Gobalization on Socio Economic and Political Development MyAssignmenth

Question: Discuss aboiut the Gobalization on Socio Economic and Political Development. Answer: Introduction Globalisation can be referred to the integration of different economies for the purpose of sharing the resources and skills with each other. Globalisation has no doubt become a great buzzword in the current business environment. It opens up the trade, develops the means of communication and widens up the markets because of which the huge world seems as the one single economy. Globalisation has several impacts on the economies which may be positive or negative. It helps in the growth of various economies by integrating different technologies and cultures. Globalisation has increased opportunities for everyone. It provides an opportunity to one part of the world to get connected with another for the development of all. The past decade is a witness of globalisation and its growth and the whole world is witnessing the benefits and drawbacks of it today. No doubt, globalisation is on the heights of popularity and has become an essential concept in the present world but it is very controversial issue which is referred as an ill-defined concept in many cases. The research paper discusses several positive as well as negative cases to show the effects of globalisation on the industries and countries. In some of the articles, the authors argue that globalisation is a positive development for the societies and industries because it creates jobs and give a path to the companies to grow. Some other authors argue that Globalisation have its negative impact on the poor or underdeveloped countries as they face the pressure from the developed or developing countries. It may result in the loss or identity of the underdeveloped countries and the exploitation of their resources used by the developed countries for betterment in their position. These positive or negative cases of globalisation will be discussed with the examples in the paper. Globalisation and different views on it According to Irani Noruzi (2011), Globalisation has become the indicator of the development of the nations that means if a country is highly involved in globalisation, it is a good and growing economy and opposite is the case with the country which is very less involved with globalisation. Globalisation is a process which integrates different societies and liberalise the trade between nations. It is not a new phenomenon but has become a buzzword in the recent years. Globalisation has reduced the boundaries between different nations which is uprooting the way of life and cultures of different countries as well. In the views of Adesina (2012), Globalisation has affected many countries. One of its example is Nigeria. However, both negative and positive sides are experiences but globalisation has impacted a lot on the science and environment of the country. It has posed the country to many challenges. The author also suggests many ways to address these challenges. Globalisation increases the interdependence of the countries on each other. It increases the cross country transactions and integrates different economies sharing the technology, resources and knowledge with each other. Globalisation has brought many developments in the society like the development in technology in forms of evolvement of internet, telecommunications, computers, etc. which are the important components of the world development. But it is seen that after the introduction of globalisation, after few years, the western and the more powerful countries exploited the weaker ones. The main aim of globalisation that is diffusi on of the economies has been faded and the concept is misused on the underdeveloped countries (Dreher, Gaston and Martens, 2008). On Nigeria, one of the biggest negative consequence is of development of ICT. ICT refers to the Information and communication technology which plays a key role in the globalisation. Because of Information and Communication Technology, the youth of the country has been exposed to western culture which contributed to the increased use of pornography, abuse and terrorism in the youth. It also posed a danger to the cultural heritage of Africa. The author further added that most of the Nigerian youth population are nowinfluenced with the western culture and are deviating from their traditional roots. This has also attracted youth towards drug consumption and cybercrime. Many people are unemployed in the country are diverted towards the negative activities like Cybercrime. For all this, globalisation is responsible because people are getting access to internet easily due to this (Moloi, Gravett and Petersen, 2009). In accordance with Hamdi (2015), globalisation has helped developing countries to grow and compete the rest of the world. It helps in solving their problems of poverty and reducing the barriers of trade. The World Bank and International Monitory Fund have also helped these developing countries in arranging the funds and making significant changes for growth in the economies. It also creates job opportunities for the population which ultimately assist in improving the standard of living of people and reduces poverty. As per the author, Globalisation has made stronger relationships between developed and developing nations. Developing countries get access to improved technology and resources for their development. In return they provide cheapand abundant labour to the developed countries. Because of globalisation, many economies are able to develop at a rapid rate (Steger, 2010). For e.g. India and China are growing faster than most of the developed nations. However, some of the countri es like Africa are still poor but some countries have seen terrific changes in their growth when globalisation came into the scenario. The author further adds up that as per the world bank, globalisation has also increased the life expectancy of people (Bergh and Nilsson, 2010). The countries which are facing the negative or positive consequences of globalisation are Iraq, Africa, China, India, Lebanon, Jordan, etc. these countries are under the