During the 1990s and till recent times, policymakers have argued that globalization has led to significant economic growth and improvement in human welfare. On the other hand, some daunting challenges such as Increased poverty, unemployment, and social disintegration have also accompanied globalization.Do you agree? Please discuss and share your perspectives on this.
Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. Globalization refers to interconnectedness among countries through various relationships, from business, geopolitics, and technology to travel, culture, and the media. Globalization has transformed the modern world. It shapes, and will continue to shape, the way people do business, travel, and connect. Globalization provides a wealth of benefits, but it also comes with economic and cultural consequences that can be difficult to navigate. Corporations and companies see globalization in every aspect of business even smaller startups and entrepreneur-led businesses will be impacted. Globalization affects businesses in a variety of ways that include; Increasing competition, Opening larger, more diverse markets ,Increased flow of trade, capital, information, and people, Sharing technology, Sharing knowledge ad Promoting a diversified workforce.
some of the benefit of globalization include: Increased Flow of Capital, Better Products at Lower Prices, Collaboration and Shared Resources e.t.c.
Globalization has its negative side which has Increased poverty, unemployment, and social disintegration. some of the challenges of Globalization include:
1) Exploitation: American companies have been known to use cheap foreign sweatshop labor to make cheap American goods. Wealthy, industrialized countries have shipped their trash to countries like Nigeria. Exploiting cheap markets and lax regulations in developing nations has caused pollution and suffering in those countries, even as profits soar abroad.
2) High Investment : Globalization presents challenges for multinational corporations in terms of capital investment and leadership. Setting up a business in a new country, especially a developing country, requires substantial upfront capital. The needed infrastructure may not be in place.
Roads, electrical grids, broadband internet, water, and sanitation may need to be upgraded or developed from scratch. It can also be difficult to find and retain managers with the requisite skills to add value to the company and work effectively within the local culture.
3) Weak Regulation: Fewer regulatory bodies exist for international business enterprises. Navigating the international markets can thus sometimes feel like the Wild West. Interconnected markets also mean that with a lack of regulation, if something goes wrong, the repercussions will resound globally. The global financial crisis, for example, hit many nations hard.
Globalization is a complex phenomenon. As such, it has a considerable influence on several areas of contemporary societies. Let’s take a look at some of the main negative effects globalization has had so far.Globalization affects all sectors of activity to a greater or lesser extent. By doing so, its gap with issues that have to do with sustainable development and corporate social responsibility is short.Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization.
Name: Assi Kaetti Marian
REG NUMBER: 2017/241454
DEPT: ECONOMICS
EFFECT OF GLOBALIZATION
“Globalization” is currently a popular and controversial issue, though often remaining a loose and poorly-defined concept. Sometimes too comprehensively, the term is used to encompass increases in trade and liberalization policies as well as reductions in transportation costs and technology transfer. As far as its impact is concerned, discussion of globalization tends to consider simultaneously its effects on economic growth, employment and income distribution – often without distinguishing between countries and within-country inequalities – and other social impacts such as opportunities for poverty alleviation, human and labour rights, environmental consequences and so on. Moreover, the debate is often confused from a methodological point of view by the interactions between history, economics, political science and other social sciences.
The negative impacts of globalization
1. Tendon (1998) states that the cold war which was born out of the process for globalization has had significant consequences for Africa. During its height in the 1960’s and 1970’s, the cold war witnessed the emergence of authoritarian regimes in the form of one-party or military regimes. This was largely a result of the support of the two blocks to keep African countries in their respective camps. This has in turn, substantially reduced Africa’s international negotiating power and its ability to maneuver in the international system. In sum then, the cold war and its demise has worked against democracy and economic development in Africa.
2. Specific impact of globalization on Africa were identified according to Oyejide (1998) in the political sphere, the most important consequence is the erosion of sovereignty, especially on economic and financial matters, as a result of the imposition of models, strategies and policies of development on African countries by the International Monetary Fund, the World Bank and the World Trade Organization.
3. More important is the fact that globalization for most part does not facilitate the establishment of the economic conditions necessary for genuine democracy and good governance to take solid roots and thrives.
4. Economically, globalization has, on the whole, reinforced the economic marginalization of African economies and their dependence on a few primary goods for which demand and prices are externally determined. This has, in turn accentuated poverty and economic inequality as well as the ability of the vast number of Africans to participate meaningfully in the social and political life of their countries.
Positive impact of globalization
1. Globalization has eased international trade and commerce, facilitated foreign investment and the flow of capital while calling for greater accountability and responsiveness of leaders to their people, globalization has often pressed African leaders to adopt policies and measures that are diametrically opposed to the feelings and sentiments of vast majority of their people
. 2. By defining basic and generally accepted principles of democratic governance, such as good governance, transparency and accountability, in narrow terms, conditioned by particular historical, political, social, and cultural factors, while leaving little or no room for adapting them to different societies and cultures.
3. There are international lobby and pressure groups in various fields. There are universities and institutions of higher learning with all their power to impact knowledge, skills and attitudes that shift behaviours of societies and state leadership as well as followership. All these combine to reinforce the phenomenon of globalization and force the state to shift its behaviour and the way it relates with both its “subjects” and its internal and external partners.
CONCLUSION As the price of information falls access to knowledge is increasing. The globalization of communication is permitting the globalization of higher education. Many countries in the less developed world perceive danger in this globalization. For example, Guy (1995) writes about the intrusive effects Western curricula and pedagogues have on Papua New Guinea with little accommodation to indigenous culture and learning. Too often, existing cultural values have been replaced by a dominant global standard. Many indigenous languages are under threat from the spread of English, which is seen to provide social mobility and improvement in employment prospects. Rench (1990) comments on the prevalence of this cargo cult attitude towards the learning of English in Papua New Guinea, but like so many other cargo cults, the learning of English and the education system generally have failed to deliver the desired goods to most Papua New Guineans (Swatridge, 1985). Instead, it is the death of the indigenous languages which is delivered. Dixon (1991, p. 247) suggests that as schooling, radio, television and other trappings of Western-style civilization advance through New Guinea perhaps ninety per cent of the languages will be threatened with extinction. It is feared that the globalization of communication and education will both speed-up cultural homogeneity and reduce the tolerance of difference. As Evans (1995, p. 266) point out: many new forms of open education which are mediated via the internet, or through satellite broadcasting, cannot be achieved with any substantial accommodation to local conditions. There is little likelihood of a myriad of small, local, traditional cultures being nurtured within globalization, Globalization raises many practical issues and concerns for the individual business enterprise too. What sorts of guidelines and input should guide product design? How desirable are knowledge-sharing agreements? What are the ideal features of international business partners? How should management monitor competitive activity? How can competitive advantages be created and sustained? What degree of attachment is optimal to alternative sourcing and production locations around the world? Management has to grapple with these and many other similar questions on an ongoing basis. In most industries, this is not a matter of choice but of necessity. Welcome to the global village!
EKPECHI AFOMA K
2015/203448
DEPARTMENT OF ECONOMICS
Globalization according to Akindele (1990) refers to the process of the intensification of economic, political,
social and cultural relations across international boundaries. Globalization is principally aimed at the transcendental homogenization of political and socio-economic theory across the globe. It is equally aimed at
“making global being present worldwide at the world stage or global arena” (Fafowora, 1998). In other words, as
Ohuabunwa, (1999:20) once opined: Globalization can be seen as an evolution which is systematically
restructuring interactive phases among nations by breaking down barriers in the areas of culture, commerce,
communication and several other fields of endeavor.
Simply put, globalization is the term used to describe the changes in societies and the world economy that result
from dramatically increased international trade and cultural exchange. Cerry (1994) also said, globalization
describes the increase of trade and investment due to the falling of barriers and the interdependence of countries.
The globalization of the world economy is reflected in many ways. The General Agreement on Tariffs and
Trade (GATT) simulates free trade between countries by encouraging the reduction of tariff and non-tariff barriers
(e.g. local content requirements, safety regulations, etc). This allows firms to more easily trade and move around the world. A result of this increased mobility is the increasingly large scope of money and capital markets and looser regulations on foreign direct investment. Multinationals now have more freedom and are more dominant in the international business environment then ever before. Adam Smith’s theory of the “invisible hand” is now a global reality. ot all the effects of globalization are benign. Multinational corporations (MNCs) under the framework of the Bretton Woods institutions (World Bank, International Monetary Fund) and the World Trade Organization (WTO) have achieved a standard international economic structure through the General Agreement on Tariffs and Trade (GATT). This has resulted in: reductions in budgetary deficits, removal of food subsidies, promotion of foreign investment, import liberalization, privatization of the banking sectors, and reductions in the support of domestic agriculture. The impact of these changes has not been universally positive for all developing nations.
Is globalization beneficial for third world like India? An audit of the performance of the Indian economy
after economic reforms were initiated in 1991 fails to reveal any improvement. The opening of the Indian economy to foreign capital has not attracted a significant flow of capital or technology into the country. Exports are up, partly as a result of devaluation of the rupee and because of a general increase in world trade. But imports have grown rapidly also and present indications are that there is likely to be a huge trade deficit by the end of the present fiscal year (1999). Foreign denominated debt has increased significantly and the WB has cautioned that the servicing of the debt and repayment obligations may begin to exert pressure on the international balance of payments. Modern industry is knowledge intensive. It may result in jobs for the highly educated, but it is unlikely that jobs will be generated for the uneducated poor, like the surplus agricultural force of rural India. This is true even if the growth rate of investment n the private sector is high. Education leads to globalization and globalization leads to education. This is the globalization of education.
The Indian economy is not alone in being affected by globalization. Economies are disparate as Taiwan and
the Philippines are likewise affected. Taiwan, which recently opened up its markets to imports prepared over thirty
years for globalization. The same long-term preparation is true for Japan and South Korea. While problems have
occurred in some economies some have benefited. For example, the U.A.E. was once known as a backward country with a high illiteracy rate but is today sometimes called a “mini-U.S.A.”. The Sultanate of Oman, another country in the Middle East benefiting from globalization, recently reached the one hundred percent literacy level.
EKPECHI AFOMA K
2015/203448
DEPARTMENT OF ECONOMICS
Globalization according to Akindele (1990) refers to the process of the intensification of economic, political,
social and cultural relations across international boundaries. Globalization is principally aimed at the
transcendental homogenization of political and socio-economic theory across the globe. It is equally aimed at
“making global being present worldwide at the world stage or global arena” (Fafowora, 1998). In other words, as
Ohuabunwa, (1999:20) once opined: Globalization can be seen as an evolution which is systematically
restructuring interactive phases among nations by breaking down barriers in the areas of culture, commerce,
communication and several other fields of endeavor.
Simply put, globalization is the term used to describe the changes in societies and the world economy that result
from dramatically increased international trade and cultural exchange. Cerry (1994) also said, globalization
describes the increase of trade and investment due to the falling of barriers and the interdependence of countries.
The globalization of the world economy is reflected in many ways. The General Agreement on Tariffs and
Trade (GATT) simulates free trade between countries by encouraging the reduction of tariff and non-tariff barriers
(e.g. local content requirements, safety regulations, etc). This allows firms to more easily trade and move around the
world. A result of this increased mobility is the increasingly large scope of money and capital markets and looser
regulations on foreign direct investment. Multinationals now have more freedom and are more dominant in the
international business environment then ever before. Adam Smith’s theory of the “invisible hand” is now a global
reality.
Not all the effects of globalization are benign. Multinational corporations (MNCs) under the framework of
the Bretton Woods institutions (World Bank, International Monetary Fund) and the World Trade Organization (WTO)
have achieved a standard international economic structure through the General Agreement on Tariffs and Trade
(GATT). This has resulted in: reductions in budgetary deficits, removal of food subsidies, promotion of foreign
investment, import liberalization, privatization of the banking sectors, and reductions in the support of domestic
agriculture. The impact of these changes has not been universally positive for all developing nations.
Is globalization beneficial for third world like India? An audit of the performance of the Indian economy
after economic reforms were initiated in 1991 fails to reveal any improvement. The opening of the Indian economy to
foreign capital has not attracted a significant flow of capital or technology into the country. Exports are up, partly as
a result of devaluation of the rupee and because of a general increase in world trade. But imports have grown rapidly
also and present indications are that there is likely to be a huge trade deficit by the end of the present fiscal year
(1999). Foreign denominated debt has increased significantly and the WB has cautioned that the servicing of the debt
and repayment obligations may begin to exert pressure on the international balance of payments. Modern industry is
knowledge intensive. It may result in jobs for the highly educated, but it is unlikely that jobs will be generated for the
uneducated poor, like the surplus agricultural force of rural India. This is true even if the growth rate of investment in
the private sector is high. Education leads to globalization and globalization leads to education. This is the
globalization of education.
The Indian economy is not alone in being affected by globalization. Economies are disparate as Taiwan and
the Philippines are likewise affected. Taiwan, which recently opened up its markets to imports prepared over thirty
years for globalization. The same long-term preparation is true for Japan and South Korea. While problems have
occurred in some economies some have benefited. For example, the U.A.E. was once known as a backward country
with a high illiteracy rate but is today sometimes called a “mini-U.S.A.”. The Sultanate of Oman, another country in
the Middle East benefiting from globalization, recently reached the one hundred percent literacy level.
GLOBALIZATION AND ITS EFFECTS
Globalization is the process of interaction and integration among people, companies, and governments worldwide. Globalization has accelerated since the 18th century due to advances in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of ideas and culture. Globalization is primarily an economic process of interaction and integration that is associated with social and cultural aspects. However, disputes and diplomacy are also large parts of the history of globalization, and of modern globalization.
This topic examines globalization and its effects on the third World countries with emphasis on the Nigerian economy,Economic growth is the main channel through which globalization can affect poverty.
In as much as globalization came with all these good stuffs, it also came with some negative effects especially for developing countries. The developed nations who brought globalization to developing countries saw it as an avenue to exploit them, they saw opportunities which were too good to be true in these developing nations and they couldn’t resist making use of those opportunities to better their own economy.
Globalization produces both winners and losers among the poor. Poor workers in exporting sectors or in sectors with foreign investment gained from trade and investment reforms, while poverty rates, unemployment and social disintegration increased in previously protected areas that were exposed to import competition. Even within a country, a trade reform may hurt rural agricultural producers and benefit rural or urban consumers of those farmers’ products.
Globalization has been associated with rising inequality, and that the poor do not always share in the gains from trade. One is that the poor in countries with an abundance of unskilled labor do not always gain from trade reform. Another is that the poor are more likely to share in the gains from globalization when workers enjoy maximum mobility, especially from contracting economic sectors into expanding sectors. Gains likewise arise when poor farmers have access to credit and technical know-how, when poor farmers have such social safety nets as income support and when food aid is well targeted as seen in Ethiopia.
Nonetheless, it includes a much wider field than just flowing of goods, services or capital. Often referred to as the globalization concept map, some examples of globalization are:
1. Economic globalization: is the development of trade systems within transnational actors such as corporations or NGOs
2. Financial globalization: can be linked with the rise of a global financial system with international financial exchanges and monetary exchanges. Stock markets, for instance, are a great example of the financially connected global world since when one stock market has a decline, it affects other markets negatively as well as the economy as a whole.
3. Cultural globalization: refers to the interpenetration of cultures which, as a consequence, means nations adopt principles, beliefs, and costumes of other nations, losing their unique culture to a unique, globalized supra-culture
4. Political globalization: the development and growing influence of international organizations such as the UN or WHO means governmental action takes place at an international level. There are other bodies operating a global level such as NGOs like Doctors without borders or Oxfam
5. Sociological globalization: information moves almost in real-time, together with the interconnection and interdependence of events and their consequences. People move all the time too, mixing and integrating different societies
Name: Ifetayo Kosi Anwoluwa
Reg no: 2017/249343
Department: Economics
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.Some argue that globalization is a positive development as it will give rise to new industries and more jobs in developing countries. Others say globalization is negative in that it will force poorer countries of the world to do whatever the big developed countries tell them to doIt has had a few adverse effects on developed countries. Some adverse consequences of globalization include terrorism, job insecurity, currency fluctuation, and price instability. Globalization and the turn to the market have clear benefits for developing countries, both in terms of aggregate growth and poverty reduction and in terms of mobility and opportunity for low-income people. Yet new opportunities have come hand-in-hand with new vulnerabilitiesGlobalization is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. In general, globalization decreases the cost of manufacturing. This means that companies can offer goods at a lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the standard of living. Consumers also have access to a wider variety of goods. It’s benefits include:
1. Increased Flow of Capital
2. Better Products at Lower Prices
3. Collaboration and Shared Resources
4. Cross-Cultural Exchange
5. Spread of Knowledge and Technology
6. Quick Technological Advances
7. Increased Household Income
8. Increased Open-Mindedness and Tolerance
Name: Ugochukwu Onyinyechi Marycynthia
Reg no: 2017/249580
Department: Economics
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
According to WHO, Globalization can be defined as ”the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”Because of trade developments and financial exchanges, we often think of globalization as an economic and financial phenomenon. Nonetheless, it includes a much wider field than just flowing of goods, services or capital. Often referred to as the globalization concept map, some examples of globalization are:
1. Economic globalization: is the development of trade systems within transnational actors such as corporations or NGOs
2. Financial globalization: can be linked with the rise of a global financial system with international financial exchanges and monetary exchanges. Stock markets, for instance, are a great example of the financially connected global world since when one stock market has a decline, it affects other markets negatively as well as the economy as a whole.
3. Cultural globalization: refers to the interpenetration of cultures which, as a consequence, means nations adopt principles, beliefs, and costumes of other nations, losing their unique culture to a unique, globalized supra-culture
4. Political globalization: the development and growing influence of international organizations such as the UN or WHO means governmental action takes place at an international level. There are other bodies operating a global level such as NGOs like Doctors without borders or Oxfam
5. Sociological globalization: information moves almost in real-time, together with the interconnection and interdependence of events and their consequences. People move all the time too, mixing and integrating different societies
6. Technological globalization: the phenomenon by which millions of people are interconnected thanks to the power of the digital world via platforms such as Facebook, Instagram, Skype or Youtube.
6. Geographic globalization: is the new organization and hierarchy of different regions of the world that is constantly changing. Moreover, with transportation and flying made so easy and affordable, apart from a few countries with demanding visas, it is possible to travel the world without barely any restrictions
7. Ecological globalization: accounts for the idea of considering planet Earth as a single global entity a common good all societies should protect since the weather affects everyone and we are all protected by the same atmosphere. To this regard, it is often said that the poorest countries that have been polluting the least will suffer the most from climate change.
Globalization is a complex phenomenon. As such, it has a considerable influence on several areas of contemporary societies. Let’s take a look at some of the main negative effects globalization has had so far.Many critics have also pointed out that globalization has negative effects on the environment. Thus, the massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution.
At the same time, global economic growth and industrial productivity are both the driving force and the major consequences of globalization. They also have big environmental consequences as they contribute to the depletion of natural resources, deforestation and the destruction of ecosystems and loss of biodiversity. The worldwide distribution of goods is also creating a big garbage problem, especially on what concerns plastic pollution.
Globalization which took place in the 1990s till date has no doubt led to significant economic growth and improvement in human welfare. Globalization however increased global interactions. The increase in global interactions has caused a growth in international trade and the exchange of ideas, beliefs, and culture. Globalization is primarily an economic process of interaction and integration that is associated with social and cultural aspects. However, disputes and diplomacy are also large parts of the history of globalization, and of modern globalization.
Economically, globalization involves goods, services, data, technology, and the economic resources of capital. The expansion of global markets liberalizes the economic activities of the exchange of goods and funds. Removal of cross-border trade barriers has made the formation of global markets more feasible. Advances in transportation, like the steam locomotive, steamship, jet engine, and container ships, and developments in telecommunication infrastructure, like the Internet, and mobile phones, have been major factors in globalization and have generated further interdependence of economic and cultural activities around the globe.
In as much as globalization came with all these good stuffs, it also came with some negative effects especially for developing countries. The developed nations who brought globalization to developing countries saw it as an avenue to exploit them, they saw opportunities which were too good to be true in these developing nations and they couldn’t resist making use of those opportunities to better their own economy.
The above led to increase in poverty in developing nations because their was increase in social disintegration and unemployment as the infant industries in developing countries could not compete with the mighty industries in developed nations. To this effect, the developing countries became consumers and the ripple effect can be seen till date.
Name: Ahamefula miracle chisom
Reg no:2017/249478
Dept:Economics
GLOBALIZATION, ITS BENEFIT AND NEGATIVE EFFECTS
An Official Definition of Globalization by the World Health Organization (WHO)
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
What Is Globalization in the Economy?
According to the Committee for Development Policy (a subsidiary body of the United Nations), from an economic point of view, globalization can be defined as:
the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers (…) and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.”
The Benefits of Globalization
Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work. Many people are nowadays citizens of the world. The origin of goods became secondary and geographic distance is no longer a barrier for many services to happen. Let’s dig deeper.
The Engine of Globalization – An Economic Example
The most visible impacts of globalization are definitely the ones affecting the economic world. Globalization has led to a sharp increase in trade and economic exchanges, but also to a multiplication of financial exchanges.
In the 1970s world economies opened up and the development of free trade policies accelerated the globalization phenomenon. Between 1950 and 2010, world exports increased 33-fold. This significantly contributed to increasing the interactions between different regions of the world.Globalization – A Cultural Example
culture globalization definition benefits effects examples
Together with economic and financial globalization, there has obviously also been cultura lglobalization. Indeed, the multiplication of economic and financial exchanges has been followed by an increase in human exchanges such as migration, expatriation or traveling. These human exchanges have contributed to the development of cultural exchanges. This means that different customs and habits shared among local communities have been shared among communities that (used to) have different procedures and even different beliefs.
Good examples of cultural globalization are, for instance, the trading of commodities such as coffee or avocados. Coffee is said to be originally from Ethiopia and consumed in the Arabid region. Nonetheless, due to commercial trades after the 11th century, it is nowadays known as a globally consumed commodity. Avocados, for instance, grown mostly under the tropical temperatures of Mexico, the Dominican Republic or Peru. They started by being produced in small quantities to supply the local populations but today guacamole or avocado toasts are common in meals all over the world.
At the same time, books, movies, and music are now instantaneously available all around the world thanks to the development of the digital world and the power of the internet. These are perhaps the greatest contributors to the speed at which cultural exchanges and globalization are happening. There are also other examples of globalization regarding traditions like Black Friday in the US, the Brazilian Carnival or the Indian Holi Festival. They all were originally created following their countries’ local traditions and beliefs but as the world got to know them, they are now common traditions in other countries too.
Why Is Globalization Bad? The Negative Effects of Globalization
Globalization is a complex phenomenon. As such, it has a considerable influence on several areas of contemporary societies. Let’s take a look at some of the main negative effects globalization has had so far.
The Negative Effects of Globalization on Cultural Loss
Apart from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. From languages to traditions or even specific industries. That’s why according to UNESCO, the mix between the benefits of globalization and the protection of local culture’s uniqueness requires a careful approach.
The Economic Negative Effects of Globalization
Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization. As a matter of fact, a recent report from Oxfam says that 82% of the world’s generated wealth goes to 1% of the population.
The Negative Effects of Globalization on the Environment
environment globalization definition benefits effects examples
Many critics have also pointed out that globalization has negative effects on the environment. Thus, the massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution.
At the same time, global economic growth and industrial productivity are both the driving force and the major consequences of globalization. They also have big environmental consequences as they contribute to the depletion of natural resources, deforestation and the destruction of ecosystems and loss of biodiversity. The worldwide distribution of goods is also creating a big garbage problem, especially on what concerns plastic pollution.
Globalization has become a whirl wind blowing across the world due to acceleration in information and communication technology thereby fostering more interactions as it shrinks the geographical boundaries of all countries into a global village. The unequal effect of globalization has preponderantly distorted third world economic development. There is lack of infrastructure in every sector of the economy. Poverty, accompanied with its consummate terminal deceases has been rife. The agricultural sector is drastically affected. The education sector is poorly funded. Income per capita has been on the downward trend with no meaningful result from policy changes. Corruption due to bad government has become the order of the day as workers strive to survive with meager income that cannot cover consumption, let alone savings and investments. The Nigerian situation has generally been a calamity as the various macroeconomic indices applied by the government has not been able to positively turn around the economy in this globalizing world. Inflation, unemployment, armed banditry and other vices continue to be on the increase, thereby inhibiting foreign trade investment. Apart from the above the inherent cultural and social values, constitute major barriers to desired corresponding result in earnings. The concluding part of this paper focused on the strategies to be adapted to free Nigeria from the clutches of economic relegation. It suggests the panacea to ameliorate or eliminate the negative effect of globalization and to domain the positive side of globalization as a vehicle for economic development of Nigeria and other Third World countries.
NAME: MBAH CHIEBONAM
REG NO: 2017/249525
DEPT: ECONOMICS
Globalization can be referred to as a process where people, companies, and governments from different nations interact and integrate through international trade and investments has effects on the environment, culture, political systems, economic development and on the human physical well-being in societies around the world.This increase in global interactions has caused a growth in international trade and the exchange of ideas and culture.
Globalization has both negative and positive impacts, advantages and disadvantages to developing countries. Globalization has led to significant economic growth and improvement in human welfare in the 1990s, yet at the same time globalization has caused Increased poverty, unemployment, social disintegration, economic issues, toxic import of goods, unhealthy competition between countries and lot more. The bond between unemployment, increased poverty and social disintegration depends on the interaction of globalization with the rest of environment.
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation such as causing so many people to loose their Jobs in the sense that it has introduced machines that does the works of human beings. Take for instance, in the banking sector, the ATM machine now does the work that humans are meant to do and that has caused the jobs of many.
Social disintegration is the tendency for an economy to decline or disintegrate overtime, perhaps due to the lapse of traditional social support systems. Rapid decline in fertility rates and family could lead to social disintegration in developing countries which would lead to a negative effect on globalization.
In conclusion, Nigeria has not benefited from globalization due to mono cultural export, inability to attract increased foreign investments and indebtedness, therefore the success of complete globalization today cannot be achieved if all the obstacles that hinder economic prosperity are not removed. Despite the rosy picture painted by globalization, Nigeria still remains at the peripheral level with high rate of unemployment and poverty as a form of evidence. We need to strengthen our economy to foster globalization, if we can put in place things that ought to be done, Nigeria could join the league of nations enjoying the benefits of globalization. We equally need to rethink and review our global philosophies about globalization in order to have a clearer perspective about it.
Ezeke Nnenna
2017/249506
Globalization can also be defined as an ongoing process by which regional economies, societies and cultures have become integrated through a globe-spanning network of communication and trade, The process of globalization includes a number of factors which are rapid technology developments that make global communications possible, political developments such as the fall of communism, and transportation developments that make traveling faster and more frequent.
Globalization has some positive impact on the economy such as;
More efficient market: equilibrium between buyers and sellers and also improved the way of production in many firm especially through the introduction of technology.
Stabilized security: globalization helped heighten world security.
Globalization has also has a postive aspects on communication, transportation, health sector and the likes of them.
But with this(globalization) came a lot of negative impact such a; Unemployment, increased poverty, and social disintegration.
Now with the introduction of technology in firms and some other businesses most of these firms have laid off workers and have replaced them with machinery there by lead to unemployment or loss of job for this individuals.
Globalization has helped raze our culture and turn our systems into something that looks like the white man’s society. Many children can hardly make correct phrases in their mother tongue without getting tongue tied, the value system in the society has crashed and is still crashing and even many traditional cloths has also changed.
I conclude that globalization has increased the poverty gap, unemployment and caused social disintegration.
But never the less some countries have made the best out of globalization, countries such as Dubai, USA any many other developed countries and even china and India, so I think it is left to the Nigerian government to think and use the opportunity properly.
NAME: Uwode Joy Ogheneyonle
REG NO: 2017/241451
DEPARTMENT: Economics
EMAIL: yonlejoyuwode@gmail.com
Globalization means the continuous movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe. According to WHO “globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.
Effect (Negative) of globalization in the economy.
Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization.
Apart from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. From languages to traditions or even specific industries. That’s why according to UNESCO, the mix between the benefits of globalization and the protection of local culture’s uniqueness requires a careful approach.
Finally Globalization leads to unemployment, the infant industry that would have been promoted to encourage employment is discourage.
I do believe that globalization over the years have brought the world closer. It has improved to a large extent the lively hood of the human race. In that it has brought about many ideas, inventions, enhanced laws to safeguard human lives and property, their rights and generally the standard of living. It has made less developed nations to not be entirely in the dark as globalization has made for easy interactions, conventions, meetings and other gatherings that makes the developed super powers mingle with upstart states.
But globalization is a double edged sword in that it has also made countries be subject to other powerful countries. This may be as a result of over dependence of foreign goods or other tactical advantages that the superior country has over the less developed ones. Globalization has done a lot of good….. But I’m afraid it has also done or brought about a lot of evil too
Thank you Mr President
NAME: ALI CHUKWUEMEKA JAPHET
REG. NO: 2017/242427
DEPT: ECONOMICS
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, human beings, goods, and services, capital, technologies or cultural practices) all over the planet.
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work.
The most visible impacts of globalization are definitely the ones affecting the economic world. Globalization has led to a sharp increase in trade and economic exchanges, but also to a multiplication of financial exchanges.
This acceleration of economic exchanges has led to strong global economic growth. It fostered as well a rapid global industrial development that allowed the rapid development of many of the technologies and commodities we have available nowadays. Knowledge became easily shared and international cooperation among the brightest minds speeded things up.
The Negative Effects of Globalization
1. Cultural Loss
Apart from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. From languages to traditions or even specific industries.
2. Economic Inequality
The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization.
3. Environmental Pollution
The massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution. They contribute to the depletion of natural resources, deforestation and the destruction of ecosystems and loss of biodiversity.
With these points, it reveals that the negative effect of globalisation outweighs its positive effect.
Thank you Mr. President!
Name: NWACHUKWU MARYJANE O.
REG.NO:2017/249533
DEPT: ECONOMICS
LEVEL: 300
IMPACT OF GLOBALIZATION
INTRODUCTION.
Globalization is one of the fastest growing phenomenon in the contemporary world. It is integration of the different economies of the the one to achieve common ground in the economy world. According to Ojeka 2004, Globalization has accelerated integration of trade and between many countries of the world over the past decades. This is to say it has hastened the unism between different countries in terms of trade, culture, ethics and norms in such away that someone from Nigeria can now assess the global market pending on the agreement that exist between Nigeria and some other countries. The process of Globalization is not a quicky one but a phenomenon which must follow gradual and due process to penetrate the economy of the world, it is so because not all countries are willing to accept the idea of Globalization from the beginning though more countries are now embracing it than when it first came in to play, as the economy world evolve people see need the need for integration. The action was intended to liberalise the world trade market and remove numerous controls preceding the financial markets integration. The removal of barrier in the international market was to create a frame work of multilateral trading system and to carry the developing countries along in the world fast growing economy. The question then is how far has Globalization impacted in the economy of the the less developed countries?
Impact of in the Nigeria economy
Using Nigeria as a case study
Nigeria has been in the fore front of this proposed economic reality with the hope of not just being a member in the global community but also achieving reasonable level of economic development. The question then is how much has Globalization impacted in the developing countries economy? Well we can’t say that Nigeria has not benefited in anyway as this will be over statement rather there has been some level of positive impact of Globalization to the Nigeria economy this includes
1. Cross cultural management: with the help of Globalization this has been made possible. People from the prominent world market can now claborate with those from poor economy background in other to reach common ground in the trade world. Those who are regarded as the elite, highly educated, rich and affluent ones can as well enter into business deals without considering their difference.
2. International/ Foreign trade: Globalization has made trades among foreign and local community possible. For instance those from Western world can now patronize those who are in the African continent with little or no hindrance. People can also stay at the comfort of their rooms and get any foreign or locally made goods or services of their choice. Exports and import of goods and services are now much more easier compare to when there was absence of Globalization.
3. There now exist a global market: There is now a common market for all, where the needs of both the developed and undeveloped market can be accessed at ease.
As mentioned earlier Globalization just like other economics phenomenon is not without a hitch as it has the following disadvantages or negative impacts:
1. Unemployment and low demand for labor: As a result of Globalization there has been unemployment resulting from low demand of labor, this is also because of the reduction in face to face interaction between workers and the outside world since technology has taken the place of many workers and services can now be programmed to suit different demand.
2. Unrealistic economics plan: Seeing how far the western world has gone as result the countries that are still developing maybe carried away and trying to meet up with the developed economy with out undergoing the necessary process of development and this may in turn lead to economic break down. It may also cause wastage of resources as resources that would ordinarily be allocated to productive sectors will be used in trying to meet up with the developed world economy.
3. Inflation and fluctuations of price: There has been increase in price as result inflation is the other of the day, this is because of competition among different economies of the world. Those from undeveloped economy struggle to adapt in the global market while those that are already developed kept developing. It has also led to reduction in value of product from the developing countries as those from developing countries in other to penaterate the global market end up reducing their products.
4. There is no security in job: this is because of the fast advancement in technology. Globalization has made such technologies so obvious that many country both developed and undeveloped see them as a necessity.
5. Increase in crime: As a result of Globalization crime has been the other of the day as youths are exposed to different varieties of content and can easily access ways to carry out this plots from the internet. More also immorality and indecency is now becoming a Norm i.e single parenting, sagging, vague languages e.t.c.
Name: Metu Sandra C
Department: Economics
Reg number: 2017/249526
Email address: sandra.metu.249526@unn.edu.ng
Globalization is a phenomenon that produces both winners and losers. Workers in the exporting sectors or in sectors with foreign investment gained from trade and investment reforms, while poverty rates, unemployment and social disintegration increased in other sectors of the economy. Even within a country, a trade reform may hurt rural agricultural producers and benefit rural or urban consumers of those farmers’ products.
Globalization has brought with it rising inequality, unemployment and social disintegration. Furthermore the poor in countries with an abundance of unskilled labour do not always gain from trade reform. In Nigeria where job mobility is hard for the poor, they hardly gains from globalization. when workers enjoy maximum mobility, especially from contracting economic sectors into expanding sectors there’s greater expansion in the economy.
Globalization has favoured developed countries over developing nations. Developed countries been more industrialized are able to capture a huge part of the market through effective production processes over the developing countries. So the industries in developing countries are met with stiff competition. Furthermore, industries in developing nations prefer foreign labour to employing their people thereby aggravating poverty.
In conclusion, Poor farmers who are assisted with credit and technical know-how can leverage on globalization to gain from trade. The relationship between globalization, poverty, unemployment, and social disintegration depends not only on trade or financial interconnectness but on the interaction of globalization with the rest of the economic environment: investments in human capital and infrastructure, promotion of credit and technical assistance to farmers, effective institutions and good governance, and macroeconomic stability. Globalization is with us and we must therefore decide to be winners and not losers to what globalization has to offer.
Okeke Jude Chimobi
2017/249556
chimobiokeke@gmail.com
The Globalisation that occurred in the 1900’s was one tagged as “growth accompanied with marginalisation” this term connote a paradoxical development; in this sense, the producer nation experienced skyrocketed economic growth at the expense of the proletariat or labourer (who at that time where largely exploited). While the consumer nations (non producers) experienced increased poverty and unemployment. In addition to this both producer and consumer nations experienced social disintegration.
Merites of globalization for business:
1. New ideas due to cultural diversity:
Managing an international workforce includes teams working across different locations, people traveling and moving countries for work, having a range of different work ethics and practices and even religious differences. All of these can be challenges, but overwhelmingly are a positive thing in the workplace as it brings together different ideas and insights and perspectives.
2. Larger markets:
Globalization opens up new opportunities for businesses to sell their goods and services to a much larger markets, which means more potential sales and greater profits. Depending on the organization it can open up other opportunities in terms of distribution, logistics, marketing and management of these goods and services.
3. Earnings changes:
With more and more companies accessing overseas outsourcing opportunities, wages have decreased for many workers in the original countries. Companies in the developing world are able to offer their services at a much reduced rate from those who live in countries with greater living standards. This means that workers in larger countries are affected.
4. Ability to tap into a wider talent pool
When fully taking advantage of globalization, you are no longer restrained by talent that is available in your city. Today your global workforce could work from anywhere in the world with an internet connection opening you up to the brightest and best candidates the entire world has to offer.
Demerites of Globalization:
1. Potential for IP theft:
When products are built overseas in factories on behalf of a company based in another country, there is potential that intellectual property and designs could be copied and stolen and replicated and sold for cheaper elsewhere.
2. Issues with supply chain:
Businesses committed to ethical work practices may find that they cannot always account for these standards being met at every point in their supply chain and operations. For example there may be suppliers, farmers, factory workers, logistics operators who are exploited or work in unsafe conditions.
3. Corruption:
Different standards apply in different countries, and many nations in the developing world are rife with corruption.
NAME: Ijara Peter Elochukwu
Department: Economics
Reg no: 2017/249513
EMAIL: petochris86@yahoo.com
Globalization is a like 2 sides of a coin. It can be used to positively advance a country and can also hinder growth. Globalization has transforming the world into a global village. There’s greater interdepende between people, companies and the government of different countries. Globalization has been brought by easier transportation and greater technology today.
Developing countries have benefited from globalization in part through the transfer of technology from the developed world to the developing countries that are used in the health sector, agriculture, security, education, legal sector etc. However globalization has brought with it widespread poverty, unemployment and social disintegration in Africa. While globalization enhances the transfer of technology from developed nations to developing countries at a cheaper cost it also led to a drop in research activities in Africa. This has further hinder growth on the continent. Domestic industies have a stiff competition with industries in developed countries who have a larger share of the world market, and are better efficient supply chain and because of the aforementioned reasons they can’t expand to employ the growing number of employable youths in Nigeria. However the few thriving industries prefer to employ foreign labour this how leads to rising unemployment in developing nations.
Furthermore since developing countries depends on developed countries for technology and this results to capital flight that further increases the poverty in developing nations.
Globalization has also led to social disintegration as Africa society is no longer as united as it use to be in that past. Harmful contents have been able to find its way into the country because of globalization.
However we should all leverage on the benefits of globalization to move our country forward.
Name: CHIGBATA FRANKLIN CHIGOZIE
REG: 2017/242424
DEPT: ECONOMICS
In justifying how it has caused poverty I’d like to point out the fact that in developing countries mixing up with developed countries, the developed countries who claim they are assisting the developing countries only contribute to areas like the health sector, agricultural etc they almost would not contribute to industrial and manufacturing sectors cause they always want to be on top.
Also it has led to unemployment because jobs that were performed by humans are now being performed by machines, like the Automated teller machine has replaced so many bank staffs, and I’d like to add that big firms in developing countries like Nigeria are more likely to employ staffs who schooled abroad and has had experience abroad compared to people who gained knowledge here , because they believe that those who went abroad are more experienced
Globalization indeed, has led to several positive impacts in the world. It has led to a sharp increase in trade and economic and financial exchanges. It had fostered rapid global industrialization that allowed rapid development of many of the technologies and commodities we have in existence today. Also, knowledge has become easily shared and international cooperation among the brightest minds speeded things up.
However, despite it’s benefits, the consequences of globalization had led to an increased poverty, unemployment and social disintegration especially in the developing countries.
One will ask, how is that even possible?
Well, first, considering the fact that most of these developing countries are largely populated, the introduction of technology for example Robots and Complex machines in the manufacturing and Agricultural sector, has led to an increase in unemployment as more sectors demanded fewer labour. This automatically increases the poverty level of these countries since most of their citizens are unable to find work.
Furthermore, the existence of Globalization has initiated an unhealthy competition between the infant and domestic industries of a country and their foreign counterparts. Since these infant industries are still new and do not really know how to take advantage of the Economies of scale in the foreign market, it means they have been exposed too earlier and will eventually lead to their fast extinction, however this incidence is not good for a developing country.
Globalization has enormously resulted to uneven development of various sectors in these developing countries. It has largely created inequality, thus widening the gap between the rich and the underprivileged in these countries. People who had an earlier access to technological know-how took advantage and got rich while majority who could not, got poorer.
It greatly led to the neglect of the Agricultural sector. The Agricultural sector is the breadrock sector of every nation. It is expected from the stages of development that a country must have strongly established her agricultural sector before moving on to another sector. But then, globalization made this not to be achievable. A lot of people have abandoned their agricultural work in the rural area and have migrated to the Urban area where they hope to see “modern white collar jobs” brought about by globalization. But do you know what happens? Do they really find those jobs? Definitely No, most of these developing countries do not have the capacity yet to provide enough job for the large population residing in the so called “Urban area”, thus this leads to a greater unemployment, poverty and underdevelopment.
BENEFITS OF GLOBALIZATION.
1. It encourages producers and consumers to benefit from deeper division of labour and economies of scale
2. Competitive markets reduce monopoly profits and incentivise businesses to seek cost-reducing innovations
3. Enhanced growth has led to higher per capita incomes – and helped many of poorest countries to achieve faster economic growth and reduce extreme poverty measured as incomes < $1.90 per day (PPP adjusted)
4. Advantages from the freer movement of labour between countries
5. Gains from the sharing of ideas / skills / technologies across national borders
6. Opening up of capital markets allows developing countries to borrow money to over a domestic savings gap
7. Increased awareness among consumers of challenges from climate change and wealth/income inequality
8. Competitive pressures of globalisation may prompt improved governance and better labour protection.
However, despite it’s benefits, the consequences of globalization had led to an increased poverty, unemployment and social disintegration especially in the developing countries.
I distinctively recollect when I was approached to make a show on globalization and its advantage. I additionally recall spouting such a huge amount about the advantages of globalization. setting my remarks on the adverse consequences of globalization is an opportunity for me to adjust the scales.
Like me, when called upon to give chats on the effects of globalization, numerous individuals are so centered around its positive effects, it at that point appears there isn’t anything incorrectly by any means, notwithstanding, the negative side of globalization is similarly as significant as the positive. What at that point are these adverse consequences?
1. Globalization has assisted with advancing eurocentrism: over the span of associating the world, globalization has assisted with spreading abroad the good news of Eurocentrism that European countries are truth be told such a ton better than different countries. this has so completely influenced numerous nations particularly non-industrial nations who have lost confidence and trust in their arrangement creators to form out modified strategies that are intended to improve conditions in such nations, and in any event, when approaches are suggested, they are closed down on the grounds that they are not European models. This lamentably advances underdevelopment in such nations.
2. Undesirable rivalry: while globalization has freed nations up to better than ever frameworks, it has additionally set baby enterprises up for disappointment by presenting them to forceful rivalry as cutting edge unfamiliar organizations who can use economies of scale more than these newborn child ventures.
3. An exhaustive assaulting of social and customary frameworks: obviously, those that contend against globalization in Nigeria center around the way that globalization has leveled our way of life and transform our frameworks into something that resembles the white man’s culture. Numerous kids can barely make right expressions in their primary language without getting silenced, the worth framework in the general public has slammed is as yet smashing.
4. Harmful imports: simply a we have imported the white man’s practices we have additionally imported his products. While there is an extremely high level of good and sound imports, there is additionally an exceptionally high level of harmful imports. most noticeably awful still, globalization has opened a few nations up as unloading justification for different countries.
5. Monetary issues: since the world turned out to be more associated, the Nigerian cash has enormously diminished in esteem when contrasted for certain different nations. Thus, Nigeria has run into intricacies in its economy.
