Effects of Globalization

The spread of globalization's consequences affects a number of performance measures. The consequences and ramifications of these changes continue to be the driving forces behind the shift in the social, economic, and political landscape. As a result, the unification of the entire planet into a single village has both advantages and downsides. The angles of these repercussions differed for the span of this article, notably in regard to the past, present, and future consequences posed by the transition. As a result, the paper seeks to answer serious questions about the aftereffects of globalization.  The whole idea of globalization comes along with a bunch of related issues. Despite the term being coined way back in the 17th century to mean the global village by Mcluhan (1960), a Canadian professor many claims the term gained prominence in 1980;s among the prestigious colleges of Europe. Additionally, despite the application of the terminology among the likes of Stanford, others propose the first academic sighting of the use of the word traces back to writings by an American businessperson in 1897 (Tremblay, 2012).
Ronal Robertson's book on titled Globalization brought into perspective the technical aspect of the subject. This outlook was an improvement and a speculative move as many claimed since the documentation offered theories behind the social, economic and political shifts in, paradigm facilitating the creation of a global market. Furthermore, the book revealed that the subject matter remained broad and extensive covering many other concepts and, dimensions (Robertson, 1963).
According to the Defense Institute of America, the fast and unregulated move in services, equity (Moran, 1990), technology, ideologies, cultural practices and goods from nation to another presents a rather old definition of globalization. Therefore, the move occurs in bizarre fashion leading to the continuous integration of economies in an interdependent way influenced primarily by corporations, organizations, and markets attaining international acclamation. The delineation by the Institute presents a rough sketch of what globalization is all about through highlighting the economic phase of the matter whereas leaving out the socio-political consequences.
Therefore, the definition of globalization will change from scholar to another. However, it remains imperative to note that the definition of the term largely depends on the parameters of measure of the subject. The inclination of the point of interest to influences the scope of study of the matter through altering perspective and study of particular cause and effect scenarios. Nonetheless, through consultation with the authorities on the matter, the paper divulges the aspect from both academic and business standpoints on the issue. Nevertheless, the definition of the distinct meaning of globalization at this juncture presents different ideas of sorts. However, through the diverse panoplies of a rich history, the cultural and socio-political facets will be exploited.
2.0 Globalization Frontiers
Globalization can be described through four main economic parameters. These includes the flow of equity, end products, services, human resource, and technology. Despite the effects of globalization on the economy being intensive, the property of the shift can be described as
A) Shifts in PPP (Purchasing Power Parity)with strange consumerism inclinations.
B) The development of the Information and Technology sector.
C), Increased flexibility and dynamism in the market.
D) İncreased competitions.
E) The shifts in production, consumption, and distribution from local to international.
F) The dominance of democracy and westernized values.
G) Fall of the socialism, liberalism, and communism oriented business blocks.
H) Widespread application of technology.
I) Liberalization of international trade through FDIs and FTAs (Sohn and Lee, 2010).
The above properties indicate a shift from the norm, a transformation of sorts.
2.1. Cultural Erosion
The process of globalization plays towards the attainment of a global culture. Thus represents an upper limit that most heterogenous culture strives to attain. Therefore cultures flow side by side infusing into each other without any organizational principle. The alterations in the content of culture through adoption and loss of individual practices leads to significant discrepancies in peoples was of life.
Scholars like John Meyer and Daniel Bell suggest the change being synonymous with integration. This form of coming together capitalizes on the general shape of most cultures through the resemblances in gender roles, lifestyles, and cultural symbols. This situation defined as 'Medicalisation' majorly relies on the similarity in consumerism between different cultures. The explanation for the above scenario remains in the theories by Marshall McLuhan of "global village" ideologies and Ohmae's "cross-border civilization" demarcations, all designated to explain the formation of a community (Slinkova, 2015)
The cultural resemblance, however, fails to satisfy the idea of an entirely independent culture. This situation arises because these native traditional practices and religions have the capacity to connect and reform global practices. This scenario is attainable through the local practices infusing into global cultures and getting accepted. Friedman and Friedman(2005) and Cox and Trotte (2016) propose a framework that aligns and incorporated all economic, political and cultural aspects of people into one. However, pessimists such as Anthony Smith highlight that the idea of a unified Global culture would pave the way to a problematic society, with ambiguity all round (Cox and Trotter, 2016).
