Globalization. Its Positive And Negative Effects Essay

Globalization. Its Positive And Negative Effects - Essay Example It is not possible to define Globalization in terms of integration or internationalization as has been suggested by some theorists. Globalization describes the interplay within cultures of macro-social forces (Basu 2008, p.29). Such forces include politics, economics, and religion. Discussion Globalization can universalize and erode a local group’s characteristics. It has significant social, business and economic implications. Major factors in globalization are Advances in telecommunications infrastructure and transportation including the emergence of the Internet. They generate further interdependence of cultural and economic activities. Since the mid 1980s use of the word globalization has been on the rise; further, environmental challenges like cross-boundary air and water pollution, over-fishing of the ocean and climate change are associated with globalization (Zurich, Cairns and Ramaphosa 2000, p.219). Globalizing processes are affected by the natural environment, work an d business organization, socio-cultural resources, and economics. Globalization is a process that leads to some substantial changes for businesses and markets to address the expansion of trade in services and goods between countries, increased labor migration levels, internationalization of services and products and development of global brands. Globalization also leads to increased labor migration levels, changes in consumption and production such as the expansion of off shoring and outsourcing of support and production services. It also leads to the entry of nations into the worldwide trading system including former nations of the Soviet bloc and China. A major outcome of globalization is the growing inter-dependence of economies. For instance, most countries in the world depend on each other for macroeconomic health, and economies of newly industrializing countries are growing faster than rich developed nations and they are winning an increasing share of world trade (Stiglitz 200 3, p.39). In 2000, the IMF; International Monetary Fund named four primary aspects of globalization; investment and capital movements, transactions and trade, dissemination of knowledge and movement and migration of persons. With regard to transactions and trade, developing nations increased their share of global trade, from 1971’s 19 % to 1999’s 29 %. Nevertheless, there is massive variation among key regions. For example, the NIEs; newly industrialized economies of Asia succeeded, but African nations as a whole did not prosper. The makeup of a nation’s exports is a vital indicator for success. Manufactured products exports soared, dominated by NIEs and developed countries. Commodity exports, such as raw materials and food were commonly produced by developing nations. As a result of this, investment and capital flow can be identified as another primary feature of globalization. The movement of Private capital to developing nations soared in the 1990s, replacing development or "aid" assistance which dropped substantially after the early 1980s. FDI; Foreign Direct Investment became the most vital category. Bank credit and portfolio investment increased although they have remained volatile, falling steeply in the wake of late 1990s financial crisis (Basu 2008, p.30). The movement and migration of individuals can also be identified as an important aspect of the process of globalization. Between 1965 and 1990, the migration of labor forces approximately doubled. A lot of migration occurred between LDCs; Least Developed Countries and