Osuiwu Adimchinobi Peace
2017/249570
Economics department
Globalization is defined as a process that, based on international strategies, aims to expand business operations on a worldwide level, and was precipitated by the facilitation of global communications due to technological advancements, and socioeconomic, political and environmental developments. Because of globalization the economies of the world are being increasingly integrated, example mobile phones and internet have brought people closer. The world is becoming a smaller place. Work can be outsourced to any part of the world that has an internet connection because of improvements in traffic infrastructure one is able to reach one’s destination in a short time. The process of globalization includes a number of factors which are rapid technology developments that make global communications possible, political developments such as the fall of communism, and transportation developments that make traveling faster and more frequent.
Globalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies.
Consumers benefit too. In general, globalization decreases the cost of manufacturing. This means that companies can offer goods at a lower price to consumers. Consumers also have access to a wider variety of goods.
With globalization, different parts of a product may be made in different regions of the world. Globalization has long been used by the automotive industry, for instance, where different parts of a car may be manufactured in different countries.
With globalization, the multiplication of economic and financial exchanges has been followed by an increase in human exchanges such as migration, expatriation or traveling. These human exchanges have contributed to the development of cultural exchanges.
Despite the benefits of globalization, there are also disadvantages.
globalization has contributed to income disparity and inequality between the more-educated and less-educated members of a society. This means that unskilled workers have be affected by declining wages, which are under constant pressure from globalization.
Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people now in developing countries copy what people in developed countries do. So, its like they ignore their own culture and practice western culture.
Average tariff rates continue to be high in many developing countries, including some that have recently implemented trade reforms. Example,India. Trade policy continues to be an important aspect in globalization at least in some of the lower income developing countries.
Eric-nnaji Chiamaka Ngozi
2017/249499
Economics department
EFFECTS OF GLOBALIZATION
What is globalization?
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.” In simple terms, Globalization can be described as an ongoing process by which regional economies, societies and cultures have become integrated through a globe-spanning network of communication and trade. Globalization in short, points to the whole effort towards making the world global community as a one village.
Globalization has not only led to a sharp increase in trade and economic exchanges, but also to a multiplication of financial exchanges.This acceleration of economic exchanges has led to a strong global economic growth. It fostered as well a rapid global industrial development that allowed the rapid development of many of the technologies and commodities we have available nowadays.
Knowledge became easily shared and international cooperation sped things up. According to some analysts, globalization has also contributed to improving global economic conditions, creating much economic wealth although unequally distributed.
Another positive effect of globalization is the improved quality of products due to globe competition. As the domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market.
On the negativity of globalization, increased industrial activities have environmental consequences as they contribute to the depletion of natural resources, deforestation and the destruction of ecosystems and loss of biodiversity. The worldwide distribution of goods is also creating a big garbage problem, especially on what concerns plastic pollution. Also, the massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution.
Globalization has also come with severe inequalities in wealth distribution. As a matter of fact, a recent report from Oxfam says that 82% of the world’s generated wealth goes to 1% of the population.
Globalization has led to exploitation of labor. Also, safety standards are ignored to produce cheap goods.
Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because some other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries.
Obioma God’swill Nnaemeka
Reg no:2017/251914
Department of Economics
THE EFFECTS OF GLOBALIZATION
Globalization is without a shred of doubt a double-edged sword and the effects in our contemporary world cannot be over emphasized. The economic effects(merits and demerits) will be discussed below
MERITS OF GLOBALIZATION
1. Wider range of choices of consumers goods: Globalization through the medium of international market have broaden the choices of goods available to consumers all over the world as People(consumers) noe have access to goods that are not produced in their domestically country.
2.Larger market for producers :Through globalization in the apparels of international trade have made it possible for large global firms like Coca-cola, Pepsi,Apple etc to have a larger market for their products which helps to improve the profit margin of the producers
3.Efficiency, innovation and better welfare through competition: global firms have been forced into a competitive world in which only the best can survive which have led to innovation and better products to satisfy customers and see off the ever endearing competition. E.g iPhone vs Samsung, Coca-cola vs Pepsi etc
The merits of globalization is without number and inexhaustibly aw it cuts across medicine and health care,ICT, transportation, banking etc.
Globalization in itself is not without flaws (economic and non-econimic),they include but not limited to
1.Suppression of local infant industries: The presence of the product of this global power-houses in literally all nations of the world have been a cause of pain and losses to local infant industries that cannot enjoy the economies of scale like their powerful global counterparts.
2.Loss of Economic identity and overdependence on foreign products: in a bid for industrialization to keep up with the globalized world many countries in Africa, Asia and Latin American have gradually lost their economic identity and are literally dependent on the advanced North.
Other demerit of globalization includes but not limited to global pandemic and sickness, cyber fraud etc
Name: Nwobodo Christian
Reg No: 2017/241437
Department: Economics
Globalisation of the 1900’s came as a two-edged sword. On one hand, it created groundbreaking opportunities for economies to grow, own the other hand, it came at the cost of some economies losing what they held dear to their growth.
In the case of Nigeria, globalisation has contributed greatly to economic growth though at a slow pace. But the demerits of gobalisation has an upper hand in the nation. Perharps because the necessary political and economic structure has not been put in place to harness the best from globalisation.
Globalisation has impacted significantly in increasing the poverty rate in Nigeria, in the case that due to access to international trade and the idea of a global village, dependence on imported goods has drained domestic production and increased distrust for anything indigenious.
This and many more disadvantages notwithstanding, Nigeria is on its path to maximising more from globalisation as the increased access to information and international trade is increasing the knowledge and production base of the nation.
Name: ABIAZIA RUFUS CHIDIEBUBE
REG. NO.: 2017/243371
Dept: Economics
In totality, globalisation have been a vital tool in the socio-political-economic-institutional structure of the world, it contribution can not be overemphasis. Yet, globalisation has also be accompanied by some daunting challenges such as Increased poverty, unemployment, and social disintegration. This three negative effects is embedded directly or indirectly in the factors to be considered below:
1) Unemployment:
In almost all developing countries over half of the working population relied on casual jobs in industries until globalization took root. The advancement of technology has reduced such employment and increased global need for skilled professionals. Majority of people in developing countries don’t have skills, while the available jobs are poorly paid due to high demand caused by globalization. Most of the people are left unemployed and unable to meet their basic needs resulting in increased criminal activities such as burglary, pickpocketing, murder and drug abuse. The rate of unemployment and poverty keeps growing as the gap between the rich and the poor widens.
2). Increased Lifestyle diseases:
Globalization has brought in the consumption of processed foods, planting crops using chemicals to minimize the duration of growth and increase profit. In order to benefit from business, animals such as the cows are fed on chemicals that make them produce a lot of milk or increase in weight for those that are sold for the meat industry. Due to increased ingestion of chemicals from foods, chronic diseases are on the rise. The mortality rate is high. Furthermore, there is a reduction in the lifespan in the developing countries.
3). Abandonment of Culture:
Every community, society, or nation has its values and beliefs, that is to say – own culture. They are essential because they mold the acceptable behavior of the people in a particular community. The elders or leaders ensure that the people behave in a morally upright way. However, globalization mixed different cultures. Then people reconsidered their authentic rules and customs regarding their culture as primitive. Some nations from developing countries adopt the western culture and abandon there’s own. The community leaders can no longer pursue their own domestic policy punishing citizens for crimes them as they did before because they are regarded as backward and primitive by international society. They adopt the culture which is quite strange and distant from their nature, due to such policy, people conduct themselves regardless of actual laws. As a result, there is an increased crime as acts such as rape, divorce, and domestic violence get on the right person
4). Terrorism:
Not a year ends without incidences of terrorism in my community, something that has affected its welfare and unity that existed before globalization. According to recent studies, there were nine thousand terroristic attacks performed worldwide in 2017.
IZUCHUKWU DOMINIC CHINEDU
2017/249522
izuchukwudominic2@gmail.com
Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services. The biggest companies are no longer national firms but multinational corporations with subsidiaries in many countries.
Globalisation has been taking place for hundreds of years, but has sped up enormously over the last half-century.
Globalisation has resulted in:
1)Increased international trade
2)Acompany operating in more than one country
3)Greater dependence on the global economy
4)Freer movement of capital, goods, and services
Although globalisation is probably helping to create more wealth in developing countries – it is not helping to close the gap between the world’s poorest countries and the world’s richest.
Globalisation operates mostly in the interests of the richest countries, which continue to dominate world trade at the expense of developing countries. The role of Less Economically Developed Countries(LEDCs) in the world market is mostly to provide the North and West with cheap labour and raw materials.
There are no guarantees that the wealth from inward investment will benefit the local community. Often, profits are sent back to the Most Economically Developed Countries(MEDCs) where the Transnational Companies(TNC) are based. Transnational companies, with their massive economies of scale, may drive local companies out of business. If it becomes cheaper to operate in another country, the TNC might close down the factory and make local people redundant.
An absence of strictly enforced international laws means that TNCs may operate in LEDCs in a way that would not be allowed in an MEDC. They may pollute the environment, run risks with safety or impose poor working conditions and low wages on local workers.
Globalisation is viewed by many as a threat to the world’s cultural diversity. It is feared it might drown out local economies, traditions and languages and simply re-cast the whole world in the mould of the capitalist North and West. An example of this is that a Hollywood film is far more likely to be successful worldwide than one made in India or China, which also have thriving film industries.
Although globalization has both positive and negative impacts, the negative impacts far more outweighs the positive impacts. This is because, the LEDCs lack the requisite factors that will place them on the better position to reap the good fruits of globalization and at the same time badly affect by the negative aspects of globalization.
In Nigeria for instance, the business environment is not favourable for new businesses, the cost of running business here is very high because lack of social overhead capital.
Again, the issue of insecurity is another factor that drives TNCs away from us. With our large population, here would have been a better option for many TNCs but because security challenges in Nigeria, they go to other countries and invest.
In conclusion, globalization comes with both positive and negative effects but the negative effects tend to outweigh the positive ones due to the reasons mentioned above.
Name:Eze Udoka Chidiebube
Reg no:2017/242428
Dept:Economics
According to the Committee for Development Policy (a subsidiary body of the United Nations), from an economic point of view, globalization can be defined as: the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies. ”Globalization is deeply connected with economic systems and markets, which, on their turn, impact and are impacted by social issues, cultural factors that are hard to overcome, regional specificities, timings of action and collaborative networks.
Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure.
POSITIVE Effects :Here are some of the positive effects of globalization and the positive impacts they have had on so many demographic segments of society.
Global market:Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international levels.
Foreign trade:Globalization has created and expanded foreign trade in the world.People can now get whatever it want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the global. These countries which export goods get comparative advantages.
Resource Imperative:Developed countries need natural and human resources of the developing countries while developing countries need capital, technology and brainpower of the wealthier countries.
NEGATIVE EFFECTS
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
JOBS INSECURITY:In developed countries people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries.Globalization has led to exploitation of labor.
FLUCTUATION IN PRICES.:Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries.
NAME: EDOCHIE PRAISE IFEOMA
DEPARTMENT: ECONOMICS 300L.
REG NO: 2017/249492
Globalization means greater interconnectness between the inhabitants of the world. Today one can participate in a meeting virtually thanks to globalization that has made the world a global village. Globalization has however impact negatively and positive to the nations of the world however it brought with it greater poverty, unemployment and social disintegration.
Industries in developing countries unable to meet up with their counterparts in developed economies are unable to expand and employ the growing number of employable youths in Nigeria rendering them unemployed. Moreover the few industries on the continent prefer to employ foreign labour.
Globalization also brought widespread poverty in developing countries. Since developing countries are not fully industrialized they’ll unable to capture a huge part of the market and are net importers of foreign products, they exports mainly primary products that are unable to pay much so therefore more lose their jobs and poverty further deepens. So in a literal sense globalization has favoured developed countries over developing nations.
Furthermore thanks to globalization our borders are now open to greater imports and exports and so negative contents has found its way to Africa to erode our land.
In conclusion we cannot escape globalization but can leverage on its power to advance.
Name: Odo Chinenye Precious
Reg no: 2017/244758
Department: Education Economics
There is no smoke without the”otherwords there is no economics without model because the model is like a person who seves as a subject of artwork.In economics growth there are different model used for the interpretation.Here we look at the Fei-Ranis economics model.The Fei–Ranis model of economic growth is a dualism model in developmental economics or welfare economics that has been developed by John C. H. Fei and Gustav Ranis and can be understood as an extension of the Lewis model. It is also known as the Surplus Labor model.[1] It recognizes the presence of a dual economy comprising both the modern and the primitive sector and takes the economic situation of unemployment and underemployment of resources into account, unlike many other growth models that consider underdeveloped countries to be homogenous in nature. According to this theory, the primitive sector consists of the existing agricultural sector in the economy, and the modern sector is the rapidly emerging but small industrial sector. Both the sectors co-exist in the economy, wherein lies the crux of the development problem. Development can be brought about only by a complete shift in the focal point of progress from the agricultural to the industrial economy, such that there is augmentation of industrial output. This is done by transfer of labor from the agricultural sector to the industrial one, showing that underdeveloped countries do not suffer from constraints of labor supply. At the same time, growth in the agricultural sector must not be negligible and its output should be sufficient to support the whole economy with food and raw materials. Like in the Harrod–Domar model, saving and investment become the driving forces when it comes to economic development of underdeveloped countries.
While
The Harris–Todaro model, named after John R. Harris and Michael Todaro, is an economic model developed in 1970 and used in development economics and welfare economics to explain some of the issues concerning rural-urban migration. The main assumption of the model is that the migration decision is based on expected income differentials between rural and urban areas rather than just wage differentials. This implies that rural-urban migration in a context of high urban unemployment can be economically rational if expected urban income exceeds expected rural income.
Overviews
In the model, an equilibrium is reached when the expected wage in urban areas (actual wage adjusted for the unemployment rate), is equal to the marginal product of an agricultural worker. The model assumes that unemployment is non-existent in the rural agricultural sector. It is also that rural agricultural production and the subsequent labor market is perfectly competitive. As a result, the agricultural rural wage is equal to agricultural marginal productivity. In equilibrium, the rural to urban migration rate will be zero since the expected rural income equals the expected urban income. However, in this equilibrium there will be positive unemployment in the urban sector. The model explains internal migration in China as the regional income gap has been proved to be a primary drive of rural-urban migration, while urban unemployment is local governments’ main concern in many cities.
Ugwu Kingsley ugochukwu
2017/249581
Globalization is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
hanging and developing and becoming increasingly difficult to define. More and more companies are finding themselves managing a global workforce as a result.
Now what are the effects of globalization (positive effects/advantages and negative effects/disadvantages)?
The advantages of globalization for business:
1. Ability to tap into a wider talent pool
When fully taking advantage of globalization, you are no longer restrained by talent that is available in your city. Today your global workforce could work from anywhere in the world with an internet connection opening you up to the brightest and best candidates the entire world has to offer.
2. New ideas due to cultural diversity:
Managing an international workforce includes teams working across different locations, people traveling and moving countries for work, having a range of different work ethics and practices and even religious differences. All of these can be challenges, but overwhelmingly are a positive thing in the workplace as it brings together different ideas and insights and perspectives.
3. Larger markets:
Globalization opens up new opportunities for businesses to sell their goods and services to a much larger markets, which means more potential sales and greater profits. Depending on the organization it can open up other opportunities in terms of distribution, logistics, marketing and management of these goods and services.
4. Earnings changes:
With more and more companies accessing overseas outsourcing opportunities, wages have decreased for many workers in the original countries. Companies in the developing world are able to offer their services at a much reduced rate from those who live in countries with greater living standards. This means that workers in larger countries are affected.
For businesses looking to take advantage of the opportunities offered by globalization, this can include paying lower salaries and having lower overheads when they operate in less developed nations. Other savings can be made in countries that have more favorable taxation and reduced red tape and business costs.
The disadvantages of globalization for business
1. Potential for IP theft:
When products are built overseas in factories on behalf of a company based in another country, there is potential that intellectual property and designs could be copied and stolen and replicated and sold for cheaper elsewhere.
2. Issues with supply chain:
Businesses committed to ethical work practices may find that they cannot always account for these standards being met at every point in their supply chain and operations. For example there may be suppliers, farmers, factory workers, logistics operators who are exploited or work in unsafe conditions.
3. Corruption:
Different standards apply in different countries, and many nations in the developing world are rife with corruption.
Ugwoke Cornelius Esomchi
2017/249581
Globalization is a double edged sword. It can move a country forward and can also hinder growth. Globalization has compressed the world into a global village. There’s greater interconnectness between people, companies and the government of different countries. Globalization has been brought by easier transportation and greater technology today.
Developing countries have benefited from globalization in part through the transfer of technology from the developed world to the developing countries that are used in the health sector, agriculture, security, education, legal sector etc. However globalization has brought with it widespread poverty, unemployment and social disintegration in Africa. While globalization enhances the transfer of technology from developed nations to developing countries at a cheaper cost it also led to a drop in research activities in Africa. This has further hinder growth on the continent. Domestic industies have a tough competition with industries in developed countries who have a larger share of the world market, and are better efficient supply chain and because of the aforementioned reasons they can’t expand to employ the growing number of employable youths in Nigeria. However the few thriving industries prefer to employ foreign labour this how leads to rising unemployment in developing nations.
Furthermore since developing countries depends on developed countries for technology and this leads to capital flight that therefore increases the poverty in developing nations.
Globalization has also led to social disintegration as Africa society is no longer as united as it use to be in that past. Harmful contents have been able to find its way into the country because of globalization.
In conclusion globalization is a phenomenon we can’t escape but we can leverage on its power to advance our great nation forward. Use globalization don’t let globalization use you.
Name: Chukwudi Christopher
Reg Number: 2017/249489
Department: Economics
In a paper written by IMF in 2007 suggested that introduction of new technology and foreign investment led to increased inequality.
Globalization had also increased social disintegration as it has eroded state sovereignty as international organizations restricts decision making.
Many organizations move their operation to countries with weak labour law and environmental protection, in order to reduce costs and increase exploitation. This leads to various externalities in these developing countries that disturbs sustainability and future level of poverty.
It has also been proven countlessly that globalization has led some culture to begin to erode into “the global culture”.
Developing countries are at times used as a dumping ground for goods imported.
Domestic firms in developing countries have to compete with foreign countries with higher level of technology and who has gone high on the learning curve. Some see this as unfair competition.
Name: Chukwudi Christopher
Reg Number: 2017/249489
Dept: Economics
In a paper written by IMF in 2007 suggested that introduction of new technology and foreign investment led to increased inequality.
Globalization had also increased social disintegration as it has eroded state sovereignty as international organizations restricts decision making.
Many organizations move their operation to countries with weak labour law and environmental protection, in order to reduce costs and increase exploitation. This leads to various externalities in these developing countries that disturbs sustainability and future level of poverty.
It has also been proven countlessly that globalization has led some culture to begin to erode into “the global culture”.
Developing countries are at times used as a dumping ground for goods imported.
Domestic firms in developing countries have to compete with foreign countries with higher level of technology and who has gone high on the learning curve. Some see this as unfair competition.
Name: Chukwudi Christopher
Reg Number: 2017/249489
Dept: Economics
Globalisation has eroded state sovereignty. International trade limits the ability of nation-states to control domestic economies, whereas international organisations and laws place limits on their decision-making abilities.
The Eurozone crisis proved that financial markets can topple governments just as easily as elections. Yet there is no democratic control over financial markets.
Large multinationals exploit legal loopholes (and use well-paid lawyers and accountants) to help them avoid taxes. They offshore their operations to countries with weak labour laws and environmental protection, circumventing higher standards in the developed world (despite selling their products there).
Globalization has made some people very rich. The majority, however, are given scraps. The 2018 World Inequality Report shows that inequality is rising across the globe (particularly in rapidly-developing economies such as India and China).
Free market critics, such as the economists Joseph Stiglitz and Ha-Joon Chang, argue that globalisation has perpetuated inequality in the world rather than reducing it.
In 2007, the International Monetary Fund suggested that inequality levels may have increased due to the introduction of new technology and foreign investment in developing countries
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
According to the Committee for Development Policy (a subsidiary body of the United Nations), from an economic point of view, globalization can be defined as:
“(…) the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers (…) and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.”
CONSEQUENCE OF GLOBALIZATION
POSITIVE CONSEQUENECE:
1. Global market: Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management is seen by the sudden increase of number of transactions across the borders.
3. Foreign trade:Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the global. These countries which export goods get comparative advantages. Organizations have been established with a view to control and regulate the trade activities of the countries in the world so to have fair trade.
4. Poverty alleviation: As far as poverty reduction is concerned, globalization played a key role in poverty reduction in developing countries. In deed most developed countries experienced reduction in poverty in the proportion of their living below the poverty line, including fast developing countries like China, India, Vietnam
NEGATIVE CONSEQUENCE;
1. JOBS INSECURITY: In developed countries people’s job’s are insecure. People’s job’s are being made redundant. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries. They have outsourced to developing countries like China and India. Globalization has led to exploitation of labor. Safety standards are ignored to produce cheap goods.
2. FLUCTUATION IN PRICES: Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries. So, in order for the developed countries to maintain their customers they are forced to reduce prices of their goods. This is a disadvantage to them because it reduces the ability to sustain social welfare in their countries.
3. Unemployment: Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation.
4. Trade: Average tariff rates continue to be high in many developing countries, including some that have recently implemented trade reforms. Trade policy continues to be an important aspect in globalization at least in some of the lower income developing countries. Widespread use of computers, faxes and mobile phones, introduction of the internet and e-commerce, and quicker and cheaper means of transportation in some cases offered opportunities to developing countries, but in many cases deepened the gap between global firms and traditional industries globalization opened up new opportunities for developing countries to create jobs and expand exports. In practice, many developing countries competing for foreign investors offered longer tax holidays, costly subsidies, and various incentives for multinationals. The competition among developing nations reduced positive net effects of globalization.
Ezeh Jude Obioma
2017/249504
Economics
Globalization is defined as the set of processes (economic, social, cultural, technological, institutional) that contribute to the relationship between societies and individuals around the world.
Globalization is also referred to as an ongoing process by which regional economies, societies and cultures have become integrated through a globe-spanning network of communication and trade.
The process of globalization includes a number of factors which are rapid technology developments that make global communications possible, political developments such as the fall of communism, and transportation developments that make traveling faster and more frequent.
The effects of globalization on the following areas:
Unemployment:
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation. It ‘s true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity.
The most important factor to determine the level of employment during 1980-2000 was national or regional macroeconomic policies which were implemented and sustained. In addition those countries with liberal macroeconomic reforms, pursued politics promoting flexible labor markets and employment practices, decentralized industrial relations systems, and judicious enforcement of labor. On the other hand, countries with employment laws, regulations, and policies experienced higher level of employment because they were not able to attract and retain as many new jobs.
For example ,Indonesia faced unemployment and poverty that grew to levels not experienced in two decades, health conditions worsened, and the natural environment degraded.
Poverty:
As far as poverty reduction is concerned, globalization played a role in poverty reduction in developing countries. In deed most developed countries experienced reduction in poverty in the proportion of their living below the poverty line, including fast developing countries like China, India, Vietnam. While other countries like Sub-Saharan Africa registered an opposite trend.
Social integration:
The positive effects of globalization on culture are many! Not all good practices were born in one civilization. The world that we live in today is a result of several cultures coming together. People of one culture, if receptive, tend to see the flaws in their culture and pick up the culture which is more correct or in tune with the times. Societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Cooking styles, languages and customs have spread all due to globalization. The same can be said about movies, musical styles and other art forms. They too have moved from one country to another, leaving an impression on a culture which has adopted them.
Conclusion:
Globalization in short, points to the whole effort towards making the world global community as a one village. Goods that were only found in western countries can now be found across the globe. Now under developed areas can enjoy the benefits of scientific advances and industrial progress available in developed countries for the improvement and growth of their areas. As a result of globalization, the economies of the world are being increasingly integrated, example mobile phones and internet have brought people closer.
Ugwu Amaechi Jude
2017/242434
Economics
amaechi.ugwu.242434@unn.edu.ng
Globalization as a concept refers to the idea that views the whole world as a single global village. The idea of globalization views all human as similar to each other and as such requires integration and acceptance of a particular lifestyle.
The concept of globalization is supported as a means to help the least developed nations achieve some level of development. The idea was to view those policies that have worked elsewhere as the ideal policies and to encourage the developing nations to follow suit.
The effects of globalization could be seen and felt in our world today. To us in Africa, the effects could be classified as positive or negative effects. The positive effects could be felt and seen in the areas of education, healthcare, finance, technology, etc. That we benefited from the advancement in the above mentioned area is the effect of globalization and it is positive. The negative effects could be felt in the area of disruption of lifestyle that is akin to Africans. Prior to globalization, Africans lived a communal lifestyle, there are norms guiding one’s actions in the African society and the extended family is also recognized and valued. But with the advent of globalization, all these values are withering away in today’s African society.
In conclusion, we cannot live in isolation; we have to some extent embrace globalization. What we have to do is to accept the positive effects and work hard to make sure that negative effects are not experienced in our society.
Globalization and it’s Effects
Globalization is the process of interaction and integration among nations. Globalization has accelerated since the 18th century due to advances in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of ideas, beliefs, and culture. Globalization is primarily an economic process of interaction and integration that is associated with social and cultural aspects. However, disputes and diplomacy are also large parts of the history of globalization, and of modern globalization. It economically involves goods, services, data, technology, and the economic resources of capital. The expansion of global markets liberalizes the economic activities of the exchange of goods and funds. Removal of cross-border trade barriers has made the formation of global markets more feasible.
I agree that globalization since the 1990s till recent times has led to significant economic growth evident in sectors like the educational system, women empowerment and participation, and so many others. But there is still presence of increased poverty, unemployment and social disintegration in Nigeria which would to a greater extent be traceable to the mismanagement of government offices in the nation and lack of patrilltism and oneness that exists amongst us.
Fidelis Emmanuel Oluebubechukwu
2017/241440
emmanuel.fidelis.241440@unn.edu
GLOBALIZATION
Globalization describes how different world cultures, populations, and economies are interdependent from each other. It is a consequence of cross-border business. Technology, goods, investments, information, and services along with the labor market are the most popular components of such activity. Nations have established worldwide integration over many centuries by enabling economic, political, and social partnerships. In the early 19th century, trains, steamships, and telegraphs opened the way to global interaction and integration through economic collaboration among states. When we talk about globalization, we mean the process of self-integration of countries due to an impact of intergovernmental organizations (IGOs) and non-governmental organizations (INGOs). Generally, it involves economic integration and political interaction as it’s connected to the cultural and social aspects of different nations.
NEGATIVE EFFECT OF GLOBALIZATION
1. Inequality: Globalisation has been linked to rising inequalities in income and wealth. Evidence for this is the growing rural–urban divide in countries such as China, India and Brazil. This leads to political and social tensions and financial instability that will constrain growth. Many of the world’s poorest people do not have access to basic technologies and public goods. They are excluded from the benefits.
2. Inflation: Strong demand for food and energy has caused a steep rise in commodity prices. Food price inflation (known as agflation) has placed millions of the world’s poorest people at great risk.
3. Trade Imbalances: Global trade has grown but so too have trade imbalances. Some countries are running big trade surpluses and these imbalances are creating tensions and pressures to introduce protectionist policies such as new forms of import control. Many developing countries fall victim to export dumping by producers in advanced nations (dumping is selling excess output at a price below the unit cost of supply.
4. Unemployment: In almost all developing countries over half of the working population relied on casual jobs in industries until globalization took root. The advancement of technology has reduced such employment and increased global need for skilled professionals. Majority of people in developing countries don’t have skills, while the available jobs are poorly paid due to high demand caused by globalization. Most of the people are left unemployed and unable to meet their basic needs resulting in increased criminal activities such as burglary, pickpocketing, murder and drug abuse. The rate of unemployment and poverty keeps growing as the gap between the rich and the poor widens.
In conclusion, as we can see, the process of globalization has involved all the countries around the world. Developing countries such as India, China, Iraq, Syria, Lebanon, Jordan and some Africa’s countries, have been affected by globalization, and whether negatively or positively, the economies of these countries have improved under the influence of globalization. The size of direct foreign investment has increased unemployment increased due to technological advancement, poverty increased the poor are getting poorer and the rich getting richer and a lot of bad habits and traditions erased, but also globalization has brought many drawbacks to these countries as well. Many customs and cultures are disappeared such as traditions clothes and some language and expressions have changed. In addition, the violence and drugs abuse are increased and a lot of deadly diseases have spread under the influence of globalization. However, although globalization has many disadvantages, we believe that globalization has brought the developing countries many more benefits than the detriments.
NAME : ODOH KOSISOCHI DORIS
REG NO : 2017/249542
E-mail : kosisochidoris@gmail.com
DEPT : ECONOMICS
Negative effects of globalization
According to WHO Globalization, is the increased interconnectedness and interdependence of peoples and countries, is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows. Globalization has its negative effects on development which includes unemployment, poverty and social disintegration.
Globalization in Nigeria specifically led to job insecurity and unemployment, especially in the banking sector, with the introduction of the cash dispensing machine (ATM) so many people loosed their jobs increasing the numbers of unemployed people in the country. Recently, after the lockdown there was also another kind of technological globalization that was introduced in the banking sector called the “deposit machine” this machine allows the deposition of cash which means that the job of the tellers that collect our deposits are threatened, so you can see that globalization in this sector of the economy has lead to job insecurity in our society today. This unemployment in turn feeds the fat man ” poverty”, because those retrenched workers Most times become dependent on the society, increasing the poverty level in Nigeria and reducing our country’s GDP. This poverty which has a detrimental effect on the society at large leads to high crime rate and many other societal vices. Another adverse effect of globalization in the society is social disintegration, globalization which is the canker worm that eats deep into our society and has willfully taken away our communal life, families do not convene together as before and it has limited sharing in the society. Most family members get to see there loved ones once in a while especially during deaths. Globalization in the form of social disintegration has made class distinction so prominent especially in this recent times due to the gap between the rich and the poor folks.
In conclusion, i think globalization has taken more than it has given to the society.
What is Globalization?
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
AN OFFICIAL DEFINITION OF
GLOBALIZATION BY W.H.O(WORLD
HEALTH ORGANIZATION)
According to W.H.O, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
Globalization is deeply connected with economic systems and markets, which, on their turn, impact and are impacted by social issues, cultural factors that are hard to overcome, regional specificities, timings of action and collaborative networks. All of this requires, on one hand, global consensus and cooperation, and on the other, country-specific solutions, apart from a good definition of the adjective “just”.
BENEFITS OF GLOBALIZATION
Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work. Many people are nowadays citizens of the world. The origin of goods became secondary and geographic distance is no longer a barrier for many services to happen.
EFFECTS OF GLOBALIZATION
Positive effect
of GLOBALIZATION
1. Gives Access to a Larger Market
Through globalization countries and companies have access to a bigger consumer base. Instead of only selling products in their country a business can expand to other regions boosting sales and in the process making more money.
NAME: OKONKWO FAITH MUNACHI
REG NO: 2017/242422
E-MAIL: ofaith677@gmail.com
ANSWER
What is Globalization? Definitions of Globalization
Globalization is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. Countries have built economic partnerships to facilitate these movements over many centuries. But the term gained popularity after the Cold War in the early 1990s, as these cooperative arrangements shaped modern everyday life
A Simple Globalization Definition
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
An Official Definition of Globalization by the World Health Organization (WHO)
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
Wide ranging effects of globalization are complex and politically charged. As with major technological advances, globalization benefits society as a whole, while harming certain groups. Understanding the relative costs and benefits can pave the way for alleviating problems while sustaining the wider payoffs.
Globalization produces both winners and losers. It has very good advantages but comes along with disadvantages too, which includes poverty, unemployment and social disintegration.
Poverty
Globalization yields several implications. Careful targeting is necessary to address the poor in different countries who are likely to be hurt by globalization. The evidence suggests that relying on trade or foreign investment alone is not enough to alleviate poverty. The poor need education, improved infrastructure, access to credit and the ability to relocate out of contracting sectors into expanding ones to take advantage of trade reforms.
Unemployment
Globalization is to blame for developing countries unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation. “It ‘s true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity”(Kigundu M.N.,2002)
“The most important factor to determine the level of employment during 1980-2000 was national or regional macroeconomic policies which were implemented and sustained. In addition those countries with liberal macroeconomic reforms, pursued politics promoting flexible labor markets and employment practices, decentralized industrial relations systems, and judicious enforcement of labor. On the other hand, countries with employment laws, regulations, and policies experienced higher level of employment because they were not able to attract and retain as many new jobs”(Kiggundu M.N.,2002)
Social disintegration
Social disintegration is a drift or falling apart of people’s social life and values. Globalization has affected social relationships among people. Our culture and values have been abandoned as developing countries seek the foreign ways or developed countries ways of doing things. This in the sense that, globalization has opened our eyes to those aspects of the White Man’s culture that even our ancestors did not do or embrace but now you see developing countries trying to emulate both the good and the bad of whatever it is the developed countries have termed as ‘globalization’.
I totally agree that some daunting challenges accompany globalization.
Arinze miracle ozioma
2017/241428
Ozioma.arinze.241428@unn.edu.ng
Effects of globalization
Globalization is the process by which ideas goods and services spread throughout the world. It is also the increasing interconnectedness and interdependence of world cultures and economies. Generally globalization has fostered growth in most of the world economies. However we cannot ignore or turn a blind eye to the negative effects of this globalization in Nigerian economy or developing countries.
Firstly, globalization has widened the gap between the rich and the poor. Someone might as how? This is as a result of globalization focusing in some of the sectors of the economy while the other sectors remain stagnant. Sectors that that produce export goods thrive. Therefore those who work in this sectors continue to grow rich while those in the other sectors such as the agricultural sector remain poor and even get poorer. Generally, it’s those who have access to the globalization trend that join the band wagon the rest are left behind. Take for instance the introduction of the 4g network. Only the privileged few have access to it while others still have to deal with the slow 3g and even 2g network that can barely do anything.
Secondly, globalization has brought about unemployment. With the conception of globalization new technology and machinery were introduced to our economy. The effect of this is that those who don’t have the necessary skills to work with these new technology cannot get work or even if they were already working are laid off. So also some of these new machineries can now do the work of 10 people therefore reducing the number of people that are being employed in the economy. Some sectors that could have employed more people are usually left behind if they are not tied the globalization trend.
Finally, globalization has increased social disintegration in our economies. In our society today people no long concern themselves with socializing with people around them. They would rather use their phones. In fact gadgets are gradually taking the place of human being in the world today
Although globalization has brought about development and growth, the negative impact cannot be overlooked. Therefore globalization should be properly checked so as to obtain a positive effect and reduce the negative impact.
Name: Omada Dorathy Amarachukwu
Reg No: 2017/ 243131
Department: Economics Education
300 Level
dorathyamarachi.blogpost.com
amarachidora8@gmail.com
Well, Globalisation has led to the significant economic growth and improvement in human welfare. Globalization therefore is a very common theme of discussion and analysis these days. It has become a major concern of thinkers on development and those connected with development policies in government. It should indeed be the concern of the people in general, particularly in the developing countries, as it has the potential of having a deep impact on their lives.
One hears the loud voices of the proponents of globalization who proclaim that it has infinite potential for the development and welfare of mankind. They say that it is an inevitable and irreversible process in any case and thus one should endeavour to make the best of it. On the other hand, the opponents who are equally loud and persistent if not more, assert that globalization is a veritable evil out to drive the poor countries to abject poverty powerful arguments are placed by both sides in support of their respective claims. Therefore globalization has particularly adverse impacts on the poorer and weaker sections of the society and on small business enterprises. Hence a poorer awareness of it’s nature implications and impacts is necessary in the developing countries, where poverty is rampant and business activity is almost entirely limited to small and household units. It should relevant for people to know how globalization influences the development processes and what impact it has on poverty.
Globalization broadly means fully- free economic operations across the borders of countries, in which there are two types of such economic operations, which includes the flow of good and services from one country to another. A possible combinations of these two types of activities could examplify another type of economic operations, which is the production of goods and services. The flow of goods across the boarders means export and imports of goods. Examples of the flow of services across boarders are banking, insurance, telecommunications and similar services provided from one country to another. The flow of capital take place, for example by the establishment or acquisition of factories or by the investment of capital in deposits and share markets in other countries. An example of the globalized production of goods is a factory established in a country through the capital invested from another country and the use of inputs from other countries in the production processes or targeting the production to the consumer of other countries.
In conclusion, Globalization has an impact on the lives of people in all sectors of the society and most adversely on poorer and more vulnerable social groups, particular in developing countries. Thus, it is urgent for these groups and countries to develop a critical awareness and assessment of the nature and processes of globalization and its effects on the society.
Name . Okwuchie Amos
Reg No: 2017/249562
Email: okwuchieamos@gmail.com
Economics dept
Globalization is a tool that benefits all sections of mankind. We cannot ignore the negative effects it has in developing world.
Unemployment
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation. “It ‘s true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity”(Kigundu M.N.,2002).
“The most important factor to determine the level of employment during 1980-2000 was national or regional macroeconomic policies which were implemented and sustained. In addition those countries with liberal macroeconomic reforms, pursued politics promoting flexible labor markets and employment practices, decentralized industrial relations systems, and judicious enforcement of labor. On the other hand, countries with employment laws, regulations, and policies experienced higher level of employment because they were not able to attract and retain as many new jobs”(Kiggundu M.N.,2002).
For example ,Indonesia faced unemployment and poverty that grew to levels not experienced in two decades, health conditions worsened, and the natural environment degraded (Piasecki R and Wolnicki M.,2004)
Spread of fast foods chain.
Fast foods chain is growing very fast. But some of the most rapid growth is occurring in the developing countries, where it’s real changing the way people eat. “Kentucky Fried Chicken(KFC) is the largest, fastest growing, and highest potential units” (Bartlett C.,1986).
Most people prefer to buy fast foods because it’s cheap and quick. This replaces home cooked fare enjoyed with family and friends. Traditional diets and recipes are yielding to sodas, burgers, and other highly processed and standardized items that have a lot of fat, sugar, and salt resulting a global epidemic of diabetes, obesity, and other chronic diseases. Meanwhile, fast food producers require farmers to raise uniform fields of crops and herds of livestock for easy processing, eliminating agricultural diversity.
Western culture.
Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people now in developing countries cop what people in developed countries do. So, its like they ignore their own culture and practice western culture ( Goyal K.A., 2006). For example dressing styles and eating habits, language. All these can affect management in one way or another example it can cause misunderstandings because of language barrier.
Trade
Average tariff rates continue to be high in many developing countries, including some that have recently implemented trade reforms. Example,India. Trade policy continues to be an important aspect in globalization at least in some of the lower income developing countries.
widespread use of
computers, faxes and mobile phones, introduction of the internet and
e-commerce, and quicker and cheaper means of transportation in some cases
offered opportunities to developing countries, but in many cases deepened the
gap between global firms and traditional industries
globalization opened up new opportunities for developing
countries to create jobs and expand exports. In practice, many developing
countries competing for foreign investors offered longer tax holidays,
costly subsidies, and various incentives for multinationals. The
competition among developing nations reduced positive net effects of
globalization or, at best, delayed them.
Anopueme Franklin Ifeanyi
2017/249485
http://www.franklin.anopueme.249485@unn.edu.ng
http://www.franksempire.wordpress.com
Globalization, as a complicated process, is not a new phenomenon and our world has experienced its effects on different aspects of lives. Economic globalization includes flows of goods and services across borders, international capital flows, reduction in tariffs and trade barriers, immigration, and the spread of technology, and knowledge beyond borders. The broad effects of globalization on different aspects of life grab a great deal of attention over the past three decades. As countries, especially developing countries are speeding up their openness in recent years, the concern about globalization and its different effects on economic growth, poverty, inequality, environment and cultural dominance are increased.
Some of the notable benefits of globalization are listed and explained as follows:
(i) Foreign Direct Investment: Foreign direct investment (FDI) tends to increase at a much greater rate than the growth in world trade, helping boost technology transfer, industrial restructuring, and the growth of global companies.
(ii) Technological Innovation: Increased competition from globalization helps stimulate new technology development, particularly with the growth in foreign direct investment, which helps improve economic output by making processes more efficient.
(iii) Economies of Scale: Globalization enables large companies to realize economies of scale that reduce costs and prices, which in turn supports further economic growth.
Some of the negative effects of globalization include:
(i)Unemployment: Globalization is to blame for the world’s unemployment situation, though it brought some job opportunities. But despite the fact that it brought job opportunities around the globe, it is also to blame for the current unemployment situation.
(ii)Western Culture: Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people in developing countries now try to cop with what people in developed countries do.
(iii) Spread of fast foods chain: Fast foods chain is growing very fast. But some of the most rapid growth is occurring in the developing countries, where it’s really changing the way people eat. And this is as a result of globalization.
Conclusion:
In conclusion, globalization is that which promotes and increases interactions between different regions and populations around the globe. And this increased interaction is like a gamble, which means it can either yield positive, or negative impacts.
EMEGBUE BENJAMIN
2017/241452
Economics Department.
Globalization certainly permits an increase
in the level of global output. Whether as a
result of the old Heckscher-Ohlin theory of
the basis of comparative advantage as
lying in different factor abundance in
different countries, or as a result of the
new trade theories that explain trade by
increasing returns to scale, trade will
increase world output.
[2] Likewise FDI brings the best technology, and other forms of intellectual capital, to countries that would otherwise have to make do without it, or else invest substantial resources in reinventing the wheel for themselves. It may also bring products that would otherwise be unavailable to the countries where the investment occurs, which presumably increases the quality, and therefore the value, of world output.
And international capital flows can
transfer savings from countries where the
marginal product of capital is low to those
where it is high, which again increases
world output. Globalization must be expected to influence the distribution of income as well as its level. So far as the distribution of income between countries is concerned, standard theory would lead one to expect that all countries will benefit. Economists have long preached that trade is mutually beneficial, and most of us believe that the experience of widespread growth alongside rapidly growing trade in the postwar period serves to substantiate that.
Similarly most FDI goes where a
multinational has intellectual capital that
can contribute something to the local
economy, and is therefore likely to be
mutually beneficial to investor and
recipient. And a flow of capital that
finances a real investment is again likely to benefit both parties, since the yield on the investment is expected to be higher than the rate of interest the borrower has to pay, while that rate of interest is also
likely to be higher than the lender could
expect at home since otherwise there
would have been no incentive to send it
abroad. Loose talk about free trade
making the rich countries richer and poor
countries poorer finds no support in
economic analysis. Nor is there any reason
for supposing that the North benefits itself
at the expense of the South by imposing
import restrictions like non-tariff barriers
or agricultural subsidies: standard theory
says that, while this does indeed
impoverish the South, the public in the
North also suffers, and it loses more than
the producers gain. This suggests that a
promising strategy for eliminating such
barriers is to seek a coalition with Northern consumers, rather than to
engage in North-bashing which will simply
alienate potential Northern allies.
[3] The effects on domestic income
distribution are less clear. Standard theory
says that trade will tend to hurt unskilled
labour in rich countries and to help it in
poor ones, since the poor countries will be
able to export-labour-intensive goods like
garments to rich countries, thus increasing
the demand for unskilled labour in the
poor countries and decreasing it in the rich ones. That is, within rich countries, there is a good analytical reason for arguing that trade will tend to make the rich richer and the poor poorer. There has in recent years been a lively debate among economists in the developed countries as to whether the increase in imports of labour-intensive goods has ben a major factor in causing the fall in the relative (and sometimes absolute) wages of the unskilled in these countries.
Egbo Chinemelum Chinonso
2017/249493
egboemecs@gmail.com
GLOBALIZATION
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe. According to WHO globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
NEGATIVE EFFECT OF GLOBALIZATION
1. Inequality: Globalisation has been linked to rising inequalities in income and wealth. Evidence for this is the growing rural–urban divide in countries such as China, India and Brazil. This leads to political and social tensions and financial instability that will constrain growth. Many of the world’s poorest people do not have access to basic technologies and public goods. They are excluded from the benefits.
