Globalization
Student
Name
University
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Table of Contents
Abstract
This research study is
done to identify the disadvantages of globalization. This research study has
shown that globalization has some benefits but it has numerous disadvantages
especially to poor and underdeveloped countries.
Introduction
Globalization,
or globalization is the process of
interaction and integration between public, organizations and governments
worldwide. Globalization saw a fast growth in the 18th century mainly due to advancements made in transportation and
communication technology. Globalization increased due to growth in global
interactions within the international trade. It has also increased due to
frequent exchange of ideas and culture in the internet age. Globalization can
be categorized as an economic process which improves integration and interaction
which is connected with the cultural and social aspects of the global
population. However, it should be noted that disputes and political diplomacy
are also important components of the modern history of globalization
Modern scholars believe that origins of globalization go
back to the age of discovery. Therefore, they believe that its history can be
traced back to the time when European countries were busy in discovering new
lands and making voyages to the New World. On the other hand some people also
trace it to the modern world especially after the discovery of the internet.
The terminology of globalization was
first used in the 20th century by French writers and scholars. The current
meaning was developed in the 2nd half of
the 20th century. Large-scale globalization began in the 1820s, and in the late
19th century and early 20th century drove a rapid expansion in the connectivity
of the world's economies and cultures
The International Monetary Fund (IMF) has recently provided
4 basic components of globalization. The main components of globalization
include movement of the people, migration , investment movements, trade and
transactions, capital and investment movements, movement of people, and
dissemination of knowledge. Scholars and experts have also linked environmental
challenges such as air pollution, global warming, cross-boundary water and ,
and overfishing with globalization (STEGER, Manfred B.,
2010).Globalization related processes are mostly affected by natural
environment, economics, business and work organization,and sociocultural
resources. Academic scholars also believe that modern globalization can be
separated into three main components. The list of these 3 components
includes economic globalization, cultural globalization, and political
globalization.
Attitudes and approaches to globalization
Globalization is an extremely inhomogeneous phenomenon with
great levels of progress and development. There are various unique approaches
from all points of view with dangerous changes
According to Joachim Wilmeyer, sometimes globalized
environment could help us to create profitable offers to large multinational
companies. This environment is very important for companies who want to serve
their customers through providing products with high value and quality.
Therefore, from this thing we can firmly conclude that only globalization can
help us to make resilient products for highly valued customers. UNESCO member
once stated that globalization can transform markets into a turbulent place if
it will keep on pouring its negative effects on society
Management of the respective countries makes their presence
counted during the development of
globalization process
The next perspective makes an identification of globalization
with universalization. Oliver Reiser and
B. Davies was the person who created the word "globalization
/globalization" they knew that
"universalization" and provided a synthesis of all the cultures
around the globe and their transposition into one concept. Basically,
globalization is the process of promoting various ideas through the usage of
scientific developments and a universal
culture
Anthony McGrew and P. G. Lewis, have accepted this
criterion. They stated that:
"Globalization refers to the multiplication of ties and connections
between states and societies that are currently part of the world system. This
describes the process by which events, decisions and activities in a part of the
world have significant consequences for individuals and communities located at
great
distances from each other
Literature Review
Economic globalization
is the ever increasing economic interdependence of various international
economies all over the world by using a fast and improved cross-border
movement of goods system. Moreover, it also involves movement of technology,
services, and capital. On the other hand, the globalization of business is focused
on the elimination of international trade regulations. Globalization also
involves elimination of tariffs, taxes, and other impediments which are
utilized to control world trade and economy
Economic globalization
also involves a process which uses goods, services, data, technology, and the
economic resources of capital for creating a competitive advantage for a
particular country. It is a kno2n fact that the expansion of global markets
helps in liberalizing the economic activities of the exchange of goods and
funds. Moreover, removal of cross-border trade barriers has also made the
formation of world markets more feasible and reasonable for everyone. Moreover,
it also involves large advances in transportation, telecommunications and other
technological advancement made by humans
According to the modern
economic experts, various components of economic globalization are posing
challenges to governments in both developed and developing countries. However,
it has been observed developed nations have more active participation as
compared to the developing nations during past century. It is often observed
that there is a great difference between economic globalization of the late
19th century and of the current century. The differences can be seen in both
qualitative and quantitative terms. These differences are making difficult for
developing countries to implement globalization in their respective working
environments.