influence of globalisation. Some of the countries has taken it as an opportunity and improved their conditions while others lost their culture and customs and got engaged in negative activities like terrorism (Rodrik, 2008). The research done by the author analysed the relationship between globalisation and economic growth by using the data collected of 123 countries. It was found that economic and political globalisation has positively affected the economic growth while social globalisation affected the economic growth negatively. As per Orozalieva (2010), the political, economic and social globalisation has effect on the development of central Asian countries which are yet not perfectly connected to the globalised world. Globalisation has opened the market systems for the development of these countries but also have various obstacles. China can be seen as a model which has made the most of the globalisation. The countries like Kazakhstan and Ukraine should follow the same. According to Ali, Osman Dahir (2012), the world is in the dynamic state and it has been proved as an engine of growth for both the developed and developing nations. Globalisation . The countries like Europe have found their way and paths for business with other countries. The study was conducted to examine the effects of globalisation on the local manufacturers and it was found that that in Mogadishu (Somalia), the effects of globalisation are negative. It shows that for underdeveloped countries globalisation is a burden in which the devel oped countries exploit the underdeveloped countries (Dunning, 2014). According to Ch., et al (2011), Globalisation and its impacts has been an unsolved question over the years. It has brought different nations of the world close to each other. For e.g. if anyone visit a superstore in Dubai, the products imported from different countries will be found. The electronic items of china and Korea are famous worldwide. Food items like rice and tea are imported by many countries. The value of trade between the nations is increasing rapidly. The author added that around $8.9 trillion of goods are traded across the borders. As per the statistics, globalisation is expanding across the world. The data collected from World Trade Organisation states that the worlds economy is expanding since the year 1950. Globalisation links up different culture, politics, economy and society. Globalisation also increased the GDPs of many countries along with per capita income. In the global markets, it has changed the picture of worlds trade. The institutions like World Trade Org anisation, International Monetary Fund and United Nations organisation are assisting in bringing unity in the trading system of the world. Prior to globalisation, USA was the dominant exporter in the world but after globalisation, the countries like Japan, China, and Germany are into the major exporters list. The table below shows the increase in the exports of different countries over the years: Table 1: Share of exports Countries Share of world output in 1963 (In %) Share of world output in 2004 (In %) Share of world Trade in 2004 (In %) US 40 21 10 Germany 10 4 9.5 France 6 3 5 UK 6.5 3 4 Japan 5.5 7 5 Italy 3 3 4 China Not applicable 13.2 5.9 Now, the Foreign Direct investment is considered as the significant indicator of economic development for countries (Ilnu, 2012). Globalisation has also increased the trend of multinational corporations across the world which was only dominant in USA earlier. The statistics says that the 48.5% of share in MNCs was of USA in 1973 and it was 28% in 2002. The share of other countries increased considerably. It also affected employment a lot. The jobs shifted in developing countries from developed countries which will give its benefits in the longer period of time. The industrial activities have increased and many industries are now accessing the resources from the other country which is minimising their overall manufacturing costs (Rao, 2013). In the words of Kuepper (2017), The Federal Bank of San Francisco reported that around 35.6% of the total clothing and shoes which are sold in US are originally manufactured in China and only 3.4% are manufactured domestically in US. This shows how much globalisation is spread across the world. But Globalisation comes with the costs too. In the case of global financial crisis of 2008, globalisation was questioned because the global capital reduced from $11 trillion in 2007 to its one third in 2012. Kofi Annan once said that no doubt globalisation has some short term problems and issues but in the end, it is an important part of our lives now. According to UNCTAD (2012), Globalisation has shifted the economy of world. The trends show that since the Second World War the trade has accelerated between the nations. This shows some benefits but also some of the issues which hitting the poorer nations the most. International trade is expanding faster giving economies a boom but the countrie s like Africa lost in globalisation. 2/3 of the total transactions takes place between the richest countries and the poorer ones suffers. The remaining one third of the transactions is done between the least developed countries which are around 135 in number. So, the least developed ones only get .5% of benefit and most of the part is eaten by the developed countries. Transport and communication is increased and their operating costs decreased by 60% but only few of the countries control the worlds communication businesses. According to Tverberg (2013), the model of globalisation has some flaws. He further explained that globalisation uses up the resources more quickly, even those which are finite. For e.g. China joined WTO in December 2001 and in 2002 the use of its coal began to be consumed at a rapid speed. The emissions of Carbon di oxide increased at a great speed because of the use of coal and fossil fuels. Globalisation also resulted in the increase of the oil prices across the world. Since 2005, the prices of oil have increased at a global level and the reason is the limitations in the supply and increase in demand of oil. The demand for fuel is increasing