2. Inflation: Strong demand for food and energy has caused a steep rise in commodity prices. Food price inflation (known as agflation) has placed millions of the world’s poorest people at great risk.
3. Trade Imbalances: Global trade has grown but so too have trade imbalances. Some countries are running big trade surpluses and these imbalances are creating tensions and pressures to introduce protectionist policies such as new forms of import control. Many developing countries fall victim to export dumping by producers in advanced nations (dumping is selling excess output at a price below the unit cost of supply.
4. Unemployment: Concern has been expressed by some that capital investment and jobs in advanced economies will drain away to developing countries as firms switch their production to countries with lower unit labour costs. This can lead to higher levels of structural unemployment.
5. Standardisation: Some critics of globalisation point to a loss of economic and cultural diversity as giant firms and global multinational brands dominate domestic markets in many countries.
In conclusion, as we can see, the process of globalization has involved all the countries around the world. Developing countries such as India, China, Iraq, Syria, Lebanon, Jordan and some Africa’s countries, have been affected by globalization, and whether negatively or positively, the economies of these countries have improved under the influence of globalization. The size of direct foreign investment has increased unemployment increased due to technological advancement, poverty increased the poor are getting poorer and the rich getting richer and a lot of bad habits and traditions erased, but also globalization has brought many drawbacks to these countries as well. Many customs and cultures are disappeared such as traditions clothes and some language and expressions have changed. In addition, the violence and drugs abuse are increased and a lot of deadly diseases have spread under the influence of globalization. However, although globalization has many disadvantages, we believe that globalization has brought the developing countries many more benefits than the detriments.
Omeke Anslem Francisco
2017/249564
assurance081@gmail.com
GLOBALIZATION
Globalization describes how different world cultures, populations, and economies are interdependent from each other. It is a consequence of cross-border business. Technology, goods, investments, information, and services along with the labor market are the most popular components of such activity. Nations have established worldwide integration over many centuries by enabling economic, political, and social partnerships. In the early 19th century, trains, steamships, and telegraphs opened the way to global interaction and integration through economic collaboration among states. When we talk about globalization, we mean the process of self-integration of countries due to an impact of intergovernmental organizations (IGOs) and non-governmental organizations (INGOs). Generally, it involves economic integration and political interaction as it’s connected to the cultural and social aspects of different nations.
Chiefly among them they emphasize on political, social, and economic models. The modern political approach pertains to the coordination and cooperation between different governments. National partnerships were primarily created to overcome such global problems as wars, diseases, hunger, and environmental pollution. The social approach deals with human interaction as social media and the Internet allow people to communicate without barriers. For instance, everybody knows about the American dream, Russian ballet, or Chinese professional chess players since information spreads very fast. An economic dimension pertains to commercial corporations. They have headquarters worldwide which allow them to influence particular domestic policy.
NEGATIVE EFFECT OF GLOBALIZATION;
1. Unemployment
In almost all developing countries over half of the working population relied on casual jobs in industries until globalization took root. The advancement of technology has reduced such employment and increased global need for skilled professionals. Majority of people in developing countries don’t have skills, while the available jobs are poorly paid due to high demand caused by globalization. Most of the people are left unemployed and unable to meet their basic needs resulting in increased criminal activities such as burglary, pickpocketing, murder and drug abuse. The rate of unemployment and poverty keeps growing as the gap between the rich and the poor widens.
2. Abandonment of Culture
Every community, society, or nation has its values and beliefs, that is to say – own culture. They are essential because they mold the acceptable behavior of the people in a particular community. The elders or leaders ensure that the people behave in a morally upright way. However, globalization mixed different cultures. Then people reconsidered their authentic rules and customs regarding their culture as primitive. Some nations from developing countries adopt the western culture and abandon there’s own. The community leaders can no longer pursue their own domestic policy punishing citizens for crimes them as they did before because they are regarded as backward and primitive by international society. They adopt the culture which is quite strange and distant from their nature, due to such policy, people conduct themselves regardless of actual laws. As a result, there is an increased crime as acts such as rape, divorce, and domestic violence get on the rise.
3. Price Instability
Price instability is a significant effect of globalization on business. Some people establish industries overseas where they get cheap raw materials and labor. They can cut production costs and sell their goods at a low price. Due to competition, some high-quality products differ in prices. No matter how the World Trade Organization has tried to control price fluctuation, their efforts are not successful. These companies reach out to consumers using modern technology. Successful businesses are for those who can find a competitive advantage and especially make high-quality products for a low price.
4. Currency Fluctuation
International trade buys and sells products using the US dollar. The price of dollar fluctuates day-to-day in developing countries, this results in imbalanced economy and unnormal prices for goods and services. National currencies are affected the most by IGOs.
CONCLUSION
Having seen all these challenges and problems associated with globalization, I agree that that globalization is harmful and also good. It is good because it has made so many things easy for people, like the internet where people get knowledge and so on. And it is also harmful in the sense that it has left so many youths unemployed, thereby increasing the rate of poverty and crimes and also brought about social disintegration and disunity.
NAME: OKONKWO FAITH MUNACHI
REG NO: 2017/242422
E-MAIL: ofaith677@gmail.com
ANSWER
What is Globalization? All Definitions of Globalization
Globalization is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. Countries have built economic partnerships to facilitate these movements over many centuries. But the term gained popularity after the Cold War in the early 1990s, as these cooperative arrangements shaped modern everyday life
A Simple Globalization Definition
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
An Official Definition of Globalization by the World Health Organization (WHO)
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
Wide ranging effects of globalization are complex and politically charged. As with major technological advances, globalization benefits society as a whole, while harming certain groups. Understanding the relative costs and benefits can pave the way for alleviating problems while sustaining the wider payoffs.
Globalization produces both winners and losers. It has very good advantages but comes along with disadvantages too, which includes poverty, unemployment and social disintegration.
Poverty
Globalization yields several implications. Careful targeting is necessary to address the poor in different countries who are likely to be hurt by globalization. The evidence suggests that relying on trade or foreign investment alone is not enough to alleviate poverty. The poor need education, improved infrastructure, access to credit and the ability to relocate out of contracting sectors into expanding ones to take advantage of trade reforms.
Unemployment
Globalization is to blame for developing countries unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation. “It ‘s true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity”(Kigundu M.N.,2002)
“The most important factor to determine the level of employment during 1980-2000 was national or regional macroeconomic policies which were implemented and sustained. In addition those countries with liberal macroeconomic reforms, pursued politics promoting flexible labor markets and employment practices, decentralized industrial relations systems, and judicious enforcement of labor. On the other hand, countries with employment laws, regulations, and policies experienced higher level of employment because they were not able to attract and retain as many new jobs”(Kiggundu M.N.,2002)
Social disintegration
Social disintegration is a drift or falling apart of people’s social life and values. Globalization has affected social relationships among people. Our culture and values have been abandoned as developing countries seek the foreign ways or developed countries ways of doing things. This in the sense that, globalization has opened our eyes to those aspects of the White Man’s culture that even our ancestors did not do or embrace but now you see developing countries trying to emulate both the good and the bad of whatever it is the developed countries have termed as ‘globalization’.
I totally agree that some daunting challenges accompany globalization.
NAME-OZOEMENA CHUKWUEBUKA SABASTINE
REG NO-2017/250816
DEPARTMENT-ECONOMICS
COURSE CODE-ECO 362(DEVELOPMENT ECONOMICS II)
ASSIGNMENT ON GLOBALISATION AND ITS EFFECTS .
THE CONCEPT
It is the world economy which we think of as being globalized. We mean that the whole of the world is increasingly behaving as though it were a part of a single market, with interdependent production, consuming similar goods, and responding to the same impulses. Globalization is manifested in the growth of world trade as a proportion of output (the ratio of world imports to gross world product, GWP, has grown from some 7% in 1938 to about 10% in 1970 to over 18% in 1996). It is reflected in the explosion of foreign direct investment (FDI): FDI in developing countries has increased from $2.2 billion in 1970 to $154 billion in 1997. It has resulted also in national capital markets becoming increasingly integrated, to the point where some $1.3 trillion per day crosses the foreign exchange markets of the world, of which less than 2% is directly attributable to trade transactions.
While they cannot be measured with the same ease, some other features of globalization are perhaps even more interesting. An increasing share of consumption consists of goods that are available from the same companies almost anywhere in the world. The technology that is used to produce these goods is increasingly standardized and invariant to the location of production. Above all, ideas have increasingly become the common property of the whole of humanity.
This was brought home to me vividly by a conference that I attended four years ago, where we discussed the evolution of economic thought around the world during the half-century since World War Two (Coats 1997). We debated whether the increasing degree of convergence in economic thinking and technique, and the disappearance of national schools of economic thought, could more aptly be described as the internationalization, the homogenization, or the Americanization of economics. My own bottom line was that economics had indeed been largely internationalized, that it had been substantially homogenized, but only to a limited extent Americanized, for non-American economists continue to make central contributions to economic thought, as the Nobel Committee recognized by its award to Amartya Sen a few weeks before this conference took place. Incidentally, the nicest summary of the change in economic thinking over the period was offered by the Indian participant in that conference, who remarked that his graduate students used to return from Cambridge, England focusing on the inadequacies of the Invisible Hand, while now they return from Cambridge Mass. focusing on the inadequacies of the Visible Hand! In the same vein, one of the more telling criticisms of my phrase “the Washington Consensus” was that the (substantial though certainly incomplete) consensus on economic policy extends far beyond Washington.
However, there are areas where globalization is incomplete, even in the economic sphere. In particular, migration is very far from being free. Highly skilled professionals have a relatively high degree of mobility, but those without skills often face obstacles in migrating to higher-wage countries. Despite the difficulties, substantial proportions of the labour forces of some countries are in fact working abroad: for example, around 10% of the Sri Lankan labour force is now abroad.
Moreover, globalization is much less of a reality in other fields than it is in the economic one. Culture still displays strong national, and even regional and local, variations. While English is clearly in the process of emerging to be a common world language, at least as a second language, minority languages are making something of a comeback, at least in developed countries. Sport is still very different around the world: the Americans have still not learnt to play cricket, and most of the rest of us have still not learned to understand what they see in baseball. Although the nation state is far less dominant than it used to be, with significant powers being devolved both downwards to regional and local authorities and upwards to international and in Europe to supranational institutions (and although “interfering in the internal affairs of another state” is less frowned on than formerly), politics is still organized primarily on the basis of nation-states.
CAUSES
What explains this globalization? It is certainly not attributable to conquest, the source of most previous historical episodes where a single economic system has held sway over a vast geographical terrain. The source lies instead in the development of technology. The costs of transport, of travel, and above all the costs of communicating information have fallen dramatically in the postwar period, almost entirely because of the progress of technology. A 3-minute telephone call from the USA to Britain cost $12 in 1946, whereas today it can cost as little as 48 cents, despite the fact that consumer prices have multiplied by over eight times in the intervening period. The first computers were lumbering away with piles of punched cards in the early postwar years, and telegrams provided the only rapid means of written communication. There was no fax or internet or e-mail or world-wide web, no PCs or satellites or cell-phones. Today we witness phenomena that no futurist dreamed of half a century ago, such as Indians with medical degrees residing in Bangalore who earn a living by acting as secretaries to American doctors by transcribing their tapes overnight.
It is clearly the availability of cheap, rapid and reliable communications that permits such phenomena, just as this is the key to the integration of the international capital market. I presume the same factor is important in nurturing the growth of multinational corporations, since it is this which enables them to exploit their intellectual property efficiently in a variety of locations without losing the ability to maintain control from head office. But in this context I would surmise that other factors are also at work, such as the spread of consumer knowledge about what is available that comes from travel and from advertising, itself encouraged by the communications revolution and its children like CNN. The reduction in transport costs is also a key factor underlying the growth in trade.
Of course, it needed a reasonably peaceful world to induce economic agents to exploit the opportunities for globalization presented by technological progress. But the technological basis for the phenomenon of globalization implies that, barring an end to the “Pax Americana” or else extremely vigorous conscious actions to reverse the process, globalization is here to stay.
CONSEQUENCES
Globalization certainly permits an increase in the level of global output. Whether as a result of the old Heckscher-Ohlin theory of the basis of comparative advantage as lying in different factor abundance in different countries, or as a result of the new trade theories that explain trade by increasing returns to scale, trade will increase world output.[2] Likewise FDI brings the best technology, and other forms of intellectual capital, to countries that would otherwise have to make do without it, or else invest substantial resources in reinventing the wheel for themselves. It may also bring products that would otherwise be unavailable to the countries where the investment occurs, which presumably increases the quality, and therefore the value, of world output. And international capital flows can transfer savings from countries where the marginal product of capital is low to those where it is high, which again increases world output.
Globalization must be expected to influence the distribution of income as well as its level. So far as the distribution of income between countries is concerned, standard theory would lead one to expect that all countries will benefit. Economists have long preached that trade is mutually beneficial, and most of us believe that the experience of widespread growth alongside rapidly growing trade in the postwar period serves to substantiate that. Similarly most FDI goes where a multinational has intellectual capital that can contribute something to the local economy, and is therefore likely to be mutually beneficial to investor and recipient. And a flow of capital that finances a real investment is again likely to benefit both parties, since the yield on the investment is expected to be higher than the rate of interest the borrower has to pay, while that rate of interest is also likely to be higher than the lender could expect at home since otherwise there would have been no incentive to send it abroad. Loose talk about free trade making the rich countries richer and poor countries poorer finds no support in economic analysis. Nor is there any reason for supposing that the North benefits itself at the expense of the South by imposing import restrictions like non-tariff barriers or agricultural subsidies: standard theory says that, while this does indeed impoverish the South, the public in the North also suffers, and it loses more than the producers gain. This suggests that a promising strategy for eliminating such barriers is to seek a coalition with Northern consumers, rather than to engage in North-bashing which will simply alienate potential Northern allies.[3]
The effects on domestic income distribution are less clear. Standard theory says that trade will tend to hurt unskilled labour in rich countries and to help it in poor ones, since the poor countries will be able to export-labour-intensive goods like garments to rich countries, thus increasing the demand for unskilled labour in the poor countries and decreasing it in the rich ones. That is, within rich countries, there is a good analytical reason for arguing that trade will tend to make the rich richer and the poor poorer. There has in recent years been a lively debate among economists in the developed countries as to whether the increase in imports of labour-intensive goods has been a major factor in causing the fall in the relative (and sometimes absolute) wages of the unskilled in these countries: the majority of economists seem to have concluded that it is a contributory factor, but that the major part of the explanation lies instead in the skill-intensive form of technological progress (Cline 1997).
It seems more difficult to doubt that exports of labour-intensive goods have been a factor that has done something to increase the demand for unskilled labour, and therefore to equalize the income distribution, in the exporting countries like Sri Lanka. Hence I find it betrays a sad lack of concern with the prospects of the poor to hear, as I have during this conference, garment exports being denigrated as likely in some unexplained way to bring negative impacts. On the other hand, some of the effects of the communications revolution must surely have had a disequalizing effect on income distribution in these countries: think of the Indian doctors who are acting as secretaries to American doctors rather than treating Indian patients, thereby earning more for themselves and also tending to pull up the pay of other doctors in India, who are relatively affluent by Indian standards. Similarly, differential mobility of skilled versus unskilled labour tends to pull up the salaries of the skilled in developing countries toward world levels, thereby leaving less for the immobile poor. The same result will occur if the owners of highly-mobile capital are able to evade taxes by investing abroad, and also if governments are induced to avoid imposing high tax rates on internationally mobile capital, or on those who might be prompted to emigrate, in the hope of keeping these factors at home. Thus the net effect of globalization on income distribution within developing countries seems to me distinctly ambiguous.
What impact is globalization likely to have on the long-term possibilities of economic growth in developing countries? My vision of the growth process is that it takes off when the elite in a developing country comes to understand the opportunities of applying world-class technologies within their country, and introduces institutional arrangements that permit individual pursuit of self-interest to serve, in general, the social good. Once that happens the country is able to grow at a rapid rate, unless some political accident obstructs the process, until it catches up with best-practice technology, and therefore attains the living standards of the developed countries. Globalization is tending to make the technologies and the knowledge for this process to occur more readily available, and therefore to enable the process to be telescoped in time. (Singapore may be a small country, but there is no previous case in history of any country that did not enjoy massive resource discoveries going from stark poverty to affluence in under 30 years.)
But it is surely also true that globalization is bringing new dangers. The virulence of the East Asian crisis was primarily a result of countries exposing themselves to the full force of the international capital market before they had built up an unquestioned reputation for being able as well as willing to service their debts come what may, which meant that when investors became concerned about their potential vulnerability as a result of the Thai crisis there were no other investors willing to step in and provide stabilizing speculation even after exchange rates and interest rates had clearly overshot. Of course, one can argue that this increased vulnerability to external shocks has to be weighed against a decreased vulnerability to internal shocks: think how much more Bangladesh would have suffered this year (1998) if the international community had not provided aid to partially offset the cost of the floods, let alone how much more hunger, or even starvation, there would have been had Bangladesh been unable to import additional rice. But this does not justify dismissing the increased dangers from external shocks. Moreover, I might note that Professor Indraratna offered you a much longer and more imaginative list of dangers than I have here identified, which looks beyond narrow economic questions and considers the role of globalization in spreading such unsavoury phenomena as drugs, the sex trade, crime, and terrorism.
NAME: OBUTE CHISOM HELLEN
DEPT: ECONOMICS
REG NO: 2017/249539
EMAIL ADDRESS: hellytec4@gmail.com
BLOGGERS ADDRESS; obutechisomhellen.blogspot.com
DEFINITION OF GLOBALIZATION
In its general definition, globalization can be defined as an extensive network of economic, cultural, social and political interconnections and processes which goes beyond national boundaries’ (Yeates 2001) However its agreed that globalization ‘is not a policy option but a fact to which policy makers must adapt’ (Wells 2004).
The world has witnessed increased interdependence in the last two decades, thanks to globalization. The main driving forces of this process are technology, policy and competition and it subordinates domestic economies to global market conditions and practices. Developed nations are the beneficiaries of globalization as their share of world trade and finance has been expanded at the expense of developing countries. Thus, the process exacerbates inequality between the world’s regions and poverty in the developing world. Nigeria has not benefited enough from globalization due to her largely dependence on crude oil, inability to attract increased foreign investments and her huge indebtedness. But globalization can be domesticated in the country through diversification of exports, debt reduction and expanded development cooperation with other countries
PROSPECT AND CHALLANGES OF GLOBALISATION
Globalisation has both positive and negative effects, which are opportunities and challenges, respectively. The positive effects or benefits are numerous, but the most important include ;
BENEFIT OF GLOBALIZATION
Increased specialisation and efficiency, better quality products at reduced prices. economies of scale in production, competitiveness and increased output, technological improvement and increased managerial capabilities.
The increase in world trade and output made possible through globalisation, ensures that consumers derive the best satisfaction since the best standards of quality are maintained through specialisation and competition.
In addition, the volume of goods and services increases with the welfare of individuals enhanced across countries. The increase in FDI flows facilitate the growth in world trade and global output by increasing the international mobility of capital and ensuring efficient use of technological and other resources in the production process. Through investment and trade, firms specialise in production, with trade facilitating the process through specialisation.
In addition, FDI facilitates the process through technological innovation
and efficient deployment of resources to achieve lower unit cost of production. These processes help to increase global wealth, enhance living standards, ensure poverty reduction and improved welfare for the individual. Thus, globalization is crucial for worldwide economic growth and development. Trade and investment can aid efforts at restructuring an economy to make it more competitive and better able to contribute to the globalisation process.
CHALLENGES OF GLOBALIZATION
Although globalisation has both positive and negative aspects, there is no doubt that it has improved global welfare. Those countries that have not benefitted have failed to: implement sound macroeconomic policies towards financial and exchange rate stability; apply policy measures to achieve current account convertibility through the removal of non-tariff barriers to trade; and adopt adequate prudential measures to stem banking system distress.
Globalisation penalizes countries that adopt the wrong macroeconomic and sectoral policies, while enhancing the growth potentials of those that apply sound policies. As a result, countries must strive to adopt policies that are in consonance with the current reality of the rapid integration of the world economies.
The problems associated with current account liberalisation have not been as serious as those arising from capital account liberalisation.
USING NIGERIA AS A CASE STUDY
Nigeria has not been spared from the phenomenon of globalisation. Although, the adverse consequences have not been pronounced, the fact remains that Nigeria has become relatively more integrated with the global economic system. The tempo intensified with the policy shift from trade and exchange controls to economic liberalisation from 1986.
Nigeria is highly dependent on external trade, while rapid inflow of capital has been stemmed largely as a result of the relatively underdeveloped state of the financial markets. To determine the extent of openness of the Nigerian economy, trade flows involving the country and the rest of the world could be analysed. The share of total trade in total output or gross domestic product (GDP)can be applied to measure the openness of the Nigerian economy.
NAME; Okaome Esther Chioma
REG NO; 2017/249554
DEPARTMENT; ECONOMICS
EMAIL; estherokaome@gmail.com
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
Globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
POSITIVE EFFECTS
It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive effects of globalization and the positive impacts they have had on so many demographic segments of society which are legal effect, culture, competition, foreign investment, foreign trade, global market and so on.
NEGATIVE EFFECT
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
NAME: OBODIKE LOVETH OGADIMMA
REG NO: 2017/249537
DEPARTMENT: ECONOMICS
BASE ON THE FACT THAT GLOBALIZATION HAS LED TO SIGNIFICANT ECONOMIC GROWTH AND IMPROVEMENT IN HUMAN WELFARE, IT HAS ALSO CHALLENGES OR NEGATIVE IMPACT SUCH AS INCREASED POVERTY, UNEMPLOYMENT AND SOCIAL INTEGRATION.
Globalization is a very wide and a very important focus of discussion. The official definition of globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. More simply, globalization refers to an open flow of information, technology, and goods among countries and consumers. This openness occurs through various relationships, from business, geopolitics, and technology to travel, culture, and media. Globalization despite having benefits to the world, it also has a negative effect of it.
Globalization in short, points to the whole effort towards making the world global community as a one village. Goods that were only found in western countries can now be found across the globe. Now under developed areas can enjoy the benefits of scientific advances and industrial progress available in developed countries for the improvement and growth of their areas. Because of globalization the economies of the world are being increasingly integrated, example mobile phones and internet have brought people closer. The world is becoming a smaller place. Work can be outsourced to any part of the world that has an internet connection because of improvements in traffic infrastructure one is able to reach ones destination in a short time. Globalization can also be defined as an ongoing process by which regional economies, societies and cultures have become integrated through a globe-spanning network of communication and trade. The process of globalization includes a number of factors which are rapid technology developments that make global communications possible, political developments such as the fall of communism, and transportation developments that make traveling faster and more frequent. These produce greater development opportunities for companies with the opening up of additional markets, allow greater customer harmonization as a result of the increase in shared cultural values, and provide a superior competitive position with lower operating costs in other countries and access to new raw materials, resources, and investment opportunities. People can move from one country to another, trade restrictions are reducing, domestic markets are opening up for foreign investments, telecommunications are better established and the countries that are leading the innovations are passing on their technologies to other countries in need.
POSITIVE EFFECTS OF GLOBALIZATION
I know that globalization has also created many negative effects, but I believe its always better to look to the future with optimism and hope. Tomorrow, hopefully, we will be able to minimize or even eradicate the evil forces that give globalization a bad name. Thus we will be able to move forward with peace and harmony (Kulkami A., 2009)
Poverty alleviation
As far as poverty reduction is concerned, globalization played a role in poverty reduction in developing countries. In deed most developed countries experienced reduction in poverty in the proportion of their living below the poverty line, including fast developing countries like China, India, Vietnam. While other countries like Sub-Saharan Africa registered an opposite trend (Lee E., 2006).
Employment situation.
Through globalization, people from different countries are provided with jobs opportunities within the global. It has created the concept of outsourcing. Developed countries prefer to provide work to developing countries where costs are cheap. Work such as customer support, software development, accounting, marketing and insurance are given to developing countries like India. Therefore, the country that is given the work enjoys by getting jobs. It has given an opportunity to invest in the emerging markets and tap up the talent which is available there. In developing countries, there is often a lack of capital which hinders the growth of domestic companies and hence, employment. In such cases, due to global nature of the businesses, people of developing countries too can obtain gainful employment opportunities (Pillai P.,2008).
Technology
This is a powerful force that drives the world toward a converging commonality. It has proletarianized communication, transport, and travel. People from different places everywhere wants all the things they have heard about, seen, or experienced through technology. Organizations through its managements can obtain knowledge from different places in the world that can be used in the organization. Television and medias played a big role in influencing the perception of the world, from a relatively small national unity and reality, into a global market and international concerns. As multinationals establish subsidiaries in new locations, they transfer know how from the parent to the local operation. Knowledge flows from one unit to another as a whole organization benefits from development activity. One of the ways that organizations use in knowledge transfer is the movement of personnel, which takes place within multinationals. This build up a bank of knowledge about working in different situations with people from different cultures and this represents a stock of knowledge that could be developed and used to benefit the organization (Kamoche, 1997).
Education.
Globalization from the point of view has positive effects as well as negative effects. It has increased the access of higher education example universities and reducing the knowledge gap in developing countries, it equally has negative aspects which can seriously threaten universities in those countries. From point of view it has brought more positive effects to developing countries through increasing access to higher learning institutions. Today you can move in the search of the best educational facilities in the world including developing countries without any hindrance. This is due to increased output from secondary schools, greater participation of women in higher education, a growing private sector demand for graduates, and the exorbitant costs of acquiring education in foreign countries, especially those in the north (Mohamedbhai G., 2002).
Foreign trade
Despite having negative effects of globalization, it has a good side too. One of the most significant effect it has brought to developing countries is Trade. Before people used to exchange goods for goods or services for services but now people can trade goods for money. This is mostly through International trade whereby people exports and imports goods within countries. Globalization has led to reduction of costs in trade within the globe. It has led to reduction of tax of importation of goods.
Foreign investment
Foreign investment is a direct result of globalization. Foreign investment is always welcomed as it provides resources, capital and technology to a country that will support economic development of the host country. This improves employment as in direct and indirectly. Increases exports to a country and thereby improves the current account and therefore will help to the repayment of foreign debt. This however has some criticisms for leading to too much foreign control (Kaitilia V and Kotilainen M., 2002). Developing countries can use general or specific industrial and trade policies to be more or less welcoming to foreign direct investments, capital and foreign tourist services. They can directly and indirectly shape their participation in the economic activities in the globe (Piasecki R. and Wolnicki M., 2004).
Market sector
Globalization of markets in developing countries is growing so fast. The emergence of global markets for standardized consumer products on a previously unimagined scale of magnitude. This brought benefits which are economies of scale in production, reduced world prices, distribution, marketing and management (Levitt T.,1983)
NEGATIVE EFFECTS OF GLOBALIZATION
Globalization is a tool that benefits all sections of mankind. We cannot ignore the negative effects it has in developing world.
Unemployment
Globalization is a blame to worlds unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation. Its true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity (Kigundu M.N.,2002).
The most important factor to determine the level of employment during 1980-2000 was national or regional macroeconomic policies which were implemented and sustained. In addition, those countries with liberal macroeconomic reforms, pursued politics promoting flexible labour markets and employment practices, decentralized industrial relations systems, and judicious enforcement of labour. On the other hand, countries with employment laws, regulations, and policies experienced higher level of employment because they were not able to attract and retain as many new jobs (Kiggundu M.N.,2002). For example, Indonesia faced unemployment and poverty that grew to levels not experienced in two decades, health conditions worsened, and the natural environment degraded (Piasecki R and Wolnicki M.,2004)
Spread of fast foods chain.
Fast foods chain is growing very fast. But some of the most rapid growth is occurring in the developing countries, where its real changing the way people eat. Kentucky Fried Chicken(KFC) is the largest, fastest growing, and highest potential units (Bartlett C.,1986). Most people prefer to buy fast foods because its cheap and quick. This replaces home cooked fare enjoyed with family and friends. Traditional diets and recipes are yielding to sodas, burgers, and other highly processed and standardized items that have a lot of fat, sugar, and salt resulting a global epidemic of diabetes, obesity, and other chronic diseases. Meanwhile, fast food producers require farmers to raise uniform fields of crops and herds of livestock for easy processing, eliminating agricultural diversity.
Western culture.
Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people now in developing countries cop what people in developed countries do. So, its like they ignore their own culture and practice western culture ( Goyal K.A., 2006). For example, dressing styles and eating habits, language. All these can affect management in one way or another example it can cause misunderstandings because of language barrier.
Trade
Average tariff rates continue to be high in many developing countries, including some that have recently implemented trade reforms. Example, India. Trade policy continues to be an important aspect in globalization at least in some of the lower income developing countries.
widespread use of computers, faxes and mobile phones, introduction of the internet and e-commerce, and quicker and cheaper means of transportation in some cases offered opportunities to developing countries, but in many cases deepened the gap between global firms and traditional industries globalization opened up new opportunities for developing countries to create jobs and expand exports. In practice, many developing countries competing for foreign investors offered longer tax holidays, costly subsidies, and various incentives for multinationals. The competition among developing nations reduced positive net effects of globalization or, at best, delayed them.
Ogu Mercy Akudo
2017/249545
Economics Department
GLOBALIZATION AND IT’S EFFECTS
Globalization is the process of interaction and integration among people, companies, and governments worldwide. It has been moving on, since the 18th century due to improvement in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of ideas and culture.. Globalization is basically an economic process of interaction and integration that is associated with social and cultural aspects. Moreover, disputes and diplomacy are also large parts of the history of globalization, and modern globalization.
Globalization has become a revolution across the world due to accumlation in information and communication technology thereby fostering more interactions as it compresses the geographical boundaries of all countries into a global village. The unequal effect of globalization has preponderantly distorted third world economic development. The lack of infrastructure in every sector of the economy. Poverty, accompanied with its consummating lag of deceases has been rife. The agricultural sector is drastically affected. The education sector is funded poorly. Income per capita has been on the downward trend with no meaningful result from policy changes. Corruption due to bad government has become the order of the day as workers strive to survive with meager income that cannot cover consumption, let alone savings and investments. The Nigerian situation has generally been a calamity as the various macroeconomic indices applied by the government has not been able to positively turn around the economy in this globalizing world. Inflation, unemployment, armed banditry and other vices continue to be on the increase, thereby inhibiting foreign trade investment. Apart from the above the inherent cultural and social values, constitute major barriers to desired corresponding result in earnings. It’s important focus is the strategies to be adapted to free Nigeria from the clutches of economic relegation, that is Nigeria economy is complicated.It is of the opinion, to eliminate the negative effect of globalization and to dominate the positive side of globalization as a means for economic development of Nigeria and other Third World countries.
NAME-UFOMADU OSCAR. ONYEKACHI
DEPARTMENT-ECONOMICS
REG NO-2017/249579
COURSE CODE-ECO 362(DEVELOPMENT ECONOMICS II)
ASSIGNMENT TOPIC-ECONOMIC DISCUSSION ON GLOBALISATION AND ITS EFFECT
What is Globalization? All Definitions of Globalization
A Simple Globalization Definition
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
An Official Definition of Globalization by the World Health Organization (WHO)
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
What Is Globalization in the Economy?
According to the Committee for Development Policy (a subsidiary body of the United Nations), from an economic point of view, globalization can be defined as:
“(…) the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers (…) and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.”
What Is Globalization in Geography?
In geography, globalization is defined as the set of processes (economic, social, cultural, technological, institutional) that contribute to the relationship between societies and individuals around the world. It is a progressive process by which exchanges and flows between different parts of the world are intensified.
For some people, this global phenomenon is inherent to human nature. Because of this, some say globalization begun about 60,000 years ago, at the beginning of human history. Throughout time, human societies’ exchanging trade has been growing. Since the old times, different civilizations have developed commercial trade routes and experienced cultural exchanges. And as well, the migratory phenomenon has also been contributing to these populational exchanges. Especially nowadays, since traveling became quicker, more comfortable, and more affordable.
This phenomenon has continued throughout history, notably through military conquests and exploration expeditions. But it wasn’t until technological advances in transportation and communication that globalization speeded up. It was particularly after the second half of the 20th century that world trades accelerated in such a dimension and speed that the term “globalization” started to be commonly used.
Related:
Are we living oppositely to sustainable development?
Examples of Globalization
Because of trade developments and financial exchanges, we often think of globalization as an economic and financial phenomenon. Nonetheless, it includes a much wider field than just flowing of goods, services or capital. Often referred to as the globalization concept map, some examples of globalization are:
Economic globalization: is the development of trade systems within transnational actors such as corporations or NGOs;
Financial globalization: can be linked with the rise of a global financial system with international financial exchanges and monetary exchanges. Stock markets, for instance, are a great example of the financially connected global world since when one stock market has a decline, it affects other markets negatively as well as the economy as a whole.
Cultural globalization: refers to the interpenetration of cultures which, as a consequence, means nations adopt principles, beliefs, and costumes of other nations, losing their unique culture to a unique, globalized supra-culture;
Political globalization: the development and growing influence of international organizations such as the UN or WHO means governmental action takes place at an international level. There are other bodies operating a global level such as NGOs like Doctors without borders or Oxfam;
Sociological globalization: information moves almost in real-time, together with the interconnection and interdependence of events and their consequences. People move all the time too, mixing and integrating different societies;
Technological globalization: the phenomenon by which millions of people are interconnected thanks to the power of the digital world via platforms such as Facebook, Instagram, Skype or Youtube.
Geographic globalization: is the new organization and hierarchy of different regions of the world that is constantly changing. Moreover, with transportation and flying made so easy and affordable, apart from a few countries with demanding visas, it is possible to travel the world without barely any restrictions;
Ecological globalization: accounts for the idea of considering planet Earth as a single global entity – a common good all societies should protect since the weather affects everyone and we are all protected by the same atmosphere. To this regard, it is often said that the poorest countries that have been polluting the least will suffer the most from climate change.
The Benefits of Globalization
Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work. Many people are nowadays citizens of the world. The origin of goods became secondary and geographic distance is no longer a barrier for many services to happen. Let’s dig deeper.
The Engine of Globalization – An Economic Example
The most visible impacts of globalization are definitely the ones affecting the economic world. Globalization has led to a sharp increase in trade and economic exchanges, but also to a multiplication of financial exchanges.
In the 1970s world economies opened up and the development of free trade policies accelerated the globalization phenomenon. Between 1950 and 2010, world exports increased 33-fold. This significantly contributed to increasing the interactions between different regions of the world.
This acceleration of economic exchanges has led to strong global economic growth. It fostered as well a rapid global industrial development that allowed the rapid development of many of the technologies and commodities we have available nowadays.
Knowledge became easily shared and international cooperation among the brightest minds speeded things up. According to some analysts, globalization has also contributed to improving global economic conditions, creating much economic wealth (thas was, nevertheless, unequally distributed – more information ahead).
Globalization Benefits – A Financial Example
At the same time, finance also became globalized. From the 1980s, driven by neo-liberal policies, the world of finance gradually opened. Many states, particularly the US under Ronald Reagan and the UK under Margaret Thatcher introduced the famous “3D Policy”: Disintermediation, Decommissioning, Deregulation.
The idea was to simplify finance regulations, eliminate mediator and break down the barriers between the world’s financial centers. And the goal was to make it easier to exchange capital between the world’s financial players. This financial globalization has contributed to the rise of a global financial market in which contracts and capital exchanges have multiplied.
Globalization – A Cultural Example
Together with economic and financial globalization, there has obviously also been cultural globalization. Indeed, the multiplication of economic and financial exchanges has been followed by an increase in human exchanges such as migration, expatriation or traveling. These human exchanges have contributed to the development of cultural exchanges. This means that different customs and habits shared among local communities have been shared among communities that (used to) have different procedures and even different beliefs.
Good examples of cultural globalization are, for instance, the trading of commodities such as coffee or avocados. Coffee is said to be originally from Ethiopia and consumed in the Arabid region. Nonetheless, due to commercial trades after the 11th century, it is nowadays known as a globally consumed commodity. Avocados, for instance, grown mostly under the tropical temperatures of Mexico, the Dominican Republic or Peru. They started by being produced in small quantities to supply the local populations but today guacamole or avocado toasts are common in meals all over the world
At the same time, books, movies, and music are now instantaneously available all around the world thanks to the development of the digital world and the power of the internet. These are perhaps the greatest contributors to the speed at which cultural exchanges and globalization are happening. There are also other examples of globalization regarding traditions like Black Friday in the US, the Brazilian Carnival or the Indian Holi Festival. They all were originally created following their countries’ local traditions and beliefs but as the world got to know them, they are now common traditions in other countries too..
Why Is Globalization Bad? The Negative Effects of Globalization
Globalization is a complex phenomenon. As such, it has a considerable influence on several areas of contemporary societies. Let’s take a look at some of the main negative effects globalization has had so far.
The Negative Effects of Globalization on Cultural Loss
Apart from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. From languages to traditions or even specific industries. That’s why according to UNESCO, the mix between the benefits of globalization and the protection of local culture’s uniqueness requires a careful approach.
The Economic Negative Effects of Globalization
Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization. As a matter of fact, a recent report from Oxfam says that 82% of the world’s generated wealth goes to 1% of the population
The Negative Effects of Globalization on the Environment
Many critics have also pointed out that globalization has negative effects on the environment. Thus, the massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution.
At the same time, global economic growth and industrial productivity are both the driving force and the major consequences of globalization. They also have big environmental consequences as they contribute to the depletion of natural resources, deforestation and the destruction of ecosystems and loss of biodiversity. The worldwide distribution of goods is also creating a big garbage problem, especially on what concerns plastic pollution.
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Globalization, Sustainable Development, and CSR
Globalization affects all sectors of activity to a greater or lesser extent. By doing so, its gap with issues that have to do with sustainable development and corporate social responsibility is short.
By promoting large-scale industrial production and the globalized circulation of goods, globalization is sometimes opposed to concepts such as resource savings, energy savings or the limitation of greenhouse gases. As a result, critics of globalization often argue that it contributes to accelerating climate change and that it does not respect the principles of ecology. At the same time, big companies that don’t give local jobs and choose instead to use the manpower of countries with low wages (to have lower costs) or pay taxes in countries with more favorable regulations is also opposed to the criteria of a CSR approach. Moreover, the ideologies of economic growth and the constant pursuit of productivity that come along with globalization, also make it difficult to design a sustainable economy based on resilience.
On the other hand, globalization is also needed for the transitioning to a more sustainable world, since only a global synergy would really be able to allow a real ecological transition. Issues such as global warming indeed require a coordinated response from all global players: fight against CO2 emissions, reduction of waste, a transition to renewable energies. The same goes for ocean or air pollution, or ocean acidification, problems that can’t be solved without global action. The dissemination of green ideas also depends on the ability of committed actors to make them heard globally.
From a globalization perspective, regionalization means a world that is less interconnected and has a stronger regional focus.
Regionalization can also be analyzed from a corporate perspective. For instance, businesses such as McDonald’s or Starbucks don’t sell exactly the same products everywhere. In some specific stores, they consider people’s regional habits. That’s why the McChicken isn’t sold in India, whereas in Portugal there’s a steak sandwich menu like the ones you can get in a typical Portuguese restaurant.
Politically speaking, when left-wing parties are in power they tend to focus on their country’s people, goods and services. Exchanges with the outside world aren’t seen as very valuable and importations are often left aside.
Name: Favour Chidiebube christopher
Reg no: 2017/242945
Department: Economics
Email: Christopherfaye60@gmail.com
Globalization has all the countries around the world. Developing countries such as India, China, Iraq, Syria, Lebanon, Jordan and some Africa’s countries, have been affected by globalization, and whether negatively or positively, the economies of these countries have improved under the influence of globalization. The size of direct foreign investment has increased and a lot of bad habits and traditions erased, but also globalization has brought many drawbacks to these countries as well. Many customs and cultures are disappeared such as traditions clothes and some language and expressions have changed. In addition, the violence and drugs abuse are increased and a lot of deadly diseases have spread under the influence of globalization. However, although globalization has many disadvantages, we believe that globalization has brought the developing countries many more benefits than the detriments. For example, we can see there is more and a biggest opportunity for people in both developed countries and developing countries to sell as many goods to as many people as right now, so we can say this is the golden age for business, commerce and trade.
Okaome Esther Chioma
2017/249554
estherokaome@gmail.com
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
Globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
POSITIVE EFFECTS
It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive effects of globalization and the positive impacts they have had on so many demographic segments of society which are legal effect, culture, competition, foreign investment, foreign trade, global market and so on.
NEGATIVE EFFECT
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
Okaome Esther Chioma
2017/29554
estherokaome@gmail.com
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
Globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
POSITIVE EFFECTS
It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive effects of globalization and the positive impacts they have had on so many demographic segments of society which are legal effect, culture, competition, foreign investment, foreign trade, global market and so on.
NEGATIVE EFFECT
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
Name. Favour Chidiebube christopher
Reg no 2017/242945
Department. ECONOMICS
Email Christopherfaye60@gmail.com
Though it comes with perks, there are a number of cons to globalization that analysts and critics have noted for years. They include:
The oppression of weaker and poorer economies by those that are more robust; “the rich get richer, the poor get poorer”
The danger of job loss, with certain industries and sectors sending jobs to countries where workers are willing to do the same amount of work or more for smaller wages
Multinational corporations often get away with poor, unsafe, unethical, or exploitative working conditions due to variations in laws and regulations from one country to another
Multinational corporations can exploit tax haven nations, sending large portions of revenue offshore to avoid taxation
All these are negative effects but that doesn’t mean we won’t accept globalization
Name.mgbada ogochukwu Emelda
Reg No.2017/245040.
Department.Economics
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.Globalization is deeply connected with economic systems and markets, which, on their turn, impact and are impacted by social issues, cultural factors that are hard to overcome, regional specificities, timings of action and collaborative networks. There is no question about it — globalization has transformed the modern world. It shapes, and will continue to shape, the way people do business, travel, and connect. Globalization provides a wealth of benefits, but it also comes with economic and cultural consequences that can be difficult to navigate. As globalization continues to shape worldwide interactions in commerce, technology, and more, companies will need to understand both its benefits and challenges.Proponents of globalization say it improves citizens’ lives via the distribution of jobs, capital, and technology across borders, promoting peace through deeper economic ties between nations. Others claim the globalized movement of goods and people has fuelled inequality, climate change, environmental degradation, and deepened economic inequalities.The Benefits of Globalization
Increased Flow of Capital. …
Better Products at Lower Prices. …
Collaboration and Shared Resources. …
Cross-Cultural Exchange. …
Spread of Knowledge and Technology. …
Quick Technological Advances. …
Increased Household Income. …
Increased Open-Mindedness and tolerance.
Globalization has fuelled inequality, eroded worker protections and contributed to environmental degradation.
What Are the Disadvantages of Globalization?
Unequal economic growth. …
Lack of local businesses. …
Increases potential global recessions. …
Exploits cheaper labor markets. …
Causes job displacement.
Some argue that globalization is a positive development as it will give rise to new industries and more jobs in developing countries. Others say globalization is negative in that it will force poorer countries of the world to do whatever the big developed countries tell them to .Globalization is beneficial and at the same time has its bad effect.
Name : HADEME CHUKWUEMEZIE KESTER
Reg No: 2017/249509
Dept: ECONOMICS
Globalization Definition
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
The Benefits of Globalization
Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work. Many people are nowadays citizens of the world. The origin of goods became secondary and geographic distance is no longer a barrier for many services to happen. Let’s dig deeper.