According to the
Dictatorship Market model created by Rodrik, globalization creates more inconveniences
for most countries . Nevertheless, globalization cannot be categorized as an
appropriate economic policy mix as globalization seldom offers net beneficial
results. Since, globalization is not
capable of long-term economic growth for
all countries as problems arise with inconveniences and heterogeneous results
The list of problems
related to globalization includes is lack of economic and social cohesion as
the embedded liberalism (Ruggie 1982). Moreover, it is a known fact that countries interested in joining economic
globalization has to face difficulties in obtaining complete sovereignty and
democracy. Therefore, it is very important to give complete chance to
democracy as long as international
organizations equitably and efficiently supply the requirements of the state.
Disadvantages
globalization
The phenomenon of
globalization has really benefited large corporations and some countries. However,
there are a number of experts who are severe critics of globalization.
According to them following are most obvious disadvantages of the
globalization. Globalization can be categorized as the worst form of
capitalism. Since, it has made rich people richer. Globalization is very
profitable for large investors, managers and corporate managers. However, it's
not so good for poor workers and nature
Globalization was
initiated to remove trade barriers and other trade restrictions. However, this
is not the vase as there are still many trade barriers
Globalization has also created various
problems for developed nations as they have lost thousands of jobs due to
transfer to lower cost countries. According to conservative estimates made by
the Robert Scott of the Economic Policy Institute, US lost more than 3.2
million jobs after granting status of most favored nation to the China most
favored nation status drained away 3.2 million jobs. Moreover, he also believes
that the USA lost more than 896000 jobs due to its trade deficit of $ 78.3
billion with Japan. In addition to that, according to his calculations the US economy
lost 682,900 jobs from Mexico –U.S. trade-deficit during 1994 through 2010.
Low wage Workers in
countries like USA have suffered a lot due to the phenomenon of globalization. Since,
large business owners decrease salaries of their employees by threatening to
outsource jobs to developing countries
Globalization has made
it easier for large multinational companies to exploit tax havens in less
developed countries. This phenomenon helps them to avoid paying high rates of
taxes in other countries. Panama paper leaks in 2016 have exposed this thing
about multinational companies and politicians
Multinational
corporations are blamed for providing unfair working conditions, lowest slave
labor wages, and bad loving places for workers and exploitation of
environmental resources. In addition to that, they are also blamed for using
excessive natural resources for their usage.
Critics believe that
large multinational companies are getting more and more powerful with every
passing year. Since, globalization has given access to global markets.
Previously, they were just restricted to business activities but now they
influence political decisions on their favorite countries
Developed countries are
facing a risk of losing their competitive advantage due to this products copied
by countries like China. Since, large multinational companies have outsourced
their operations in low cost developing countries like China. Therefore,
Chinese companies are copying and stealing their latest technologies to make
their own low cost competitive products.
The critics of globalization also claim economic
policies based on globalization are not working in the developed and developing
world .The social and economic inequality has worsened during the era of growth
and investment between 1960 and 1998. These things are creating issues for
developed and developing world alike. The UN Development Program report has
revealed that the richest 20 % of the global population use 86 % of the global resources. However, on the
other hand, the poorest 80 % use just 14 % of the global resources .
Some health experts
believe that globalization is quickly spreading deadly diseases such as
HIV/AIDS and other STDs. They believe that deadly diseases like HIV/AIDS are
being spread through travelers to the remotest corners of the world. The latest Covid-19 pandemic is the best
example of spread of disease through
traveling. Covid-19 has caused havoc all
over the world. Since, it has caused a global recession as the whole world was
at halt due to Covid-19 pandemic. Moreover, health experts also believe that
globalization is also leading to the incursion of communicable diseases.
Globalization has increased the labor
exploitation in developing countries. Since, large multinational companies have
started exploiting low cost workers in developing countries like India and
Bangladesh. Large companies are even using child labor and prisoners to save
their manufacturing costs. This inhumane treatment has raised alarm bells for
international human rights organizations
Globalization has also
negatively affected the safety welfare schemes or “safety nets” offered by developed countries. These schemes
are under pressure as developed countries like the United States of America are
facing job losses, trade deficits, job losses, and other negative economic and
social implications of globalization.
