Category: Economics Essay
Aspects of Globalization

Globalization is explained as the increasing unifying the world's economic order through the reduction of any barriers to trade internationally. The barriers may include import quotas, export fees, and tariffs. The main objective is to accelerate services, goods, and material wealth through various efficiencies attributed to competition, specialization and international relations. It is a process that focuses on lifting the present barriers hindering the progress and development of a given economy. Globalization describes the entire process by which cultures, societies, and regional economies have gradually become integrated through trade, transportation, and communication. In most cases, this term is closely associated with other terms but mostly economic globalization. This is the integration of state (national economies) into the general international economy through migration, trade, capital flows, military presence, the spread of technology, and foreign direct investment. However, globalization has been stereotype recognition for being driven by a collection of biological, economic, socio-cultural, technological, and political factors.

The term has also been used to define the transnational circulation of ideas, popular culture, or languages through acculturation. This paper seeks to lay emphasis on the need for individuals to go global, and the various impacts that the globalization elements have on the trends of daily activities that the individuals have. Globalization has been viewed differently in terms of its impacts or implications in the world and in world affairs. This is due to the fact that its impacts are not one dimensional. They are social, economic and political. Whereas some analysts and scholars argue that it has been central to bringing international development in all those perspectives, others differ and cite the negative implications of this phenomenon. In this essay, I will give the two implications of globalization in a manner of positives and negatives. This is because the truth lies in the visible findings of both schools of thought. The benefits are political, social and economic as follows.

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Broken down into little pieces, globalization has brought economic development in terms of quicker means of conducting business through mobile banking, the use of international courier services to relay information, use of the internet to conduct online business such as those of the stock markets. The improvement of technology has enabled ease of communication between merchants and their customers. It has also enabled the expansion of business enterprises and increasing markets around the globe due to the quick access of information that has enabled advertising services to be possible. This has also increased due to the mobility of financial markets through technological advances. It has also enabled quicker means of communication and provided a global village that exhibits quicker and faster means of sending and receiving information. In conjunction with such developments, it has created a lot of jobs which include interstate and intercontinental connections that have enabled the provision of online jobs to many people in the world. Politically, globalization has enabled democracy through international, continental and regional organizations like the United Nations (U.N), Commonwealth, European Union (E.U) and smaller organizations like the Economic Community of West Africa (ECOWAS).

Through intergovernmental links and organizations, the sustainability of peace and security has been enabled. All these have led to firm bases for the advancement of liberal democratic ideas of free markets, democracy and multi-party politics all around the world. In terms of global tackling of crises, globalization has made it easier for countries to intervene in the affairs of neighboring countries. For instance, the recent wave of political violence in sub-Saharan Africa has been quelled by foreign intervention from states who shared the goodwill of the innocent citizens of the affected countries. This aspect has also enabled the world to act jointly to fight such incidents like terrorism, hunger, natural disasters, and political upheavals.

Socially, globalization has increased social integration among the people around the world. This has been made possible by improvements in the communication links in the globe. Through the internet, social networking sites like facebook, twitter among others have been discovered to keep people in touch with each other. The use of planes and underground trains has enabled people to move in and out of various countries within a short duration of time. This improvement of the transport system has increased not only the mobility of the people but also of goods and services. This has also created job opportunities for the people working in those vessels of transport. Education across various borders has been made possible. For instance, there are various students in Europe who live in one country and study in the other, for instance, student X lives in Holland and studies in Belgium. This is possible due to the presence of electric trains. Globalization has facilitated the concept of outsourcing in various fields of the economy. Work including that of marketing, customer support, software development, insurance, and accounting is outsourced to both developed and developing countries like India and Russia. So, the organization that outsources the factors of production input enjoys the advantage of lower operating costs because the salaries in underdeveloped countries are lower than the ones sourced from developed countries.

The laborers in the developing nations get a source of employment. In the process, the developing nations get access to the rapid advancements in technology. Making the world a global village has eased the need to have all elements for human life development accessible. People and organizations are now in a position of acquiring whatever they need whenever they need it. This is facilitated by the fact that globalization has opened newer avenues of sourcing relevant requirements. It has also contributed to the acquisition of both knowledge and technical equipment necessary for the advancement of the outsourcer. It goes without saying that the interaction has contributed to the growth of various groups and facilitated innovation. Globalization has led to the opening up of these bondages of the organizations always targeting the regions that they are located in as their areas of concentration. This is a positive accelerator of development.There has been intensive criticism that globalization causes poorer countries to suffer disadvantages. Critics further said that, while it is obvious that globalization promotes free trade among nations, there are negative results also because many countries seek to retain their national (state) markets. The major export of underdeveloped countries in most cases is agricultural goods.