The Engine of Globalization – An Economic Example
The most visible impacts of globalization are definitely the ones affecting the economic world. Globalization has led to a sharp increase in trade and economic exchanges, but also to a multiplication of financial exchanges.
In the 1970s world economies opened up and the development of free trade policies accelerated the globalization phenomenon. Between 1950 and 2010, world exports increased 33-fold. This significantly contributed to increasing the interactions between different regions of the world.
Globalization Benefits – A Financial Example
At the same time, finance also became globalized. From the 1980s, driven by neo-liberal policies, the world of finance gradually opened. Many states, particularly the US under Ronald Reagan and the UK under Margaret Thatcher introduced the famous “3D Policy”: Disintermediation, Decommissioning, Deregulation.
The idea was to simplify finance regulations, eliminate mediators and break down the barriers betwee n the world’s financial centers. And the goal was to make it easier to exchange capital between the world’s financial players. This financial globalization has contributed to the rise of a global financial market in which contracts and capital exchanges have multiplied.
Why Is Globalization Bad? The Negative Effects of Globalization
Globalization is a complex phenomenon. As such, it has a considerable influence on several areas of contemporary societies. Let’s take a look at some of the main negative effects globalization has had so far.
The Negative Effects of Globalization on Cultural Loss
Apart from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. From languages to traditions or even specific industries. That’s why according to UNESCO, the mix between the benefits of globalization and the protection of local culture’s uniqueness requires a careful approach.
The Economic Negative Effects of Globalization
Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently.
The Negative Effects of Globalization on the Environment
the massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution.
Name: Nnadi Chinwe Monica
Reg. No. : 2017/241532
Dept.: Education Economics
Email: chinwe.nnadi.241532@unn.edu.ng
Blogspot: chiebest.blogspot.com
Globalization and its Effect on Developing Countries
Yes!!! It is agreed that globalization has led to economic growth and development in human welfare but also was accompanied by poverty, unemployment and social disintegration. How?
Poverty: The birth of globalization caused so many people to lose their jobs, rendering people unemployed and underemployed as robots and machines does most of the works that people do and this has caused people to live in extreme poverty which will make people not to feed well, dress properly, have a good shelther to lay their heads on e.t.c.
Unemployment: When robots and machines does the work that people should do, this caused unemployment for example: the birth of POS machine in the banking industry led to the sack of many people people working in the counter at the bank, also in the agricultural sector it caused under production since many people migrate to the urban area in search of industrial job.
Social Disintegration: Husband and wife will be on the same bed but not talking to each other but chatting and smiling to an unknown figure in the internet, people easily spread rumors online faster causing other people to hate each other causing communication gap among other people and many others and this has caused people not to adequately relate with others.
UGWU PERPERTUA ODINAKA
2017/244848
everlastinggift9507@gmail.com
ugwuodinakap.blogspot.com
EDUCATION ECONOMICS
ECO 362
NEGATIVE EFFECTS OF GLOBALIZATION
Deepening Poverty, Unemployment and Inequality
The incorporation of very large numbers of people around the world into a global culture — holding out the promise of participation in an affluent consumer society and the exercise of greater individual freedom — occurs during a period when developments in the world economy in fact profoundly restrict the life chances of many. The picture of wealth and leisure transmitted by mass media thus frequently stands in harsh contrast to a real world of increasing deprivation. This contradictory process of simultaneous inclusion (in the realm of the imagination) and marginalization (in day-to-day material terms) must be highlighted when considering the grave social problems of our times.
Recent years have been marked by a clear trend toward intensification of poverty and inequality in most regions of the world. In Africa and much of Latin America, this tendency has been observable for nearly two decades. Most industrialized countries have also experienced high levels of unemployment, increasing poverty and inequality during the past fifteen years or so — a situation worsened by the recession of the 1990s. In addition, the previously centrally planned economies of Central and Eastern Europe have suffered catastrophic declines in production and income, and an unprecedented increase in poverty and unemployment, over the past four to five years.
In general terms, the global processes have played a central role; but the immediate causes vary from one region to another. In the industrialized market economies, the marked slowdown of growth in the post-1973 period lies at the heart of the problem. Latin American, African and Middle Eastern countries were affected by deterioration in terms of trade, rising real interest rates, an increase in the debt burden and the cessation or reduction of private and public capital flows.
In a situation of economic crisis, deepening poverty and rising unemployment, the provision of social support by the state and other public and private organizations assumes critical importance. It is necessary to reduce insecurity and distress by ensuring minimum incomes for the poor, whether through direct grants such as unemployment benefits or pensions, through creation of employment opportunities, or by ensuring access to essential food and shelter. Yet it is precisely during this period of great need that most governments have been reducing the range and value of social security and welfare benefits and eliminating or curtailing subsidies on goods and services of mass consumption.
Systems of social support are thus in a state of profound crisis around the world.
Yet there is not even a universal recognition of the existence of a problem, much less agreement on its dimensions and characteristics, or on the type of measures required to deal with it.
Polarization and migration
Ironically, the impoverishment of increasing numbers of people throughout the world — and often their growing inability to meet even the most basic requirements for food, water, shelter, education, medical attention — occurs during a period when the incomes of the very rich have risen markedly. Between 1960 and 1989, the share of global income held by the richest fifth of the world population increased from 70 to 83 per cent, while the share of the poorest fifth dropped from 2.3 to 1.4 per cent.
Statistics on changes in the distribution of income within specific countries paint similar pictures of increasing inequality.
This noteworthy process of polarization can also be observed among regions.
While growth in some areas of Asia has been remarkable over the past two decades, most African countries lag further and further behind in the sharpening competition to capture a portion of the world’s wealth.
As opportunity is concentrated in certain regions and countries, and in particular economic sectors, one of the most obvious responses on the part of those threatened with exclusion or marginalization is to migrate, whether within countries or abroad. And over the past few decades this has become a central element in the livelihood strategy of millions.
Migration, like the revolution in communications technology, both integrates and divides. For the well-educated, or relatively affluent, migration is simply a means to improve life chances: to obtain a better job, to enjoy more personal freedom or a different style of life. Receiving countries or cities generally welcome the transfer of wealth and knowledge inherent in this kind of immigration, although it signifies a loss for the societies and economies left behind.
Integration and Disintegration: Changing Values, Behaviour and Institutions
All of the developments just noted — advancing globalization accompanied by the strengthening of relatively unregulated world market forces, deepening polarization and immiseration, a revolution in communications and transport, new aspirations for greater individual freedom — are associated with deeper changes in the most basic institutions of society. These involve both modification of existing bonds and patterns of behaviour, and the creation of new forms of interaction and obligation. Although this is obviously a very complex subject, some underlying currents of social change will be explored below.
The adaptation and modification of family structures
Families in different parts of the world vary so markedly in composition and function that it is impossible to make a simple statement about developments within them. In many parts of the industrialized world, traditional nuclear families, composed of two parents and their children, are declining in importance, as single-parent households’ increase in number. Rising divorce rates, as well as the growing number of children born to unmarried parents, can be taken to indicate a “disintegration of the [traditional nuclear] family”.
In the industrial world, single-parent households, most often headed by women, are usually the poorest. This, as many analysts have noted, is because there is only one adult income earner, because women tend to receive lower wages than men, and because their double burden of child care and work outside the home leaves them less time for the latter.
This is also the case in areas of the Third World in which two-parent families (often extended to include grandparents, aunts or uncles) are the ideal.
Longer working hours at lower pay, more frequent periods of unemployment, and other trends associated with economic retrenchment and changing production practices are placing an enormous burden on low income households throughout the world. They are also weakening the capacity of families, whatever their composition, to care for their young. Under contemporary conditions, every able-bodied family member must often work, and this increasingly includes children.
While such a trend can be called “disintegration”, it should probably more aptly be labelled “degradation”: households may stay together, but under such difficult circumstances that the quality of interpersonal relations deteriorates markedly.
Permanent migration of some members of a household does, of course, promote disintegration of the family in many areas of the developing world. So does temporary migration, when virtually all able-bodied adults must make a living somewhere else, leaving grandparents to take care of children, as is increasingly the case in rural areas hard hit by economic crisis and adjustment. Yet heroic efforts are made by millions of migrants to keep their families together, and their departure in search of work is in fact often the central element in a strategy to provide for the continuity of their households.
The weakening of solidarity within communities and neighbourhoods
Families can only provide for the well-being of their members when they can count on at least a certain critical minimum of support from the surrounding community.
Many of the global processes of change have a tendency to undermine, rather than to strengthen, solidarity within neighbourhoods and communities, while also posing new challenges to local government.
Globalization, as many analysts have noted, reduces the importance of social bonds based upon residence or place of work, and creates new relations which do not depend upon “groundedness” or “place”.
In developed and newly inustrialized countries, for example, where informatics increasingly dominate the workplace, the life chances of people begin to depend less on their daily interaction with fellow workers than on management of distant relations through computers. An extreme and very modern example of this phenomenon can be found in the financial sector.
The growing flow of remittances from city to countryside, or across international boundaries, has a similar effect: it also creates a basis of local livelihood which does not depend on local co-operation.
Stunning examples of the socially destructive character of extreme individualism can now be found in the former socialist world, where the collapse of an egalitarian ideology has created an opening for daring, and sometimes violent, attempts on the part of new “entrepreneurs” to appropriate the property of neighbours and co-workers.
Even when groups in local communities continue to have a strong commitment to working together — as is of course true of a great many communities around the world — current developments in the world economy make it increasingly difficult to maintain existing bases of solidarity and to defend existing sources of livelihood.
Deepening poverty and associated migratory trends also pose serious challenges to community solidarity in the majority of Third World and former socialist countries, as well as in China. Agrarian communities, which have provided the primary framework for local level co-operation in developing countries, are being torn apart by contradictory forces associated with globalization and recession: both the increased pace of modernization of the past few decades, and the subsequent withdrawal of many new forms of support on which local peoplewere coming to depend, have left rural communities disorganized and vulnerable. The loss of population, as people try to make a living outside the community, has converted the more remote villages and towns of some Third World countries into hollow shells, and has sharply reduced the ability of the remaining inhabitants to farm or to protect the natural environment.
There is no question about it — globalization has transformed the modern world. It shapes, and will continue to shape, the way people do business, travel, and connect. Globalization provides a wealth of benefits, but it also comes with economic and cultural consequences that can be difficult to navigate. While globalization has made foreign countries easier to access, it has also begun to meld unique societies together. The success of certain cultures throughout the world caused other countries to emulate them. But when cultures begin to lose their distinctive features, we lose our global diversity. It’s not surprising that 30% of U.S. and UK tech leaders cited international recruiting as their most common challenge. Recruiting across borders creates unknowns for HR teams. Immigration laws change often, and in some countries, it is extremely difficult to secure visas for employees that are foreign nationals. The U.S., for example, is getting stricter with granting H-1B visas, and Brexit makes the future of immigration to the UK uncertain. Another challenge both U.S and UK tech leaders said they face in the report is incurring tariffs and export fees—29% agreed this is a challenge for their global businesses. For companies looking to sell products abroad, getting those items overseas can be expensive, depending on the market. Another common global expansion obstacle is managing overseas payroll and maintaining compliance with changing employment and tax laws. This management task gets even more difficult if you’re trying to manage operations in multiple markets. Lower costs do benefit many consumers, but it also creates tough competition that leads some companies to search for cheap labor sources. Some western companies ship their production overseas to countries like China and Malaysia, where lax regulations make it easier to exploit workers. For businesses that want to go global and discover the benefits of globalization, setting up a compliant overseas presence is difficult. If companies take the traditional route of setting up an entity, they need substantial upfront capital, sometimes up to $20,000, and costs of $200,000 annually to maintain the business. Additionally, global businesses must keep up with different and ever-changing labor laws in new countries. When expanding into new countries, companies must be aware of how to navigate new legal systems. Otherwise, missteps lead to impediments and severe financial and legal consequences. The political climates in the United States and Europe show that there are different viewpoints on the results of globalization. Many countries around the globe are tightening their immigration rules, and it is harder for immigrants to find jobs in new countries. This rise in nationalism is mainly due to anger from the perception that foreigners fill domestic jobs or at companies moving their operations abroad to save money on labor costs.
UWAEZUOKE STEPHEN CHINONSO
2017/242432
ECONOMICS DEPARTMENT
GLOBALIZATION AND ITS EFFECTS
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
According to the Committee for Development Policy (a subsidiary body of the United Nations), from an economic point of view, globalization can be defined as:
“(…) the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers (…) and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.”
For some people, this global phenomenon is inherent to human nature. Because of this, some say globalization begun about 60,000 years ago, at the beginning of human history. Throughout time, human societies’ exchanging trade has been growing. Since the old times, different civilizations have developed commercial trade routes and experienced cultural exchanges. And as well, the migratory phenomenon has also been contributing to these populational exchanges. Especially nowadays, since traveling became quicker, more comfortable, and more affordable.
This phenomenon has continued throughout history, notably through military conquests and exploration expeditions. But it wasn’t until technological advances in transportation and communication that globalization speeded up. It was particularly after the second half of the 20th century that world trades accelerated in such a dimension and speed that the term “globalization” started to be commonly used.
Examples of Globalization (Concept Map)
Because of trade developments and financial exchanges, we often think of globalization as an economic and financial phenomenon. Nonetheless, it includes a much wider field than just flowing of goods, services or capital. Often referred to as the globalization concept map, some examples of globalization are:
Economic globalization
Financial globalization
Cultural globalization
Political globalization
Sociological globalization
Technological globalization
Geographic globalization
Ecological globalization
POSITIVE EFFECTS
It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive effects of globalization and the positive impacts they have had on so many demographic segments of society.
Global market.
Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management is seen by the sudden increase of number of transactions across the borders. In protecting yields and maintaining competitiveness, businesses are continuing to develop a wide range of their footprint as it lowers cost and enjoys economies of scale.
Cross-cultural management
Globalization tend to be the realm of elite because in many parts of the world they are the only people who are affluent enough to buy many of the products available in the global marketplace. Highly educated and wealthy people from different backgrounds interact within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often embraces western styles of products and pattern of behavior in order to impress others. Today Western culture and patterns of behavior and language are staples of international business.
Foreign trade
Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the global. These countries which export goods get comparative advantages. Organizations have been established with a view to control and regulate the trade activities of the countries in the world so to have fair trade. World trade organizations emerged as a powerful international organization capable effectively influencing individual governments to follow international trade rules, copyrights, policies on subsidies, taxes and tariffs. Nations can not break rules without facing economic consequences.
Foreign investment
One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we also need to see is the amount of Foreign Investment Inflow that flows into the developing countries. Indian companies which have been performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in India. This is also one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition.
NEGATIVE EFFECTS
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
JOBS INSECURITY.
In developed countries people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries. They have outsourced to developing countries like China and India. Most people like accountants, programmers, editors and scientists have lost jobs due to outsourcing to cheaper locations like India.
FLUCTUATION IN PRICES.
Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries. So, in order for the developed countries to maintain their customers they are forced to reduce prices of their goods. This is a disadvantage to them because it reduces the ability to sustain social welfare in their countries.
Unemployment
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation. “It ‘s true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity”.
Western culture.
Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people now in developing countries cop what people in developed countries do. So, its like they ignore their own culture and practice western culture ( Goyal K.A., 2006). For example dressing styles and eating habits, language. All these can affect management in one way or another example it can cause misunderstandings because of language barrier.
Name: Oko nkem Franklin’s.,….,.,…….,,………..,.,………
Reg no:2017/243813…..……………………….………………
Dept: Economics………….……….………………………………
Answer
Globalization according to Merriam-Webster
Dictionary is the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of the cheaper foreign labour markets.
Https//www.youmatter.world/en/definition/what is globalization says globalization means the speedup of movements and exchanges ( of human beings, goods, and services, capital, technologies or cultural practices) all over the planet.
According to W.H.O., globalization can be defined as the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.
To fully understand the effects of globalization, we need to know that globalization is not only based on the economic aspects alone. There are other kinds of globalization namely;
. Cultural globalization
. Political globalization
. Sociological globalization
. Technological globalization
. Geographical globalization
. Ecological globalization.
These are some of the other kinds of globalization. This shows that globalization is not based only on economic aspects alone.
ADVANTAGES AND DISADVANTAGES OF GLOBALIZATION
A saying goes “every good deed always has a bad response”. So as good as globalization is, there are also some negative effects that it has caused upon the world. Now let’s see the advantages and disadvantages and from there draw the conclusion on if globalization has done more harm than good.
ADVANTAGES
1) It developed world economies and increased cultural inter-mingling.
2) Information and knowledge can be easily shared especially among bright minds.
3) It has contributed to the rise of global financial market in which contracts and capital exchanges have multiplied.
4) It allows companies to find lower costs ways to produce their products.
5) It helps developing countries experience improved living standards.
DISADVANTAGES
1) Excess cultural changes have occurred as a result of globalization, world cultures have been homogenized leading to the loss of specific cultural characteristics.
2) Globalization has not yet achieved the expected economic objective people thought it would do as there are still a lot of developing countries in the world still experiencing income inequalities. Serious unemployment, etc.
Okoye Kingsley Chigozie
2017/249561
ECONOMICS
Okyekingsley93@gmail.com
Globalisation is the process that brings about interconnectivity and interdependence of different parts of the globe (the world) bringing it to what is known as the global village. It is used to describe the fast rising interdependence and interrelationships of the world’s economies, people, culture and ideologies.
Until the 19th century, different countries have sought different methods to improve their welfare and standard of living with limited technology available to them. Following centuries of European colonisation and trade activities, globalization took off. The first wave of globalization was propelled by steamships, railroads, telecommunication and other breakthroughs mostly brought about by advancement in industrialization and technology.
After decades of technological breakthrough in international corporation and dependence brought about by globalization, the world is more connected than ever such that within few seconds, information can be exchanged between two people from different continents of the world. However advanced globalization has made the world become with its tremendous contributions to the development of different economies in terms of technology, improvement in healthcare services, agriculture, finance and other components of the economy, there are certain dark sides to this ever growing trend. In terms of positive impact, globalization has contributed in the following ways;
Globalization enhanced the process of peace and prosperity among country of the world after the world war 11. Through the creation of various global organisations with the major aim of fostering world peace. These organisations include but not limited to IMF, UN, WORLD BANK, WTO and NATO.
It encourages specialisation which leads to efficient utilization of resources available to each country.
There has been immense improvement in the economies of less developed countries through globalization. This is as a result of transfer of modern technologies through international trade and partnership.
Increase in employment opportunities as new inventions and innovations are shared across borders through the Advent of globalization.
Better standard of living and better appreciation of other people’s culture and beliefs as well as religion.
Nevertheless, globalization has it’s negative impact which are majorly felt in the following areas;
Social disintegration. Due to exposure to foreign norms and practices, certain culture suffer relegation and sometimes forced out of existence. This causes disintegration among groups in the society as regards the acceptance or rejection if certain cultural practices.
Unemployment. Despite the rapid growth in technology and industrialization, unemployment is still on the increase due to some jobs are becoming obsolete while some are being replaced and done by machines knocking out people in that category out of job.
Poverty and inequality; globalization through into trade leaves many less developed countries impoverished due to the fact that the developed nations leverage on exploiting their raw materials at very cheap price and then export back to them finished products at a high price. Here, the rich gets richer and the poor gets poorer
Name: Amah Saint Timothy
Reg no:2017/249480
Dept: Economics
Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.
During the 1990s and till recent times, policymakers have argued that globalization has led to significant economic growth and improvement in human welfare. On the other hand, some daunting challenges such as Increased poverty, unemployment, and social disintegration have also accompanied globalization.Do you agree? Please discuss and share your perspectives on this.
In summary, globalization has come to stay and we cannot hide from it anymore, but to leave it unchecked, unmonitored and unpromoted will pose as a huge problem later. Countries should always carry a thorough research on most of these advanced countries to find out how they have been coping with globalization while incorporating their specific inherent features notwithstanding.
One cannot deny the fact that the overall positive impacts outweighs the negative impacts of globalization. Therefore, it is time we embraced it more and changed our method of adoption and assimilation.
Globalization in short, points to the whole effort towards making the world global community as a one village. Goods that were only found in western countries can now be found across the globe. Now under developed areas can enjoy the benefits of scientific advances and industrial progress available in developed countries for the improvement and growth of their areas.
Because of globalization the economies of the world are being increasingly integrated, example mobile phones and internet have brought people closer. The world is becoming a smaller place. Work can be outsourced to any part of the world that has an internet connection because of improvements in traffic infrastructure one is able to reach one’s destination in a short time.
Globalization can also be defined as an ongoing process by which regional economies, societies and cultures have become integrated through a globe-spanning network of communication and trade. The process of globalization includes a number of factors which are rapid technology developments that make global communications possible, political developments such as the fall of communism, and transportation developments that make traveling faster and more frequent. These produce greater development opportunities for companies with the opening up of additional markets, allow greater customer harmonization as a result of the increase in shared cultural values, and provide a superior competitive position with lower operating costs in other countries and access to new raw materials, resources, and investment opportunities.
Globalization through global communications, global markets and global production have promoted and facilitated by a fourth area of global activity in relation to money. For example, the American dollar, the Japanese yen, Euro and other major national currencies circulate globally. They are being used anywhere on earth and moving electronically and via air transport anywhere in effectively no time. Because of globalization people can move from one country to another, trade restrictions are reducing, domestic markets are opening up for foreign investments, telecommunications are better established and the countries that are leading the innovations are passing on their technologies to other countries in need (Kulkami A., 2009).
EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN DEVELOPED COUNTRIES.
Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure.
POSITIVE EFFECTS
It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive effects of globalization and the positive impacts they have had on so many demographic segments of society.
Global market.
Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management is seen by the sudden increase of number of transactions across the borders. In protecting yields and maintaining competitiveness, businesses are continuing to develop a wide range of their footprint as it lowers cost and enjoys economies of scale (Shah A.,2009)
Multinational corporations is a result of globalization. They occupy a central role within the process of globalization as evidenced through global foreign direct investment inflows. Their concentrations within Europe in western economies has led to size constraints, therefore there is a need for new geographical areas to operate whereby they will face a lot of competition in the market. Through this they will enlarge their market and enjoy economies of scale as globalization facilitates time space compression, economies compete at all levels including that of attracting investors (Smith V.A and Omar M.,2005).
Cross-cultural management
Globalization tend to be the realm of elite because in many parts of the world they are the only people who are affluent enough to buy many of the products available in the global marketplace. Highly educated and wealthy people from different backgrounds interact within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often embraces western styles of products and pattern of behavior in order to impress others. Today Western culture and patterns of behavior and language are staples of international business (Asgary N. and Walle A.H.,2002).
United states seems to have powerful impact upon many other countries and societies. The world today has a popular cultural force. The popular consumer culture of the economically dominant West is relentlessly and inevitably transforming other regions, cultures, nations and societies. In addition, such perspective imply that technological change, mass media, and consumer oriented marketing campaigns work in tandem to remake whatever they touch in their own image. Even attitudes and ideas about society, religion and technology are transformed by cultural diffusion brought by globalization. Example, in America McDonalds represent fast, cheap and convenient food while it is not the same worldwide. It’s of high price in other countries like China and Russia where it involves cultural experience (Walle A.H, 2002)
Foreign trade
Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the global. These countries which export goods get comparative advantages. Organizations have been established with a view to control and regulate the trade activities of the countries in the world so to have fair trade. World trade organizations emerged as a powerful international organization capable effectively influencing individual governments to follow international trade rules, copyrights, policies on subsidies, taxes and tariffs. Nations can not break rules without facing economic consequences (Piaseck R. and Wolnicki M., 2004) .
The number of nations that are dependent on trade, foreign capital, and the world financial markets increased greatly. Countries engaged in foreign trade enjoy comparative advantage. The post Recardian trade theories predicted that specialization in labor and capital intensive goods would bridge enormous wage gaps between the poor and the rich countries, that is the developing and developed countries, sparing the latter from massive labor immigration (Gerber J., 2002).
Resource Imperative
Developed countries need natural and human resources of the developing countries while developing countries need capital, technology and brainpower of the wealthier countries. Developed countries’ economies are increasingly dependent on the natural and human resources of the developing nations. Growing interdependence of nations and their activities on one another fostered by the depletion of natural resources; as well as overpopulation (Harris P.R.,2002).
Foreign investment
One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we also need to see is the amount of Foreign Investment Inflow that flows into the developing countries. Indian companies which have been performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in India. This is also one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition.
Managers’ objectives might not be the same with those of stockholders in some situations. The more complex the corporation the more difficult it is for shareholders to monitor management’s actions whereby it provides the managers more freedom to act in their own self interest at the expense of shareholders. Multinational firms are more complex than national firms. Managers might favor international diversification because it reduces firm specific risk or adds to their prestige. These goals might be of little interest to shareholders. This divergence of interests between shareholders and managers, might reduce the value of multinationals relative to domestic firms (Saudagaran S.M.,2002)
Competition
One of the most visible positive effects of globalization is the improved quality of products due to globe competition. Customer service and the ‘customer is the king’ approaches to production have led to improved quality of products and services. As the domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market. Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates competition in the market and a survival of the fittest situation.
Culture
The positive effects of globalization on culture are many! Not all good practices were born in one civilization. The world that we live in today is a result of several cultures coming together. People of one culture, if receptive, tend to see the flaws in their culture and pick up the culture which is more correct or in tune with the times. Societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Cooking styles, languages and customs have spread all due to globalization. The same can be said about movies, musical styles and other art forms. They too have moved from one country to another, leaving an impression on a culture which has adopted them.
Legal Effects
Increased media coverage draws the attention of the world to human rights violations. This leads to improvement in human rights. Global economic growth does not necessarily make people happier, worldwide free trade, should also benefit humanity as well as protect nature, not just reward managers and stockholders. Those who would be authentic leaders need to address inequalities. Globalization should promote openness and information along with exchange with greater democracy and prosperity (Harris P.R., 2002).
Gone are the days where the limited jurisdiction became a hindrance in the prosecution of criminals. These days due to international courts of justice, these criminals can no longer seek asylum in a foreign country, but will be brought forward and there will be justice. Due to globalization, there is also an understanding between the security agencies and the police of two or more different countries who will come together to curbglobal terrorism. Hence, it is now possible to catch the perpetrators of crime irrespective of which country they choose to hide in. This is undoubtedly one of the greatest positive effects of globalization on society.
NEGATIVE EFFECTS
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
JOBS INSECURITY.
In developed countries people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries. They have outsourced to developing countries like China and India. Most people like accountants, programmers, editors and scientists have lost jobs due to outsourcing to cheaper locations like India.
Globalization has led to exploitation of labor. Safety standards are ignored to produce cheap goods. “In practice, however, the recent experience in Latin America has been that many such open-handed multinationals moved their operations to, for example, China or South East Asia because of cost and market considerations”(Piasecki R. and Wolnicki M., 2004).
FLUCTUATION IN PRICES.
Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries. So, in order for the developed countries to maintain their customers they are forced to reduce prices of their goods. This is a disadvantage to them because it reduces the ability to sustain social welfare in their countries.
EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN DEVELOPING COUNTRIES.
POSITIVE EFFECTS.
“I know that globalization has also created many negative effects, but I believe it’s always better to look to the future with optimism and hope. Tomorrow, hopefully, we will be able to minimize or even eradicate the evil forces that give globalization a bad name. Thus we will be able to move forward with peace and harmony”(Kulkami A., 2009)
Poverty alleviation
As far as poverty reduction is concerned, globalization played a role in poverty reduction in developing countries. In deed most developed countries experienced reduction in poverty in the proportion of their living below the poverty line, including fast developing countries like China, India, Vietnam. While other countries like Sub-Saharan Africa registered an opposite trend (Lee E., 2006).
Employment situation.
Through globalization, people from different countries are provided with jobs opportunities within the global. It has created the concept of outsourcing. Developed countries prefer to provide work to developing countries where costs are cheap. Work such as customer support, software development, accounting, marketing and insurance are given to developing countries like India. Therefore the country that is given the work enjoys by getting jobs.
It has given an opportunity to invest in the emerging markets and tap up the talent which is available there. In developing countries, there is often a lack of capital which hinders the growth of domestic companies and hence, employment. In such cases, due to global nature of the businesses, people of developing countries too can obtain gainful employment opportunities (Pillai P.,2008).
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Technology
This is a powerful force that drives the world toward a converging commonality. It has proletarianized communication, transport, and travel. People from different places everywhere wants all the things they have heard about, seen, or experienced through technology. Organizations through its managements can obtain knowledge from different places in the world that can be used in the organization.
Television and medias played a big role in influencing the perception of the world, from a relatively small national unity and reality, into a global market and international concerns. As multinationals establish subsidiaries in new locations, they transfer know how from the parent to the local operation. Knowledge flows from one unit to another as a whole organization benefits from development activity. One of the ways that organizations use in knowledge transfer is the movement of personnel, which takes place within multinationals. This build up a bank of knowledge about working in different situations with people from different cultures and this represents a stock of knowledge that could be developed and used to benefit the organization (Kamoche, 1997).
Education.
Globalization from the point of view has positive effects as well as negative effects. It has increased the access of higher education example universities and reducing the knowledge gap in developing countries, it equally has negative aspects which can seriously threaten universities in those countries. From point of view it has brought more positive effects to developing countries through increasing access to higher learning institutions. Today you can move in the search of the best educational facilities in the world including developing countries without any hindrance. This is due to increased output from secondary schools, greater participation of women in higher education, a growing private sector demand for graduates, and the exorbitant costs of acquiring education in foreign countries, especially those in the nort (Mohamedbhai G., 2002).
Foreign trade
Despite having negative effects of globalization, it has a good side too. One of the most significant effect it has brought to developing countries is Trade. Before people used to exchange goods for goods or services for services but now people can trade goods for money. This is mostly through International trade whereby people exports and imports goods within countries. Globalization has led to reduction of costs in trade within the globe. It has led to reduction of tax of importation of goods.
According to economic theory, foreign trade is in principle, beneficial to any country engaged. The international division of labor allocates the resources more efficient whereby it increases the economic welfare of all countries engaged in foreign trade in long run (Kaitilia V and Kotilainen M., 2002).
Foreign investment
Foreign investment is a direct result of globalization. Foreign investment is always welcomed as it provides resources, capital and technology to a country that will support economic development of the host country. This improves employment as in direct and indirectly. Increases exports to a country and thereby improves the current account and therefore will help to the repayment of foreign debt. This however has some criticisms for leading to too much foreign control (Kaitilia V and Kotilainen M., 2002).
Developing countries can use general or specific industrial and trade policies to be more or less welcoming to foreign direct investments, capital and foreign tourist services. They can directly and indirectly shape their participation in the economic activities in the globe (Piasecki R. and Wolnicki M., 2004).
Market sector
Globalization of markets in developing countries is growing so fast. The emergence of global markets for standardized consumer products on a previously unimagined scale of magnitude. This brought benefits which are economies of scale in production, reduced world prices, distribution, marketing and management (Levitt T., 1983)
IKEA is one of the company that is growing fast in developed countries. Its market is increasing within the global. It has become the world’s largest home furnishings retailer. The managers are facing a lot of challenges in managing them (Nanda A., 1990). IKEA can now be found in so many places in the world example Malaysia.
NEGATIVE EFFECTS
Globalization is a tool that benefits all sections of mankind. We cannot ignore the negative effects it has in developing world.
Unemployment
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation. “It ‘s true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity”(Kigundu M.N.,2002).
“The most important factor to determine the level of employment during 1980-2000 was national or regional macroeconomic policies which were implemented and sustained. In addition those countries with liberal macroeconomic reforms, pursued politics promoting flexible labor markets and employment practices, decentralized industrial relations systems, and judicious enforcement of labor. On the other hand, countries with employment laws, regulations, and policies experienced higher level of employment because they were not able to attract and retain as many new jobs”(Kiggundu M.N.,2002).
For example ,Indonesia faced unemployment and poverty that grew to levels not experienced in two decades, health conditions worsened, and the natural environment degraded (Piasecki R and Wolnicki M.,2004)
Spread of fast foods chain.
Fast foods chain is growing very fast. But some of the most rapid growth is occurring in the developing countries, where it’s real changing the way people eat. “Kentucky Fried Chicken(KFC) is the largest, fastest growing, and highest potential units” (Bartlett C.,1986).
Most people prefer to buy fast foods because it’s cheap and quick. This replaces home cooked fare enjoyed with family and friends. Traditional diets and recipes are yielding to sodas, burgers, and other highly processed and standardized items that have a lot of fat, sugar, and salt resulting a global epidemic of diabetes, obesity, and other chronic diseases. Meanwhile, fast food producers require farmers to raise uniform fields of crops and herds of livestock for easy processing, eliminating agricultural diversity.
Western culture.
Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people now in developing countries cop what people in developed countries do. So, its like they ignore their own culture and practice western culture ( Goyal K.A., 2006). For example dressing styles and eating habits, language. All these can affect management in one way or another example it can cause misunderstandings because of language barrier.
Trade
Average tariff rates continue to be high in many developing countries, including some that have recently implemented trade reforms. Example,India. Trade policy continues to be an important aspect in globalization at least in some of the lower income developing countries.
widespread use of
computers, faxes and mobile phones, introduction of the internet and
e-commerce, and quicker and cheaper means of transportation in some cases
offered opportunities to developing countries, but in many cases deepened the
gap between global firms and traditional industries
globalization opened up new opportunities for developing
countries to create jobs and expand exports. In practice, many developing
countries competing for foreign investors offered longer tax holidays,
costly subsidies, and various incentives for multinationals. The
competition among developing nations reduced positive net effects of
globalization or, at best, delayed them.
Udeh Rita Ezinne
2017/249578
globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
Globalization can create new opportunities, new ideas, and open new markets that an entrepreneur may have not had in their home country. As a result, there are a number of positives associated with globalization:
It creates greater opportunities for firms in less industrialized countries to tap into more and larger markets around the world
This can lead to more access to capital flows, technology, human capital, cheaper imports and larger export markets
It allows businesses in less industrialized countries to become part of international production networks and supply chains that are the main conduits of trade
The Economic Negative Effects of Globalization
Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization.
Many critics have also pointed out that globalization has negative effects on the environment. Thus, the massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution.
Globalization means the speedup of movements and exchanges (of human beings, goods and services, capital, technologies or cultural practices) all over the planet one of the effects of globalization is that it promotes and increases interactions between different regions and population around the globe. Globalization is the interdependent of world economies as a result. The effects of globalization are in downsides and upsides. The upsides includes: Globalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Globalization also gives organizations the opportunity to take advantage of lower labour costs in developing countries, while leveraging the technical expertise and experience of more developed countries.
With globalization, different parts of a product may be made in different regions of world. Globalization affects services too. Many businesses located in the United States have outsourced their cell centers or information technology services to companies in India.
Interdependence: Interdependence between nations can cause regional or global instability of local economic fluctuations end up impacting a large number of countries relying on them.
National sovereignty: Some see the rise of nation states, multinational or global firms and other international organizations as a threat to sovereignty.
Downsides:
Not everything about globalization is beneficial. Any change has winners and losers, and the people living in the communities that had been dependent on jobs outsourced elsewhere often suffer.
Udeh Amarachi M.
2017/249576
Maryamarachi2010@gmail.com
Maryudeh.blogspot.com
Globalization is a form of development or changes in the econmic system of a country brought by a more developed economy. Globalization is simply the way group of people, goods, services, agriculture, technologies or cultural practices all over the world increase or speed up in terms of development. Globalization also deals with the relationship of people all over the world that is how countries relate or how states relate in the in the economy (inter state or intra state relationship). Globalizations is concerned with the systems of the economy which impact and are impacted by social issues, cultural factors that are very difficult to live behind, regional specificities, timings of action and collaborative networks. All of this requires global cooperation and countries solutions. Globalization has been their throughout history but it was not notable until the advancement in transportation and communication that is when globalization increased in high speed.
Globalization has so many benefits which Includes:
An economy in terms of sharp increase in trade and economic exchange, that is, import and export which increased relationships between different countries of the world is part of the advantages of globalization. Globalization can also be seen in financial terms of rise in financial global market in which contracts and capital exchange have increased. We have other benefits in our culture and in the environment, where poverty is eliminated and employment is increased.
NEGATIVE EFFECTS OF GLOBALIZATION
This can be seen in economic, in terms of income inequalities, inadequate technologies and it is noted that some countries or states benefited in globalization while some only perceived it and they are the once still suffering in poverty. This part of the world there will be unemployment everywhere because they lack globalization in terms of industries. The environment is another place you can see effects on globalization in terms of green house gas emission, global warming which pollutes the environment and makes it uncomfortable for people.
Name: NNANYELUGO CHIDERA MICHAEL
Reg 2017/245023
Dept Economics
The world as we know it was born only 3 decades ago. Not even the boldest minds in “futurology” would have imagined the speed, reach and breakthroughs that technology has created since computers became 70% of our life. In addition, never in the story of humanity has globalization impacted almost every person on the planet.
Benefits of Globalization
Benefits of globalization are too many to summarize in this article. We have selected the most important and relevant.
Communication
Undoubtedly, communication has to be on the top of our list. The Internet of Things (IoT) has changed every single task of our lives. From grocery shopping to commercial transactions and everything in between. Being able to establish live videoconferences 13000 miles away from one another, has made traveling and face to face meetings, a thing of the past.
Access to Markets and Information
A businessperson, or entrepreneur, might have an idea that will dramatically change lives or have success one ocean away. The same principle applies to investment, crowdfunding, think tanking, and ecommerce.
Remote Work
People who work part time or full time from their homes has increased dramatically over the past decade. This tendency will grow exponentially over the following years. This means lower expenses for both employer and employee, little to no physical office space, and no utility bills.
Living Standards and Economic Power
Several International organizations agree to say that the number of people below the poverty lines is decreasing. Countries are growing in financial terms. In addition, regions such as Latin America and Southern Asia are blooming. This provides numerous opportunities for products, services, and investments in every industry.
During the 1990s and till recent times, policymakers have argued that globalization has led to significant economic growth and improvement in human welfare. On the other hand, some daunting challenges such as Increased poverty, unemployment, and social disintegration have also accompanied globalization. Yes I agree with my following reasons.
Job Displacement
As seen every day, the technological revolution has brought many problems to the current labor market in terms of industry migration.
Wages greatly differ from country to country. A monthly minimum wage in the United States is about 6 months of the minimum wage in Bolivia, to name an example. Both workers are able to perform the same tasks, so companies, as it seems obvious, decide to move the plant to a country were staffing costs are less.
This increases the unemployment rates in the country, and, as it is a global tendency, there are fewer jobs in that same area.
Job Disappearance
Dozens of trusted authors declare that there are dozens of positions which are now filled entirely or partially by machines. The automotive industry, customer service, among others, need fewer workers every day. As this is a global phenomenon, computer devices and robots are less expensive and will take over thousands of positions in the near future.
Both workers and governments need to face this problem immediately. Education, training and job placement can greatly affect the current scenario.
Uncontrolled Information
Information and the fact that it can be so easily manipulated is a great danger of our current reality. Most people rely on the information found online and this has caused numerous problems worldwide. From fake news to self-medication, people trust the internet to be the source of TRUE and ACCURATE information on almost anything.
In addition, as social media is part of our lives, rumors and fake news can be widely spread causing massive evacuations or changing the way we live. Also, as it provides an anonymous veil for its users, allows people to freely insult, mistreat or bully almost without consequences.
Loss of Customs and Traditions
As there is now a sense of a global culture, this culture often forgets about the richness of domestic traditions. Music, to name an example, has been globalized to the point that a hit song is on top of the hit list in over one hundred countries. As this is not a problem, it does bring a question on the domestic musicians and rhythms.
On another example, National clothing industries have been suffering from this trend, as people rather consume foreign fashion and products instead of domestic brands.
As the difference between cultures is what brings us together as humans, vocabulary, accent, food, and music shall be protected at all costs. Maintaining authenticity as members of a country, community or sharing the same taste in music is fundamental to remember who we are. Patriotism and national values are also lost every single day.
Conclusion
Making the best of the amazing times we live in, is fundamental to improve our lives. By using the tools provided in terms of freedom of speech, online education, and market access, everyone can change, evolve and improve, while preserving the values that make them humans.
A globalized world, without frontiers in terms of culture, products, and training, is now a reality. Using these tools to your benefit depends entirely on you.
Udeh Amarachi M.
2017/249576
Maryamarachi2010@gmail.com
Maryudeh.blogspot.com
Globalization is simply the way group of people, goods, services, agriculture, technologies or cultural practices all over the world increase or speed up in terms of development. Globalization also deals with the relationship of people all over the world that is how countries relate or how states relate in the in the economy (inter state or intra state relationship). Globalizations is concerned with the systems of the economy which impact and are impacted by social issues, cultural factors that are very difficult to live behind, regional specificities, timings of action and collaborative networks. All of this requires global cooperation and countries solutions. Globalization has been their throughout history but it was not notable until the advancement in transportation and communication that is when globalization increased in high speed.
Globalization has so many benefits which Includes:
An economy in terms of sharp increase in trade and economic exchange, that is, import and export which increased relationships between different countries of the world is part of the advantages of globalization. Globalization can also be seen in financial terms of rise in financial global market in which contracts and capital exchange have increased. We have other benefits in our culture and in the environment, where poverty is eliminated and employment is increased.
NEGATIVE EFFECTS OF GLOBALIZATION
This can be seen in economic, in terms of income inequalities, inadequate technologies and it is noted that some countries or states benefited in globalization while some only perceived it and they are the once still suffering in poverty. This part of the world there will be unemployment everywhere because they lack globalization in terms of industries. The environment is another place you can see effects on globalization in terms of green house gas emission, global warming which pollutes the environment and makes it uncomfortable for people.
ogbodo peace chinenyenwa
2017/249543
nenyepeace2010@gmail.com
peacenenye.blogspot.com
Globalization according to dictionary meaning is the process of making world economy dominated by capitalist models. Globalization can also be said to be the speedup movement and exchange. The increased interconnectedness and interdependence of people and countries is what we call globalization. So long as the impact of globalization is concerned, it tends to consider on a plane ground the effect of globalization on socio-economic growth, employment and income distribution.
The Negative Effects of Globalization on Cultural Loss: Apart from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. That’s why according to UNESCO, the mix between the benefits of globalization and the protection of local culture’s uniqueness requires a careful approach.
The Economic Negative Effects of Globalization: Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization. As a matter of fact, a recent report from Oxfam says that 82% of the world’s generated wealth goes to 1% of the population.
The Negative Effects of Globalization on the Environment: Many critics have also pointed out that globalization has negative effects on the environment. Thus, the massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution. At the same time, global economic growth and industrial productivity are both the driving force and the major consequences of globalization. They also have big environmental consequences as they contribute to the depletion of natural resources, deforestation and the destruction of ecosystems and loss of biodiversity. The worldwide distribution of goods is also creating a big garbage problem, especially on what concerns plastic pollution. By promoting large-scale industrial production and the globalized circulation of goods, globalization is sometimes opposed to concepts such as resource savings, energy savings or the limitation of greenhouse gases. As a result, critics of globalization often argue that it contributes to accelerating climate change and that it does not respect the principles of ecology. At the same time, big companies that don’t give local jobs and choose instead to use the manpower of countries with low wages (to have lower costs) or pay taxes in countries with more favorable regulations is also opposed to the criteria of a CSR approach. Moreover, the ideologies of economic growth and the constant pursuit of productivity that come along with globalization, also make it difficult to design a sustainable economy based on resilience.