The role of communication and technological advancement in the spread of a global culture remains a major force in understanding globalization. The transfer of new value relies majorly on the interactions between people of different walks of life. These interactions often act a continuum for the adoption of a new idea, perspective or belief. The newly adopted knowledge than in spread to the individual's culture through further sharing of new realizations (Friedman and Friedman,2005). These endeavors play a significant role in contributing new aspects to the native or global culture. Furthermore, the existence of expensive internet connections and technological gizmos such as mobile phones and computers enables faster and efficient communication.
2.2 Globalization
The term comes from coining global and local. These represent two opposing ideas, that is, global designating international, whereas local referring to national or regional. The term, however, relates to the endeavor of creating goods and services for the world market but consistent with local standards (Roudometof, 2014). This attempt refers to efforts in the exportation of fundamental ideas to the rest of the world. The concept of globalization and globalization remain related, Ronald Robertson argues that both approaches share a sense of simultaneity through "universality of resolution and resolution of universality."
However, the primary challenge with the contemporary globalization of the native and localization of the global expresses the convoluted attempt of dual change. Nonetheless, the key features of globalization revolve around social life, history, and culture of all people and reduction in conflict and tensions associated with change (Roudometof, 2014). Additionally, per say the idea of globalization exists to eliminate difference at the national and regional level, cease the threat posed by globalization and to offer insights into the importance of globalization.
The primary role of globalization remains confined in the attempts to address the various aspects of globalization from the fundamental point of view (Roberts Jr, 2016). This dream is achieved through an exchange program as a means of effecting change in a steady manner without invoking major ripples and ramifications in the society. Therefore, the application of this framework allows the modification of globalization to local standards thereby addressing the gross disparity from Westernization, Americanization, and induced consumerism.
2.3 Impacts of Globalization
The ramifications of the reduction of the world into one small village have both local and international effects. The cause and effects aspects of the change bear both progressive and retrogressive elements that remained confined in the visible or the deeper impacts.
2.3.1 Visible Impacts
Did you know the change in era remains a fundamental identity of globalization? The ever changing human life from the inception of agriculture, the invention of writing and animal husbandry relay the aspects of changing civilization. The idea of culture remains synonymous to that of globalization, the latest wave of human advancement. These progressive changes continue cumulative of the historical contributions that played a significant role in ensuring that humanity arrives at this age. These contributions remain confined in the 14th century Reformation, the industrial age and the dawn of Renaissance. Additionally, the space exploration to the moon in 1960's and the early onset of the information age played a significant role in the development of globalization. Consequentially, the importance and availability of information at this age both online and offline remains the primary motivation for the spread of globalization.
2.3.2. Information Technologies and Technology Flows.
The statistical indicators when measuring technology are encompassed on three main factors. These aspects of measurement will embrace scientific innovation and inventions, diffusion of contemporary techniques and benefits accrued from the technology. Additionally, another indicator of relevance is the measure of exposure to countries to new technology. However, it remains imperative to acknowledge that measuring technology remains a challenging endeavor due to the lack of physical units of measurement. Contrary to services, technological advancements require a well-defined price that permits analysis and summation either (Odedra-Straub, Okot-Uma, and Cyranek, 1995). Instead, the value of progress and improvement remains embedded in products, intermediates, and processes. Consequently, the studies trying to measure technology rely on indirect techniques such as level of education, the number of innovators involved, expenditures and resources used, the role of technology in creation, the number of patents issued and innovative national capacity.