Developed countries usually subsidize their agricultural farmers (for instance EU Common Agricultural Policy); this goes a long way in lowering the price for the incapacitated farmer's crops in the market compared to the fundamental provisions of free trade. The third world economies stand at a risk of insubordination because of the dominance of the developed countries. In trade, most developing countries are seen to produce primary products while developed countries are in the front line offering manufactured and finished products. Unfortunately, despite the farmers (who are from poorer countries) having produced the products, the developed countries are the price makers. This renders the poorer countries poorer and their economy remains undiversified. Critics of globalization have pointed at a new world order that has been created by the developed world. They observe the general use of technology to run most world affairs as a new way the industrialized countries want to control the world. This is the perspective of the anti-imperialist theorists who look at the fact that most of the industrialized countries are the same ones that colonized countries in the 20th century.

To this extent, some of them look at it from the perspective that democratic space has been shrinking due to the domination of world affairs by these countries. This view owes much of its basis on the fact that the United Nations veto powers are solely run the affairs of the world. They have stretched their tentacles in every aspect of world affairs be it political or socio-economic. This view, further suggests that this dominance has led to the unprecedented gap between the rich and the poor. This is generally the inequality that has led to terrorist activities especially due to the rebellion from the third world countries. These countries feel that they are being unfairly exploited and thus there is a need to fight the first world countries.

Globalization creates aggressive competition pressure on companies to lower prices. This poses great benefits to the final consumers. International trade has led to many industries providing a wider range of products to the economy. This has been facilitated by the aspect of competition where many companies have realized that they are not only competing with others from their home states but also those beyond their national boundaries. Competition has led to the diversification of the economies available. The consumers in the countries are now in a position of acquiring commodities at relatively competitive prices and of high quality. Industries have further noted that the production of substandard goods is not an option because consumers are now rational and more informed hence can shift from one brand to another at the slightest provocation of poor quality. Globalization has increased the availability of goods and materials necessary to the individuals.

According to the microeconomic laws of trade, an increase in the supply of a given item leads to lower prices attached to it to attract customers, and the inverse holds true. Customers are bound to getting advantaged due to the variations in price and brands of items. Environmental assessment also ties globalization to the climatic change and the consistent environmental degradation that is ongoing in the world. This has led International Organizations like the U.N to call for international conferences to discuss how countries will reduce the emission of greenhouse gases into the atmosphere, for instance, the climate conference in Copenhagen that was held in 2009. Cultural integration has also led to the erosion of various cultural practices. This is a factor that has been used as a critical point in the castigation of globalization by its critics. In answering the question as to whether I agree with Friedman about globalization, I am affirmative. As an ardent supporter of globalization, Friedman argues that globalization should also be adapted in order to include local cultural practices so as to avoid the erosion of local cultures and practices. In his argument concerning the stability of the U.S.A I contend with his point of view because by becoming energy independent, U.S.A will be able to influence the adapting of democracy in the Middle East. This is to the extent that the authoritarian rulers will stop using the excuse of protecting their natural resources from foreign powers like the US. The current revolutions in the Middle East have been caused by globalization through the social networking sites and not through this factor though…thus this is a point to note. About his views on global job opportunities, I totally agree with him because this will enable the best professionals to get the best jobs which will increase the output provided by any and every employee in a given firm. His views about the merging of companies to form multinational corporations for the basic reason of monopolizing markets are true and reasonable. In his comments about international integration of political issues, I agree because they are the same explanations that lie around the revolutions that have been taking place in the Arab world. For instance, the Egyptians didn’t need to go to Tunisia to learn how to overthrow President Hosni Mubarak. They didn’t even need to go to the streets to mobilize their forces and revolt against their authoritarian president. On his observation about what propels globalization, I am so much in agreement.