On a second note, globalization is also needed for the transitioning to a more sustainable world, in the sense that only a global synergy would really be able to allow a real ecological transition. Issues such as global warming require a coordinated response from all global players: the fight against CO2 emission, the reduction of waste, a transition to renewable energies. This is because the emission of CO2 into the atmosphere has caused more harm than good to the society at large and all this is as result of increase in industrial sector. The same goes for ocean or air pollution, or ocean acidification, problems that can’t be solved without global action. The dissemination of green ideas also depends on the ability of committed actors to make them heard globally.
Unemployment: Globalization has lead to an increasing unemployment in less developed countries due to the fact that works which human being supposed to do being minimized with the help of robot and this makes industries which were suppose to help reduce unemployment to see human effort to work as needless or invalid. For instance, in the banking sector where money was meant to counted manually, the customers service instead of attending to the people directly will direct them to them ATM because they feel they are too busy and thereby causing a lot long queue outside the environment and exposing people to misfortune. Let say someone that wants to withdraw a huge amount of money, but because he was asked to use the ATM will now have to live in fear of losing the money, because armed robbers might attack him because they might have seen him a lot of money.
Poverty: Globalization has lead to increasing poverty in the less developed country. This is a scenario where the poor people became poorer maybe because they are not capable of meeting up with the globalization requirements, while rich become rich. When people are being sacked from their working environment, with the reason that machineries have replaced their efforts to work, its leads to poverty because the individual may not any other option of good livelihood.
Globalization is a complex phenomenon. As such, it has a considerable influence on several areas of contemporary societies. Let’s take a look at some of the main negative and positive effects globalization has had so far.
Positive effects of globalization
FINANCIAL GLOBALIZATION : can be linked with the rise of a global financial system with international financial exchanges and monetary exchanges. Stock markets, for instance, are a great example of the financially connected global world .
POLITICAL GLOBALIZATION : the development and growing influence of international organizations such as the UN or WHO means governmental action takes place at an international level. There are other bodies operating a global level such as NGOs like Doctors without borders or Oxfam. They help in igniting unity in member nations.
TECHNOLOGICAL GLOBALIZATION: the phenomenon by which millions of people are interconnectedthanks to the power of the digital world via platforms such as Facebook, Instagram, Skype or Youtube.
Negative effects of Globalization
POVERTY, UNEMPLOYMENT AND ECONOMIC NEGATIVE EFFECTS OF GLOBALIZATION: countries that did not embrace globalization earlier are getting poorer day by day while industrial countries are getting richer, in some cases they are even exploiting from the poor countries. Take for instance oil which are being taken from Nigeria and processed in the industrial countries are being brought back into the country are being sold at higer prices to us.Poverty and inequality; globalization through trade leaves many less developed countries impoverished due to the fact that the developed nations leverage on exploiting their raw materials at very cheap price and then export back to them finished products at a high price. Here, the rich gets richer and the poor gets poorer..Because of improvement in technology workers are being sacked and replaced by machines which causes unemployment in the economy. HUMANS are now replaced with robots. Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies,individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization.
THE NEGATIVE EFFECTS OF GLOBALIZATION ON THE ENVIRONMENT: Many critics have also pointed out that globalization has negative effects on the environment. Thus, the massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution.
NEGATIVE EFFECTS OF GLOBALIZATION ON CULTURAL LOSS AND SOCIAL DISINTEGRATION: Apart from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. From languages to traditions or even specific industries. That’s why according to UNESCO , the mix between the benefits of globalization and the protection of local culture’s uniqueness requires a careful approach.
NAME: OKOYECHUKWU CHIOMA AUGUSTINA
REG NO: 2017/244837
Email: chiomaaugustina5@gmail.com
DEPT: EDUCATION/ECONOMICS
TOPIC: GLOBALIZATION AND ITS EFFECTS
Globalization points to the whole effort towards making the world global community as a one village. Goods that were only found in western countries can now be found across the globe. Now under developed areas can enjoy the benefits of scientific advances and industrial progress available in developed countries for the improvement and growth of their areas.
Because of Globalization the economies of the world are being increasingly integrated, example mobile phones and internet have brought people closer. The world is becoming a smaller place. Work can be outsourced to any part of the world that has an internet connection because of improvements in traffic infrastructure one is able to reach one’s destination in a short time.
Globalization can also be defined as an ongoing process by which regional economies, societies and cultures have become integrated through a globe-spanning network of communication and trade. The process of globalization includes a number of factors which are rapid technology developments that make global communications possible, political developments such as the fall of communism, and transportation developments that make traveling faster and more frequent. These produce greater development opportunities for companies with the opening up of additional markets, allow greater customer harmonization as a result of the increase in shared cultural values, and provide a superior competitive position with lower operating costs in other countries and access to new raw materials, resources, and investment opportunities.
EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN DEVELOPED COUNTRIES.
Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure.
POSITIVE EFFECTS
It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive effects of globalization and the positive impacts they have had on so many demographic segments of society.
1. Global market.
Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management is seen by the sudden increase of number of transactions across the borders. In protecting yields and maintaining competitiveness, businesses are continuing to develop a wide range of their footprint as it lowers cost and enjoys economies of scale (Shah A.,2009)
2. Cross-cultural management
Globalization tend to be the realm of elite because in many parts of the world they are the only people who are affluent enough to buy many of the products available in the global marketplace. Highly educated and wealthy people from different backgrounds interact within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often embraces western styles of products and pattern of behavior in order to impress others. Today Western culture and patterns of behavior and language are staples of international business (Asgary N. and Walle A.H.,2002).
3. Foreign trade
Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the global. These countries which export goods get comparative advantages. Organizations have been established with a view to control and regulate the trade activities of the countries in the world so to have fair trade. World trade organizations emerged as a powerful international organization capable effectively influencing individual governments to follow international trade rules, copyrights, policies on subsidies, taxes and tariffs. Nations can not break rules without facing economic consequences (Piaseck R. and Wolnicki M., 2004) .
4. Resource Imperative
Developed countries need natural and human resources of the developing countries while developing countries need capital, technology and brainpower of the wealthier countries. Developed countries’ economies are increasingly dependent on the natural and human resources of the developing nations. Growing interdependence of nations and their activities on one another fostered by the depletion of natural resources; as well as overpopulation (Harris P.R.,2002).
5. Foreign investment
One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we also need to see is the amount of Foreign Investment Inflow that flows into the developing countries. Indian companies which have been performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in India. This is also one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition.
6. Competition
One of the most visible positive effects of globalization is the improved quality of products due to globe competition. Customer service and the ‘customer is the king’ approaches to production have led to improved quality of products and services. As the domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market. Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates competition in the market and a survival of the fittest situation.
7. Culture
The positive effects of globalization on culture are many! Not all good practices were born in one civilization. The world that we live in today is a result of several cultures coming together. People of one culture, if receptive, tend to see the flaws in their culture and pick up the culture which is more correct or in tune with the times. Societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Cooking styles, languages and customs have spread all due to globalization. The same can be said about movies, musical styles and other art forms. They too have moved from one country to another, leaving an impression on a culture which has adopted them.
NEGATIVE EFFECTS
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
1.JOBS INSECURITY.
In developed countries people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries. They have outsourced to developing countries like China and India. Most people like accountants, programmers, editors and scientists have lost jobs due to outsourcing to cheaper locations like India.
Globalization has led to exploitation of labor. Safety standards are ignored to produce cheap goods. “In practice, however, the recent experience in Latin America has been that many such open-handed multinationals moved their operations to, for example, China or South East Asia because of cost and market considerations”(Piasecki R. and Wolnicki M., 2004).
2. FLUCTUATION IN PRICES.
Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries. So, in order for the developed countries to maintain their customers they are forced to reduce prices of their goods. This is a disadvantage to them because it reduces the ability to sustain social welfare in their countries.
EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN DEVELOPING COUNTRIES.
POSITIVE EFFECTS.
“I know that globalization has also created many negative effects, but I believe it’s always better to look to the future with optimism and hope. Tomorrow, hopefully, we will be able to minimize or even eradicate the evil forces that give globalization a bad name. Thus we will be able to move forward with peace and harmony”(Kulkami A., 2009)
1. Poverty alleviation
As far as poverty reduction is concerned, globalization played a role in poverty reduction in developing countries. In deed most developed countries experienced reduction in poverty in the proportion of their living below the poverty line, including fast developing countries like China, India, Vietnam. While other countries like Sub-Saharan Africa registered an opposite trend (Lee E., 2006).
2.Employment situation.
Through globalization, people from different countries are provided with jobs opportunities within the global. It has created the concept of outsourcing. Developed countries prefer to provide work to developing countries where costs are cheap. Work such as customer support, software development, accounting, marketing and insurance are given to developing countries like India. Therefore the country that is given the work enjoys by getting jobs.
3. Technology
This is a powerful force that drives the world toward a converging commonality. It has proletarianized communication, transport, and travel. People from different places everywhere wants all the things they have heard about, seen, or experienced through technology. Organizations through its managements can obtain knowledge from different places in the world that can be used in the organization.
4. Education.
Globalization from the point of view has positive effects as well as negative effects. It has increased the access of higher education example universities and reducing the knowledge gap in developing countries, it equally has negative aspects which can seriously threaten universities in those countries. From point of view it has brought more positive effects to developing countries through increasing access to higher learning institutions. Today you can move in the search of the best educational facilities in the world including developing countries without any hindrance. This is due to increased output from secondary schools, greater participation of women in higher education, a growing private sector demand for graduates, and the exorbitant costs of acquiring education in foreign countries, especially those in the nort (Mohamedbhai G., 2002).
5. Foreign trade
Despite having negative effects of globalization, it has a good side too. One of the most significant effect it has brought to developing countries is Trade. Before people used to exchange goods for goods or services for services but now people can trade goods for money. This is mostly through International trade whereby people exports and imports goods within countries. Globalization has led to reduction of costs in trade within the globe. It has led to reduction of tax of importation of goods.
NEGATIVE EFFECTS
Globalization is a tool that benefits all sections of mankind. We cannot ignore the negative effects it has in developing world.
1. Unemployment
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation. “It ‘s true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity”(Kigundu M.N.,2002).
2. Western culture.
Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people now in developing countries cop what people in developed countries do. So, its like they ignore their own culture and practice western culture ( Goyal K.A., 2006). For example dressing styles and eating habits, language. All these can affect management in one way or another example it can cause misunderstandings because of language barrier.
3. Trade
Average tariff rates continue to be high in many developing countries, including some that have recently implemented trade reforms. Example,India. Trade policy continues to be an important aspect in globalization at least in some of the lower income developing countries.widespread use of computers, faxes and mobile phones, introduction of the internet and e-commerce, and quicker and cheaper means of transportation in some cases offered opportunities to developing countries, but in many cases deepened the gap between global firms and traditional industries globalization opened up new opportunities for developing countries to create jobs and expand exports. In practice, many developing countries competing for foreign investors offered longer tax holidays, costly subsidies, and various incentives for multinationals. The competition among developing nations reduced positive net effects of globalization or, at best, delayed them.
ONAH PEACE
2017/243367
ECONOMICS
An Official Definition of Globalization by the World Health Organization (WHO)
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.” It means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
Globalization which create tremendous opportunities for the developing countries depend on three pillars :
* Economic pilliar
* political pilliar
* technological pilliar
Effects of globalization can be positive or negetive.
Positve effects
A Financial Example
At the same time, finance also became globalized. From the 1980s, driven by neo-liberal policies, the world of finance gradually opened.The idea was to simplify finance regulations, eliminate mediators and break down the barriers between the world’s financial centers. And the goal was to make it easier to exchange capital between the world’s financial players. This financial globalization has contributed to the rise of a global financial market in which contracts and capital exchanges have multiplied.
Cultural example
Together with economic and financial globalization, there has obviously also been cultural globalization. Indeed, the multiplication of economic and financial exchanges has been followed by an increase in human exchanges such as migration, expatriation or traveling. These human exchanges have contributed to the development of cultural exchanges. This means that different customs and habits shared among local communities have been shared among communities that (used to) have different procedures and even different beliefs.
Good examples of cultural globalization are, for instance, the trading of commodities such as coffee or avocados. Coffee is said to be originally from Ethiopia and consumed in the Arabid region. Nonetheless, due to commercial trades after the 11th century, it is nowadays known as a globally consumed commodity. In Nigeria we now were their kind of clothes to work, infact it is seen as the coporate dressing. Many of the cultures that are traditional and wrong, such as the killing of twins were stopped due to globalization.
Others positive effect can be seen in access to information and internet, transportation, health sector etc.
The Negative Effects
Apart from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. From languages to traditions or even specific industries. That’s why according to UNESCO , the mix between the benefits of globalization and the protection of local culture’s uniqueness requires a careful approach.
The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization.
We have increase in crime, unemployment and increase the shadow economy.
UGORJI IJEOMA JUDITH
2017/243088
ECONOMICS
Globalisation is the process that brings about interconnectivity and interdependence of different parts of the globe (the world) bringing it to what is known as the global village. It is used to describe the fast rising interdependence and interrelationships of the world’s economies, people, culture and ideologies.
Until the 19th century, different countries have sought different methods to improve their welfare and standard of living with limited technology available to them. Following centuries of European colonisation and trade activities, globalization took off. The first wave of globalization was propelled by steamships, railroads, telecommunication and other breakthroughs mostly brought about by advancement in industrialization and technology.
After decades of technological breakthrough in international corporation and dependence brought about by globalization, the world is more connected than ever such that within few seconds, information can be exchanged between two people from different continents of the world. However advanced globalization has made the world become with its tremendous contributions to the development of different economies in terms of technology, improvement in healthcare services, agriculture, finance and other components of the economy, there are certain dark sides to this ever growing trend. In terms of positive impact, globalization has contributed in the following ways;
Globalization enhanced the process of peace and prosperity among country of the world after the world war 11. Through the creation of various global organisations with the major aim of fostering world peace. These organisations include but not limited to IMF, UN, WORLD BANK, WTO and NATO.
It encourages specialisation which leads to efficient utilization of resources available to each country.
There has been immense improvement in the economies of less developed countries through globalization. This is as a result of transfer of modern technologies through international trade and partnership.
Increase in employment opportunities as new inventions and innovations are shared across borders through the Advent of globalization.
Better standard of living and better appreciation of other people’s culture and beliefs as well as religion.
Nevertheless, globalization has it’s negative impact which are majorly felt in the following areas;
Social disintegration. Due to exposure to foreign norms and practices, certain culture suffer relegation and sometimes forced out of existence. This causes disintegration among groups in the society as regards the acceptance or rejection if certain cultural practices.
Unemployment. Despite the rapid growth in technology and industrialization, unemployment is still on the increase due to some jobs are becoming obsolete while some are being replaced and done by machines knocking out people in that category out of job.
Poverty and inequality; globalization through into trade leaves many less developed countries impoverished due to the fact that the developed nations leverage on exploiting their raw materials at very cheap price and then export back to them finished products at a high price. Here, the rich gets richer and the poor gets poorer.
NWANKWO BASIL CHUKWUEMEKA
2016/233850
ECONOMICS DEPARTMENT
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
Globalization has enormously resulted to uneven development of various sectors in these developing countries. It has largely created inequality, thus widening the gap between the rich and the underprivileged in these countries. People who had an earlier access to technological know-how took advantage and got rich while majority who could not, got poorer.
Some of the positive effects of globalization are:
Ability to tap into a wider talent pool
When fully taking advantage of globalization, you are no longer restrained by talent that is available in your city. Today your global workforce could work from anywhere in the world with an internet connection opening you up to the brightest and best candidates the entire world has to offer.
Some of the negative effects of globalization are:
POVERTY
when there is high rate of unemployment in a country, the rate of poverty will also be high. And that happened as a result of globalization
UNEMPLOYMENT
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities globally but it is still a blame to the current situation. It‘s true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity
SOCIAL INTEGRATION
In a community, people no longer associate with their neighbours now like they do before globalization. Whenever two people are sitting together, you hardly see them chatting and playing together, rather, all their attention will be on their phones. This is what globalization has caused
New ideas due to cultural diversity:
Managing an international workforce includes teams working across different locations, people traveling and moving countries for work, having a range of different work ethics and practices and even religious differences. All of these can be challenges, but overwhelmingly are a positive thing in the workplace as it brings together different ideas and insights and perspectives.
FOREIGN WORKER EXPLOITATION
Lower costs do benefit many consumers, but it also creates tough competition that leads some companies to search for cheap labor sources. Some western companies ship their production overseas to countries like China and Malaysia, where lax regulations make it easier to exploit workers.
Globalization has enormously resulted to uneven development of various sectors in these developing countries. It has largely created inequality, thus widening the gap between the rich and the underprivileged in these countries. People who had an earlier access to technological know-how took advantage and got rich while majority who could not, got poorer.
NWAFOR CLARA DABELECHI
2017/249534
ECONOMICS
Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. The growth and development of a country depends on agriculture, manufacturing, tourism, and investment. If all these can go up, then growth and development will also go up. Globalization has increased trading and other business activities. This increase in trade means an increase in Employment and tax such that the government has more to improve on infrastructures which will aid the welfare of individuals. Globalization also improves foreign direct investment through labour intensive industries and also makes it to remain competition, this will lead to Increase in employment to the masses. Globalization has also enhance development through free trade agreement such that there will be trade without tarrif and other barriers. This will increase trade and thereby an increase in the country’s GDP. It’s also gives companies and firms access to new market where they can get inputs at lower cost, this will reduce cost of production which will also make goods and services cheaper such that people can afford more. Also in a global society, one is not limited to working in your local area, it encourages travel for greener pastures in search of higher paying jobs which means higher income which will increase the standard of living.
NAME: AGBO EBUBE EDITH
DEPT: ECONOMICS
REG NO: 2017/249475
EMAIL ADDRESS: ebubeagbo01@gmail.com
Globalization refers to an increase in the
interconnectedness and interdependence among countries of the world, in trade, politics and culture. It entails an open flow of information, technology, and goods across boundaries of nations.
The interconnectedness and accelerated interaction that accompanies globalization has delivered growth and unprecedented prosperity for many nations, but viewing it from a third world perspective accentuates the negativities that globalization brings. Although globalization brought about free trade which increases opportunity for international trade, it poses a threat to the existence and profitability of the economies of nations that are not sophisticated enough to compete globally.
This has turned countries like Nigeria into dumping grounds for goods produced in the western market. When a country opens up its market to the world, but has nothing to offer, it ends up existing just to fuel the prosperity of first world countries that manufacture. This has led to a perpetual decrease in standard of living, increased poverty and rising unemployment, because Nigeria – alongside other third world countries – have been boxed into import-dependent economies, at the mercy of whatever goods and services the industrialized nations sends down their way. The various transnational corporations that exist and do business in Nigeria – as a result of globalization – have only exploited the country’s resources for their gain and that of their home country.
Globalization has also accelerated the rate of social disintegration. The opening of borders, and increased international media access has only served as a way of projecting western values of the rest of the world. This cultural imperialism is perpetuated by a highly lopsided international media coverage. A large percentage of the third world countries get their news, music and movies from the same western source. Over time, through deliberate media indoctrination, the populace of Nigeria and other African countries place more regard on the western culture than on theirs’.
Globalization has some advantages, but I am of the opinion that the disadvantages outweigh the positives, especially for countries like Nigeria.
IROEGBU BLESSING O.
2017/249518
ECONOMICS
Globalization is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
Globalization have impacted so much on the worlds economy ; increase in trade, economies, technology, awareness, integration of different countries, policies through international trade.
Despite it’s impact on economic growth globalization have also caused some damage in our society such as unemployment, social disintegration and poverty in some countries of the world like in developing and underdeveloped countries. Although, this developing countries are densely populated and introduction of this technologies such as machines, Bank codes etc which have replaced human labour and will make people to lose they jobs thereby creating poverty among the developing countries. Before globalization, skilled people got employment in government sectors and companies where they received high salaries. Job opportunities were waiting for those who completed colleges and earned a degree. People would resign a job and quickly get another but due to globalization, there are many people seeking employment all over the world. Employers take advantage of cheap labor. One can get a dismissal because of a slight mistake as the employer can find a skilled worker who is ready to be paid less. Globalization as well brought about disunity and different cultural perspective in the society.
For further conclusion, I would say that Globalization has been truly more helpful than harmful to the this day society, in the sense that it brought development and modernization to the society at large, although haven’t covered a few place.
Idoko patience Uchenna
Reg.No. 2017/241111
Education Economics
Email: uchennapatience50@gmail.com
Globalization, or globalisation can be defined as the interaction and integration among people, companies, and governments worldwide. Globalization has accelerated since the 18th century due to advances in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of ideas and culture. Globalization is primarily an economic process of interaction and integration that is associated with social and cultural aspects. However, disputes and diplomacy are also large parts of the history of globalization, and of modern globalization.
Economically, globalization involves goods, services, data, technology, and the economic resources of capital.[1] The expansion of global markets liberalizes the economic activities of the exchange of goods and funds. Removal of cross-border trade barriers has made the formation of global markets more feasible.[2] Advances in transportation, like the steam locomotive, steamship, jet engine, and container ships, and developments in telecommunication infrastructure, like the telegraph, Internet, and mobile phones, have been major factors in globalization and have generated further interdependence of economic and cultural activities around the globe.
EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN DEVELOPED COUNTRIES.
Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure.
POSITIVE EFFECTS
It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive effects of globalization and the positive impacts they have had on so many demographic segments of society.
Global market.
Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management is seen by the sudden increase of number of transactions across the borders. In protecting yields and maintaining competitiveness, businesses are continuing to develop a wide range of their footprint as it lowers cost and enjoys economies of scale (Shah A.,2009)
Multinational corporations is a result of globalization. They occupy a central role within the process of globalization as evidenced through global foreign direct investment inflows. Their concentrations within Europe in western economies has led to size constraints, therefore there is a need for new geographical areas to operate whereby they will face a lot of competition in the market. Through this they will enlarge their market and enjoy economies of scale as globalization facilitates time space compression, economies compete at all levels including that of attracting investors (Smith V.A and Omar M.,2005).
Cross-cultural management
Globalization tend to be the realm of elite because in many parts of the world they are the only people who are affluent enough to buy many of the products available in the global marketplace. Highly educated and wealthy people from different backgrounds interact within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often embraces western styles of products and pattern of behavior in order to impress others. Today Western culture and patterns of behavior and language are staples of international business (Asgary N. and Walle A.H.,2002).
United states seems to have powerful impact upon many other countries and societies. The world today has a popular cultural force. The popular consumer culture of the economically dominant West is relentlessly and inevitably transforming other regions, cultures, nations and societies. In addition, such perspective imply that technological change, mass media, and consumer oriented marketing campaigns work in tandem to remake whatever they touch in their own image. Even attitudes and ideas about society, religion and technology are transformed by cultural diffusion brought by globalization. Example, in America McDonalds represent fast, cheap and convenient food while it is not the same worldwide. It’s of high price in other countries like China and Russia where it involves cultural experience (Walle A.H, 2002)
Foreign trade
Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the global. These countries which export goods get comparative advantages. Organizations have been established with a view to control and regulate the trade activities of the countries in the world so to have fair trade. World trade organizations emerged as a powerful international organization capable effectively influencing individual governments to follow international trade rules, copyrights, policies on subsidies, taxes and tariffs. Nations can not break rules without facing economic consequences (Piaseck R. and Wolnicki M., 2004) .
The number of nations that are dependent on trade, foreign capital, and the world financial markets increased greatly. Countries engaged in foreign trade enjoy comparative advantage. The post Recardian trade theories predicted that specialization in labor and capital intensive goods would bridge enormous wage gaps between the poor and the rich countries, that is the developing and developed countries, sparing the latter from massive labor immigration (Gerber J., 2002).
Foreign investment
One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we also need to see is the amount of Foreign Investment Inflow that flows into the developing countries. Indian companies which have been performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in India. This is also one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition.
Competition
One of the most visible positive effects of globalization is the improved quality of products due to globe competition. Customer service and the ‘customer is the king’ approaches to production have led to improved quality of products and services. As the domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market. Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates competition in the market and a survival of the fittest situation.
Culture
The positive effects of globalization on culture are many! Not all good practices were born in one civilization. The world that we live in today is a result of several cultures coming together. People of one culture, if receptive, tend to see the flaws in their culture and pick up the culture which is more correct or in tune with the times. Societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Cooking styles, languages and customs have spread all due to globalization. The same can be said about movies, musical styles and other art forms. They too have moved from one country to another, leaving an impression on a culture which has adopted them.
Legal Effects
Increased media coverage draws the attention of the world to human rights violations. This leads to improvement in human rights. Global economic growth does not necessarily make people happier, worldwide free trade, should also benefit humanity as well as protect nature, not just reward managers and stockholders. Those who would be authentic leaders need to address inequalities. Globalization should promote openness and information along with exchange with greater democracy and prosperity (Harris P.R., 2002).
Gone are the days where the limited jurisdiction became a hindrance in the prosecution of criminals. These days due to international courts of justice, these criminals can no longer seek asylum in a foreign country, but will be brought forward and there will be justice. Due to globalization, there is also an understanding between the security agencies and the police of two or more different countries who will come together to curbglobal terrorism. Hence, it is now possible to catch the perpetrators of crime irrespective of which country they choose to hide in. This is undoubtedly one of the greatest positive effects of globalization on society.
NEGATIVE EFFECTS
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
JOBS INSECURITY.
In developed countries people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries. They have outsourced to developing countries like China and India. Most people like accountants, programmers, editors and scientists have lost jobs due to outsourcing to cheaper locations like India.
Globalization has led to exploitation of labor. Safety standards are ignored to produce cheap goods. “In practice, however, the recent experience in Latin America has been that many such open-handed multinationals moved their operations to, for example, China or South East Asia because of cost and market considerations”(Piasecki R. and Wolnicki M., 2004).
FLUCTUATION IN PRICES.
Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries. So, in order for the developed countries to maintain their customers they are forced to reduce prices of their goods. This is a disadvantage to them because it reduces the ability to sustain social welfare in their countries.
EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN DEVELOPING COUNTRIES.
POSITIVE EFFECTS.
“I know that globalization has also created many negative effects, but I believe it’s always better to look to the future with optimism and hope. Tomorrow, hopefully, we will be able to minimize or even eradicate the evil forces that give globalization a bad name. Thus we will be able to move forward with peace and harmony”(Kulkami A., 2009)
Poverty alleviation
As far as poverty reduction is concerned, globalization played a role in poverty reduction in developing countries. In deed most developed countries experienced reduction in poverty in the proportion of their living below the poverty line, including fast developing countries like China, India, Vietnam. While other countries like Sub-Saharan Africa registered an opposite trend (Lee E., 2006).
Employment situation.
Through globalization, people from different countries are provided with jobs opportunities within the global. It has created the concept of outsourcing. Developed countries prefer to provide work to developing countries where costs are cheap. Work such as customer support, software development, accounting, marketing and insurance are given to developing countries like India. Therefore the country that is given the work enjoys by getting jobs.
It has given an opportunity to invest in the emerging markets and tap up the talent which is available there. In developing countries, there is often a lack of capital which hinders the growth of domestic companies and hence, employment. In such cases, due to global nature of the businesses, people of developing countries too can obtain gainful employment opportunities (Pillai P.,2008).
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Technology
This is a powerful force that drives the world toward a converging commonality. It has proletarianized communication, transport, and travel. People from different places everywhere wants all the things they have heard about, seen, or experienced through technology. Organizations through its managements can obtain knowledge from different places in the world that can be used in the organization.
Television and medias played a big role in influencing the perception of the world, from a relatively small national unity and reality, into a global market and international concerns. As multinationals establish subsidiaries in new locations, they transfer know how from the parent to the local operation. Knowledge flows from one unit to another as a whole organization benefits from development activity. One of the ways that organizations use in knowledge transfer is the movement of personnel, which takes place within multinationals. This build up a bank of knowledge about working in different situations with people from different cultures and this represents a stock of knowledge that could be developed and used to benefit the organization (Kamoche, 1997).
Education.
Globalization from the point of view has positive effects as well as negative effects. It has increased the access of higher education example universities and reducing the knowledge gap in developing countries, it equally has negative aspects which can seriously threaten universities in those countries. From point of view it has brought more positive effects to developing countries through increasing access to higher learning institutions. Today you can move in the search of the best educational facilities in the world including developing countries without any hindrance. This is due to increased output from secondary schools, greater participation of women in higher education, a growing private sector demand for graduates, and the exorbitant costs of acquiring education in foreign countries, especially those in the nort (Mohamedbhai G., 2002).
Foreign trade
Despite having negative effects of globalization, it has a good side too. One of the most significant effect it has brought to developing countries is Trade. Before people used to exchange goods for goods or services for services but now people can trade goods for money. This is mostly through International trade whereby people exports and imports goods within countries. Globalization has led to reduction of costs in trade within the globe. It has led to reduction of tax of importation of goods.
According to economic theory, foreign trade is in principle, beneficial to any country engaged. The international division of labor allocates the resources more efficient whereby it increases the economic welfare of all countries engaged in foreign trade in long run (Kaitilia V and Kotilainen M., 2002).
Foreign investment
Foreign investment is a direct result of globalization. Foreign investment is always welcomed as it provides resources, capital and technology to a country that will support economic development of the host country. This improves employment as in direct and indirectly. Increases exports to a country and thereby improves the current account and therefore will help to the repayment of foreign debt. This however has some criticisms for leading to too much foreign control (Kaitilia V and Kotilainen M., 2002).
Developing countries can use general or specific industrial and trade policies to be more or less welcoming to foreign direct investments, capital and foreign tourist services. They can directly and indirectly shape their participation in the economic activities in the globe (Piasecki R. and Wolnicki M., 2004).
Market sector
Globalization of markets in developing countries is growing so fast. The emergence of global markets for standardized consumer products on a previously unimagined scale of magnitude. This brought benefits which are economies of scale in production, reduced world prices, distribution, marketing and management (Levitt T., 1983)
IKEA is one of the company that is growing fast in developed countries. Its market is increasing within the global. It has become the world’s largest home furnishings retailer. The managers are facing a lot of challenges in managing them (Nanda A., 1990). IKEA can now be found in so many places in the world example Malaysia.
NEGATIVE EFFECTS
Globalization is a tool that benefits all sections of mankind. We cannot ignore the negative effects it has in developing world.
Unemployment
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation. “It ‘s true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity”(Kigundu M.N.,2002).
“The most important factor to determine the level of employment during 1980-2000 was national or regional macroeconomic policies which were implemented and sustained. In addition those countries with liberal macroeconomic reforms, pursued politics promoting flexible labor markets and employment practices, decentralized industrial relations systems, and judicious enforcement of labor. On the other hand, countries with employment laws, regulations, and policies experienced higher level of employment because they were not able to attract and retain as many new jobs”(Kiggundu M.N.,2002).
For example ,Indonesia faced unemployment and poverty that grew to levels not experienced in two decades, health conditions worsened, and the natural environment degraded (Piasecki R and Wolnicki M.,2004)
Spread of fast foods chain.
Fast foods chain is growing very fast. But some of the most rapid growth is occurring in the developing countries, where it’s real changing the way people eat. “Kentucky Fried Chicken(KFC) is the largest, fastest growing, and highest potential units” (Bartlett C.,1986).
Most people prefer to buy fast foods because it’s cheap and quick. This replaces home cooked fare enjoyed with family and friends. Traditional diets and recipes are yielding to sodas, burgers, and other highly processed and standardized items that have a lot of fat, sugar, and salt resulting a global epidemic of diabetes, obesity, and other chronic diseases. Meanwhile, fast food producers require farmers to raise uniform fields of crops and herds of livestock for easy processing, eliminating agricultural diversity.
Western culture.
Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people now in developing countries cop what people in developed countries do. So, its like they ignore their own culture and practice western culture ( Goyal K.A., 2006). For example dressing styles and eating habits, language. All these can affect management in one way or another example it can cause misunderstandings because of language barrier.
Trade
Average tariff rates continue to be high in many developing countries, including some that have recently implemented trade reforms. Example,India. Trade policy continues to be an important aspect in globalization at least in some of the lower income developing countries.
Idoko patience Uchenna
Reg.No. 2017/241111
Education Economics
Email: uchennapatience50@gmail.com
Globalization, or globalisation is the process of interaction and integration among people, companies, and governments worldwide. Globalization has accelerated since the 18th century due to advances in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of ideas and culture. Globalization is primarily an economic process of interaction and integration that is associated with social and cultural aspects. However, disputes and diplomacy are also large parts of the history of globalization, and of modern globalization.
Economically, globalization involves goods, services, data, technology, and the economic resources of capital.[1] The expansion of global markets liberalizes the economic activities of the exchange of goods and funds. Removal of cross-border trade barriers has made the formation of global markets more feasible.[2] Advances in transportation, like the steam locomotive, steamship, jet engine, and container ships, and developments in telecommunication infrastructure, like the telegraph, Internet, and mobile phones, have been major factors in globalization and have generated further interdependence of economic and cultural activities around the globe.
EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN DEVELOPED COUNTRIES.
Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure.
POSITIVE EFFECTS
It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive effects of globalization and the positive impacts they have had on so many demographic segments of society.
Global market.
Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management is seen by the sudden increase of number of transactions across the borders. In protecting yields and maintaining competitiveness, businesses are continuing to develop a wide range of their footprint as it lowers cost and enjoys economies of scale (Shah A.,2009)
Multinational corporations is a result of globalization. They occupy a central role within the process of globalization as evidenced through global foreign direct investment inflows. Their concentrations within Europe in western economies has led to size constraints, therefore there is a need for new geographical areas to operate whereby they will face a lot of competition in the market. Through this they will enlarge their market and enjoy economies of scale as globalization facilitates time space compression, economies compete at all levels including that of attracting investors (Smith V.A and Omar M.,2005).
Cross-cultural management
Globalization tend to be the realm of elite because in many parts of the world they are the only people who are affluent enough to buy many of the products available in the global marketplace. Highly educated and wealthy people from different backgrounds interact within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often embraces western styles of products and pattern of behavior in order to impress others. Today Western culture and patterns of behavior and language are staples of international business (Asgary N. and Walle A.H.,2002).
United states seems to have powerful impact upon many other countries and societies. The world today has a popular cultural force. The popular consumer culture of the economically dominant West is relentlessly and inevitably transforming other regions, cultures, nations and societies. In addition, such perspective imply that technological change, mass media, and consumer oriented marketing campaigns work in tandem to remake whatever they touch in their own image. Even attitudes and ideas about society, religion and technology are transformed by cultural diffusion brought by globalization. Example, in America McDonalds represent fast, cheap and convenient food while it is not the same worldwide. It’s of high price in other countries like China and Russia where it involves cultural experience (Walle A.H, 2002)
Foreign trade
Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the global. These countries which export goods get comparative advantages. Organizations have been established with a view to control and regulate the trade activities of the countries in the world so to have fair trade. World trade organizations emerged as a powerful international organization capable effectively influencing individual governments to follow international trade rules, copyrights, policies on subsidies, taxes and tariffs. Nations can not break rules without facing economic consequences (Piaseck R. and Wolnicki M., 2004) .
The number of nations that are dependent on trade, foreign capital, and the world financial markets increased greatly. Countries engaged in foreign trade enjoy comparative advantage. The post Recardian trade theories predicted that specialization in labor and capital intensive goods would bridge enormous wage gaps between the poor and the rich countries, that is the developing and developed countries, sparing the latter from massive labor immigration (Gerber J., 2002).
Foreign investment
One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we also need to see is the amount of Foreign Investment Inflow that flows into the developing countries. Indian companies which have been performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in India. This is also one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition.
Competition
One of the most visible positive effects of globalization is the improved quality of products due to globe competition. Customer service and the ‘customer is the king’ approaches to production have led to improved quality of products and services. As the domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market. Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates competition in the market and a survival of the fittest situation.
Culture
The positive effects of globalization on culture are many! Not all good practices were born in one civilization. The world that we live in today is a result of several cultures coming together. People of one culture, if receptive, tend to see the flaws in their culture and pick up the culture which is more correct or in tune with the times. Societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Cooking styles, languages and customs have spread all due to globalization. The same can be said about movies, musical styles and other art forms. They too have moved from one country to another, leaving an impression on a culture which has adopted them.
Legal Effects
Increased media coverage draws the attention of the world to human rights violations. This leads to improvement in human rights. Global economic growth does not necessarily make people happier, worldwide free trade, should also benefit humanity as well as protect nature, not just reward managers and stockholders. Those who would be authentic leaders need to address inequalities. Globalization should promote openness and information along with exchange with greater democracy and prosperity (Harris P.R., 2002).
Gone are the days where the limited jurisdiction became a hindrance in the prosecution of criminals. These days due to international courts of justice, these criminals can no longer seek asylum in a foreign country, but will be brought forward and there will be justice. Due to globalization, there is also an understanding between the security agencies and the police of two or more different countries who will come together to curbglobal terrorism. Hence, it is now possible to catch the perpetrators of crime irrespective of which country they choose to hide in. This is undoubtedly one of the greatest positive effects of globalization on society.
NEGATIVE EFFECTS
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
JOBS INSECURITY.
In developed countries people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries. They have outsourced to developing countries like China and India. Most people like accountants, programmers, editors and scientists have lost jobs due to outsourcing to cheaper locations like India.
Globalization has led to exploitation of labor. Safety standards are ignored to produce cheap goods. “In practice, however, the recent experience in Latin America has been that many such open-handed multinationals moved their operations to, for example, China or South East Asia because of cost and market considerations”(Piasecki R. and Wolnicki M., 2004).
FLUCTUATION IN PRICES.
Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries. So, in order for the developed countries to maintain their customers they are forced to reduce prices of their goods. This is a disadvantage to them because it reduces the ability to sustain social welfare in their countries.
EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN DEVELOPING COUNTRIES.
POSITIVE EFFECTS.
“I know that globalization has also created many negative effects, but I believe it’s always better to look to the future with optimism and hope. Tomorrow, hopefully, we will be able to minimize or even eradicate the evil forces that give globalization a bad name. Thus we will be able to move forward with peace and harmony”(Kulkami A., 2009)
Poverty alleviation
As far as poverty reduction is concerned, globalization played a role in poverty reduction in developing countries. In deed most developed countries experienced reduction in poverty in the proportion of their living below the poverty line, including fast developing countries like China, India, Vietnam. While other countries like Sub-Saharan Africa registered an opposite trend (Lee E., 2006).
Employment situation.
Through globalization, people from different countries are provided with jobs opportunities within the global. It has created the concept of outsourcing. Developed countries prefer to provide work to developing countries where costs are cheap. Work such as customer support, software development, accounting, marketing and insurance are given to developing countries like India. Therefore the country that is given the work enjoys by getting jobs.
It has given an opportunity to invest in the emerging markets and tap up the talent which is available there. In developing countries, there is often a lack of capital which hinders the growth of domestic companies and hence, employment. In such cases, due to global nature of the businesses, people of developing countries too can obtain gainful employment opportunities (Pillai P.,2008).
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Technology
This is a powerful force that drives the world toward a converging commonality. It has proletarianized communication, transport, and travel. People from different places everywhere wants all the things they have heard about, seen, or experienced through technology. Organizations through its managements can obtain knowledge from different places in the world that can be used in the organization.
Television and medias played a big role in influencing the perception of the world, from a relatively small national unity and reality, into a global market and international concerns. As multinationals establish subsidiaries in new locations, they transfer know how from the parent to the local operation. Knowledge flows from one unit to another as a whole organization benefits from development activity. One of the ways that organizations use in knowledge transfer is the movement of personnel, which takes place within multinationals. This build up a bank of knowledge about working in different situations with people from different cultures and this represents a stock of knowledge that could be developed and used to benefit the organization (Kamoche, 1997).
Education.
Globalization from the point of view has positive effects as well as negative effects. It has increased the access of higher education example universities and reducing the knowledge gap in developing countries, it equally has negative aspects which can seriously threaten universities in those countries. From point of view it has brought more positive effects to developing countries through increasing access to higher learning institutions. Today you can move in the search of the best educational facilities in the world including developing countries without any hindrance. This is due to increased output from secondary schools, greater participation of women in higher education, a growing private sector demand for graduates, and the exorbitant costs of acquiring education in foreign countries, especially those in the nort (Mohamedbhai G., 2002).
Foreign trade
Despite having negative effects of globalization, it has a good side too. One of the most significant effect it has brought to developing countries is Trade. Before people used to exchange goods for goods or services for services but now people can trade goods for money. This is mostly through International trade whereby people exports and imports goods within countries. Globalization has led to reduction of costs in trade within the globe. It has led to reduction of tax of importation of goods.
According to economic theory, foreign trade is in principle, beneficial to any country engaged. The international division of labor allocates the resources more efficient whereby it increases the economic welfare of all countries engaged in foreign trade in long run (Kaitilia V and Kotilainen M., 2002).
Foreign investment
Foreign investment is a direct result of globalization. Foreign investment is always welcomed as it provides resources, capital and technology to a country that will support economic development of the host country. This improves employment as in direct and indirectly. Increases exports to a country and thereby improves the current account and therefore will help to the repayment of foreign debt. This however has some criticisms for leading to too much foreign control (Kaitilia V and Kotilainen M., 2002).
Developing countries can use general or specific industrial and trade policies to be more or less welcoming to foreign direct investments, capital and foreign tourist services. They can directly and indirectly shape their participation in the economic activities in the globe (Piasecki R. and Wolnicki M., 2004).
Market sector
Globalization of markets in developing countries is growing so fast. The emergence of global markets for standardized consumer products on a previously unimagined scale of magnitude. This brought benefits which are economies of scale in production, reduced world prices, distribution, marketing and management (Levitt T., 1983)
IKEA is one of the company that is growing fast in developed countries. Its market is increasing within the global. It has become the world’s largest home furnishings retailer. The managers are facing a lot of challenges in managing them (Nanda A., 1990). IKEA can now be found in so many places in the world example Malaysia.
NEGATIVE EFFECTS
Globalization is a tool that benefits all sections of mankind. We cannot ignore the negative effects it has in developing world.
Unemployment
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation. “It ‘s true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity”(Kigundu M.N.,2002).
“The most important factor to determine the level of employment during 1980-2000 was national or regional macroeconomic policies which were implemented and sustained. In addition those countries with liberal macroeconomic reforms, pursued politics promoting flexible labor markets and employment practices, decentralized industrial relations systems, and judicious enforcement of labor. On the other hand, countries with employment laws, regulations, and policies experienced higher level of employment because they were not able to attract and retain as many new jobs”(Kiggundu M.N.,2002).
For example ,Indonesia faced unemployment and poverty that grew to levels not experienced in two decades, health conditions worsened, and the natural environment degraded (Piasecki R and Wolnicki M.,2004)
Spread of fast foods chain.
Fast foods chain is growing very fast. But some of the most rapid growth is occurring in the developing countries, where it’s real changing the way people eat. “Kentucky Fried Chicken(KFC) is the largest, fastest growing, and highest potential units” (Bartlett C.,1986).
Most people prefer to buy fast foods because it’s cheap and quick. This replaces home cooked fare enjoyed with family and friends. Traditional diets and recipes are yielding to sodas, burgers, and other highly processed and standardized items that have a lot of fat, sugar, and salt resulting a global epidemic of diabetes, obesity, and other chronic diseases. Meanwhile, fast food producers require farmers to raise uniform fields of crops and herds of livestock for easy processing, eliminating agricultural diversity.
Western culture.
Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people now in developing countries cop what people in developed countries do. So, its like they ignore their own culture and practice western culture ( Goyal K.A., 2006). For example dressing styles and eating habits, language. All these can affect management in one way or another example it can cause misunderstandings because of language barrier.
Trade
Average tariff rates continue to be high in many developing countries, including some that have recently implemented trade reforms. Example,India. Trade policy continues to be an important aspect in globalization at least in some of the lower income developing countries.
Francis Chibuezem David
2017/241445
francischibuezem247@gmail.com
Globalization has brought a whole lot of opportunities to countries, and has been a reason for development of many countries. Nevertheless, this development and increased income is not evenly distributed infact it has been a reason for prosperity and growth for some people and great poverty for some others.
I certainly agree that increased poverty, unemployment, and social disintegration have also accompanied globalization. Poverty has become increasingly rampant in developing countries and part of this is because of the increased unemployment in the country, farm labourers are now replaced with tractors, lesser hands are needed in the bank because computers do most the work and so only a few individuals who know how to operate the computers are employed. This level of unemployment has reduced the income to majority of the masses both skilled and unskilled labourers. Due to this globalization, the gap between the rich and the poor widen even more because those with the information and resources meet up earlier and make use of the opportunity while others without the information become worse than they were; the rich getting richer and the poor poorer. This is challenge with Globalization.
Chigbata Franklin Chigozie
2017/242424
franklin.chigbata.242424@unn.edu
Globalization is the process by which ideas, goods and services spread throughout the world. In business, the term is often used in an economic context to describe an integrated economy marked by free trade, the free flow of capital and corporate use of foreign labor markets to maximize returns and benefit the common good.
One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe. According to WHO “globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows. According to the Committee for Development Policy ”globalization can be defined as:…”t Moreover, greater openness and participation in competitive international trade have increased employment, primarily of skilled labor, in tradable goods sectors. With the expansion of these sectors, unskilled labor has found increased employment opportunities in the nontradable sectors, such as construction and transportation. The expansion of merchandise trade may also have lessened migrationary pressures. On the other hand, the movement of labor across national boundaries has in many cases lessened production bottlenecks, raising the supply response of recipient economies, and increasing income in the supplying countries through worker remittances. Openness to foreign expertise and management techniques has also greatly improved production efficiency in many developing countries. But there are also risks to globalization. The ability of investment capital to seek out the most efficient markets, and for producers and consumers to access the most competitive source, exposes and intensifies existing structural weaknesses in individual economies. Also, with the speedy flow of information, the margin of maneuver for domestic policy is much reduced, and policy mistakes are quickly punished. Indeed, increased capital mobility carries the risk of destabilizing flows and heightened exchange rate volatility, in cases where domestic macroeconomic policies are inappropriate.
Globalization and its effects
Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
Because of trade developments and financial exchanges, we often think of globalization as an economic and financial phenomenon. Nonetheless, it includes a much wider field than just flowing of goods, services or capital. Often referred to as the globalization concept map, some examples of globalization are:
1.Economic globalization: is the development of trade systems within transnational actors such as corporations or NGOs;
2.Financial globalization: can be linked with the rise of a global financial system with international financial exchanges and monetary exchanges. Stock markets, for instance, are a great example of the financially connected global world since when one stock market has a decline, it affects other markets negatively as well as the economy as a whole.
3.Cultural globalization: refers to the interpenetration of cultures which, as a consequence, means nations adopt principles, beliefs, and costumes of other nations, losing their unique culture to a unique, globalized supra-culture;
Political globalization: the development and growing influence of international organizations such as the UN or WHO means governmental action takes place at an international level. There are other bodies operating a global level such as NGOs like Doctors without borders or Oxfam;
4.Sociological globalization: information moves almost in real-time, together with the interconnection and interdependence of events and their consequences. People move all the time too, mixing and integrating different societies;
5.Technological globalization: the phenomenon by which millions of people are interconnected thanks to the power of the digital world via platforms such as Facebook, Instagram, Skype or Youtube.
6.Geographic globalization: is the new organization and hierarchy of different regions of the world that is constantly changing. Moreover, with transportation and flying made so easy and affordable, apart from a few countries with demanding visas, it is possible to travel the world without barely any restrictions;
7.Ecological globalization: accounts for the idea of considering planet Earth as a single global entity – a common good all societies should protect since the weather affects everyone and we are all protected by the same atmosphere. To this regard, it is often said that the poorest countries that have been polluting the least will suffer the most from climate change.
Benefits of Globalization
Globalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies.
With globalization, different parts of a product may be made in different regions of the world. Globalization has long been used by the automotive industry, for instance, where different parts of a car may be manufactured in different countries. Businesses in several different countries may be involved in producing even seemingly simple products such as cotton T-shirts.
Globalization affects services too. Many businesses located in the United States have outsourced their call centers or information technology services to companies in India. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. China is a prime example of a country that has benefited immensely from globalization. Another example is Vietnam, where globalization has contributed to an increase in the prices for rice, lifting many poor rice farmers out of poverty. As the standard of living increased, more children of poor families left work and attended school.
Consumers benefit too. In general, globalization decreases the cost of manufacturing. This means that companies can offer goods at a lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the standard of living. Consumers also have access to a wider variety of goods. In some cases, this may contribute to improved health by enabling a more varied and healthier diet; in others, it is blamed for increases in unhealthy food consumption and diabetes.
Downsides
Not everything about globalization is beneficial. Any change has winners and losers, and the people living in communities that had been dependent on jobs outsourced elsewhere often suffer. Effectively, this means that workers in the developed world must compete with lower-cost markets for jobs; unions and workers may be unable to defend against the threat of corporations that offer the alternative between lower pay or losing jobs to a supplier in a less-expensive labor market.
The situation is more complex in the developing world, where economies are undergoing rapid change. Indeed, the working conditions of people at some points in the supply chain are deplorable. The garment industry in Bangladesh, for instance, employs an estimated four million people, but the average worker earns less in a month than a U.S. worker earns in a day. In 2013, a textile factory building collapsed, killing more than 1,100 workers. Critics also suggest that employment opportunities for children in poor countries may increase the negative impacts of child labor and lure children of poor families away from school. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections.
Studies also suggest that globalization may contribute to income disparity and inequality between the more-educated and less-educated members of a society. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization.
Looking Into the Future
Regardless of the downsides, globalization is here to stay. The result is a smaller, more connected world. Socially, globalization has facilitated the exchange of ideas and cultures, contributing to a world view in which people are more open and tolerant of one another.
NAME: Emmanuel Treasure Adanne
Department: Economics
Reg No: 2017/242436
Email address: http://www.treasureadaemmanuel@gmail.com
Website: treshvinaemman54.blogspot.com
Answer:
Everything that has an advantage has a disadvantage. Globalization has done lots of good to the world especially in areas of development by encouraging nations to specialize and produce plenty of goods available in their local market. Different countries produce different products and what is most surprising there is no country which is self-sufficient. Some countries with developed economies don’t have enough raw materials for their factories, while the rest accumulate costs more than it should. Availability of cross-border market encourages companies from developed countries to create various goods because they have consumers worldwide.
Advanced technologies are a result of globalization. A constant need for innovations appeared due to the lack of quick data transfer and public communication. Lots of inventors have tried to serve the needs of modern society by improving technology. Its advancement has paved the way for positive effects of globalization in countries that initially did not want to associate with others.
Through globalization, people get to know what’s happening in other countries. Media services cover events which occur in other countries. As a result, various turmoils could be solved by international mediators. Those who perform acts against human rights are arrested and sentenced by intergovernmental courts. Equally, those who practice illegal business aiming to get competitors out of trading are prosecuted. These are but some of the many positivity of globalization. However it comes with its negative effects and the include.
It is a significant problem in most developed countries. Due to worldwide integration, people travel a lot. Some of them move abroad for studying, business, visiting relatives, work and access hospitals services. However, not all of them are totally honest. Lots of terrorists came to a foreign country with a worker visa having a hidden goal to perform a terrorist attack. It’s a problem that has posed fear among citizens who can’t trust their neighbors. Unfortunately, terrorists recruit young people, residents of the country and make them believe they are doing the right things. That’s why there are fear, mistrust, and tension in society.
Globalization has brought in the consumption of processed foods, planting crops using chemicals to minimize the duration of growth and increase profit. In order to benefit from business, animals such as the cows are fed on chemicals that make them produce a lot of milk or increase in weight for those that are sold for the meat industry. Due to increased ingestion of chemicals from foods, chronic diseases are on the rise. The mortality rate is high. Furthermore, there is a reduction in the lifespan in the developing countries.
In almost all developing countries over half of the working population relied on casual jobs in industries until globalization took root. The advancement of technology has reduced such employment and increased global need for skilled professionals. Majority of people in developing countries don’t have skills, while the available jobs are poorly paid due to high demand caused by globalization. Most of the people are left unemployed and unable to meet their basic needs resulting in increased criminal activities such as burglary, pickpocketing, murder and drug abuse. The rate of unemployment and poverty keeps growing as the gap between the rich and the poor widens.
Conclusion:
Though globalization have both positive and negative effects on the globe, we can’t say for sure if it has done more harm than good. However, with the world’s present age, there is need for nation’s integration in other for people to survive. And we look forward to more globalization in the future as the times keep changing and so is the way of life of people.
ANENE VICTORIA CHIOMA
2017/242435
ECONOMICS
Victoria.anene.242435@unn.edu.ng
Toria20@simplesite.com
With the event of globalization, economic challenges such as poverty, unemployment and social integration have been on rapid increase. Although the developing countries have had many benefits from globalization, there are a few negative impacts it has caused in the developing countries. With the introduction of globalization in developing countries, there has been an immerse of technology which has reduced the need for skilled labour inputs in industries thereby leading to unemployment which has encouraged the involvement in certain negative vices that are detrimental to the economy. The poverty rate in the economy has also risen as due to lack of employment opportunities the people are unable to provide for their basic needs. Most times due to technological advancement workers are laid off leaving these workers unemployed, which affects the social integration of the economy as there is seen to be an increase in the poor people in the country
NAME: OGBONNAYA VICTOR NNANNA
REG NO: 2017/249544
DEPARTMENT: ECONOMICS
What is Globalization?
globalization is the process of interaction and integration among people, companies and government worldwide. the globalization process has accelerated since the 18th century due to advancement in transportation and communication process. As everything has its merits and demerits, so does globalization. Globalization has been associated with rising inequality, it has also widened the gap between the poor and the rich as the poor hardly share from the gains of globalization. Globalization has also led to competition between domestic markets and developed countries that have a head start is also detrimental to developing countries because it leads to unemployment and poverty. in developing countries, students who study and gain a degree will prefer traveling overseas to developed countries to seek for job where the working conditions and paycheck is better and this is detrimental to developing countries. Globalization has also led to the spread of western culture as the developing countries now prefer exactly what the developed countries do and in so doing they ignore their own culture and embrace the western culture forgetting our roots and culture.
NAME: IJE VORDA GOODNESS
DEPARTMENT: ECONOMICS
LEVEL: 300L
EMAIL: vordagoodness78@gmail.com
Globalization is a double edged sword. It can move a country forward and can also hinder growth. Globalization has compressed the world into a global village. There’s greater interconnectness between people, companies and the government of different countries. Globalization has been brought by easier transportation and greater technology today.
Developing countries have benefited from globalization in part through the transfer of technology from the developed world to the developing countries that are used in the health sector, agriculture, security, education, legal sector etc. However globalization has brought with it widespread poverty, unemployment and social disintegration in Africa. While globalization enhances the transfer of technology from developed nations to developing countries at a cheaper cost it also led to a drop in research activities in Africa. This has further hinder growth on the continent. Domestic industies have a tough competition with industries in developed countries who have a larger share of the world market, and are better efficient supply chain and because of the aforementioned reasons they can’t expand to employ the growing number of employable youths in Nigeria. However the few thriving industries prefer to employ foreign labour this how leads to rising unemployment in developing nations.
Furthermore since developing countries depends on developed countries for technology and this leads to capital flight that therefore increases the poverty in developing nations.
Globalization has also led to social disintegration as Africa society is no longer as united as it use to be in that past. Harmful contents have been able to find its way into the country because of globalization.
In conclusion globalization is a phenomenon we can’t escape but we can leverage on its power to advance our great nation forward. Use globalization don’t let globalization use you.
NAME: IJE VORDA GOODNESS
DEPARTMENT: ECONOMICS
LEVEL: 300L
EMAIL: vordagoodness78@gmail.com
Globalization is a double edged sword. It can move a country forward and can also hinder growth. Globalization has compressed the world into a global village. There’s greater interconnectness between people, companies and the government of different countries. Globalization has been brought by easier transportation and greater technology today.
Developing countries have benefited from globalization in part through the transfer of technology from the developed world to the developing countries that are used in the health sector, agriculture, security, education, legal sector etc. However globalization has brought with it widespread poverty, unemployment and social disintegration in Africa. While globalization enhances the transfer of technology from developed nations to developing countries at a cheaper cost it also led to a drop in research activities in Africa. This has further hinder growth on the continent. Domestic industies have a tough competition with industries in developed countries who have a larger share of the world market, and are better efficient supply chain and because of the aforementioned reasons they can’t expand to employ the growing number of employable youths in Nigeria. However the few thriving industries prefer to employ foreign labour this how leads to rising unemployment in developing nations.
Furthermore since developing countries depends on developed countries for technology and this leads to capital flight that therefore increases the poverty in developing nations.
Globalization has also led to social disintegration as Africa society is no longer as united as it use to be in that past. Harmful contents have been able to find its way into the country because of globalization.
In conclusion globalization is a phenomenon we can’t escape but we can leverage on its power to advance our great nation forward. Use globalization don’t let globalization use you.
NAME: IJE VORDA GOODNESS
DEPARTMENT: ECONOMICS
LEVEL: 300L
EMAIL: vordagoodness78@gmail.com
Globalization is a double edged sword. It can move a country forward and can also hinder growth. Globalization has compressed the world into a global village. There’s greater interconnectness between people, companies and the government of different countries. Globalization has been brought by easier transportation and greater technology today.
Developing countries have benefited from globalization in part through the transfer of technology from the developed world to the developing countries that are used in the health sector, agriculture, security, education, legal sector etc. However globalization has brought with it widespread poverty, unemployment and social disintegration in Africa. While globalization enhances the transfer of technology from developed nations to developing countries at a cheaper cost it also led to a drop in research activities in Africa. This has further hinder growth on the continent. Domestic industies have a tough competition with industries in developed countries who have a larger share of the world market, and are better efficient supply chain and because of the aforementioned reasons they can’t expand to employ the growing number of employable youths in Nigeria. However the few thriving industries prefer to employ foreign labour this how leads to rising unemployment in developing nations.
Furthermore since developing countries depends on developed countries for technology and this leads to capital flight that therefore increases the poverty in developing nations.
Globalization has also led to social disintegration as Africa society is no longer as united as it use to be in that past. Harmful contents have been able to find its way into the country because of globalization.
In conclusion globalization has come to stay and people, countries and government should live ready and therefore leverage on the power of globalization to advance their countries.
NAME: EZIKE MARYCYNTHIA CHIAMAKA
REG NO: 2017/242944
EMAIL: marycynthiachiamaka95@gmail.com
DEPT: ECONOMICS.
Globalisation is the process of the worlds systems becoming increasingly interlinked. Advancements in technology has resulted in improved transport and communication systems which has increased flows of people, capital and goods between countries globally. This has resulted in a ‘shrinking world’, a concept which suggests that the world is becoming smaller due to the increased speed of global connections.
Globalization describes how different world cultures, populations, and economies are interdependent from each other. It is a consequence of cross-border business. Technology, goods, investments, information, and services along with the labor market are the most popular components of such activity. Nations have established worldwide integration over many centuries by enabling economic, political, and social partnerships.
In ancient times people moved to distant places to settle, exchange goods with others, and to produce food and unprocessed materials. In the early 19th century, trains, steamships, and telegraphs opened the way to global interaction and integration through economic collaboration among states. Global trade was affected by World War I and II, the post-war protectionism and the Great Depression. Many countries were affected economically, and there was an increased rivalry between various nations.
In as much as globalization has it’s positive impacts, it also brought with it, the negative effects to the country which includes:
However, globalisation is also affecting us in a negative way. Increased transportation and the global shift of polluting manufacturing industries has resulted in environmental degradation. Pollution is affecting people’s health and having a negative impact on biodiversity levels globally. Also, increased transport connections has resulted in carbon dioxide, methane and other greenhouse gas emissions into the atmosphere. These emissions are contributing to climate change which will have an increasing impact on our daily lives in the future due to the increased frequency and intensity of hydrological and meteorological events such as droughts, flooding and tropical storms.
Negative Effects of Globalization
Although the developing countries have had many benefits from globalization, there are a few negative impacts it has caused in the developing countries.
Displacements of Workers
Thanks to globalization, there are employment opportunities all over our huge world. However, most people have had to leave their families for many years as they work abroad. As a result, couples have divorced, remarried and left destitute children at the mercy of volunteers and shelters. Some children haven’t been able to meet their old-aged parents’ needs because the money they earn from their job is not enough. Lots of seniors die due to sicknesses and lack of financial and emotional support from their children.
Unemployment
In almost all developing countries over half of the working population relied on casual jobs in industries until globalization took root. The advancement of technology has reduced such employment and increased global need for skilled professionals. Majority of people in developing countries don’t have skills, while the available jobs are poorly paid due to high demand caused by globalization. Most of the people are left unemployed and unable to meet their basic needs resulting in increased criminal activities such as burglary, pickpocketing, murder and drug abuse. The rate of unemployment and poverty keeps growing as the gap between the rich and the poor widens.
Increased Lifestyle diseases
Globalization has brought in the consumption of processed foods, planting crops using chemicals to minimize the duration of growth and increase profit. In order to benefit from business, animals such as the cows are fed on chemicals that make them produce a lot of milk or increase in weight for those that are sold for the meat industry. Due to increased ingestion of chemicals from foods, chronic diseases are on the rise. The mortality rate is high. Furthermore, there is a reduction in the lifespan in the developing countries.
Abandonment of Culture
Every community, society, or nation has its values and beliefs, that is to say – own culture. They are essential because they mold the acceptable behavior of the people in a particular community. The elders or leaders ensure that the people behave in a morally upright way. However, globalization mixed different cultures. Then people reconsidered their authentic rules and customs regarding their culture as primitive. Some nations from developing countries adopt the western culture and abandon there’s own. The community leaders can no longer pursue their own domestic policy punishing citizens for crimes them as they did before because they are regarded as backward and primitive by international society. They adopt the culture which is quite strange and distant from their nature, due to such policy, people conduct themselves regardless of actual laws. As a result, there is an increased crime as acts such as rape, divorce, and domestic violence get on the rise.
NAME: IKE GODSWILL CHINEDU
REG NO: 2017/249515
DEPT: ECONOMICS
ANSWERS
Globalization obviously or agreeably has prompted some significant economic growth and has also brought about improvement in human welfare, but along this growth is accompanied with challenges or setbacks such as; increased poverty rate on poor masses, high unemployment rate in the urban areas of developing countries and social disintegration. This will be discussed further below.
Increased poverty rates, globalisation has increased the gap between the rich and the poor, as people having more access to resources, better economy and enhanced communication technologies will have the upper hand over the others. Thus, increasing the demarcation between rich individuals and the poor ones.
Increased unemployment, also, due to increase in the production of technologies, so many employees have been replaced by these technologies thereby increasing the rates of the unemployed in both the developing countries and the developed ones. This had caused poverty to increase over the years in these countries. Furthemore, the movement of capital and labour had been enormous over the years. These changes have led to wage disparities, creating both structural and frictional unemployment.
Social disintegration- globalization has led to social disintegration much more than it had led to social integration because only some group are being integrated while a majority is progressively excluded. Depite a wide variety of policy interventions, social disintegration has accelerated, gradually encompassing a larger share of the population. These policies enacted most times are rooted in an individualistic view of society, as individuals in government pursue selfish gains leading to ethnic divisions among societies. All these challenges are due to globalization.
Issac Blessing chiyantirimam
Economics
2017/242942
Eco 362
Globalization and it’s effect
Globalization can also be defined as an ongoing process by which regional economies, societies and cultures have become integrated through a globe-spanning network of communication and trade. The process of globalization includes a number of factors which are rapid technology developments that make global communications possible, political developments such as the fall of communism, and transportation developments that make traveling faster and more frequent. These produce greater development opportunities for companies with the opening up of additional markets, allow greater customer harmonization as a result of the increase in shared cultural values, and provide a superior competitive position with lower operating costs in other countries and access to new raw materials, resources, and investment opportunities.
For some people, this global phenomenon is inherent to human nature. Because of this, some say globalization begun about 60,000 years ago, at the beginning of human history. Throughout time, human societies’ exchanging trade has been growing. Since the old times, different civilizations have developed commercial trade routes and experienced cultural exchanges. And as well, the migratory phenomenon has also been contributing to these populational exchanges. Especially nowadays, since traveling became quicker, more comfortable, and more affordable. This phenomenon has continued throughout history, notably through military conquests and exploration expeditions. But it wasn’t until technological advances in transportation and communication that globalization speeded up. It was particularly after the second half of the 20th century that world trades accelerated in such a dimension and speed that the term “globalization” started to be commonly used.
POSITIVE EFFECTS
It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive effects of globalization and the positive impacts they have had on so many demographic segments of society.
Global market: Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level.
Cross-cultural management: Globalization tend to be the realm of elite because in many parts of the world they are the only people who are affluent enough to buy many of the products available in the global marketplace. Highly educated and wealthy people from different backgrounds interact within a westernized milieu.
Foreign trade: Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country.
Competition: One of the most visible positive effects of globalization is the improved quality of products due to globe competition. Customer service and the ‘customer is the king’ approaches to production have led to improved quality of products and services etc.
NEGATIVE EFFECTS
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
Jobs insecurities: In developed countries people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries.
Flunctuation in price: Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries.
Unemployment: Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation.
Western culture: Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people now in developing countries cop what people in developed countries do etc.
IGWEH SIXTUS OZIOMA
2017/247588
ECO 362
ANSWER
GLOBALIZATION AND ITS EFFECTS ON THE REAL WORLD
Globalization according to Merriam-Webster Dictionary is the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of the cheaper foreign labour markets.
Https//www.youmatter.world/en/definition/what is globalization says globalization means the speedup of movements and exchanges ( of human beings, goods, and services, capital, technologies or cultural practices) all over the planet.
According to W.H.O., globalization can be defined as the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.
To fully understand the effects of globalization, we need to know that globalization is not only based on the economic aspects alone. There are other kinds of globalization namely;
. Cultural globalization
. Political globalization
. Sociological globalization
. Technological globalization
. Geographical globalization
. Ecological globalization.
These are some of the other kinds of globalization. This shows that globalization is not based only on economic aspects alone.
ADVANTAGES AND DISADVANTAGES OF GLOBALIZATION
A saying goes “every good deed always has a bad response”. So as good as globalization is, there are also some negative effects that it has caused upon the world. Now let’s see the advantages and disadvantages and from there draw the conclusion on if globalization has done more harm than good.
ADVANTAGES
1) It developed world economies and increased cultural inter-mingling.
2) Information and knowledge can be easily shared especially among bright minds.
3) It has contributed to the rise of global financial market in which contracts and capital exchanges have multiplied.
4) It allows companies to find lower costs ways to produce their products.
5) It helps developing countries experience improved living standards.
DISADVANTAGES
1) Excess cultural changes have occurred as a result of globalization, world cultures have been homogenized leading to the loss of specific cultural characteristics.
2) Globalization has not yet achieved the expected economic objective people thought it would do as there are still a lot of developing countries in the world still experiencing income inequalities. Serious unemployment, etc.
3) The activities of industries and different companies have led to constant depletion of natural resources especially land and water, as they both are seriously affected by the activities of globalization e.g. disposal of oil waste to the seas, earthquakes due to excessive use of lands etc.
To conclude my assignment, I would like to say that globalization has done more harm than good because technological globalization is what am using to do this assignment.
Name: Doro Yahaya Adamu
Reg No:2017/249490
Dept: Economcs Major
The concept globalization is popularly defined as expansion of global linkages among nations. Notwithstanding, such simple definition, globalization is often considered to be “The most over used and under used specified term in the international policy sciences”. Some have gone so far and to the state that the term globalization has now become so slippery, so ambiguous and so subject to misunderstanding and political manipulation, that should be banned from further use, at least until there is precise agreement as to its meaning. such extreme positions essentially reflect the intensity of the theoretical contestations which we observe regarding securing the essence of globalization.
Globalization has significant impacts both positive and otherwise on economic growth.
Globalization has generate a wide range of benefits including greater freedom of choice,lower prices of goods and higher income for individuals. At aggregate level, these have been paralleled by a more productive allocation of resources, enhanced specialization, diversification of risks and investment in areas of higher returns.
Globalization and national trends have mutually reinforced themselves to provide momentum to the process of globalization. complementary images of globalization can be witnessed in the national scene in the form of as the privatization of state- owned activities, deregulation of investment regime, trade liberalization and incorporation of global rules and standards in public affairs.
Globalization has catalyzed, at the national level transparency in corporate and public affairs as well as greater access to information which has been largely facilitated by internet and electronic governance. In the erea of globalization, national economies are exposed to a process of privatization where ownership and management of manufacturing and services sectors are transferred from government to private sector to increase competitiveness.
On the other hand, globalization has also been accompanied by some other negative effects or impacts on the economic growth. The exclusionary process has been underpinned by lack of assets, incomes and capabilities on the part of those marginalized people and countries.
Growth in many countries, has been coupled with further deterioration of income disparity. infact, most recent econometric work based on cross- country and time- series data has failed to established any correlation between rates of poverty reduction and expanding trade volumes. Thus, it becomes imperatives for the government in in the developing countries to take measures at two levels: first, for a more effective and balanced integration of their respective economies in the global economy and second, to ensure a more equitable distribution of gains emerging from this integration among its citizens.
One may however, consider protest against the fallout of globalization- rising inequality, sustained high level of employment and exclusio of primary stake holders from governance process are also in a way of national phenomenon.
I summary, globalization has been accompanied by increased poverty, unemployment, and social disintegration in the sense that those people or countries that key into globalization keep on growing in their ecconomy, while, those that did not key globalization or those marginalized people or countries, their growth has been coupled with deterioration of income and disparity, which escalate poverty. And the deterioration of income which further lead to unemployment. on the part of social disintegration globalization which increase technological advancement, has also increase social disintegration in the sense that increase in technology has create fear and distrust among people in the society because of what technology can do. It has also reduces the rate socialization and communication among people in the society. In the contemporary society, people communicate more through media in person. These and lots more help to increase social disintegration. Both the process and impacts of globalization depend on how a domestic market absorbs the liberation process
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NAME: FERDINAND DANIEL NWEKE
Reg no : 2017/245020
Department: Economics
Nevertheless Globalization as result and lead to singnificant economy growth and improvement in human welfare of the well the develop nation. But in the case of developing nation it is the other way round because when when the develop nation begin the act of development and Globalization the less developing countries were not thinking of development, and now the developing nation are trying to close the gap of Globalization between them and develop country in which they introduce and implement fall policy to fasteners globalization , it is now causing an advert impact on them. In the developing nation they is an increase in poverty and unemployment work hand in hand were by the invention and production of vast machine into the industry, service and other part of the economy lead to the sack of people who are employ there , leaving them with nothing act hand and due to the lager population of the developing nation all other sector in the economy are full, leaving those people who are sack to run into poverty in a long run. The aspect of social disintegration the togetherness that was they before Globalization is all gone through the use of phone , fence around the house and other means. Were by killing the culture and traditional of the people though the introduction of religion which kill slowly the culture and traditional of the people. It is true that globalization as bring doom to developing nation of the main time but in a long run it will be well.
IWUALA CHIOMA FAVOUR
2017/249520
iwualafavour573@gmail.com
ECONOMICS
Globalization is a term used to describe the increasing connectedness and interdependence of world cultures and economies.Globalization is the spread of products, technology, information, and jobs across national borders and cultures. In economic terms, it describes an interdependence of nations around the globe fostered through free trade.Proponents of globalization will point to the dramatic decline in poverty that has taken place throughout the world over the past several decades, which many economists attribute in part to increased trade and investment between nations. Similarly, they will argue that globalization has allowed products and services such as cellphones, airplanes, and information technology to be spread far more widely throughout the world. On the other hand, critics of globalization will point to the negative impact it has had on specific nations’ industries, which might face increased competition from international firms. Globalization can also have negative environmental impacts due to economic development, industrialization, and international travel.Globalization is important because it is one of the most powerful forces affecting the modern world, so much so that it can be difficult to make sense of the world without understanding globalization. For example, many of the largest and most successful corporations in the world are in effect truly multinational organizations, with offices and supply chains stretched right across the world. These companies would not be able to exist if not for the complex network of trade routes, international legal agreements, and telecommunications infrastructure that were made possible through globalization. Important political developments, such as the ongoing trade conflict between the United States and China, are also directly related to globalization. Globalization has done more good to the world than harm.
Ugorji Ijeoma Judith
2017/243088
Economics
Globalisation is the process that brings about interconnectivity and interdependence of different parts of the globe (the world) bringing it to what is known as the global village. It is used to describe the fast rising interdependence and interrelationships of the world’s economies, people, culture and ideologies.
Until the 19th century, different countries have sought different methods to improve their welfare and standard of living with limited technology available to them. Following centuries of European colonisation and trade activities, globalization took off. The first wave of globalization was propelled by steamships, railroads, telecommunication and other breakthroughs mostly brought about by advancement in industrialization and technology.
After decades of technological breakthrough in international corporation and dependence brought about by globalization, the world is more connected than ever such that within few seconds, information can be exchanged between two people from different continents of the world. However advanced globalization has made the world become with its tremendous contributions to the development of different economies in terms of technology, improvement in healthcare services, agriculture, finance and other components of the economy, there are certain dark sides to this ever growing trend. In terms of positive impact, globalization has contributed in the following ways;
Globalization enhanced the process of peace and prosperity among country of the world after the world war 11. Through the creation of various global organisations with the major aim of fostering world peace. These organisations include but not limited to IMF, UN, WORLD BANK, WTO and NATO.
It encourages specialisation which leads to efficient utilization of resources available to each country.
There has been immense improvement in the economies of less developed countries through globalization. This is as a result of transfer of modern technologies through international trade and partnership.
Increase in employment opportunities as new inventions and innovations are shared across borders through the Advent of globalization.
Better standard of living and better appreciation of other people’s culture and beliefs as well as religion.
Nevertheless, globalization has it’s negative impact which are majorly felt in the following areas;
Social disintegration. Due to exposure to foreign norms and practices, certain culture suffer relegation and sometimes forced out of existence. This causes disintegration among groups in the society as regards the acceptance or rejection if certain cultural practices.
Unemployment. Despite the rapid growth in technology and industrialization, unemployment is still on the increase due to some jobs are becoming obsolete while some are being replaced and done by machines knocking out people in that category out of job.
Poverty and inequality; globalization through into trade leaves many less developed countries impoverished due to the fact that the developed nations leverage on exploiting their raw materials at very cheap price and then export back to them finished products at a high price. Here, the rich gets richer and the poor gets poorer.
Nnadi Olivia ijeoma
2016/232856
Education economics
Globalization is the speed up of movements and exchange (of human capital, goods, services, capital, and technologies). This movements and exchange has increased interactions between different regions and population around the globe. Globalization according to WHO, is the increased interconnectedness and interdependency of people and countries. It includes two inter-related elements: the opening of international borders to increasing fast flow of goods, services, finance, people and ideas and the changes in institutions and policies of national and international levels that facilitate such flows.
Globalization is grounded in the theory of comparative advantage which states that countries that are experts in a particular goods are better off exporting it to countries that don’t have such goods. This knowledge hasn’t been favorable in Nigeria since the country imports more than exporting.
Poverty level in Nigeria as at Sept. 2020, is 40.1%. Poverty is a state in which a person or community lacks the financial resources and essentials for a minimum standard of living. It means the income level from employment is low that basic human needs be met.
The developed countries sets up industries and companies to take advantage of low wages in the developing countries thereby causing pollution in urban areas. With many abled man-power leaving the agricultural sector for industries, he poverty rate in the agricultural sector will increase as there isn’t enough man-power to work.
Unemployment is a state of being capable, able, willingly and in search of a job but has none. As at 2020, unemployment rate in Nigeria is 7.76%. With the movement of people from the rural areas to urban areas, there’s a high labor force in the urban areas which can’t fit-in into the available limited industries or companies, thereby creating unnecessary scarcity of work whereby the rural areas are left unattended due to the ideology of “ there’s a better life in the city”. This ideology came out of globalization. Companies that don’t embrace globalization risk losing a competitive advantage, which allow other innovative companies to take over the global market, when such happens, those companies fold up, leaving the employees without jobs, creating more unemployment in the existing labor market.
Social disintegration is the tendency for society to decline or disintegrate over time, perhaps due to the lapse or breakdown of traditional social support systems. Those who support social disintegration beliefs tend to doubt the integrative capacity of a more complex and modern integration based on abstracted interdependency, claiming that if it is not based on early forms of relationship and toes, it is fabricated. Social disintegration in Nigeria is the situation of the rich are getting richer, and the poor are becoming poorer, also with the idea of every man for himself. Social dimension of globalization is felt by the family due to working conditions of family members, income, working hours, working conditions, and level of employment. There’s a gap in relationships values as many persons are involved in seeking “ greener pastures” and are willing to compromise if need be to have a better life.
For these daunting challenges of globalization in Nigeria like poverty, unemployment and social disintegration to reduce, there have to be diversification of economy from crude back to agricultural exports with good investment.
NWANKPA LILIAN UGOMMA
REG NO:2017/244743
DEPT:ECONOMICS EDUCATION
GLOBALIZATION AND IT’S EFFECT
AN OFFICIAL DEFINITION OF GLOBALIZATION BY THE WORLD HEALTH ORGANIZATION (WHO) According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
WHAT IS GLOBALIZATION IN THE ECONOMY?
According to the Committee for Development Policy (a subsidiary body of the United Nations), from an economic point of view, globalization can be defined as:
the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers (…) and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.”
POSITIVE AND NEGATIVE EFFECTS OF GLOBALIZATION
Some argue that globalization is a positive development as it will give rise to new industries and more jobs in developing countries. Others say globalization is negative in that it will force poorer countries of the world to do whatever the big developed countries tell them to do. Another viewpoint is that developed countries, including Canada, are the ones who may lose out because they are involved in outsourcing many of the manufacturing jobs that used to be done by their own citizens. Outsourcing refers to obtaining goods by contract from outside sources. This is why you may find many of your clothes with labels from developing countries such as Malaysia, China, and the Philippines, where they can be produced at lower cost. Critics of outsourcing feel that no one wins with this practice. Workers in Canada and other developed countries may lose their jobs while those doing the work in poorer countries get paid much less while working in poor conditions. What can be done about these realities?
Global trade gives Canadians access to many products, such as fruits, that cannot be produced here. Global trade means that produce such as bananas, mangoes, oranges and kiwi fruit are easy to find in our grocery stores. This implies that farmers in developing countries have an opportunity to produce and sell more goods and make a better living. Some people in developed countries, however, feel that the wealthier countries purchasing the products also are the ones who make all the production and trade rules that they must abide by, thus reducing their chance at fair competition in the world market place. In addition, this forces developing countries to produce export foods wanted by the wealthier developed countries instead of producing local foods to feed their own populations. The development of orchards and plantations by multinational companies in the poorer countries of the world often means reduced land available for production of local food supplies. What can be done about these issues? Will more emphasis on “fair trade” make any difference?
Factors related to globalization can also cause workers to migrate from their homelands in poorer countries to more developed countries to find work. The migrant labourers may leave their families and live temporarily in another country, thus disrupting the family and social fabric of their home communities. Furthermore, most of their earnings may be sent home, reducing the benefits their employment could have in the country where they are employed. Often foreign workers immigrate to another country and, because they live in their own neighbourhoods, continue to follow their religions, customs, and even follow their own laws, they are sometimes accused of not being willing to adapt and accept their new country. On the other hand, often these newcomers complain that they are poorly treated and cannot live the way they would like in the more developed countries they have immigrated to. This raises questions of the role of human rights, as a consequence of globalization. Should we consider the rights of workers and the responsibilities of new immigrants in our shopping practices? Does it matter?
Many developing countries need new industries and the jobs these industries bring to improve their economies through globalization, but they do not want to lose their own culture and identity in the process. Many developing countries fear that increased globalization may lead to loss of control over economic and political decisions and may also threaten their traditions, language, and culture. With the predominance of American pop culture as well as political and economic influence around the world, many developing countries see globalization as a form of “Americanization” that is undermining the fabric of their traditional societies. In addition, many developing countries do not have stringent rules about environmental protection, thus industries do not need expensive pollution control equipment, resulting in serious air, water, and soil pollution that would not be acceptable in Canada. Are the social and environmental impacts of globalization things to be concerned about? There are many arguments for and against globalization. As citizens and consumers in a developed country, should we be aware of the potential impact our purchases of food, clothing and other items may have on people in developing countries? Should we be asking ourselves why many items produced in developing countries are so much cheaper than goods produced in Canada? Are we familiar with the living and working conditions of the workers in poorer countries that produced these items? Do we know how much they get paid for their labour? Are we familiar with their lack of protection and benefits in the workplace? Are we aware of the environmental impact of production in developing countries? Should we support those companies and stores that promote fair trade even if it may mean slightly higher prices? What is our responsibility? What are the potential impacts of our consumer choices?
Nnadi Olivia ijeoma
2016/232856
Education economics
Globalization means the speed up of movements and exchange (of human capital, goods, services, capital, and technologies). This movements and exchange has increased interactions between different regions and population around the globe. Globalization according to WHO, is the increased interconnectedness and interdependency of people and countries. It includes two inter-related elements: the opening of international borders to increasing fast flow of goods, services, finance, people and ideas and the changes in institutions and policies of national and international levels that facilitate such flows.
Globalization is grounded in the theory of comparative advantage which states that countries that are experts in a particular goods are better off exporting it to countries that don’t have such goods. This knowledge hasn’t been favorable in Nigeria since the country imports more than exporting.
Poverty level in Nigeria as at Sept. 2020, is 40.1%. Poverty is a state in which a person or community lacks the financial resources and essentials for a minimum standard of living. It means the income level from employment is low that basic human needs be met.
The developed countries sets up industries and companies to take advantage of low wages in the developing countries thereby causing pollution in urban areas. With many abled man-power leaving the agricultural sector for industries, he poverty rate in the agricultural sector will increase as there isn’t enough man-power to work.
Unemployment is a state of being capable, able, willingly and in search of a job but has none. As at 2020, unemployment rate in Nigeria is 7.76%. With the movement of people from the rural areas to urban areas, there’s a high labor force in the urban areas which can’t fit-in into the available limited industries or companies, thereby creating unnecessary scarcity of work whereby the rural areas are left unattended due to the ideology of “ there’s a better life in the city”. This ideology came out of globalization. Companies that don’t embrace globalization risk losing a competitive advantage, which allow other innovative companies to take over the global market, when such happens, those companies fold up, leaving the employees without jobs, creating more unemployment in the existing labor market.
Social disintegration is the tendency for society to decline or disintegrate over time, perhaps due to the lapse or breakdown of traditional social support systems. Those who support social disintegration beliefs tend to doubt the integrative capacity of a more complex and modern integration based on abstracted interdependency, claiming that if it is not based on early forms of relationship and toes, it is fabricated. Social disintegration in Nigeria is the situation of the rich are getting richer, and the poor are becoming poorer, also with the idea of every man for himself. Social dimension of globalization is felt by the family due to working conditions of family members, income, working hours, working conditions, and level of employment. There’s a gap in relationships values as many persons are involved in seeking “ greener pastures” and are willing to compromise if need be to have a better life.
For these daunting challenges of globalization in Nigeria like poverty, unemployment and social disintegration to reduce, there have to be diversification of economy from crude back to agricultural exports with good investment.
Igwilo Ebuka Vincent 2017/241434 Economics Department vingist.blogspot.com
Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work.
Yes, it has negative effects which include
Job insecurity- In developed countries people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries
FLUCTUATION IN PRICES: Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries.
Name: Ugwu Chidimma Joy
Reg no: 2017/249584
Department: Economics
What is Globalization?
Definition- Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
According to the Committee for Development Policy (a subsidiary body of the United Nations), from an economic point of view, globalization can be defined as:
“(…) the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers (…) and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.”
The Benefits of Globalization
Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work. Many people are nowadays citizens of the world. The origin of goods became secondary and geographic distance is no longer a barrier for many services to happen.
1) Global Market
Among all effects of globalization, this one is beneficial. It means encouraging nations to specialize and produce plenty of goods available in their local market. Different countries produce different products and what is most surprising there is no country which is self-sufficient. Some countries with developed economies don’t have enough raw materials for their factories, while the rest accumulate costs more than it should. Worldwide integration has led the way to cheap raw materials. Now states can purchase them and produce low price products with a good profit.
Developed countries advertise for the low-income community to buy their products with compatible prices. They also sell goods to developing countries because they are affordable.
2) Cross-Cultural Management
Each country has got its own culture. Culture pertains to the way particular people do things as well as their values and believes. Incorporating all cultures to form a global one is not easy. For instance, gender equality is not recognized in some legal systems, and they do not allow women to lead or engage in business. Before globalization, many countries would not allow females to acquire education, and even if they did, they were supposed to do jobs such as teaching or nursing. Now a lot of states have adopted features of American culture even in the way they carry out business.
3) Investments
The population of developed countries prefers to invest money in profitable businesses rather than deposit it in banks. The reason is, they strive to earn for a living remotely because investments assure they will gain good profits without any efforts. Unfortunately, such an option is available only for those people in developed countries as usual defaults of economies in third-world states make it insecure. People are afraid to invest their earnings because they can not predict whether their national currency will be equivalent to the US dollar next year. Others spend it by establishing firms and industries in foreign countries where they gain profits.
4) Advanced technology
Advanced technologies are a result of globalization. A constant need for innovations appeared due to the lack of quick data transfer and public communication. Lots of inventors have tried to serve the needs of modern society by improving technology. Its advancement has paved the way for positive effects of globalization in countries that initially did not want to associate with others. Such states select partners for cooperation depending on religion rather than the economy.
Everything that has advantage also has disadvantage, in as much as globalization has some positive benefits it also has negative effect in the economy, let’s look into the negative effects of globalization.
1) Terrorism
It is a significant problem in most developed countries. Due to worldwide integration, people travel a lot. Some of them move abroad for studying, business, visiting relatives, work and access hospitals services. However, not all of them are totally honest. Lots of terrorists came to a foreign country with a worker visa having a hidden goal to perform a terrorist attack. It’s a problem that has posed fear among citizens who can’t trust their neighbors. Unfortunately, terrorists recruit young people, residents of the country and make them believe they are doing the right things. That’s why there are fear, mistrust, and tension in society.
2) Job Insecurity
Before globalization, skilled people got employment in government sectors and companies where they received high salaries. Job opportunities were waiting for those who completed colleges and earned a degree. People would resign a job and quickly get another. Due to globalization, there are many people seeking employment all over the world. Employers take advantage of cheap labor. One can get a dismissal because of a slight mistake as the employer can find a skilled worker who is ready to be paid less.
3) Price Instability
Price instability is a significant effect of globalization on business. Some people establish industries overseas where they get cheap raw materials and labor. They can cut production costs and sell their goods at a low price. Due to competition, some high-quality products differ in prices. No matter how the World Trade Organization has tried to control price fluctuation, their efforts are not successful. These companies reach out to consumers using modern technology. Successful businesses are for those who can find a competitive advantage and especially make high-quality products for a low price.