Globalization offers
features of a volatile investment environment
The difference between
the developing and developed world is increasing as there is no equality in a
globalized world. UNESCO believes that globalization is pouring its negative
effects on the overall society
Globalization in
current century has been promoted by broad trends such as the increased
international and transnational industrial and economic activity
These ways have quickly
enabled it to evolve into new global modalities. According yo a survey
conducted by the Economist Intelligence Unit about the National Science
Foundation and industrial R&D , show
that globalization has caused more transnational academia-led R&D with
international academic and industrial collaborators
The benchmarking
evidence showed in survey report depicts
a very different picture. Countries like United States have failed to
reap the benefits of globalization and subfield of its composites due to
continuing decline of its leadership in the subfield
Research
strategy
Selecting a research
strategy is the most important step to carry out a research study. Since, it is
a well-known fact that without choosing a suitable strategy, research cannot be
carried out effectively and might even fail to get its objectives . Therefore,
our research team has chosen a qualitative way of collecting the data needed for
the study. Survey method is the most important method often used by companies
and research teams to carry out the study. Our research team will utilize a
survey strategy by distributing questions to the target sample. Our researchers
will gather the primary data with the help of a questionnaire filled out by the
respondents.
Methodology
This methodological
guide of this study consists of the basic components of devising, creating and
development of the research study process. The major objectives of devising
this methodology is to provide a reasonable way to help researchers. These
researchers are stepping into a difficult and complicated research process.
This guide will also offer definite and concrete ways to carry out the right
approach to the research study. The main aim of this research study is to find out that
Whether existing annual budgeting is meaningful or impactful after
changes in the Irish tax policies. This research could be extremely advantageous
for improving the environment for the employees as they can use this study the
basic framework of the Irish budgeting process. This survey would be conducted
through sending survey questions in the two financial companies through email
correspondence. Our questions would be clear and straightforward which will
help us to recognize the changes made by the change in the tax policies. These
questions would address, finance and human resource managers of these
companies. This research study can be perceived as an amazing technique to
comprehend the employees' expectations to company .
The main aim of
interview questions is to research out main components of Australian budgetary
system, Netherlands budgetary system, United Kingdom budgetary system, American
budgetary system & Irish budgetary system. Moreover, it solves main issues
in Irish budgetary system. It will also find ways to improve Irish budgetary
system.
Interview
Questions
1.
What is the globalization?
2.
How new is globalization in the world ?
3.
. What are some negative effects of
globalization?
4.
What is the major role of the
International Monetary Fund (IMF), the World Bank, the World Trade Organization
(WTO) and other financial institutions in implementing globalized policies ?
5.
What are some effects of multinational
businesses?
6.
What has led to increased globalization?
7.
What are some positive effects of
globalization?
8.
How do people benefit from dual trade on
both sides ?
9.
What are some of the negative issues
involving globalization while outsourcing jobs?
10.
What is the future of globalizations in
the world?
Limitations
of the research
Our research group
doesn’t have the access to the government authorities who are involved in the
policy making of the globalization policies. In addition to that, we don’t have
accurate data about the complexities of
the globalization related policies and other economic frameworks of the
developed and developing countries such
as China, India, USA, France, Ireland, Australia, the United Kingdom and Netherlands.
Ethical
Considerations
Our research team would
make sure that it is completely taking care of most og important issues related
to the ethical and moral research conduct Therefore, It will be most important
responsibility of our research team while managing a research study. Moreover,
our research team would make sure that, this research study is creating a
maximum value for pur target population and the general public. Moreover, we
would make sure that this study will aid researchers to minimize harm and risk
about the globalization .In addition to that, we will make sure that we have
taken care of the privacy, self-respect and dignity of the major stakeholders
involved in this study. Our research team has also made sure that very
important things to collect the prior permission of all the major participants of
the research study .This will safeguard all the main stakeholders from any
vagueness and misunderstanding. In addition to that, it is also very essential
for the team to take care of the
personal autonomy of the major participants of this study. The aforementioned moral codes of
ethics are very essential components of the normative ethics in the community
research.
Results
The results of the research study show that 15
people believe that globalization is not a good thing and the remaining 5
people believe that globalization is a good thing for any economy. The details
of the results are shown in the findings. The sample population also believes
that worldwide reforms are needed to save the world from negative effects of
globalization.