Technology has driven globalization to its extremes which are changing the world today. I am in total agreement with Thomas Freidman’s theories of globalization. I concur in the statement that individual countries must sacrifice a considerable degree of economic sovereignty to the global institution's such multinationals corporations and capital markets. He defines localization as the need for a country to uphold its cultures and traditions. This means that the country at hand is able to remain unique and distinct which is generally considered a trademark to the products that it wishes to offer. He considers the purchasing power as the most important driver of domestic labor. He adds that outsourcing labor to sectors such as education brings about specialization and the need to acquire relevant knowledge and information from other countries. Freidman emphasizes the need to have free trade regularized to ensure consistencies in the operations and improvement of the lives of the people in the society. According to him, a free market promotes competition which is a development component to the diversification of the national economies. Freidman says that globalization is a comprehensive initiative that seeks to diversify the economy through the review of some restrictions harboring the free interactions between countries. The international community has been encouraged to cooperate in the race towards economic achievement.

The development of worldwide financial markets has led to a better connection and access to external financial borrowing. This has broadened the path for investment development and related fields. For instance, many multi-national banks have emerged and have tailored their financial products to suit different geographical regions in the world. Such institutions have made it easier for prospective investors to carry out their business activities by ensuring that finances are provided to them. Capital is a basic requirement for production and it goes a long way in making a business idea becoming practical. Through the provision of the same internationally (either through loans or grants) many investment ideas have come into being. For a long time in the previous past, laborers had been tied to their national economies. Globalization has led to increased competitiveness of individuals in the international market. The opening up of the boundaries has led to the improvement of the credibility of persons to work in the international labor market. Working globally has a number of benefits to both the individual and the state as well. The individual not only gets a source of employment but also attains a salary to which his livelihood is derived. This improves his quality of living and those that matter to him, for instance, the family members. The government benefits in a number of ways. It attains more revenue through taxation and there is a lower dependency ratio which attributed to the increased employment opportunities. Similarly, the government is able to channel most of its expenditure allocation plans to development initiatives other than uplifting the lives of its citizens through offering relief. Other benefits are to the society and may include the reduction in the levels of individuals engaging in social vices such as prostitution and crime both attributed to unemployment. Other critics argue that the fact that people are employed lowers the likelihood of them falling ill due to stresses attributed to unemployment. In fact, the population leads a healthy life as all members of the society are able to cater for their health requirements. Globalization could result in the exploitation of foreign inexperienced workers. The leniency of protections for poorer countries by stronger developed powers may result in the exploitation of the individuals in these nations who are a source cheap labor. Due to the inadequacy of protections, corporations from stronger industrialized countries are able to provide workers with enough salary to lure them into enduring extremely long working hours and harsh working conditions.

Globalization in Michigan

When we talk about the consequences of globalization on Michigan, we talk about the migration in and out of this city. This is a city that has captured the world attention through its violence and extreme hatred that exists among its inhabitants. The rich live in the ranches that are sort of rural, the Blacks live in the ghettos and the city is composed of so many immigrants. This town was known as the industrial capital of the world. People migrated there to change and rediscover their lives. An example is that of a Catholic community that exists in the town. It was surrounded by people from the Czech Republic, within a short while, Italians occupied it. Currently, Mexicans occupy it. In this aspect, the church has no option but to advise the priests to learn so many foreign languages in order to cope with the changing heritages of the congregants. The city of Michigan is bound to benefit from the globalization initiative in many ways.

As we have seen, globalization promotes nationalism and liberalization of the economy. The economy of Michigan will be liberal and the lifting of various restricting rules will lead to market forces freely determining the trends in business. The demand and supply components of trade will serve to promote the availability of goods and services to the customer despite the boundaries. Globalization leads to increased competition in product delivery. A globalized economy avails a variety of options to the members of the society in which decision making is based. The people of Michigan are bound to benefit from the availability of a wide range of products which are provided at affordable prices in the market. The abundance of the materials needed in the Michigan capital market leads to the fluctuations in costs of goods and services and consumer involvement in product development. Globalization widens the labor market from which the employers from Michigan industries can choose from. This enables employers to get hold of the best qualifications in individuals globally. Skilled labor can also be acquired by outsourcing the most economical and cost saving labor options. Through globalization, Michigan will be in a position of acquiring information from all over the world. Such information will be more beneficial to them. The people of Michigan are enabled to interact with persons from all walks of life which leads to the spread of cultures.