4) Currency Fluctuation
International trade buys and sells products using the US dollar. The price of dollar fluctuates day-to-day in developing countries, this results in imbalanced economy and unnormal prices for goods and services. National currencies are affected the most by IGOs.
CONCLUSION:
Globalization as a term has a lot of positive effects on an economy such as: Investment, Bridging the gap between the rich and the poor, advanced technology, education etc.
At the same time globalization has also caused harm on an economy, that is Globalization also has negative effects such as: price instability, job insecurity, terrorism etc.
Okororie Emmanuel Kelechi
2017/242947
Economics (Major)
manuelokororie@gmail.com
The word “Globalization” is mostly associated with progress and development. Albeit, it’s veracity, like every other thing, it has it’s own shortcomings. Some of them include:
Jobs insecurity: In developed countries people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries. They have outsourced to developing countries like China and India. Most people like accountants, programmers, editors and scientists have lost jobs due to outsourcing to cheaper locations like India. Globalization has led to exploitation of labor. Safety standards are ignored to produce cheap goods. “In practice, however, the recent experience in Latin America has been that many such open-handed multinationals moved their operations to, for example, China or South East Asia because of cost and market considerations
Western culture: Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people now in developing countries cop what people in developed countries do. So, its like they ignore their own culture and practice western culture. For example dressing styles and eating habits, language. All these can affect management in one way or another example it can cause misunderstandings because of language barrier.
Spread of fast foods chain: Fast foods chain is growing very fast. But some of the most rapid growth is occurring in the developing countries, where it’s real changing the way people eat. Kentucky Fried Chicken(KFC) is the largest, fastest growing, and highest potential units. Most people prefer to buy fast foods because it’s cheap and quick. This replaces home cooked fare enjoyed with family and friends. Traditional diets and recipes are yielding to sodas, burgers, and other highly processed and standardized items that have a lot of fat, sugar, and salt resulting a global epidemic of diabetes, obesity, and other chronic diseases. Meanwhile, fast food producers require farmers to raise uniform fields of crops and herds of livestock for easy processing, eliminating agricultural diversity.
Name: Okorie Judith
Reg number: 207/241450
Judith.Okorie.241450@unn.Edu.ng
Globalization as it is has made a whole lot of effort towards making the world global community as one village. Different goods usually found in western countries only can now be access and made available across the globe. The under-developed countries ( like Nigeria etc.) now enjoy the benefits of scientific advances and industrial progress available in developed countries for the improvement and growth of their country.
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is understood to include two elements they are related to each other. This includes the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the institutional and policy changes at national and international levels that facilitate or promote such flows.
Through Globalization, the economies of the world are being increasingly integrated, such as digital technologies like mobile phones and internet have brought people closer, the world is becoming a smaller place. Work can be outsourced to any part of the world that has an internet connection because of improvements in traffic infrastructure one is able to reach one’s destination in a short time.
One of the most visible positive effects of globalization, most especially in Nigeria, is the improvement of the Economy through the flow of foreign capital. Foreign companies invests indirectly in Nigeria, by starting production units across the country. Nigerian companies which have been performing well, both in Nigeria and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in Nigeria. This improves the economist stance of the country and leads to significant economic growth. This is also one of the positive effects of globalization in Nigeria and other developed countries as they (developing countries) give them a good investment proposition.
However, globalization is likened to a two sided coin. Not everything about globalization is beneficial. Any change has winners and losers.
The consequences of globalization include the following: income inequalities, increased poverty , disproportional wealth and trades that benefit parties differently.
In the case of increases unemployment, the cheap consumer goods that have resulted from globalization have meant that the purchasing power and standard of living of the middle class has increased in many parts of the world. At the same time, the outsourcing of jobs overseas has also led to the shrinking of the middle class in countries around the globe. In developing countries like Nigeria, unemployment rate has increased. This means that workers in the developed world must compete with lower-cost markets for jobs; trade unions and workers not be able to defend against the threat of corporations that offers an alternative (a lower pay or losing jobs to a supplier in a less expensive labor market).
Also, the advancement of technology has taken over jobs and there is global need for digital skilled professional. This has also increased the unemployment rate even more because people from developing countries do not have such skills and the available jobs have poorly remuneration due to the high demand for them.
Apart from all the benefits globalization has had on cultural exchanges, it has also homogenized the world’s cultures. As a result, specific cultural characteristics from some countries are being misplaced and are disappearing ranging from languages to traditions or even specific local industries.
Conclusion, globalization has helped developed economies of countries all over the globe most especially under- developed especially Nigeria. However, its negative effect can also be seen through increased unemployment, social disintegration. With the adequate steps and policies in place, this effect can be corrected and contained.
Name: Nwosu Angel Chiamaka
Reg nob: 2017/249536
Email: angelapaul230@gmail.com
In my opinion Globalization is mainly expansion ,The diversification , Interaction and integration among governments and Countries worldwide.
Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work. Many people are nowadays citizens of the world. The origin of goods became secondary and geographic distance is no longer a barrier for many services to happen. Let’s dig deeper.
Nigeria has not benefited from globalization due to monocultural export, inability to attract increased foreign investments and huge indebtedness. But globalization can be domesticated in the country through diversification of exports, debt reduction and expanded development cooperation with other countries.
Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization.
Many critics have also pointed out that globalization has negative effects on the environment. Thus, the massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution.
we believe that globalization has brought the developing countries many more benefits than the detriments.
EZE ONYEDIKACHI VICTOR
REG NUMBER: 2017/ 241442
Dept: Economics
Globalization is the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the globe.
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation.
The displacements of Workers: due to economics opportunities available all of the globe, most people have had to leave their families for many years as they work abroad. As a result, couples have divorced, remarried and left destitute children at the mercy of volunteers and shelters. Some children haven’t been able to meet their old-aged parents’ needs as a result. Lots of seniors citizens die due to sicknesses and lack of financial and emotional support from their children.
Globalization and Poverty yields several implications. There are impediments limiting exports from developing countries. This has worsen poverty in those countries.
Second, careful targeting is necessary to address the poor in different countries who are likely to be hurt by globalization. Relying on trade or foreign investment alone is not enough to alleviate poverty. The poor need education, improved infrastructure, access to credit and the ability to relocate out of contracting sectors into expanding ones to take advantage of trade reforms.
Despite the disadvantage globalization has caused, it has also brought many benefits to developing countries. The size of economy of Nations has increased, the flow of direct foreign investment has also increased, increased efficient methods of production. We should however not be ignorant of the drawbacks it has brought to these countries as well such as increased poverty rate and unemployment in some sectors of these developing countries.
Name: Ngene Michael C.
Reg no: 2017/246022
Dept: Economics.
michaelchinecherem1997@gmail.com
This paper examines globalization and its effects on third World Economic development with emphasis on Nigerian economy,and how to eliminate the negative effect of globalization and to domain the positive side of globalization as a vehicle for economic development of Nigeria and other Third World countries.
Introduction
Globalization (or globalisation) is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture. Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and its development the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities (Wikipedia)
JOSTEIN LEIRO (Norway) pointed to the inherent ambiguity of globalization and liberalization. They were expected to lead to increased economic opportunities for developing countries, yet a large number of those countries remained marginalized and unable to share in the benefits of the global economy. The assumption that globalization was a process that benefited everyone had yet to be proven. The gap between those living in affluence and those suffering the hardship of poverty was growing, both within nations and between them. To many, the process of globalization had led to reduced cultural variation and increased economic inequality, instead of increased cultural variation and reduced economic inequality. To overcome those threats, some people were prescribing a recipe of protectionism and isolation. But is this really the alternative in a world where ideas and financial transactions circumvent national boundaries in seconds?
HOW THAN CAN WE ELIMINATE THE NEGATIVE EFFECT OF GLOBALIZATION?
Norway believed that better management of the forces of globalization, at both the national and international levels, was the only way to proceed if the positive effects of an integrated world were to be maximized and its negative aspects minimized. At the national level, Nigeria must engage in investment in both human resources and physical infrastructure, and good governance, democracy and human rights must be promoted. Also, resources did not by any means flow automatically to meet common needs, nor to care for the most vulnerable groups in society. Vigorous government policies were therefore called for to ensure that resource allocations met the demands of people for whom governments were responsible. The prospects for the next century depended, above all, on the willingness and ability to make the necessary long-term social investments, particularly in health and education, and on the capacity to distribute the benefits of globalization in a more equitable manner.
Name: Oforka Blessing Oluchi
Reg. No. 2017/243365
Answer:
GLOBALIZATION
According to WHO, globalization can be defined as “the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
Globalization is a combination of GDP, industrialization and HDI. The goal of globalization is to provide organizations a superior competitive position with lower operating costs, to gain greater numbers of products, services and consumers.
Now while globalization can and has benefited developed and developing countries in many ways increasing the economic growth and development; encouraging international free trade and increasing human welfare, it has come with its challenges. Globalization has brought about automation and technological advancements, so rather increase job opportunities it has left some workers unemployed. It has led to the exploitation if labour, as some industries are willing to send work to other countries were labour is cheaper. Also, it has led to unequal distribution wealth. Many studies have shown that globalization has been associated with rising inequality and that the poor do not always share in the gains from trade. It has also caused a reduction in cultural diversity. Every culture in one way or another has been affected in terms of its identity or influence. Only one culture dominates and that is the Western World. The Western World has projected its own culture and values across the world.
We cannot stop globalization as the world keeps on evolving but we can adopt or create policies and strategies to use to make it more equitable and effective.
Name: Ugwoke Paul Chukwuebuka
Reg No. 2017/241059
Dept: Education Economics
Globalization is the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade. The term is most closely associated with the term economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence.
Globalization has led to exploitation of human labor. Prisoners and child workers are used to work in inhumane conditions. Safety standards are ignored to produce cheap goods. This has led to working in risky environments which endangers their health thus they use more of their little income on health . so instead of acquiring other basic needs they instead channel all the resources on acquiring health care thus increased poverty.
The competition in the job market due to globalization has led to Job insecurity. Earlier people had stable, permanent jobs. Now people live in constant dread of losing their jobs to competition. Increased job competition has led to reduction in wages and consequently lower standards of living. Due to globalization, people work from internet in various locations hence reducing the opportunity to enable others work.
Globalization has led to the exploitation of less developed countries . this is because, Companies have set up industries causing pollution in countries with poor regulation of pollution. This has led to air, water and soil pollution. Thus poor health among the inhabitants of such countries. This reduces the productivity of the people and thus poverty sets in.
AFUBE BLOSSOM CHIBUZOR
2017/249473
ECONOMICS DEPARTMENT
blossomafube16@gmail.com
Globalization can be seen as the totality of efforts o make the whole world a global village. It describes how the various world economies, cultures and population are interdependent on each other. Globalization has been the driving force that made the word as it is presently, the good sides and the bad sides. Due to his singular phenomenon, the world has become as intertwined as it was once separated.
The positive effects of globalization includes but is not restricted to foreign trade, legal consciousness, poverty alleviation, employment, technology and technological transfers, education, foreign investments and competition what improves standards. These few benefits of globalization, mind you, have not only been enjoyed by developing countries but by the world at large.
As much as human welfare and economic growth has been improved, it still holds that globalization has another side to the coin. In this case, the saying that ‘solving a problem inadvertently creates another one’ is true and it is still undecided whether the problem solved is greater than that created from globalization.
When employment was created by widening the labour market to include the whole world, another problem emerged. The outsourcing of jobs actually made it difficult to get one as there was every opportunity to get a worker for a lower wage in developing countries than pay a skilled worker in your own country, a disadvantage for those in developed countries. Also, technology has made life easier and has also reduced the need for actual human hands in production and industrialization thus also causing unemployment. With technology came the need for skilled professionals, something 3rd world countries lack.
There is occasion for labour exploitation as people are willing to be paid less than their worth in order to beat the competition out there for jobs and employers capitalize on this and exploit workers. With competitions in industries, standards are raised and prices of goods fall. This is because when you cannot adequately compete, you have to sacrifice a large amount of your profit by reducing price in order to stay in the market.
Globalization has led to social disintegration in countries such as Nigeria where our culture and traditions are of the utmost importance in maintaining the life of the society. With the expansion of the world, we are slowly losing our core values comparing ourselves with countries that have different historical backgrounds and seeing our beliefs as old fashioned. With the legal consciousness and social media, we bow to the pressures of the outside world, losing our sense of right and wrong and our ability to enforce what we believe in.
Globalization, in my opinion, has not been a bed of roses as nothing ever is but it is clear that we stand to gain more than we have lost if we capitalize on the gains and try our best to minimize the losses. The fact that I have an opinion on this is an effect of globalization and that in itself is redemption for it.
NAME: OZUEM DEBORAH OGHENEKEVWE
REG NO: 2017/249572
DEPARTMENT: ECONOMICS
EMAIL: deborah.ozuem.249572@unn.edu.ng
Just as the general saying goes, everything that has an advantage, has its corresponding disadvantage. Globalization is a term that describes the growing interdependence of the world’s economies, cultures and population brought about by cross-border trade in goods and services, technology and flow of investment, people and information. So we see that globalization has a way of influencing the behavior, culture, beliefs and attitudes of different people in different geographical locations. This is because of how globalization makes the whole world interdependent and interconnected. This interconnectedness has brought with it pros and cons.
PROS:
1. Globalisation helps to boost the long run average growth rate of the economy.
2. Globalisation paves the way for removing inefficiency in production system.
3. Globalisation attracts entry of foreign capital along with foreign updated technology which improves the quality of production.
4. Globalisation usually restructure production and trade pattern favouring labour-intensive goods and labour-intensive techniques as well as expansion of trade in services.
5. In a globalized scenario, domestic industries of developing country become conscious about price reduction and quality improvement to their products so as to face foreign competition.
6. Globalisation discourages uneconomic import substitution and favour cheaper imports of capital goods which reduces capital-output ratio in manufacturing industries. Cost effectiveness and price reduction of manufactured commodities will improve the terms of trade in favour of agriculture.
7. Globalisation facilitates consumer goods industries to expand faster to meet growing demand for these consumer goods which would result faster expansion of employment opportunities over a period of time. This would help to trickle down effect to reduce the proportion of population living below the poverty line.
8. Globalisation enhances the efficiency of the banking insurance and financial sectors with the opening up to those areas to foreign capital, foreign banks and insurance companies.
CONS:
1. Globalisation paves the way for redistribution of economic power at the world level leading to domination by economically powerful nations over the poor nations.
2. Globalisation usually results greater increase in imports than increase in exports leading to growing trade deficit and balance of payments problem.
3. Although globalisation promote the idea that technological change and increase in productivity would lead to more jobs and higher wages but during the last few years, such technological changes occurring in some developing countries have resulted in more loss of jobs than they have created leading to fall in employment growth rates.
4. Globalisation has alerted the village and small scale industries and sounded death-knell to it as they cannot withstand the competition arising from well organized MNCs.
5. Globalisation has been showing down the process to poverty reduction in some developing and underdeveloped countries of the world and thereby enhances the problem of inequality.
6. Globalisation is also posing as a threat to agriculture in developing and underdeveloped countries of the world.
7. Implementation of globalisation principle is becoming harder in many industrially developed democratic countries to ask its people to bear the pains and uncertainties of structural adjustment with the hope of getting benefits in future.
Nnamani Great Ogomuegunam
2017/249532
Economics
Globalization is the process by which ideas, goods and services spread throughout the world. The term is often used in an economic context to describe an integrated economy marked by free trade, the free flow of capital and corporate use of foreign labor markets to maximize returns and benefit the common good. Globalization is driven by the convergence of political, cultural and economic systems that ultimately promote — and often necessitate — increased interaction, integration and dependency amongst nations. The more that disparate regions of the world become intertwined politically, culturally and economically, the more globalized the world becomes.
Globalisation can solve fundamental problems with the global economy, such as poverty and unemployment, by promoting a free market that benefits rich and poor nations alike.
Free trade aims to reduce the amount of trade barriers between nations. A trade barrier is any imposed restriction on international trade, including tariffs and subsidies. This consequently promotes economic growth, creates jobs, makes companies more competitive and lowers prices for consumers. It also theoretically gives poorer countries an opportunity for economic development through exposure to foreign capital and tech, resulting in conditions that foster an improved standard of living for the citizens of that nation.
NAME:OKEKE NANCY OGADIMMA
REG NO:2017/249557
DEPARTMENT:ECONOMICS
EMAIL:ogadimmanancy12@gmail.com
Yes I agree. As the saying goes, whatever have advantage must have a corresponding disadvantage. Globalization has greatly benefitted the world at large but its aftermath cannot be overlooked especially on developing countries.
First of all what is globalization? Globalization is a process where people ,companies and government from different nations interact and integrate through international trade and investments has effects on the environment ,culture, political systems ,economic development, and human physical well-being in societies around the world.
Globalization has made it possible for an individual in a particular to efficiently communicate and sell their product as to another individual in another country. And this therefore allows goods to be made and sold all over the country.
There are many positive impacts or benefits of globalization in developing countries:
1.Globalization leads to better economies: With many multi nations heading to Africa to tap the consumer base in this part of the world, more jobs arte being created helping people in these countries get better wage and improve their standards of living.
2. Globalization brings government together so that other can tackle common goals together..This is because it is hard to see a country trading a lot of products and services with another will attack it or want to go war with it.
3. Globalization has led to innovation and creativity: The desire to make a profit has always been a spur to expanded trade, innovation, and the communication of ideas. The great ideas from leaders spread more easily.
4. Globalization has also aided in improving better quality and variety of goods. This is due to competition from different firms which drives firms to improve their products thereby making consumers to have a variety and quality products.
However, in as much as globalization has its positive effects, there are also negative effects or disadvantages of globalization. These disadvantages include:
1. Globalization causes fluctuation in prices: As stated earlier that globalization increases the variety and quality of products due to competitions among different firms. This competition also leads to price fluctuation. For example, a country like United States has to reduce its price most times to be able to compete with a country like China.
2. Globalization also leads to job insecurity and displacement: Globalization takes jobs from one country and provides them to another. It creates jobs for people in developing countries who provide cheaper manufacturing jobs. For example, many companies are setting up in India and China because of wages and manufacturing jobs are cheaper there which means fewer opportunities in developed worlds.
3. Globalization also causes environmental damage: Globalization has lead to increased production for businesses in order to meet global demand. And increased production means more natural resources are used up before they are regenerated leading to a negative impact on the environment.
4. Globalization leads to unequal economic development: Globalization as we all know has led to an increase in economic growth. However this growth are not equal because richer or developed countries tend to benefit more than developed countries.
5. Exploits cheaper labor markets: By exploiting cheaper labor we mean that globalization allows businesses and firm to increase jobs and econ0omic opportunities in developing countries ,where the cost of labor is often cheaper. However ,overall economic growth in these countries may be slow or stagnant.
NAME: OBODO CHISOM JESSICA
REG NO: 2017/249538
EMAIL: chisom.obodo.249538@unn.edu.ng
YES, I AGREE
Globalization is a process where people, companies, and governments from different nations interact and integrate through international trade and investments has effects on the environment, culture, political systems, economic development, and human physical well-being in societies around the world. Through the Internet, media, planes, international business, and embassies we are now more connected to each other than ever before.
Globalization is not only about trade there is also the cultural aspect to it. Through it, different cultures meet and people get to know and understand the various ways of life and accept them.
Globalization is a recent issue which has its pros and cons, some of them are;
It has helped in the reduction of poverty.As far as poverty reduction is concerned, globalization played a role in poverty reduction in developing countries. In deed most developed countries experienced reduction in poverty in the proportion of their living below the poverty line, including fast developing countries like China
Foreign investment is a direct result of globalization. Foreign investment is always welcomed as it provides resources, capital and technology to a country that will support economic development of the host country. This improves employment as in direct and indirectly.
It has also improved technology. This is a powerful force that drives the world toward a converging commonality. It has proletarianized communication, transport, and travel. People from different places everywhere wants all the things they have heard about, seen, or experienced through technology. Organizations through its managements can obtain knowledge from different places in the world that can be used in the organization.
Some of the cons are;
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation.
It has also brought about increased poverty. When there is an increase in the rate of unemployment, it will automatically lead to an increase in poverty. People will be unable to provide basic needs.
Globalization also leads to social integration. Individuals no longer participate in a variety of social relationships, including engagement in social activities or social relationships and a sense of communality and identification with one’s social roles.
Name ; Okaforukwu chizaram sandra
Dept ; Economics
Reg no : 2017/249551
GLOBALIZATION
Globalization is a concept used to describe the connection and interdependent position between business and technology around the world. It also includes in its framework the consequent economic and social changes. It can be compared to the threads of a massive spider web that has formed over millennia.
Also increased interconnection and interdependence of peoples and nations can be defined as globalization. Two interrelated elements are generally understood: the opening of international borders to increasingly rapid flows of goods, services, finance, people and ideas; and changes in policies and institutions at national and international level that facilitate or encourage these flows
History of globalization
Some say that at the beginning of human history globalization began some 60,000 years ago. Over time, the trade in human societies has grown. Globalization has been accelerating only when technological progress is made in the areas of transport and communication. It was after the second half of the 20th century in particular that world trade was accelerating at such a speed and dimension that it started to use the term “globalization.”
The travel of Columbus to the New World also started with globalization in 1492. People traveled far and near to Columbus and exchanged thoughts, products and customs. The trading of Silk Road, an old network of trade routes in China, Central Asia and the Mediterranean, was dominated by new technologies. Computer and communications advances have set off a new world era and redefined what it meant to be “connected” The web of globalization, as ideas on freedom, equality and fraternity spread like fire, spread throughout the Age of Revolution. In the modern age every major world economy is experiencing economic success or failure at a key point of the world wide web. In the information era, globalization has overwhelmed the world wide internet and the internet to enable somebody in Germany to read a breakthrough news story in Bolivia in real time .
Negative effect of globalization
In addition to all the advantages of globalization, it has also homogenized world cultures in order to allow cultural exchanges. This is why some countries are wiping out specific cultural characteristics. From languages to traditions and industry. This is why, according to UNESCO, a careful approach is required to combine the advantages of globalization and the protection of local culture. Despite its advantages, globalized economic growth has not been achieved without criticism.
Globalization has far from homogenous consequences: income inequalities, excessive wealth and businesses that profit other parties. Some players profit more from globalization, while some are perceived as “losers” of globalization.
Transportation is responsible for major environmental concerns such as emissions of greenhouse gases, global warming and air pollution. The driving force as well as the major consequences of globalization, are global economic growth and industrial productivity. It contributes to the depletion and destruction of natural resources, ecosystems and biodiversity loss.
Positive effect of globalization
The globalization of trade and trade has led to a sharp increase and the financial exchange has also spread. World exports grew 33 times between 1950 and 2010. Expert: Knowledge has easily been shared with brightest minds and international cooperation has accelerated. Some analysts also believe that globalization has helped to improve global economic conditions and create a great deal of economic wealth.
Finance, too, was globalized at the same time. The world of finance gradually opened in the 1980’s, driven by neo-liberal policies. Many countries, especially the United States under Ronald Reagan and the United Kingdom under Margaret Thatcher introduce the famous 3D “policy.”
The idea was to simplify the financial regulations, to remove mediators and to overcome the obstacles between the financial centers in the world. And the aim was to make it easier for financial players around the world to exchange capital. This financial globalization has helped to build a world financial market that has multiplied contracts and exchanges of capital.
The development of cultural exchanges was supported by migration, expatriation and travel. For example, the trade of commodities such as coffee or avocados is good examples of cultural globalization. Black Friday is an example of globalization in the United States, the Brazil Carnival or the Indian Holi Festival. The digital world and the power of the internet now make books, films and music available all over the world instantaneously. Agnes Poitier-Bennett writes: “The internet and books may contribute greatly to the speed at which cultural exchanges and globalization take place. She says that the internet has increased access to books, cinemas and music.
Anachunam Daberechi MaryJane
2017/241448
ECONOMICS DEPARTMENT
daberechi.anachunam.241448@unn.edu.ng
EFFECTS OF GLOBALIZATION
Globalization can be seen as a situation when industries gain international influence and can sell their products worldwide. Globalization also points to the whole effort towards making the world global community as a one village. Globalization ,since the 1990s, has indeed brought a lot of positive effects on Economic Development all over the world. Although this positive effects were more visible in the developed countries as they got more market’s for their finished goods. But it has been very bad for under developed countries as they have turned into a dumping ground. It has been of huge benefit as it has improved social and financial interactions.
Underdeveloped countries can enjoy the benefits of scientific advancements and industrial development they haven’t obtained yet. Even though it has also given way to cultural negligence because increasing integration, for example, through mobile phones and the internet have brought people all over the world, closer. And has also led to some cultures being dominant over the others. And the other cultures and even languages have been greatly neglected.
NAME: ONYEKANMA CHIDINMA CYNTHIA
REG.NO: 2017/249569
DEPARTMENT: ECONOMICS
Benefits of Globalization
Globalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies.
With globalization, different parts of a product may be made in different regions of the world. Globalization has long been used by the automotive industry, for instance, where different parts of a car may be manufactured in different countries. Businesses in several different countries may be involved in producing even seemingly simple products such as cotton T-shirts.
Globalization affects services too. Many businesses located in the United States have outsourced their call centers or information technology services to companies in India. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. China is a prime example of a country that has benefited immensely from globalization. Another example is Vietnam, where globalization has contributed to an increase in the prices for rice, lifting many poor rice farmers out of poverty. As the standard of living increased, more children of poor families left work and attended school.
Consumers benefit too. In general, globalization decreases the cost of manufacturing. This means that companies can offer goods at a lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the standard of living. Consumers also have access to a wider variety of goods. In some cases, this may contribute to improved health by enabling a more varied and healthier diet; in others, it is blamed for increases in unhealthy food consumption and diabetes.
Downsides
Not everything about globalization is beneficial. Any change has winners and losers, and the people living in communities that had been dependent on jobs outsourced elsewhere often suffer. Effectively, this means that workers in the developed world must compete with lower-cost markets for jobs; unions and workers may be unable to defend against the threat of corporations that offer the alternative between lower pay or losing jobs to a supplier in a less-expensive labor market.
The situation is more complex in the developing world, where economies are undergoing rapid change. Indeed, the working conditions of people at some points in the supply chain are deplorable. The garment industry in Bangladesh, for instance, employs an estimated four million people, but the average worker earns less in a month than a U.S. worker earns in a day. In 2013, a textile factory building collapsed, killing more than 1,100 workers. Critics also suggest that employment opportunities for children in poor countries may increase the negative impacts of child labor and lure children of poor families away from school. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections.
Name: chukwu mmesoma faith
Reg no: 2017/243807
Department: education and economics
What is Globalization?
“Globalization” is the process by which businesses or other organizations develop international influence or start operating on an international scale Or an open flow of information, technology, and goods among countries and consumers. This openness occurs through various relationships, from business, geopolitics, and technology to travel, culture, and media.
Globalization has both positive and negative effect
The positive effects of globalization are:
1. Access to New Cultures:
This free flow of people, goods, art, and information of globalization made it easier than ever to access foreign culture, including food, movies, music, and art.
2. The Spread of Technology and Innovation:
Globalization made knowledge to be transferred fast because many countries around the world remain constantly connected, so knowledge and technological advances travel quickly, this means that scientific advances made in Asia can be at work in the United States in a matter of days.
3. Lower Costs for Products:
The increase in global competition drives prices down and creates a larger variety of choices for consumers, thereby allowing companies to find lower-cost ways to produce their products and this Lowered costs help people in both developing and already-developed countries live better on less money.
4. Higher Standards of Living Across the Globe:
Developing nations experience an improved standard of living—thanks to globalization. According to the World Bank, extreme poverty decreased by 35% since 1990. Further, the target of the first Millennium Development Goal was to cut the 1990 poverty rate in half by 2015. This was achieved five years ahead of schedule, in 2010. Across the globe, nearly 1.1 billion people have moved out of extreme poverty since that time.
5. Access to New Markets:
With the help of International Professional Employer Organizations (PEOs) it is easier than ever to employ workers in other countries quickly and compliantly and businesses gain a lot from globalization, including new customers and diverse revenue streams. Companies interested in these benefits look for flexible and innovative ways to grow their business overseas.This means that, for many companies, there is no longer the need to establish a foreign entity to expand overseas.
6. Access to New Talent
In addition to new markets, globalization allows companies to find new, specialized talent that is not available in their current market.
The Negative effects of globalization are:
1. International Recruiting:
It’s not surprising that 30% of U.S. and UK tech leaders cited international recruiting as their most common challenge. Recruiting across borders creates unknowns for HR teams. First, companies create a plan for how they will interview and thoroughly vet candidates to make sure they are qualified when thousands of miles separate them from headquarters. Next, companies need to know the market’s demands for salaries and benefits to make competitive offers. To ensure successful hires, HR teams must factor in challenges like time zones, cultural differences, and language barriers to find a good fit for the company.
2. Managing Employee Immigration:
Immigration challenges cause a lot of headaches internally, which is why 28% of U.S. and UK tech leaders agreed it was one of their top challenges. Immigration laws change often, and in some countries, it is extremely difficult to secure visas for employees that are foreign nationals. The U.S., for example, is getting stricter with granting H-1B visas, and Brexit makes the future of immigration to the UK uncertain.
3. Incurring Tariffs and Export Fees:
Another challenge both U.S and UK tech leaders said they face in the report is incurring tariffs and export fees—29% agreed this is a challenge for their global businesses. For companies looking to sell products abroad, getting those items overseas can be expensive, depending on the market.
4. Payroll and Compliance Challenges:
Another common global expansion obstacle is managing overseas payroll and maintaining compliance with changing employment and tax laws. This management task gets even more difficult if you’re trying to manage operations in multiple markets.
5. Loss of Cultural Identity:
While globalization has made foreign countries easier to access, it has also begun to meld unique societies together. The success of certain cultures throughout the world caused other countries to emulate them. But when cultures begin to lose their distinctive features, we lose our global diversity.
6. Foreign Worker Exploitation:
Lower costs do benefit many consumers, but it also creates tough competition that leads some companies to search for cheap labor sources. Some western companies ship their production overseas to countries like China and Malaysia, where lax regulations make it easier to exploit workers.
7. Global Expansion Difficulties:
For businesses that want to go global and discover the benefits of globalization, setting up a compliant overseas presence is difficult. If companies take the traditional route of setting up an entity, they need substantial upfront capital, sometimes up to $20,000, and costs of $200,000 annually to maintain the business. Additionally, global businesses must keep up with different and ever-changing labor laws in new countries. When expanding into new countries, companies must be aware of how to navigate new legal systems. Otherwise, missteps lead to impediments and severe financial and legal consequences.
8. Immigration Challenges and Local Job Loss:
The political climates in the United States and Europe show that there are different viewpoints on the results of globalization. Many countries around the globe are tightening their immigration rules, and it is harder for immigrants to find jobs in new countries. This rise in nationalism is mainly due to anger from the perception that foreigners fill domestic jobs or at companies moving their operations abroad to save money on labor costs.
Globalization is the free movement of goods, services and people across the world. In this sense, this kind of global phenomenon is not the same thing as transnational (King 10). ! us, King has clearly stated the process of globalism in terms of not the national, but the global perspective. Economically, globalization is the process of integration of the national economies into the emergent international division of labor. It is a contradictory concept that may be rationale in economics; it may be irrational in other cases.
Some contemporary social theorists, like Hirsch and ! ompson, argue that globalization is largely mythical. ! ey explain that nation states retain the capacities to manage national economies, in which globalization is seen as eroding (Shaw 9). It represents the triumph of classicism advocated by Smith and Locke. It is the triumph of democracy, liberalism and capitalism overall other ideology and statecra” (Gill 16). ! e current focus of economic globalization is the elimination of national borders. In the economically advanced countries, however, these structures precisely reined in market capitalism, making it palatable and acceptable (Ruggie 15-19). ! is is, indeed, the # nal stage of open economy started from privatization and economic liberalization.
Globalization, in this study, creates two inter-linked and distinct challenges in developing countries: how can an e$ ective global market be created for them?
what are the political implementation models that can appropriately address the problem of
Globalization and Inequality in Developing Countries
Since 1980s, globalization has entered the vocabulary of many people but the concept has given a variety of meanings that remains the subject of debate and controversy. ere is an argument about whether or not it is primarily a political, technological, cultural or economic or multi-causal phenomenon; whether it ‘pulls upwards’ or ‘pushes down’; whether it destroys political autonomy or creates new pressures for local autonomy; whether it shrinks the public sphere or demands its enlargement; or whether it enhances or reduces our capacities to understand the world we live in
(Mendell 203). So far to focus on economic globalization such as integration of nancial markets and other markets, internationalization of production are concerned, ‘from 1914 to 1950, however, the world economy experienced lower rates of growth, a retreat from globalization, and economic divergence.’ e world economy reversed its surge toward globalization especially a! er 1990. A number of recent studies have examined globalization’s e ect on developing countries (Andersen and Kersbergen 197).
During the period from 1973 through the 1980s, inequality rose in the North, in part due to globalization forces. Economic theory and a few studies argue that such rise in inequality would be coupled with a more egalitarian South. e recent widening of wage inequalities in the United States occurred simultaneously with a trend toward trade liberalization and the increased immigration of unskilled workers from developing countries. Borjas has estimated that these forces have contributed 15 to 20regulating accountability of globalization in the third world countries?
Economic Consequences of Globalization in theird World Invalidity of Keynesian prescription based on wage-price rigidity for economic
adjustment relied mostly on public intervention. is prepared the ground for the rejection of the xed exchange rate regime in the early 1970s. e rejection of the state assisted capitalism initially in the 1970s and rigorously in the 1980s gradually paved the way for rapid process of globalization. e initial stage of globalization was economic liberalization. It refers specially to trade and market liberalization whereas globalization is related to open economy weakening the border wall; globalization is unrestricted or initiates easy movement of the factors of production, goods, services,
information and technology, same treatment of foreign goods, services, technology
together with structural changes in production and employment according to the
line and preference of multinational companies (MNCs). As a result, globalization
makes the role of state diminish, increases cross border economic interdependence,
integrates nancial market, rapids the movement of information technology, dominates national policy choice and derives a common culture. us, the consequences of globalization policies in the developing nations are as follow (Sharma 118)
Globalization and Inequality in Developing Countries
Since 1980s, globalization has entered the vocabulary of many people but the concept has given a variety of meanings that remains the subject of debate and controversy. ere is an argument about whether or not it is primarily a political, technological, cultural or economic or multi-causal phenomenon; whether it ‘pulls upwards’ or ‘pushes down’; whether it destroys political autonomy or creates new pressures for local autonomy; whether it shrinks the public sphere or demands its enlargement; or whether it enhances or reduces our capacities to understand the world we live in (Mendell 203). So far to focus on economic globalization such as integration of nancial markets and other markets, internationalization of production are concerned, ‘from 1914 to 1950, however, the world economy experienced lower rates of growth, a retreat from globalization, and economic divergence.’ e world economy reversed its surge toward globalization especially a! er 1990. A number of recent studies have examined globalization’s e ect on developing countries (Andersen and Kersbergen 197).
During the period from 1973 through the 1980s, inequality rose in the North, in part due to globalization forces. Economic theory and a few studies argue that such rise in inequality would be coupled with a more egalitarian South. e recent widening of wage inequalities in the United States occurred simultaneously with a trend toward trade liberalization and the increased immigration of unskilled workers from developing countries. Borjas has estimated that these forces have contributed 15 to 20
NAME: OKPOR MARTHA ASHINEDU
REG. NO: 2017/241430
DEPARTMENT: ECONOMICS
LEVEL: 300L
ANSWER:
Globalization is a term that is used in many ways, but the principal underlying idea is the progressive integration of economies and societies. It is driven by new technologies, new economic relationships and the national and international policies of a wide range of actors, including governments, international organizations, business, labour and civil society. With the advent of globalization, so many economies have achieved economic growth and development. But it should not be debated upon that globalization had negative implications such as increased poverty, unemployment and social disintegration.
As a result of globalisation, more advanced technologies such as machines emerged. This in turn led to a lot of persons end up unemployed with no jobs to sustain them. Thus, an increase in the level of poverty and unemployment in the economy.
The social dimension of globalization refers to the impact of globalization on the life and work of people, on their families, and their societies. Beyond the world of work, the social dimension encompasses security, culture and identity, inclusion or exclusion and the cohesiveness of families and communities. Globalization has caused social integration in societies this is because some economies have abandoned the ways or culture of their forefathers to embrace the culture of the white man. For example in the past, children would assemble under the moonlight to listen to folktales told by their elders and also learn from these stories. This is not the case in the recent world. Children would rather be on their phones or televisions watching TV programs than sit down to listen to the boring stories told by their parents. This therefore makes the younger ones to not be familiar with the culture of their forefathers. Come to think of it, a lot of us do not know how to speak our native languages because we were raised to embrace the language of the white man- English language. This also was caused by globalization.
Thus, I believe that despite the good globalization came along with, it has also caused harm to the society.
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
Globalization has been of immense benefit to life itself in this world.
It has made communication simple and faster.
It has made transportation and interconnectedness of people easier.
It made trade of goods and services worth while a exchange in the international community profitable too. These and many more are the benefits of globalization.
But has globalization been negative too, yes.
Globalization has lead to gradual extinction of some cultures.
It has lead to widening of the gap between the haves and have not.
Sometimes, unhealthy competition and rivalry among countries which has lead to different wars.
Marginalisation has greatly increased too.
NAME: EWA PRINCESS
REG NO: 2017/249501
DEPARTMENT: ECONOMICS
WEBSITE: blogwithprincess.wordpress.com
EMAIL: ewaprincess79@gmail.com
GLOBALIZATION-
The term “Globalization” is defined as the process of interaction and integration among people, companies, and governments worldwide. Globalization has accelerated since the 18th century due to advances in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of ideas and culture. Globalization is primarily an economic process of interaction and integration that is associated with social and cultural aspects. However, disputes and diplomacy are also large parts of the history of globalization , and of modern globalization.
Economically, globalization involves goods , services , data , technology , and the economic resources of capital. The expansion of global markets liberalizes the economic activities of the exchange of goods and funds. Removal of cross-border trade barriers has made the formation of global markets more feasible. Advances in transportation, like the steam locomotive, steamship, jet engine, and container ships, and developments in telecommunication infrastructure, like the telegraph, Internet, and mobile phones, have been major factors in globalization and have generated further interdependence of economic and cultural activities around the globe. Conversely, globalization can create new opportunities, new ideas, and open new markets that an entrepreneur may have not had in their home country. As a result, there are a number of positives associated with globalization: it creates greater opportunities for firms in less industrialized countries to tap into more and larger markets around the world. This can lead to more access to capital flows, technology, human capital, cheaper imports and larger export markets.
It allows businesses in less industrialized countries to become part of international production networks and supply chains that are the main conduits of trade
For example, the experience of the East Asian economies demonstrates the positive effect of globalization on economic growth and shows that at least under some circumstances globalization decreases poverty. The spectacular growth in East Asia, which increased GDP per capita by eightfold and raised millions of people out of poverty, was based largely on globalization—export-led growth and closing the technology gap with industrialized countries (Stiglitz, 2003). Generally, economies that globalize have higher growth rates than non-globalizers (Bhagwati and Srinivasan, 2002).
Also, the role of developing country firms in the value chain is becoming increasingly sophisticated as these firms expand beyond manufacturing into services. For example, it is now commonplace for businesses in industrialized countries to outsource functions such as data processing, customer service and reading x-rays to India and other less industrialized countries (Bhagwati et al, 2004). Advanced telecommunications and the Internet are facilitating the transfer of these service jobs from industrialized to less industrialized and making it easier and cheaper for less industrialized country firms to enter global markets. In addition to bringing in capital, outsourcing helps prevent “brain drain” because skilled workers may choose to remain in their home country rather than having to migrate to an industrialized country to find work.
Further, some of the allegations made by critics of globalization are very much in dispute—for example, that globalization necessarily leads to growing income inequality or harm to the environment. While there are some countries in which economic integration has led to increased inequality—China, for instance—there is no worldwide trend (Dollar, 2003). With regard to the environment, international trade and foreign direct investment can provide less industrialized countries with the incentive to adopt, and the access to, new technologies that may be more ecologically sound (World Bank Briefing Paper, 2001). Transnational corporations may also help the environment by exporting higher standards and best practices to less industrialized countries.
POSITIVE IMPACTS OF GLOBALIZATION
1. Gives Access to a Larger Market
Through globalization countries and companies have access to a bigger consumer base. Instead of only selling products in their country a business can expand to other regions boosting sales and in the process making more money.
2. Provides Cheaper Goods for Consumers
Because of globalization a lot of companies are moving to areas where their cost of production is low they, in turn, offer cheaper products because they are not expensive to make hence lower prices for consumers.
3. Globalization Wets Countries do what They do Best
For example, a country can buy cheap steel from another country instead of making its own steel. They can then focus their efforts on making other things they are good at like computers and export them to the countries they import cheap steal from.
4. Leads to Better Economies
With many multi nations heading to Africa to tap the consumer base in this part of the world more jobs are being created helping people in these countries get better wages and improve their stands of living.
These investments by these multinationals or foreign countries also help strengthen the economies of these countries with the foreign exchange they bring in. With an increased number of investors looking for investment opportunities around the globe, country economies will benefit wherever they invest. Through globalization economies of different countries are becoming more connected to one another since they depend on each other for trade.
5. Promotes World Peace and Unity
Globalization brings governments together so that they can tackle common goals together. For example, due to globalization world leaders have seen the impact of pollution and have resolved to tackle climate change together. Also, it is unlikely that a country trading a lot of products and services with another will attack it or want to go to war with it.
6. Innovation
The desire to make a profit has always been a spur to expanded trade, innovation, and the communication of ideas. The great ideas from leaders spread more easily.
7. Better Quality and Variety
Competition from different countries drives firms to improve their products. Consumers have better quality products and more variety as a result.
NEGATIVE IMPACTS OF GLOBALIZATION
1. Causes Environmental Damage
Globalization has led to increased production for businesses in order to meet global demand. Increased production means more natural resources are used and this can be used up before they are regenerated leading to a negative impact on the environment.
Also in developing countries rules and regulations on environmental protection are not as strict as in developed countries. This has seen some multinationals leave their countries to set up in developing countries to take advantage of this lax regulation in the process they manufacture products that are harmful to the environment.
2. Causes Fluctuation of Prices
Increased competition means that businesses with the best prices win. Due to competition prices are always fluctuating, for example, a country like the US has to reduce its prices often to compete with prices for the same product coming from China.
China’s production costs are lower than the US hence they can have ridiculously low prices. For the US companies reducing prices will have a negative effect on their profits which in turn may lead to actions like laying off workers.
3. Job Insecurity
Globalization provides a double-edged sword when it comes to jobs. It creates jobs for people in developing countries who provide cheaper manufacturing jobs. For example, many companies are setting up in India and China because wages and manufacturing jobs are cheaper there which means fewer opportunities in developed worlds.
In short, globalization takes jobs from one country and provides them to another. This can be negative or positive depending on what part of the world you are in.
Name : Mmadu Joy Ukamaka
Department : Economics
Reg no : 2017/249528
Email : joymmadu5@gmail.com
GLOBALIZATION AND HOW IT LEAD TO INCREASED POVERTY, UNEMPLOYMENT AND SOCIAL DISINTEGRATION.
Globalization is the process by which ideas, goods and services spread throughout the world. In business, the term is often used in an economic context to describe an integrated economy marked by free trade, the free flow of capital and corporate use of foreign labor markets to maximize returns and benefit the common good.
