Globalization and the Society - Essay Example

Globalization and the Society Globalization today is an irreversible process, which brings many positive and negative aspects to the economic, cultural and political environment. The term of globalization can be defined as a process of integration among companies, people and different governments, which is driven by investment and international trade of goods and services. (Pros and Cons of Globalization, 2012) Most of the time globalization is used to refer to a particular specific aspect- economic integration throughout the world. This essay will examine the term of globalization, how it has been achieved, what benefits and drawbacks it brings to peoples’ daily life. Based on these facts and arguments, this essay will finally consider from different points of view whether globalization is good for society or not. Globalization began along with the time of the industrial age. Industries produced goods in a mass quantity without any specific market orientation; therefore they started to sell products across the board. Export became more efficient for business, so they wanted to replace production to a place with more affordable labor and cheaper production cost. Thus, replacing production location allows businesses to produce more at a cheaper price in a market where demand is higher. Free Trade Agreement allows free moving to industries among different countries; therefore it brings welfare to all countries for several reasons. First of all, globalization provides an opportunity for finance. Before globalization, businesses were limited only to domestic sources of finance from investors. But today, countries become closer therefore limitations on finance sources fall. In a global economy, entrepreneurs have an opportunity to gain investment form any country. For example, a company based in Mexico, can easily get investments from the US, Canada, Europe or Asia. This practice is becoming more common globally. This opportunity is available not only for developed countries, but also for developing countries. For example, African countries can gain funds form countless international sources like Kiva International, an organization that provides funding to poorest, allowing them to turn ideas into businesses (Faiola, 2009). Economic integration with foreign countries makes economic growth more constant and faster than those countries that try to dissociate itself from all. China is a great illustration of international integration. To become a globally active nation, China has broken traditional principles of being individual and ignoring other countries. As a result, it could not be unnoticed that China is the fastest growing nation in the world nowadays. According to statistics, an open economy has a rate of growth of 2.5% higher than in a closed economy due to the process of globalization (Dreher, 2006). An open economy in this case has been achievable due to the globalization process that has taken place around the world allowing for different countries to financially interact with one another for mutual benefit. Business across the borders has proven to be a sustainable practice that allows the countries that practice to access markets that would have previously been inaccessible due to their location (Vujakovic, 2010). The open market has served to increase the financial wealth of a country as it has provided more opportunities to conduct business besides the local industries that are available. Globalization has enhanced the relationships that exist between countries thanks to their interaction with one another that has allowed them to get along and in the process reducing the prospect of war between countries (Scholte, 2005). Globalization has enhanced the bonds that exist between countries as they work together to enhance their financial and political strength meaning that there is little opportunity for them to come up with reasons for disagreements as they are in the process of working together for the common good of both of their nations. Improved relationships between countries promote global peace, which is an objective that nations in the world have been trying to achieve since the advent of the World Wars and the repercussions that followed (Vujakovic, 2010). The advent of peace allows nations to focus on improving the quality of living for their citizens instead of focusing on issues such as military strength in order to protect their borders, which takes a large chunk of the countries funds from their budget which could be put to better use in the progression of their nation (Dreher, 2006). The improved relationships also means that countries are able to help each other out during rough patches be it financially, politically or socially allowing for any problems/issues to be resolved easier and much faster than would have previously been possible. The International Monetary Fund (IMF) is one organization that has been able to identify four main aspects that can be attributed to the globalization process. They include, the movement/migration of people, capital and investment movements, dissemination of information and trade and transactions. These aspects can be used to demonstrate the amount of influence that globalization has had on the relationships between nations and the world as a whole (Lewis & Moore, 2009). The migration of people refers to the movement of individuals from one country to another which has allowed for a distribution of labor and the supply of workforce in needed areas without the limitation of boundaries and nationality, capital and investment movements refers to the monetary movement of funds between countries without struggling with the litigation processes to allow entry into the country (Wade, 2004). The dissemination of information refers to the sharing of knowledge between nations (Rakesh, 2009). This knowledge can be technological assisting in the progression of a country, political in terms of advice among others. Trade and transactions has to do with the business activities that occur between two or more countries including exports and imports. A good example of this is the emergence of the World Trade organization (WTO) which has come up to govern the trading activities that occur between countries (Rakesh, 2009). The formation of the World Bank has also made it easier for countries to borrow funds that countries may need for their development and international agencies such as World Health Organization has handled matters having to do with health on a global scale. There are several other factors that have emerged thanks to the development of globalization such as tourism which has been enhanced with individuals now able to travel from one country to another for pleasure with much ease. Tourism is one of the sectors that have played part in the financial wealth of a country as these individuals spend money on their visits adding to the monetary circulation of the country (McAlister, 2005). The media has also been affected by globalization as programs form different countries including news items and entertainment are now played on foreign channels allowing for individuals in one country to gain an insight on the lives, traditions and practices of another through these programs (Faiola, 2009). In conclusion, after studying all these aspects of globalization it can be said that its emergence has mostly had a positive effect on the society as a result. Both individuals and countries as a whole have been able to benefit from the joining of forces between nations as they no longer have depend solely on their own means for survival (Leong & Leog Ho, 2009). Globalization has allowed for nations to work together for the betterment of their societies. However, there are a number of negative aspects that can be found as well as globalization has also led to the absorption of cultures and beliefs of some societies as the western societies in particular have largely influenced the perspectives of other nations with the youth of these countries discarding their own traditions for the more the modern culture of the western states. All in all, it can be said that the emergence of globalization can be said to have had a largely positive effect on the society. References Cammack, P., 1998, Globalization and the Death of Liberal Democracy, European Review, Vol. 6, No. 2, 249-263. Dreher, A., 2006, Does Globalization Affect Growth? Evidence from a new Index of Globalization, Applied Economics 38(10). Faiola, A., 2009, A Global Retreat As Economies Dry Up, The Washington Post. Rakesh, J. M., 2009, International Business, Oxford University Press, New Delhi and New York. Lewis, D and Moore, K., 2009, The origins of globalization: a Canadian perspective, Ivey Business Journal. Leong, Ho Khai and Khai Leong Ho, 2009, Connecting and Distancing: Southeast Asia and China, Institute of Southeast Asian Studies. McAlister, E., 2005, Globalization and the Religious Production of Space, Journal for the Scientific Study of Religion, Vol. 44, No 3. Scholte, J., 2005, Globalization: A Critical Introduction, Palgrave, Basingstoke. Vujakovic, P., 2010, How to Measure Globalization? A New Globalization Index (NGI), Atlantic Economic Journal, 38(2). Wade, R. H., 2004, Is Globalization Reducing Poverty and Inequality? World Development Report, Vol. 32(4): 567-589. Read More