The Michigan people can pick up cultural trends that they consider appealing and learn from them through implementation. On the other hand, Michigan might face negative consequences. They include the possibility of multinational corporations and companies that were previously barred from engaging in commercial activities having more influencing political decisions to the local governments. Similarly, most developed states have outsourced white-collar careers and manufacturing jobs. This results in lesser jobs for their citizens. This could happen because manufacturing work is fetched from developing nations like in Africa where the requirements to manufacture goods and salaries are considerably lower. Due to the demand by the locals to have better pay to ensure that they thrive conductively, the management seeks to minimize its costs of operations. This results in them hiring low-cost labor through the available outsourcing channels. Globalizing Michigan may cause job insecurity. Currently, Michigan people have stable and permanent jobs. Through globalization and the outsourcing of labor, people will live in constant fear of losing their jobs as a result of increased competition. The rising job competition will lead to a reduction in salaries or wages and consequently lower the quality of living. Due to the outsourcing of individuals, immigration rates will increase. As a result, terrorists are likely to seek Michigan as an operation base. They may sneak in weapons that may not be in the best interest of the greater majority. Drug trafficking also may intensify due to the less restrictive border rules. Drug abuse may impact negatively the economy of Michigan as victims will exhibit a low productivity level. Also due to the incapacitation of these individuals, the local authority is faced with a high dependency ratio because of the unemployed population. Unemployment in Michigan may be brought about by the employers seeking to outsource cheaper labor from without other than from within which has been proven more expensive.

Another shortcoming of having the Michigan people engage in the globalization process is the fear of acquiring cultural practices and behavior. The most probable reason for the anxiety is the erosion of the Michigan traditions. Through globalization, many of the Michigan people will go on learning by constant interactions with others in the world. Through improvements in technology such internet and communication devices like cell phones, Michigan people can reach out and hear opinions of different people to uplift their standards. In the education sector, Michigan students will benefit from acquiring knowledge of the most recent and relevant developments and discoveries. This will go a long way in equipping the citizens with life skills that come in handy in their later lives. Globalization has gathered many individuals and companies in forums to deliberate on the issues affecting the environment. It is without a doubt that ecological responsibilities are issues affecting human beings across the world. The advent of ecological challenges has been attributed to damages caused to the environment by members of the global society. Governments have considerably encouraged discussions on the same by allowing citizens from different parts of the world to meet and share openly on the possible changes that could help curd the ecological adversities. Issues such as overfishing, air and soil pollution, water pollution and the spread of deficient species are some of the issues affecting the world collectively. The degree of harm posed to the environment is relative from state to state. For instance, it has been viewed that the developing countries are faced by environmental hardships caused by the usage of out-dated mechanical equipment in their processing activities. Through international cooperation, the countries can come together and deliberate on policies that they see suitable to fight the harm brought to the environment. Perhaps in a more analytical way, the problem of Michigan is highly political. According to Harold Lasswell, politics involve who gets what, when and how? There is the scarcity of resources in Michigan, the industries that existed have moved to greener pastures and have left the town as an empty city of unoccupied warehouses.

To add salt to the injury, an increase in population has led to the development of real estate’s to accommodate the rising population. This development has deleted the clear cut distinction that existed between all the races in this region. Moreover, almost everybody depends on government welfare. This technically means that everybody is equal or near equal. In such a situation Lasswell's theory becomes effective because people begin to form gangs that fight against each other so as to protect the little advantage they have over their mates. This is why the youths fight against each other in Michigan. This is very ironical because people migrate to Michigan to change their lives but end up in a city that is highly populated with people who share the same interests. In this context, the problem of Michigan is global to the extent of the mobility of labor and the influence of foreign languages. The government, for this reason, faces an uphill task of moderating and calming down these groups which look at each other with a lot of suspicion and contempt. Economic analysts suggest that education would better things for the inhabitants of this region if the government decides to invest in it. This, according to their findings, will play an important role in integrating these people who come from all over the world. In conclusion, it is important to note that through research, analysts have investigated both the positive and the negative aspects of globalization. Globalization is essentially a force that has positively transformed the world with more countries benefitting from its wide-reaching impact. It is vital for researchers to concentrate on the more creative ways globalization can continue to create a better world.

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