Globalisation Has Benefited Everyone Brought Advantages Economics Essay

Proponents of globalisation are of the view it has benefited everyone and helped to yank millions after millions out of poverty. However an in depth analysis of the affects of globalisation inform a very different story. While it is true that globalisation has benefited many, it has had an equally devastating influence on the lives of several others and made 'true' development more of a mirage rather than fact (Dunning, 2003). This essay will critically analyse and discuss the huge benefits and down sides of globalisation and can conclude by either agreeing or disagreeing with the aforementioned statement.

Even though globalisation is the buzzword today, it has been in existence in a few form or another for over a century. After World War II many parts of the world that were reeling from the devastating ramifications of the war, came up together to create trade agreements that could help each of those regions to expand in the post conflict era. The European Union is one particular trade contract as is the NAFTA contract, GATT, APEC, ASEAN and many more. Because of the advances manufactured in technology, especially in the telecommunication industry, globalisation observed a rapid increase in the latter area of the 20th century (Guillen, 2001). The best goal of globalisation was to liberalise formerly closed down economies, integrate countrywide economies and create one huge global economy that could not only lower trade barriers and increase trade and corporation but would also help poorer and expanding nations to become 'industrialised' - thus uplifting the living standards of billions (Grewal, 2006).

While the goals and targets of globalisation are noble, such goals and aims are not a breeze to achieve. Despite the fact that the above mentioned may look good in theory, in reality it is easier said than done and usually triggers more harm to economies, the social fabric of countries and the environment all together (Surez-Orozco & Qin-Hilliard, 2004).

With the starting point of globalisation in its current form, which started in the later 1980s and has been gathering vapor, many manufacturing organisations in the western world have seen their success increase. The reason behind this positive influence on the bottom lines has been chiefly because of the fact that globalisation allowed these businesses to relocate their processing plants to expanding countries, where labour is cheap. In doing this they were in a position to reduce the price of the products and become more profitable. While such a relocation, may have benefited the expanding economy where the flower was relocated to, it kept huge amounts of individuals unemployed in its home country (Helbling, Batini & Cardarelli, 2005). Thus it could be explained that while one economy gained careers and could uplift the living standard of many, another economy lost careers, which possessed an evenly devastating effect, as the company in question continuing to earn income and prosper.

During the 1990s and time frame, India is one particular country that has benefited hugely from globalisation. Through the entire past decade or even more many Western and North American, technology companies have outsourced their software development to India, which rose up to the task and has turned into a global IT giant. While such a growth in employment has benefited the country and helped to make a new middle income, globalisation is not as favourable to its closest neighbour Sri Lanka. Sri Lanka with a literacy rate of 90% has seen much international immediate investment in the garment sector. While this has helped the united states to keep unemployment levels down, the semi-skilled or low skilled aspect of the careers that exist to its citizens will not help the united states to grow and prosper to the level that globalisation has aided India (Schmidt & Hersh, 2000). On the other hand, Sri Lanka has seen a severe upsurge in underemployment of its university or college educate youngsters, who because of the lack of 'white collar' careers, have had to resort to working in the garment industry (Kiggundu, 2002). As is noticeable from the above, while globalisation benefits one portion of the populace, its affects are not equal, on the other hand they are mixed, thereby it could be stated that the above declaration is not correct in its view of globalisation.

Proponents of globalisation often cite the actual fact that increased demand for export from expanding countries, create an inflow of foreign exchange revenue and rises employment opportunities, which helps the country to develop (Bhagwati, 2004). While this is true somewhat, there is an equally disadvantageous side to this trend. For employment opportunities to upsurge in an economy, it needs output progress to exceed output growth. At the same time for success to increase, it needs productivity development to outpace productivity growth. This conflict in the two, leads to companies opting to increase productivity at the trouble of output progress. Thus even although producing economies have 'bent backwards' to draw in foreign direct investment by providing tax cuts, capital and natural resources etc, in the desires of boosting local employment and earning foreign exchange revenues. The firms that enter the country usually plunder the administrative centre and natural resources made available to them (Samli, 2002). And rather than taking a labour that is available to them, they automate their development procedures to a great scope. Further they gain much of the profits gained to the parent company and its shareholders who are often resident in developed economies (Smith & Debrah, 2002). Here again it is clear that while globalisation has helped businesses to develop and be more profitable, the benefits of globalisation are often enjoyed by the developed economies, rather than the developing economy that were supposed to benefit, in the first place.

As an integral part of the effort to liberalise an economy, most developing economies were compelled to reduce welfare spending in conditions of healthcare, education and communal assistance. Further to be able to attract foreign direct investment in to the country, almost all of these economies were required to relax their strict labour laws, which have led to the exploitation of employees (Murshed, 2002). Although it is true that lots of multi-national companies are actually operating in expanding economies and also have helped to increase occupation levels within the country. The lack of strong labour regulations, allow these companies to pay meagre wages to their employees rather than a 'living wage' as is the ethical move to make. This combined with the lack of universal health care and education has a devastating have an effect on on the personnel (Brysk, 2002). While they may have a job and have the ability to make a living, their wages are usually inadequate for spending money on more than food and rent. Thus so that it is impossible for this segment to educate their children adequately (Mittelman, 2002). In that way leading to a vicious circuit, where the children conclude in low skilled or semi skilled jobs much like their parents and struggling to breakout of poverty (Midgley, 2007). The lack of education and healthcare also offers a catastrophic have an impact on in the long-term for the economy, as it'll never have the ability to make the step from being truly a 'developing overall economy' to a 'developed market' as long as its citizens lack a solid education (Micklethwait & Wooldridge, 2001). Further this insufficient education not only will increase the wealth disparities within the economy, but it will also continue to raise the disparity between developed and expanding nations in the long run.

Based on the conversation above it is apparent that globalisation has been very advantageous to businesses. Although it is a fact that some countries like India and China have benefited greatly from globalisation and seen the prosperity of the citizens increase to unprecedented levels, other countries have not been so lucky. On the contrary, globalisation has been successful in further increasing the cultural challenges encountered by these countries and pushed the imagine learning to be a developed economy further out with their reach (Micklethwait & Wooldridge, 2001). So that it can be stated that the assertion 'Globalisation has benefited everyone. It helped all the people to increase their living expectations, brought benefits to organisations and businesses and empowered economies to develop' is merely partially true.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)