

Globalization has a positive side as well and the positive effect globalization is the spread of education. Education is vital for people as it acts like an instrument to enhance our knowledge, develop our skills and talent that can produce educated workforce that will be a great profit to the country in the future (Yeoh et al. nd, 11). The massive spread of education at all levels because the consequence of widely available schooling as a result of globalization pro cess in this century. Regarding the role of schools- globalization has become significant chapter of study especially in the field of comparative education, which applies social theories. Besides, the effects of globalization on education also triggers the development in technology and communications such as innovation of learning system across the world such as ideas and knowledge to adapt the students into information based society. It helps in shaping children to be th e future citizen into global citizen who are intelligent with broad range of knowledge to apply in the competitive society and thus reflects the cultural imperialism (Chinnamma , 2005). Education system now face the dual challenge of producing students with the fundamentals knowledge, skills and value needed to be spirited in a global market while at the time producing graduates who are responsible to be goo...