rapidly because of which the prices are pushed forward. The corporations have the freedom to move to the locations where they get the lowest tax rate and the lack of jobs and production leads to the transfer of tax burden to the individual citizens. Globalisation also encourages the dependence of one country on another for goods and services. As long as everything is working well, everything is fine but as soon as some instability occurs, everything stops which might create a very huge problem for economies. Globalisation results in the pulling off of many countries together. It means that when one country is facing the threat of collapsing, it brings down other countries with itself. For e.g. the world recession of 2008, it happened in United States but affected other parts of the world too like Europe and Japan (Tverberg, 2013). In the opinion of Mourdoukoutas (2011), Globalisation has three sides, the good side, bad side and ugly side. The good side of globalisation is that it creates opportunities for the countries to grow and prosper. Local manufacturers can sell their products in the international markets with so much ease and speed and in better prices. For e.g. Sony Corporation sells its mobile phones and other electronics in different markets. Similarly, the companies like Apple, Samsung and other brands sell their products in various countries. The good side is that globalisation helps in easy credit and leverage which helps in the flow of goods and services across the boundaries. But the bad side is that it brings risks and uncertainties for the economies. It builds up high level of competition and inflexibility in prices of the products and services. The local manufacturers have no pricing power and they have to follow the global set prices for their offerings. It also brings ugly side of globalisa tion which can be understood from the continuous currency devaluations. It also outs a b burden on the underdeveloped countries when they are exploited by the developed countries (Beck, 2015). Globalisation operates mostly in the benefit and interest of the developed countries which increases the dominance of these superpowers on the poor countries. They take cheap raw materials and sources from the poor countries and sell their products and services at higher prices. Globalisation gives no surety that the investments made by the country will benefit the local communities or not. The profits are sent back to the transactional companies which operates in the country where there are cheaper operating costs. It might also affect the local industries of the nation and make people jobless (Hirst, Thompson and Bromley, 2015). Globalisation is also criticised because it leads to the loss of cultural diversity. The integration of cultures may lead to the thrash out of the original culture and adoption of the culture of other countries. Globalisation also affected the distribution of income across the world. It is seen through various studies that the per capita income has increase s drastically since the 20th century but the distribution of income in the countries has been unequal. The income gap has increased and the richest part of the world has improved their income by 6 times whereas the poorest parts of the world improved only by 3%. So, even if globalisation has contributed to the growth in global income, it created differences between the richest and poorest countries. Economic growth is unequal and it is the significant indicator of growth of every nation (Bergh and Nilsson, 2010). Globalisation is encouraged with a view that it will end poverty and hunger from the countries and will provide better life to the people and to the industries. The main idea is to unite the world for betterment and prosperity of the world (Michie, 2011). Globalisation also aims at improving the situations of inequality between the nations. It resulted in the reduction of global inequalities between the developed and developing nations since 1970s. Globalisation is gaining more popularity with the coming years. Different countries have realised the importance of growing cooperation and coordination between different nations, organisations and institutions. If the issues of globalisation can be solved or looked upon, globalisation can create more benefits to people, industries and economies (Hopkins, 2011). Conclusion The ideas, views and opinions of various authors have been discussed in the paper from which it can be concluded that the authors do not have consensus on the point whether globalisation have positive or negative effects on the economies. Some of the authors believe that it has changed the face of the world and has provided many opportunities to industries and nations which would have not been possible without globalisation. On the other hand, some authors criticize it that it has created u=inequality between nations and the poor countries are becoming poorer in the dominance of few rich countries of the world. It can also be concluded that despite globalisation contributed to the increased level of global income, it created differences between the countries and their income. But globalisation has increased the production levels and trade levels. The world markets have integrated and the standard of living of people has been improved. But it is very important to find the solutions fo r the countries like Africa which is facing high complexities due to globalisation. Globalisation is favourable for some countries while it is unfavourable for the countries like Africa but the leaders of the nation like Kofi Annan clearly stated that these nations have to cope up with the world standards for matching up the requirements. Globalisation can be an opportunity for them and they can grab it to grow and prosper further in life. The paper also discusses about the problem of increase in unemployment in the developed countries and increase in employment in the developing countries where there are cheap labour available in abundant. These resources are hired by the companies so that the manufacturing costs can be minimised to a great extent. 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