Suppose technologic diffusion in any given nation is examined by these indicators, for the first group; scientific invention and innovation; scientific articles; patent and intellectual chattels: then it remains within reason to apply income accrued from the technological manipulation as a viable measure. According to 2003 data number of articles and patents per 1 million people in high-income stood at 83 and 36 times higher than those in low-income countries respectively. As of 2004 low-income countries' income from intellectual properties and licensing is almost zero (Demont-Heinrich, 2011).
The measure of efficiency in the production of goods and services that an economy can handle is called total factor productivity (TFP). Therefore, TFP remains interpreted as a unit of production technology coupled with the rate of growth in an attempt to ascertain the rate of growth. The comparison of the global scales reveals a trend in productivity differences between high, and low and middle-income nations by the quantity and quality of goods and services. As of 2010 average TFP in low-income countries is only 7% of the productivity in the USA (Demont-Heinrich, 2011). Whereas this gap closes in low and lower-middle-income countries, upper-middle-income countries also strive to maintain their position against high-income countries.
2.4. Labor Hyper-Mobility and Global Distribution of Labor
The abnormal movement in high numbers of people bring into perspective the effects of migration as a significant influence of globalization in the 21st century. The sharp increase in the rate of travel from one region to another remains motivated by the following factors:
• Demographic factors,
• Economic disparity between developed and developing nations,
• The liberalization of trade providing job opportunities in abroad markets
• The integration of the world into a one communication village and
• Tourism and leisure travel.
According to statistics, as of 2005, 192 million people (49.6% of whom are women) had relocated somewhere far from their places of birth. Additionally, from 1965to 1990 the population of immigrants increased by 45 million margins recording an annual growth rate of 2.1%. Nonetheless, by the year 2006, the rate of increase had leaped to 2.9%. However, remittances accruals from these immigrants estimated over $276 billion worldwide by the end of 2006. Moreover, of the total funds, an estimated $206 billion ended in the coffers of developing countries. Nevertheless, there are roughly 30-40 million illegal refugees, accounting up to 20% of their total population in the world. Moreover, there exists evidence behind the shift in the reasons behind migration over recent years from leisure and adventure to the search for jobs, immunity and better education.
In the year 2005, United States of America was the leading with the highest population of immigrants. With 38.1 million immigrants, Russian and Germany followed up closed with 12.1 and 10.1 million respectively. However, most of this refugee came from China, India, and Philippines (Ariely, 2012). However, it remains imperative to note that in some regions in the world, the level of migrant stock shrunk considerably, for instance:
• Migrants from Asia reached 43.8 million as of the year 2000 from its 28.1 million level in 1970. This shift in paradigm highlights a decreased of up to 25% of the population,
• Africa experienced a decline in international migrant share from 12% to 9% from 1970 to 2000.
Therefore, to determine which of these factors remains more global among labor force, trade and capital flow one should examine the magnitude of this variable in influencing migration of people. Nonetheless, by the year 2004 movement constituted 4% labor oriented, 13 % on equity flows and 205 on capital.
2.5. Broad Impacts
2.5.1. Economic Issues
Globalization affects economies profoundly. It has substantial effects on economic aspects such as income distribution, equity creation, enterprise growth, overall production, competition and the flow of information. This part aims to identify these effects.
2.5.1.1. Income, Income Distribution, and Poverty
The economic disparity between the various regions of the world does not require statistical records to substantiate. However, through watching the televisions and relying on the information on the different new outlets, one can clearly see how income differences and poverty is related. Additionally, the painful truth remains that Africa remains the most affected country (Okeke, 2015). The number of death can also imply the levels of poverty, for instance roughly around 3 million people die annually due to HIV. Therefore, this records about 15 million children lose their parent or parents each year to the disease. Additionally, at least 1.6 billion people live in intolerable conditions. Moreover, each year half a million women, on the other hand, it is estimated that die in birth-related or pregnancy disorders. However, there are about 94,970 people whose financial assets exceed $30 million dollars as of 2006 with an additional financial asset worth about $13.1 trillion dollars. Nonetheless, there are 9.5 million people whose assets exceed $1 million dollars and their total financial assets worth more than $37.2 trillion dollars.
