The winners and losers of the globalisation process

There are both winners and losers associated with globalisation, however precisely what is globalisation and how do it be defined? Daniels et al. Defines the word globalisation the following: 'A contested term associated with the transformation of spatial relationships that involves a change in the relationship between space, overall economy and contemporary society'. There are a few key dimensions linked to globalisation, these are economical, political, cultural, cultural and environmental. This paper will argue that there are some positives linked to globalisation, however many people remain worse off and suffer consequently of this trend. There are a few general winners consequently of globalisation: the highly skilled and educated, large companies, global marketplaces, men, or any people who have resources. Then there are the losers of globalisation: the employees, women and children, local communities, the uneducated, people without skills, the surroundings and small businesses. For globalisation to work inequality must be reduced to be able to close the distance between the abundant and poor countries.

Transnational and Multinational Firms are those firms which have headquarters in a certain country (mainly in a worldwide city) and operate in a number of other countries around the world. They are the central players in the progression of globalisation since the Second World Warfare. These have prolonged to become some of the most powerful economic and political entities nowadays. The organizations can impact globalisation greatly and bring riches to developed countries. Many of the larger Transnational Organizations (TNCs) have an increased turnover than a lot of the world's countries. For instance, the combined income of Basic Motors and Ford exclusively, the two greatest automobile corporations on earth, exceed the merged Gross Local Product (GDP) for most of sub-Saharan Africa.

Economic globalisation identifies increasing economical interdependence of national economies across the world through an instant increase in cross border movements of goods, service, technology and capital. Capitalism drives globalisation in this present era and will continue steadily to do it with the market segments opening up and becoming neo-liberal. Whilst economical globalisation has been developing over several a large number of years, recently it has expanded swiftly with the increasing advancements in technology, transportation and free trade. This recent progress has occurred mainly because of developed countries integrating with less developed countries, by means of foreign direct investment (FDI), the reduction of trade obstacles and the modernisation of these developing cultures. Countries involved with trade liberalisation reap the benefits of a rise in living standards, increased earnings, and higher rates of financial growth. For economies to expand, TNCs need to create profit and develop globally. They achieve this by moving their creation range to less developed countries to be able to decrease creation costs and increase earnings. The winners of the process are the major businesses (Nike, Space, Tommy Hilfiger, etc. ) whose products are created at a minimal cost, thus generating increased levels of profit allowing them to globalise their business and become wealthier.

TNCs have been closely criticised, however they have invested in expanding countries and by doing this, have were able to raise the living standards. Despite the western view that sweatshops are unethical, the labourers who work in them are often benefiting greatly. Many economists whose studies are directly related to sweatshops realize that after managing for other factors, multinational businesses pay higher income than domestic companies in UNDER-DEVELOPED countries. Many people in producing countries are unqualified or uneducated, thus rendering it extremely problematic for these to find employment by being unqualified. Feenstra and Hanson (1997) find that multinational firms improve the lives of personnel by increasing the demand for labour. This indicates that unqualified individuals still have a potential for employment and obtaining an above average income. The apparel industry has attracted most attention in the press for its use of sweatshop labour. Evidently, the garments wages are low by European country requirements however, these salary compare favourably with the common standard of living within these countries. For example, in Honduras, the site of the famous Kathy Lee Gifford sweatshop scandal, the common apparel worker earns, $13. 10 each day, yet 44% of the country's people lives on less than $2 each day. Evidently, sweatshops do play a major role in expanding countries, however there still are some negatives encircling them.

The negative organizations with globalisation cannot be forgotten. The losers of the process are the staff who work increased time, earn little income, along with poor living and working standards. Even though sweatshops produce a acceptable, above average income for its workers, they often work in grubby polluted factories which might have a poor influence on the worker and may decrease their life time. For instance, Tommy Hilfiger a global renowned brand has setup sweatshops in expanding countries, where products are created at a minor cost and bought from developed countries at a high cost, producing major profits which go back to the specific TNC headquarters, thus the producing countries economy does not benefit greatly. Therefore leads to a rise in inequality between your rich and the poor. As a result of sweatshops, citizens in the developing world may put up with as well. When these major corporations move their creation line to reduce costs they leave several thousands of local residents unemployed, which may lead to them counting on welfare. They may also replace humans with labour cutting down technologies that may also increase unemployment levels. This may continue steadily to lead to issues like a loss of duty revenue which may be detrimental to the house country and halt them from moving forward. Yet another loser in this process can be the consumer who purchases these products which can be referred to as being 'highly overpriced'.

Another significant and frequently forgotten loser from financial globalisation is the surroundings. Major companies' decreases in environmental integrity as polluting corporations take benefit of weak regulatory guidelines in expanding countries. For example, real human systems are depleting resources and degrading the surroundings at unprecedented rates, such as mining companies clearing land for production triggering deforestation and air pollution. There are a lot more types of environmental degradation such as urbanization of successful land; water logging and salinization of earth; garden soil erosion; deforestation; ground water depletion; ozone depletion; air pollution; and climate change to mention a few. These are all issues which are currently being seen through advertising sources. Like the BP essential oil spill which has been graded the largest environmental disaster in america history, "The olive oil rig, about 40 a long way (64km) from the shoreline of Louisiana, sank two days later, gushing around 12, 000 to 19, 000 barrels of crude engine oil a day in to the Gulf of Mexico. " This appears to be a prime example of environmental degradation. This catastrophe has continuing results on the environment and current economic climate such as eliminating wildlife and habitat, and effecting tourism on this area of the seacoast. Ms Wickman, owner of the Treasure Trove present shop that occupies an 18th hundred years chapel, one of Alabama's oldest buildings, quotes that her business has fallen by fifty percent since information of the April 20 explosion that ruined an petrol rig under agreement with BP. Due to the interconnectedness of globalisation when this disaster occurred all the oil prices across the world fluctuated and were unpredictable at the time.

Some countries may suffer from the 'source of information curse'. A perfect exemplory case of the tool curse is Nigeria, a country abundant with land, but poor in human population. Despite its large earning from essential oil, 70% of its predicted 140 million people live below the poverty range. About 95 percent of Nigeria's income is generated by oil and gas, leading to billions of dollars in express funds each year, though a lot of the united states remains impoverished and underdeveloped this is principally due to a high level of corruption in its federal government. These can lead to much increased issues within producing countries such as a rise in the probability of civil warfare within developing countries and open war between producing countries as they battle for resources.

In finish, there are evidently positive influences which have happened as a part of the globalisation phenomenon. It has contributed to increased job opportunities for uneducated or unqualified people, has increased economical development for developed countries through transnational and multinational businesses, and increased living benchmarks due to operate liberalisation. Despite the fact that there are some negatives associated with globalisation such as increasing the difference between the rich and poor, exploiting labourers, along with having environmental influences, globalisation has still continued to obtain many great benefits on the entire world. It really is unreasonable to anticipate that globalisation will encourage equality throughout the world; there will always be winners and losers, no matter.

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