Recommendations
/Future areas
Our study has made 2
most important findings related to globalization. Our study has made three
important findings through using the following empirical analysis. First thing
is related to the positive effect of globalization on growth. Since,
globalization plays an important role in growth in countries with higher levels
of human capital and deeper financial development. Finally, there is a finding
that economic globalization badly affects growth in countries who have
very low levels of income for each social group. This means that the economy
needs some initial condition, so that it can benefit from the positive effects
of globalization. These results also explain why some countries have been
successful in reaping benefits from globalization of the world and others
failed to do so .
After analyzing the
results we have found that this research has really helped in investigating the impact of economic
globalization on economic growth. However, we must confess that theoretical and
the empirical literature has produced very complex conclusions about the
globalization and its impact on the economy. Therefore, it needs more
investigation. The current study carried out in the light of the growth effect of globalization by using a
sample of 20 people from the EU and US. This research study especially analyzes
the negative effects of the globalization on the EU and USA .
The findings of our
study suggest that public policies designed to integrate to the world might are
not optimal for economic growth by itself. Economic globalization not only
directly promotes growth but also indirectly does so via complementary reforms.
The policy implications
of this study are relatively straightforward. Integrating to the global economy
is only one part of the story. The other is how to benefits more from
globalization. In this respect, the responsibility of policymakers is to
improve the level of educated workers and strength of financial systems to get
more opportunities from globalization. These economic policies are important
not only in their own right, but also in helping developing countries to derive
the benefits of globalization.
However, implementation
of new technologies transferred from advanced economies requires skilled
workers. The results of this study confirm the importance of increasing
educated workers as a complementary policy in progressing globalization. In
fact, countries with higher level of human capital can better and faster
imitate and implement the transferred technologies. The higher level of human
capital and certain skill of human capital determine whether technology is
successfully absorbed across countries. This shows the importance of human
capital in the success of countries in the globalizing world
Conclusions
Governments must also
implement different types of strategies to safeguard local culture from the
homogenizing effects of globalization. However, the government should not mix
this protection with negative strategies such as economic protectionism and the
political suppression of ideas
Governments are trying
their best to protect their cultural and moral norms through working with local, national, and international level
social groups that plan to promote the protection of traditional cultures. In
addition to that, governments are also working to work with groups who aim to
analyze the matter more deeply and clearly.
With current
technological developments, the world has become a global village. However,
increased globalization has to be managed effectively to make it more
equitable. Corruption has existed and, in fact, increased over these years. We
need politicians who are willing to stand against such dishonest practices and
confront those doing them. An important issue that we encounter is that seven
of our trading partners deliberately manipulate their currencies to gain an
unfair price advantage that can surge their exports and reduce imports. This strictly
violates the rules set by the World Trade Organization (WTO). To restrict such
practices, it is legal to put some tax on countries' exports to induce their
politicians to stop cheating. Most of our trading partners can properly manage
their trade budgets and run a trade surplus. However, we have not worked hard
enough to balance our trade budget and have encountered a trade deficit for
more than 30 years. The accumulated stands at $11 trillion. This trade deficit
has been a big hindrance in developing our economy, killing the opportunities
for manufacturing jobs. Our government should promptly act to balance our trade
deficit, even though either of our political parties has never prioritized
this. Two important trade agreements, NAFTA and South Korean might have
benefited Wall Street and multinational companies, but wiped away jobs in
America and increased our trade deficit. The approaching Trans-Pacific Trade
Agreement is predicted to do the same, and Congress should not abide by this
agreement quicker for several reasons. China, being the second-largest economy,
ignores trade rules, and plays with the laws set by WTO. Also, China
manipulates its currency to make its products more profitable in foreign
markets and subsidize their state-owned companies from the high money flow in
the economy. These companies dump their products in America. They also copy our
products, steal our technologies, and impose trade restrictions, such as
tariffs on our products. We can do nothing about it, and China has no right to
be on our most favored nation list. We must impose taxes on its products. China
has had unfair policies for American workers.
Increased globalization
has caused deindustrialization in America as we continue to outsource both
manufacturing blue-collar and white-collar jobs. Those favoring globalization
argue that it has brought low price imported goods into the economy. However,
this has neither matched the fall in wages of the middle class nor combated the
loss of numerous family-wage jobs. Globalization cannot be stopped. It is a
snow avalanche; we can only swim in the snow and stay on top. We can design
policies to make globalization more equitable. We can enforce trade laws,
encourage fair competition between nations, and stop giving our competitors the
aid (Technology and R&D) to win the global war eventually.
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