Income growth and distribution vary from country to next. Therefore, the scope of studies into global income distribution are categorized into two groups - divergence and convergence. A good example indifference studies usually feature a developing country compared to a westernized developed market, for instance, Nigeria against America. On the other hand, convergence studies will often highlight countries with almost similar economies, for example, developing countries. The primary motivation of such studies lies in attempts of conceptualizing nominal exchange rates as influenced by the PPP, along with possible measurement methods and different parameters of interest.
The existing disparity in the income level forms an integral part of the distribution statistics. Therefore, countries may be assigned a poverty threshold according to some of these norms. Additionally, certain international measurements have been allocated for global analysis and evaluations. One of the best known of measures remains the ratio of those who must live with less than $1 daily (absolute poverty) or +2 (debt) to the population. In considering these rates of 70.8% and 92.4% respectively in Nigeria as of 2003 (Yakubu, 2002), the effectiveness of these measure in classifying countries can be established.
However despite the notion that a dwindling income distribution reflects towards a rise in poverty. Nonetheless, the move to eradicate poverty in developing countries mainly focusses on improving the living standards of the citizens. This remediation remains attainable through fostering an environment that business thrives providing employment to the people and subsequently leading to attainment of the sustainable economy.This move should cause the shrinkage of the individuals in the poverty cadre.
2.5.1.2. Capital, Finance, FDI and MNCs
The transformation in scale and scope of the economy since the inception of globalization in 1915 is only impressive. With more than 60 government securities traded in just the European market, the effects of globalization remain hard to ignore. London remains on the center stage when it comes to the history of globalization. Additionally, the contributions of Berlin and Paris are also relevant to the spread of globalization (Sohn and Lee, 2010). During 30 years of classical gold-standard characterized by fewer restrictions on national and cross-border financial flows records the peak of globalized trading.
The exports from Britain account for between 4 and 5% of their GDP from the year 1880 and 1914. This move prompted the other European countries to follow suit in exploiting the international trade venture. Therefore, the similar boom in international finance experienced 30 years after the collapse of Bretton-Woods system characterized by the introduction of fixed exchange rates and financial restriction marks an improvement from the previous regimes. The liberalization of the trade has since 1980's experienced increases due to advancements that favor the industry. This new move in the market remains the sole reason behind the build up of economies up until the late 1990's.
2.5.1.3. Production and Competitiveness
Over the last ten years, the global economy has transformed with the elimination of obstacles hindering the flow of product and services through improvements of technological and scientific development.This provision makes most governments predisposed to the creation of the healthy business environment with a sense of national competitiveness.
The conduciveness of a country to outside business remains one economic aspect of a global enterprise that can be ranked. Therefore, many countries may have broad or narrow shifts regarding ranking making us ask a concerning question- What is important is the persistent tendency? The alternating variations that cause an increase or decrease often transform to these shifts, for instance, the first five ranks are pooled by the top 7 to 8 western countries. The countries at the bottom of the list remain those whose environment are highly dynamic characterized by unpredictable significant shifts.Such nations often utilize globalization for production, technological advancement and foreign trade, for instance, Singapore, Korea, Hong Kong and Taiwan. Additionally, Turkey displays an upward movement towards this cadre.
One characteristic of this era lies in the extensive nature of globalization. This broad aspect remains the one element that distinguishes from one country to another. The world's income stays on a continuously increase, but the distribution of this quota among the various nation varies. Therefore, gaps between countries on income and equity will be displayed clearly. Nonetheless. Globalization offers countries that rare opportunity to integrate tapping the benefits of a world economy and an opportunity to grow their income. Nevertheless, these associations provide an environment where intense competition occurs and attaining a developed economy becomes a dream hard to achieve.






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