Dambisa Moyo, a well- known supporter of free trade, forthrightly stated “there have been significant losses” from globalisation. “It is not clear to me that we are going to be able to remedy them under the current infrastructure,” globalisation caused job losses and depressed wages, Rodrik foresaw that the cost of greater “economic integration” would be greater “social disintegration”.
Globalization has contributed so much in social disintegration, the last two decades have witnessed a dramatic political, economic, and social developments: the turn towards liberal democracy and the collapse or retreat of Communism is in a number of countries; accelerated global economic integration and reliance on market forces; rapid technological change and associated modification of production systems and labour market; the media revolution and expansion of consumer culture. These extraordinary changes have coincided with a period of slow growth, stagnation or economic collapse in most parts of the world with the outstanding exception of several Asian countries. The result has in many cases been a deepening of poverty, unemployment and inequality.
Poverty was increasing and worsening the situation of developing countries, Disparities between developed and developing countries had deepened due to factors such as the deterioration of trade, foreign debt, declining official development assistance levels and the negative effects of globalization. The latter, which was to have been a vehicle for prosperity, had increased impoverishment and called for the international community to adopt measures to counter its backlashes.
While the process was inevitable, globalization could lead to unemployment and injustice, as well as to imposing cuts on social programmes and leaving unprotected an increasing number of people. Poverty was the summary of deterioration of and inaccessibility to every basic social service. Full access to primary social services would only be realized with the development of a strategy based on a balanced and fair distribution of resources worldwide.its effects are not limited to the ‘macro’ social systems such as economic or financial systems, but exceed that to affect other social sub-systems such as family structures and individual private patterns. Family disruption and social and domestic violence are increasing, families and individuals left their normal ways of in most circumstances and the reality is that every single individual is affected in one way or another. These changes affect people’s identities and cultural values, which sometimes become altered significantly. Whether it is between generations, or intra-personally, new values can cause dissonance and conflict with existing deeper-rooted values. Sometimes such transitions and changes can further cause difficulty with internal growth and development.
It is only in this our era that marriages are celebrated in the absence of the couples and we sit back and watch our culture and traditions depreciate every day in the name of being in a global age.
This urgly situations of students committing suicide in this Campus is related to the negetive effect of globalization where someone will have many friends but do to social media will find it difficult meeting with them physical to discuss their challenges and seek for advice, what we have now is online friend who just comes online chat with us irrespective of the fact that the person neither sees u or know the mood u are in to ascertain if u really need someone’s company and encouragement to get over some Pscological issues trending in our time.
It is very disappointing that globalization which was brought to remedy our situation is actually turning into a catalyst that speeds up our distruction and we all are cut up in it’s web in one way or the other. But we hope that through the reforms and Summits presented in different conferences solutions to this bad situation will be provided and executed as soon as possible.
Ideba Tochukwu Emmanuel
2017/241435
Economics
Yes! Globalization has resulted to unemployment.
Globalization,, which is the process of interaction and integration among people, companies, and governments worldwide has resulted to unemployment in the sense that globalization allows for the global movement of improved capital which has taken away jobs which humans are capable of doing and as such unemployment keep increasing.
Goods produced by developing nations most times can not meet the competitive nature of goods in the international market. More often developing nation buys goods from advance nation and as such, the demand for locally produced goods decreases due to the competition in international market and as a result the income of domestic producers falls. This decrease in income has a multiplier effect which at the end of the day result to poverty in the developing nation.
Developing nations are characterised by poor human capital required in production. Globalization gave room for investment in developing nations. This investment is mostly done by advance capitalist countries in form of foreign direct investment (FDI) but due to the developing nations lacking the required skill needed for production by this advance capitalist countries, these countries often employ labor from there country. labor resided in developing nations are most times not meeting the required skill due to competition coming from the advance nation labor and as a result they remain unemployed.
NAME: MADUAGUM MADONNA CHIOMA
REG. NO: 2017/241456
EMAIL: cmaduagum@gmail.com
ECO 362
While I agree that Globalization has made the world smaller and networking much easier, along with other positive impacts, I agree it has also created daunting challenges which include:
Increased Poverty: With both developed and developing nations engaging in trade, there is always inequality in trade or business because most developing countries are characterized by unskilled labour and production of primary exports which are exploited by the developed nations as seen in importation of the primary exports at a cheap cost, which is later transformed into finished goods and sold back to the developing nations at a high cost. Thus the developed nations exploit and gain more to the detriment of the developing nations this keeping the developing countries economy stagnant causing poverty.
Unemployment: This results mainly due to search for cheap labour. The World Bank stated that losers from globalization are working people in rich nations. An example was shown in the case where the United States and Europe was at loss while China, India and Indonesia benefited because they produced cheaper labour, produced goods at lower costs and had other nations trading with them causing a trade deficit for the US and Europe which was unfavorable because businesses had to be shut down and workers retrenched.
Social Disintegration: As nations with different social, cultural and religious backgrounds or history connect, it is only normal that one begins to influence the other hence you see people picking up ideologies, beliefs, mannerisms ,etc which are distinct to that of their society causing internal disunity and disintegration.
NDEM NNEKA GRACE
2017/249529
ECONOMICS 300L
Nnekagrace74@gmail.com
Nnekagrace.Blogspot.com
Globalization which is used to describe the growing interdependence of the world’s economies, cultures and populations, brought about by cross-border trade in goods and services, technology and flows of investment, people and information.
It is said that globalization has led to an economic growth and improvement in human welfare such as;
1. Easy access to the internet
2. Improvement on technologies which has made our work easier.
3. Uniting different countries together through free and international trade etc.
At the same time globalization had brought several effects and challenges to the economy and human welfare at large such as;
1. Increased poverty: Poverty which means people living below the standard of living has been traced to come from globalization how? Globalization have create a room where the poor and the unskilled don’t have any chance of getting any job or work to do, today if you must work or have a good job that you are comfortable with you must have skills or be rich, in order to attend to a school and gain a certificate which will qualify you for the kind of job you desire. Every organization or work now needs people who are with the certificates, talented or skilled in different ways and an a poor man who cannot equipped himself or does not have any of these things is left behind which had make the rich to be more richer and the poor to be more poor because they cannot fits into the demands of globalization which has increased poverty in the country.
2. Unemployment: Today it is seen that due to globalization (invention of different machines), there is high rate of unemployment reason being that the works available for human beings to do is now perform by machines, robots and others to perform, replacing labor with machines. For instance, this is a planting season when many people are been employed for weeding, making bridges and planting of seeds but due to the invention of tractors, bulldozers’ and other forms of machines that can do the same work and do it more efficiently and effectively laborers are no longer employed thereby causing unemployment in the society and at the same time increasing poverty.
3. Social disintegration: social disintegration is seen when the social values of a particular people is devalued or no longer practiced due to one thing or the other. Globalization has brought about social disintegration, in the old people are seen gathered around the moon in the night telling stories of what happened in the old (Histories), sharing ideas, and getting to know each other more, but today due to globalization [people prefer to be on their own busy with their different machines, gadgets or the other, they no longer have time to interact with one another or share ideas with each other, because they are all busy with their phones, laptop which is the work of globalization thereby depriving us of our social values.
It is also seen that today some of our cultures, arts and heritage, social life has been abandoned because of globalization, today no one wants to answer his/her local or native name, everyone wants to have a foreign or English name which has depreciated our culture and it has at the same time lead to social disintegration.
In conclusion, I can say that globalization has lead to development, growth, made work easy for us and improved human welfare “YES”, but it has at the same time cause more harm to us than good to us because in life why trying to create a solution to a problem more problems are been created without knowing it.
During the 1990’s and even in recent times, growth has been pictured as one with some form of marginalization whichever connotes a paradoxical kind of development. Most importantly, the marginalization of the poor by the rich can be seen in these forms:
Increased poverty: This is as a result of the fact that there is presence of class distinction and/or struggle in the society because the gap between the rich and the poor is large. Therefore, this makes the few rich persons richer while the poor gets poorer. This is because the capitalist countries exploited the working class countries.
2. Unemployment: Due to the “growth with marginalization”, employment benchmark is placed on favoritism and mediocrity as a result of this, qualified persons remain unemployed while mediocres are employed. Also given that the world is now a global village, the use of automatic machines and robots have replaced the traditional employees in most sectors of economy hence workers are retrenched and unemployment levels continue to rise.
Social Disintegration: During the 1990’s, many foreign (Western) cultures, beliefs and ways of life became introduced into the African system and this causes a social displacement hence people tend to live in isolation and disintegration
Name: Mmadu Joy Ukamaka
Dept:. Economics
Reg no: 2017/249528
Email: joymmadu5@gmail.com
GLOBALIZATION AND HOW IT LEAD TO INCREASED POVERTY, UNEMPLOYMENT AND SOCIAL DISINTEGRATION.
Globalization is the process by which ideas, goods and services spread throughout the world. In business, the term is often used in an economic context to describe an integrated economy marked by free trade, the free flow of capital and corporate use of foreign labor markets to maximize returns and benefit the common good.
Dambisa Moyo, a well- known supporter of free trade, forthrightly stated “there have been significant losses” from globalisation. “It is not clear to me that we are going to be able to remedy them under the current infrastructure,” globalisation caused job losses and depressed wages, Rodrik foresaw that the cost of greater “economic integration” would be greater “social disintegration”.
Globalization has contributed so much in social disintegration, the last two decades have witnessed a dramatic political, economic, and social developments: the turn towards liberal democracy and the collapse or retreat of Communism is in a number of countries; accelerated global economic integration and reliance on market forces; rapid technological change and associated modification of production systems and labour market; the media revolution and expansion of consumer culture. These extraordinary changes have coincided with a period of slow growth, stagnation or economic collapse in most parts of the world with the outstanding exception of several Asian countries. The result has in many cases been a deepening of poverty, unemployment and inequality.
Poverty was increasing and worsening the situation of developing countries, Disparities between developed and developing countries had deepened due to factors such as the deterioration of trade, foreign debt, declining official development assistance levels and the negative effects of globalization. The latter, which was to have been a vehicle for prosperity, had increased impoverishment and called for the international community to adopt measures to counter its backlashes.
While the process was inevitable, globalization could lead to unemployment and injustice, as well as to imposing cuts on social programmes and leaving unprotected an increasing number of people. Poverty was the summary of deterioration of and inaccessibility to every basic social service. Full access to primary social services would only be realized with the development of a strategy based on a balanced and fair distribution of resources worldwide.its effects are not limited to the ‘macro’ social systems such as economic or financial systems, but exceed that to affect other social sub-systems such as family structures and individual private patterns. Family disruption and social and domestic violence are increasing, families and individuals left their normal ways of in most circumstances and the reality is that every single individual is affected in one way or another. These changes affect people’s identities and cultural values, which sometimes become altered significantly. Whether it is between generations, or intra-personally, new values can cause dissonance and conflict with existing deeper-rooted values. Sometimes such transitions and changes can further cause difficulty with internal growth and development.
It is only in this our era that marriages are celebrated in the absence of the couples and we sit back and watch our culture and traditions depreciate every day in the name of being in a global age.
This urgly situations of students committing suicide in this Campus is related to the negetive effect of globalization where someone will have many friends but do to social media will find it difficult meeting with them physical to discuss their challenges and seek for advice, what we have now is online friend who just comes online chat with us irrespective of the fact that the person neither sees u or know the mood u are in to ascertain if u really need someone’s company and encouragement to get over some Pscological issues trending in our time.
It is very disappointing that globalization which was brought to remedy our situation is actually turning into a catalyst that speeds up our distruction and we all are cut up in it’s web in one way or the other. But we hope that through the reforms and Summits presented in different conferences solutions to this bad situation will be provided and executed as soon as possible.
Name:Meteke Joy Orimusue
Reg.no:2017/242430
Department:Economics
Website: metekejoy01.blogspot.com
Email:joymetex2000@gmai.com
GLOBALIZATION AND ITS EFFECTS
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. According to the World Health Organisation (WHO),globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
EFFECTS OF GLOBALIZATION
There are positive and negative effects of globalization;
POSITIVE EFFECTS
1.Poverty Eradication
Before globalization, developing countries have had plenty of resources which they didn’t know how to use. Their population was uneducated as well as there were no roads or means of transport. Nowadays people understood the significance of education and standards of living as foreigners settled in these countries. Consequently, locals went to schools established by the settlers and got employment in their companies and industries.
2.Availability of Employment
Most developed countries have lots of educated jobless people. Globalization gives them job opportunities in other countries. Their primary advantage over the residents of the developed countries is the fact that they offer cheap services. They are also open to learning as they consider themselves lucky to have a new life.
3.Education
Globalization has enabled further studies. Most developed countries have advanced schools and colleges. They encourage people from overseas to study there. While it is just a business venture like any other, students from developing countries take it as an advantage to get further education and skills to use in their careers.
4.Technology
Globalization has helped to transport technology to developing countries. Some investors and foreigners who have got a bargain with the people from developing countries needed to communicate with them and exchange ideas as well as information. The fastest way to do it was through using of modern technology. It has greatly helped people from developing countries. Most of them can buy and sell goods online at a low price.
NEGATIVE EFFECTS
1. Displacements of Workers
Because of globalization, there are employment opportunities all over our huge world. However, most people have had to leave their families for many years as they work abroad. As a result, couples have divorced, remarried and left destitute children at the mercy of volunteers and shelters. Some children haven’t been able to meet their old-aged parents’ needs because the money they earn from their job is not enough.
2.Unemployment
In almost all developing countries over half of the working population relied on casual jobs in industries until globalization took root. The advancement of technology has reduced such employment and increased global need for skilled professionals. Majority of people in developing countries don’t have skills, while the available jobs are poorly paid due to high demand caused by globalization.
3.Abandonment of Culture
Every community, society, or nation has its values and beliefs, that is to say – own culture. They are essential because they mold the acceptable behavior of the people in a particular community. The elders or leaders ensure that the people behave in a morally upright way. However, globalization mixed different cultures. Then people reconsidered their authentic rules and customs regarding their culture as primitive. Some nations from developing countries adopt the western culture and abandon there’s own.
Ikechukwu Chizoba Peace
2017/249517
Economics
Globalization and it’s Effect
Globalization is said to be the integration of the world’s economies brought about by rapid improvement in communication and transportation. it involves the spread of economic, social and cultural ideas across the world, and growing uniformly between different places that results from the spread. Increased integration of national economies through the growth of international trade, investment and capital flows made possible by rapid improvement in technology.
Globalization have impacted so much on the worlds economy ; increase in trade, economies, technology, awareness, integration of different countries, policies through international trade. Despite it’s impact on economic growth globalization have also caused unemployment, social disintegration and poverty in some countries of the world like in developing and underdeveloped countries.
Globalization is placed on three pillars; Economic, political and technology pillars.
Looking at this three pillars, it can only favour developing countries but to some extent, the technological advancement in some sector of the economy partially affects the human capital (labour) say for example in Banking, industrial and in agricultural sector invention of machines have come to replace some human labour thereby causing unemployment. Social disintegration and poverty revolves around unemployment. The fact that some people are now working and others are not, and that in developing country for example Nigeria allocate job based on certificate and origin . Ethnic and cultural crisis will increase. The world is turning into more advanced state it’s only the aware will fit in and the aware could only be the educated and the Rich, and when the gap between the rich and the poor grows bigger poverty will increase.
Globalization brought the world together. Making references from my definition of globalization, it involves the spread of economic, social and cultural ideas across the world and growing uniformly between different places that brought about this spread. Due to uniformity many nation’s have lost their social and cultural values. And when a person background is lost he becomes disorganized and this is the social disintegration some country is suffering from.
Ikechukwu Chizoba Peace
2017/249617
Economics
Globalization and it’s Effect
Globalization is said to be the integration of the world’s economies brought about by rapid improvement in communication and transportation. it involves the spread of economic, social and cultural ideas across the world, and growing uniformly between different places that results from the spread. Increased integration of national economies through the growth of international trade, investment and capital flows made possible by rapid improvement in technology.
Globalization have impacted so much on the worlds economy ; increase in trade, economies, technology, awareness, integration of different countries, policies through international trade. Despite it’s impact on economic growth globalization have also caused unemployment, social disintegration and poverty in some countries of the world like in developing and underdeveloped countries.
Globalization is placed on three pillars; Economic, political and technology pillars.
Looking at this three pillars, it can only favour developing countries but to some extent, the technological advancement in some sector of the economy partially affects the human capital (labour) say for example in Banking, industrial and in agricultural sector invention of machines have come to replace some human labour thereby causing unemployment. Social disintegration and poverty revolves around unemployment. The fact that some people are now working and others are not, and that in developing country for example Nigeria allocate job based on certificate and origin . Ethnic and cultural crisis will increase. The world is turning into more advanced state it’s only the aware will fit in and the aware could only be the educated and the Rich, and when the gap between the rich and the poor grows bigger poverty will increase.
Globalization brought the world together. Making references from my definition of globalization, it involves the spread of economic, social and cultural ideas across the world and growing uniformly between different places that brought about this spread. Due to uniformity many nation’s have lost their social and cultural values. And when a person background is lost he becomes disorganized and this is the social disintegration some country is suffering from.
NAME: Okoronkwo Uchechukwu David
REG NO: 2017/241455
DEPARTMENT: Economics
EMAIL: uchechukwu.okoronkwo.241455@unn.edu.ng
Firstly, it is important to note that globalization is the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet and it promotes and increases interactions between different regions and populations around the globe.
According to the World health Organization, globalization can be seen as the increased interconnectedness and interdependence of peoples and countries. Generally, it is understood to include two inter-related elements, which are
1, the opening of international borders to increasingly fast flows of goods, services, finance, people
2, ideas and the changes in institutions and policies at national and international levels that facilitate or promote such flows.
Economically, globalization is the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies, also reflecting the continuing expansion and mutual integration of market frontiers as well as the rapid growing significance of information in all types of productive activities and marketization.
Although, globalization is said to give countries the ability to rise above narrow self-interest that will earn them unprecedented economic wealth and plenty of applicable scientific progress, it is important to note that not every country has been benefiting the same from globalization and technological change, because wealth is unfairly distributed and economic growth comes at huge environmental cost, and it is also important to note that globalization is deeply connected with economic systems and markets, which in turn, impact and are impacted by social issues and cultural factors that are hard to overcome. there are also regional specificities, timings of action and collaborative networks, all of which requires, global consensus and cooperation, but most importantly country-specific solutions will be needed.
Globalization is a complex phenomenon, that is why despite its benefits, the economic growth driven by globalization has not been done without awakening criticism, such as some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization.
As a matter of fact, a recent report from Oxfam says that 82% of the world’s generated wealth goes to 1% of the population.
The consequences and effects of globalization are far from homogeneous, the income inequalities, disproportional wealth and trades that benefit parties differently are prominent everywhere and as such, it has a considerable influence on several areas of contemporary societies.
the massive development from globalization has left serious environmental problems such as greenhouse gas emissions, global warming and air pollution as well as depletion of natural resources, deforestation and the destruction of ecosystems and loss of biodiversity.
it is also important to note that the worldwide distribution of goods is also creating a big garbage problem, (plastic pollution).
In as much as Globalization opens up a society per say, it is also important to note that it affects all sectors of activity to a greater or lesser extent, lives are influenced positively or negatively, as the part to globalization is intense and costly to both human beings and the society at large.
Name: Ezema Ogochukwu Loveth
Reg no:2017/248906
Department: Education/Economics
GLOBALIZATION AND IT’S EFFECTS
Before discussing the benefits and challenges of globalization, it’s essential to have a strong understanding of what the term means.
The official definition of “globalization” is the process by which businesses or other organizations develop international influence or start operating on an international scale.More simply, globalization refers to an open flow of information, technology, and goods among countries and consumers. This openness occurs through various relationships, from business, geopolitics, and technology to travel, culture, and media.Because the world is already so connected, most people don’t notice globalization at work every single day. But the world is getting smaller, and companies need to understand what this means for the future of doing business. Companies that don’t embrace globalization risk losing a competitive advantage, which allows other businesses to take over new opportunities in the global marketplace.
Benefits of Globalization
Globalization impacts businesses in many different ways. But those who decide to take on international expansion find several benefits, including:
1. Access to New Cultures: Globalization makes it easier than ever to access foreign culture, including food, movies, music, and art. This free flow of people, goods, art, and information is the reason you can have Thai food delivered to your apartment as you listen to your favorite UK-based artist or stream a Bollywood movie.
2. The Spread of Technology and Innovation: Many countries around the world remain constantly connected, so knowledge and technological advances travel quickly. Because knowledge also transfers so fast, this means that scientific advances made in Asia can be at work in the United States in a matter of days.
3. Lower Costs for Products:Globalization allows companies to find lower-cost ways to produce their products. It also increases global competition, which drives prices down and creates a larger variety of choices for consumers. Lowered costs help people in both developing and already-developed countries live better on less money.
4. Higher Standards of Living Across the Globe:Developing nations experience an improved standard of living—thanks to globalization. According to the World Bank, extreme poverty decreased by 35% since 1990. Further, the target of the first Millennium Development Goal was to cut the 1990 poverty rate in half by 2015. This was achieved five years ahead of schedule, in 2010. Across the globe, nearly 1.1 billion people have moved out of extreme poverty since that time.
5. Access to New Markets: Businesses gain a great deal from globalization, including new customers and diverse revenue streams. Companies interested in these benefits look for flexible and innovative ways to grow their business overseas. International Professional Employer Organizations (PEOs) make it easier than ever to employ workers in other countries quickly and compliantly. This means that, for many companies, there is no longer the need to establish a foreign entity to expand overseas.
6. Access to New Talent: In addition to new markets, globalization allows companies to find new, specialized talent that is not available in their current market. For example, globalization gives companies the opportunity to explore tech talent in booming markets such as Berlin or Stockholm, rather than Silicon Valley. Again, International PEO allows companies to compliantly employ workers overseas, without having to establish a legal entity, making global hiring easier than ever.
Effects of Globalization
While globalization offers many benefits, it’s not without challenges. Velocity Global’s 2020 State of Global Expansion™ Report: Technology Industry reveals some of the top challenges that U.S. and UK tech leaders face when taking their companies global, and leaders of other companies likely face the same obstacles.
Some of the hurdles companies face when going global include:
1. International Recruiting: It’s not surprising that 30% of U.S. and UK tech leaders cited international recruiting as their most common challenge. Recruiting across borders creates unknowns for HR teams. First, companies create a plan for how they will interview and thoroughly vet candidates to make sure they are qualified when thousands of miles separate them from headquarters. Next, companies need to know the market’s demands for salaries and benefits to make competitive offers. To ensure successful hires, HR teams must factor in challenges like time zones, cultural differences, and language barriers to find a good fit for the company.
2. Managing Employee Immigration: Immigration challenges cause a lot of headaches internally, which is why 28% of U.S. and UK tech leaders agreed it was one of their top challenges. Immigration laws change often, and in some countries, it is extremely difficult to secure visas for employees that are foreign nationals. The U.S., for example, is getting stricter with granting H-1B visas, and Brexit makes the future of immigration to the UK uncertain.
3. Incurring Tariffs and Export Fees:Another challenge both U.S and UK tech leaders said they face in the report is incurring tariffs and export fees—29% agreed this is a challenge for their global businesses. For companies looking to sell products abroad, getting those items overseas can be expensive, depending on the market.
4. Payroll and Compliance Challenges: Another common global expansion obstacle is managing overseas payroll and maintaining compliance with changing employment and tax laws. This management task gets even more difficult if you’re trying to manage operations in multiple markets.
5. Loss of Cultural Identity: While globalization has made foreign countries easier to access, it has also begun to meld unique societies together. The success of certain cultures throughout the world caused other countries to emulate them. But when cultures begin to lose their distinctive features, we lose our global diversity.
6. Foreign Worker Exploitation: Lower costs do benefit many consumers, but it also creates tough competition that leads some companies to search for cheap labor sources. Some western companies ship their production overseas to countries like China and Malaysia, where lax regulations make it easier to exploit workers.
7. Global Expansion Difficulties:For businesses that want to go global and discover the benefits of globalization, setting up a compliant overseas presence is difficult. If companies take the traditional route of setting up an entity, they need substantial upfront capital, sometimes up to $20,000, and costs of $200,000 annually to maintain the business. Additionally, global businesses must keep up with different and ever-changing labor laws in new countries. When expanding into new countries, companies must be aware of how to navigate new legal systems. Otherwise, missteps lead to impediments and severe financial and legal consequences.
8. Immigration Challenges and Local Job Loss: The political climates in the United States and Europe show that there are different viewpoints on the results of globalization. Many countries around the globe are tightening their immigration rules, and it is harder for immigrants to find jobs in new countries. This rise in nationalism is mainly due to anger from the perception that foreigners fill domestic jobs or at companies moving their operations abroad to save money on labor costs. For example, the Economic Policy Institute reports that the U.S. trade deficit with China (or the amount by which our imports exceed our exports) cost Americans 3.4 million jobs since 2001.
ACHONWA DAVID CHUKWUDI
2017/24472
ECONOMICS
GLOBALIZATION AND ITS EFFECTS
Globalization in short points to the whole efforts of making the world a global village. Goods that were found in the western countries can now be found across the world. Because of globalization the economies of the world are been increasingly integrated, for examples mobile phones and the internet have brought people closer.
Globalization through global markets, global communication and global production has promoted and facilitated global activity in relation with money, for examples different currencies circulates around the world and are used anywhere in the earth as they move electronically. Most bankcards can extract cash in local currency from the thousands of automated teller machines across the world. Also credit cards like visa, MasterCard’s and america express can be used for payment in all countries around the globe.
Globalization has led to the spread if western culture and influence at the expense of the local culture in developing countries in Africa. Societies have also become larger ha they have welcomed people of other civilization and background an created a whole new culture of their own.
Globalization has also increased the access of higher education. Today you can move in search of the best educational facilities in the world including developing countries without any hindrance.
Negative effects of globalization are;
Globalization has led to the fluctuation in prices. Due to increase in competition developed countries are forced to lower their prices for their products. In other for developed countriesto maintain their customers they are forced to lower prices prices if their goods. This is a disadvantage to them because it reduces the ability to maintain social welfare.
Globalization has also led to exploitation of lab our resources..
Finally Globalization has also led to increased unemployment in developing countries like Nigeria. Global economic integration and increased travel have increased competitiveness at the national and enterprise level forcing producers to find way to cut costs, improve efficiency and raise productivity.
Odu David Oluchukwu
2017/241432
Economics
GLOBALIZATION AND ITS POSITIVE AND NEGATIVE EFFECT .
Globalization is a term used to describe the increasing connectedness and interdependence of world cultures and economies.
Even though Globalization has very tremendous positive effect on countries, especially on Third World countries, the negative impact of Globalization cannot be overlooked.
The followings are the positive effects of Globalization :
1. Developing countries get benefits from it through lead themselves towards economic success and ultimately achieve better standard of living as well.
2. It boosts the ongoing competition between countries all over the world as well as within any particular country.
3. Increased media coverage helps in drawing attention towards those parts of the world where human rights are violated for the benefit of the rich and powerful. This leads to improvement in human rights.
4. It increases exposure in the form of food, movies, art, music, clothing, culture, etc. This is a great way of forming closer bonds with the rest of the world.
5. It leads to a sense of competition in others; hence helping in keeping the prices of commodities under check during all times.
6. Developing countries can use existing technologies without the stress of developing any particular technology.
7. It helps in bringing different governments together so that they can work together towards achieving common goals; which is a great way of spreading global awareness regarding common concerns and issues.
Negatives of Globalization.
1. It is widening the gap between the rich and poor; where rich people are becoming richer and poor are becoming poorer.
2. As a result of outsourcing, globalization may deprive an entire country of its jobs and resources. This is because globalization takes jobs away from one country and provides it to another country; hence leaving lots of people without the opportunities that they deserve.
3. Although people belonging to different cultures and countries get a chance to interact with each other, it causes a loss in tradition and values.
4. As species are deprived of their non- native ecosystems, there are increased chances of them spreading diseases and disrupting other natural ecosystems and their native species.
It is very important to strike balance between the positives and negatives of globalization so that balance can be restored in nature and its living species.
Name: Okafor Festus Obinna
Reg No:2017/249550
Dept: Economics
Meaning:
By the term globalisation we mean opening up of the economy for world market by attaining international competitiveness. Thus the globalisation of the economy simply indicates interaction of the country relating to production, trading and financial transactions with the developed industrialized countries of the world.
It reflects the continuing expansion and mutual integration of market frontiers and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.
BENEFITS OF GLOBALIZATION.
1. It encourages producers and consumers to benefit from deeper division of labour and economies of scale
2. Competitive markets reduce monopoly profits and incentivise businesses to seek cost-reducing innovations
3. Enhanced growth has led to higher per capita incomes – and helped many of poorest countries to achieve faster economic growth and reduce extreme poverty measured as incomes < $1.90 per day (PPP adjusted)
4. Advantages from the freer movement of labour between countries
5. Gains from the sharing of ideas / skills / technologies across national borders
6. Opening up of capital markets allows developing countries to borrow money to over a domestic savings gap
7. Increased awareness among consumers of challenges from climate change and wealth/income inequality
8. Competitive pressures of globalisation may prompt improved governance and better labour protection
However, despite it’s benefits, the consequences of globalization had led to an increased poverty, unemployment and social disintegration especially in the developing countries.
Effects of Globalization.
Social Disintegration: Globalisation has been linked to rising inequalities in income and wealth. Evidence for this is the growing rural–urban divide in countries such as China, India and Brazil. This leads to political and social tensions and financial instability that will constrain growth. In addition to that, Globalization had succeeded in ensuring the distortion of unity and oneness within a country. Were culture and peoples values have been hampered owing to Globalization, and this leads to disintegration between the members of a society because some will refuse to change their values and therefore being left out.The uniformity which cultures, in every society stand to uphold have been to a large extent no longer obtainable, There are tribes who are at the verge of losing their mother tongue as a result of import of foreign language culture. food, clothing, trade cultures and many more all in the name of Globalization.
Unemployment: Concern has been expressed by some that capital investment and jobs in advanced economies will drain away to developing countries as firms switch their production to countries with lower unit labour costs. This can lead to higher levels of structural unemployment. With the advancement of technology both in industrial, medical and other sectors of the economy, which helps to facilitate the processes but unfortunately this have also reduce the number of labour force needed for such task owing to technological advancement, which will lead to more being unemployed.
Poverty:when there is high rate of unemployment in a country, per capital income tend to reduce, as well as standard of living. Thereby increasing the rate of poverty . And that happened as a result of globalization.
So the concept of poverty, unemployment and social disintegration have been an associated effect of globalization. It is pertinent to say that in as much we embrace the benefits of Globalization, one should not be ignorant of its accompanied effects.
NAME: CHINWEZE MAXIMILLIAN
REG NUMBER: PG/MSC/19/89689
DEPARTMENT: ECONOMICS
In monetary economics, the quantity theory of money (QTM) states that the general price level of goods and services is directly proportional to the amount of money in circulation, or money supply. For example, if the amount of money in an economy doubles, QTM predicts that price levels will also double. Monetary policy refers to the combination of measures designed to regulate the value, supply and cost of money in an economy in consonance with the level of economic activities. It can be described as the art of controlling the direction and movement of monetary and credit facilities in pursuance of stable price and economic growth in the economy (CBN 1992).
The monetarists base their views on money supply as the key factor affecting the wellbeing of the economy. They believe that an increase in money supply will lead to an increase in nominal demand, and where there is excess capacity they believe that output will be increased. In the long-run, the monetarist position is that the increase in money supply will be inflationary without any effect on investment, employment and aggregate demand Naturally, the formulation and implementation of monetary policies in the country is expected to align with the theoretical postulation of the monetarist. Unfortunately, this is not always the case. There exists major challenges to the conduct and implementation of monetary policy in Nigeria. In spite of these controversies, the Nigeria government in collaboration with its monetary authority still adopts monetary policy to regulate the economy. Thus adopting monetary policy in manipulating the fluctuations experienced so far in the economy, Central Bank of Nigeria (CBN) undertake both contractionary and expansionary measures. One of the major objectives of monetary policy in Nigeria is stabilization of economic growth. Nigerian government has adopted various monetary policies through Central Bank of Nigeria over years to achieve economic growth. Despite the increasing emphasis on manipulation of monetary policy in Nigeria, the problem surrounding its economic growth still persists. Such problems include high unemployment rate, low investment, high rate of inflation and unstable foreign exchange rate. These perceived problems are being claimed to have caused a fast decline in the economic growth of Nigeria.
Nigeria being an import dependent economy is faced with stagnated growth, unstable business cycles and economic fluctuation. This usually results to unemployment, inflation, unproductivity and balance of payment disequilibrium. Government has in one way or the other regulated and controlled the economy to maximize the welfare of the citizens by way of ensuring that the resources are efficiently allocated and used. Like any other developing country, Nigerian government adopts three types of public policies to carry out the objective of income distribution and allocation of resources. These tools of public policy include: monetary policy, fiscal policy and income policy tools. In Nigeria, government has always relied on monetary policy as a way of achieving certain economic objective in the economy such macroeconomic objectives include; employment, economic growth and development, balance of payment equilibrium and relatively stable general price level. The reason for choosing monetary policy is the fact that monetary policy has very serious implications for both fiscal and income policy measures.
NAME: NWUFO LYNDA CHIAGOZIE
REG NUMBER: PG/MSC/19/91295
DEPARTMENT: ECONOMICS
The monetarist theory is an economic concept that contends that changes in money supply are the most significant determinants of the rate of economic growth and the behavior of the business cycle. When monetarist theory works in practice, central banks, which control the levels of monetary policy, can exert much power over economic growth rates. According to monetarist theory, money supply is the most important determinant of the rate of economic growth. According to monetarist theory, if a nation’s supply of money increases, economic activity will increase—and vice versa.
Monetarist theory is governed by a simple formula: MV = PQ, where M is the money supply, V is the velocity (number of times per year the average dollar is spent), P is the price of goods and services and Q is the quantity of goods and services. Assuming constant V, when M is increased, either P, Q, or both P and Q rise. General Price levels tend to rise more than the production of goods and services when the economy is closer to full employment. When there is slack in the economy, Q will increase at a faster rate than P under monetarist theory.
The ultimate objective of monetary policy is to promote sound economic performance and high living standards of the citizens. This makes monetary policy a key element of macroeconomic management and its effectiveness is crucial to the overall economic performance of Nigeria. Naturally, the formulation and implementation of monetary policies in the country is expected to align with the theoretical postulation of the monetarist. Unfortunately, this is not always the case. There exists major challenges to the conduct and implementation of monetary policy in Nigeria which undermine the effectiveness of monetary policy to include non-monetized Nigerian rural sector, underdeveloped money and capital markets, and large quantity of money outside the banking system. Others include poor data quality, proliferation of illegal financial houses, and poor banking habits in the economy.
However, monetary policy when developed and conducted efficiently has the capacity to influence the real sectors of the economy and positively influences all the key drivers of inclusive growth in Nigeria. To make monetary policy more effective and responsive to inclusive growth in Nigeria, it is recommended that the government must play a central role in coordination between banks and others to expand efforts to support key industries; it should also pursue further improvements in areas such as health care, education, infrastructure and access to capital; embark on greater harmonization of monetary and fiscal policy so as to have internal consistency necessary for all the policies to achieve the desired impact on the real productive sectors; strengthen its machinery for providing timely and reliable data for efficient planning in the system. Finally, monetary policy should be complemented by growth-oriented and job creating fiscal, industrial and labor policies. Although monetary policy can contribute to inclusive and sustainable growth when developed and employed efficiently, there is the need to recognize the limitations of monetary policy and hence acknowledge that other macroeconomic policies, policy makers and stakeholders also have an important and significant role to play in achieving both inclusive and sustainable growth in Nigeria.
Name: Ugwu Sandra Ogechukwu
Reg no: 2017/241433
Email: sandra.ugwu.241433@unn.edu.ng
Answer:
Globalization is the word used to describe the growing interdependence of the worlds economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. Countries have built economic partnerships to facilitate these movements over many centuries. But the term gained popularity after the Cold War in the early 1990s, as these cooperative arrangements shaped modern everyday life. The wide-ranging effects of globalization are complex and politically charged. As with major technological advances, globalization benefits society as a whole, while harming certain groups.
However, whether it cost or benefits depends on the geographical area under consideration. For the developed countries, globalization has in many ways helped or benefited them. One of such benefits include opening larger and more diverse markets for the developed countries which has made them become richer at the expense of the developing countries.
The developing countries on the other hand pay the cost of the benefits of globalization enjoyed by the western world. For the developing countries globalization is a post-independence form of colonialism; a term which has been referred to as neo colonialism by scholars. This concept depicts an indirect control of the developing countries under the mask of globalization which only accepts the culture and ideology of the developed countries as a global one. To have a sense of belonging, the developing countries has continued to pursue the trending the developed countries’ culture neglecting theirs which was the cause their survival in the past; leading to social disintegration in the less developed countries.
In addition, developing countries have been turned into dumping ground by the developed ones. There is no doubt that globalization opens more diverse and larger market. But the consequence of this seems to be exploitation by the developed countries that produce substandard goods and send to less developed countries there by making more profit at the expense of developing countries whose poverty rate keeps increasing.
Name: Agholor Sozorchukwu Jason
Reg No: 2017/243874
Dept: Economics
Email: jasonagholor7@gmail.com
“Globalization” refers to interconnectedness among countries through various relationships, from business, geopolitics, and technology to travel, culture, and the media.
While globalization has significantly led to economic development and human welfare, there are some disadvantages associated with it which has led to poverty, unemployment and social disintegration.
A good example is what happened in National Aeronautics and Space Administration (NASA) a few decades ago. Individuals with strong skills in mathematics were highly sorted and employed to help solve complex mathematics required to launch spaceships to the moon and other planets successfully. However, with the invention of computers by International Business Machines (IBM) to solve complex calculations, a lot of employees were laid-off and became unemployed. Individuals who could not reinvent themselves were left poor. This is just one example of the disadvantages of globalization.
Name: Ani Gabriel Ogbonna
Reg. Number: 2017/249483
Email :anigabriel05@gmail.com
Department: Economics
Globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies, which can lead to political, cultural and Economic integration. It reflects the continuing expansion and mutual integration of market frontiers, and is an irreversible trend for the economic development in the whole world at the turn of the millennium.
Globalization is a double-edged sword, that is it create both positive and negative impact in world. It promote trade exchange among different countries of the world. The rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization. In other words, the fast globalization of the world’s economies in recent years is largely based on the rapid development of science and technologies, has resulted from the environment in which market economic system has been fast spreading throughout the world, and has developed on the basis of increasing cross-border division of labor that has been penetrating down to the level of production chains within enterprises of different countries.
However, it’s nagative impacts has lead to increase in unemployment, poverty and social disintegration most especially in countries that are yet to develop. Although, this developing countries are densely populated and introduction of this technologies such as machines, Bank codes etc which have replace human labour will make people to lose they jobs thereby creating poverty among the developing countries. Before globalization, skilled people got employment in government sectors and companies where they received high salaries. Job opportunities were waiting for those who completed colleges and earned a degree. People would resign a job and quickly get another but due to globalization, there are many people seeking employment all over the world. Employers take advantage of cheap labor. One can get a dismissal because of a slight mistake as the employer can find a skilled worker who is ready to be paid less. Globalization as well brought about disunity and different cultural perspective in the society. In no doubt globalization has done more good than harm in the world Economy. It’s positive impacts out weighs the negative impacts in the society.
Name: Okafor Festus Obinna
Reg No:2017/249550
Dept: Economics
Meaning:
By the term globalisation we mean opening up of the economy for world market by attaining international competitiveness. Thus the globalisation of the economy simply indicates interaction of the country relating to production, trading and financial transactions with the developed industrialized countries of the world.
It reflects the continuing expansion and mutual integration of market frontiers (…) and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.
BENEFITS OF GLOBALIZATION.
1. It encourages producers and consumers to benefit from deeper division of labour and economies of scale
2. Competitive markets reduce monopoly profits and incentivise businesses to seek cost-reducing innovations
3. Enhanced growth has led to higher per capita incomes – and helped many of poorest countries to achieve faster economic growth and reduce extreme poverty measured as incomes < $1.90 per day (PPP adjusted)
4. Advantages from the freer movement of labour between countries
5. Gains from the sharing of ideas / skills / technologies across national borders
6. Opening up of capital markets allows developing countries to borrow money to over a domestic savings gap
7. Increased awareness among consumers of challenges from climate change and wealth/income inequality
8. Competitive pressures of globalisation may prompt improved governance and better labour protection.
However, despite it’s benefits, the consequences of globalization had led to an increased poverty, unemployment and social disintegration especially in the developing countries.
Effects of Globalization.
Social Disintegration: Globalisation has been linked to rising inequalities in income and wealth. Evidence for this is the growing rural–urban divide in countries such as China, India and Brazil. This leads to political and social tensions and financial instability that will constrain growth. In addition to that, Globalization had succeeded in ensuring the distortion of unity and oneness within a country. Were culture and peoples values have been hampered owing to Globalization, and this leads to disintegration between the members of a society because some will refuse to change their values and therefore being left out.The uniformity which cultures, in every society stand to uphold have been to a large extent no longer obtainable, There are tribes who are at the verge of losing their mother tongue as a result of import of foreign language culture. food, clothing, trade cultures and many more all in the name of Globalization.
Unemployment: Concern has been expressed by some that capital investment and jobs in advanced economies will drain away to developing countries as firms switch their production to countries with lower unit labour costs. This can lead to higher levels of structural unemployment. With the advancement of technology both in industrial, medical and other sectors of the economy, which helps to facilitate the processes but unfortunately this have also reduce the number of labour force needed for such task owing to technological advancement, which will lead to more being unemployed.
Poverty:when there is high rate of unemployment in a country, per capital income tend to reduce, as well as standard of living. Thereby increasing the rate of poverty . And that happened as a result of globalization.
So the concept of poverty, unemployment and social disintegration have been an associated effect of globalization. It is therefore pertinent to say that in as much we embrace the benefits of Globalization, one should not be ignorance of it accompanied effects.
I completely agree Globalization has really impacted significantly in economic growth and human welfare. Globalization causes people to from one region to mix with people from another region causing them to either influence go get influenced by other cultures and way of life. Globalization has it’s good side and it’s bad side. It brings about exposure to different things ie the good the bad and the ugly. On the positive side, it provides access information and technology which makes life easier but on the negative side I has increased the poverty gap, unemployment and caused social disintegration. Globalization has also brought about uneven increased poverty and unemployment because only the few who have the means can take advantage of Globalization while the others wallow In poverty
Ogbonna chika philip
2027/242029
Education Economics
Email address
Chika.ogbonna.242029@unn.edu.ng
Economic growth and improvement in human welfare to a larger extent manifest when the per capita income of households appreciate such that goods and services are easily accessed and maximally utilized. Globalization characterized by growing internationalization of trade, capital investment, finance, business and introduction of technology in the means of production of goods and services have played vital role to this effect. It’s also associated with communication, transportation etc. Globalization process insures geographical obstacles to social and cultural arrangements loose importance.
However, the concept of poverty, unemployment and social disintegration have been an associated effect of globalization. Poverty in the sense that the economy becomes more complex in practice and relegates the greater majority Who may not have understanding and clue as to how to fit into the system.
Again unemployment in the sense that it creates increase in unavailability of job access due to superior knowledge and skills requirement such that push greater number of the labour force out of employment reach.
Social disintegration in the sense that when one looks at Waters 1995 definition on globalization where it is said to be a social process in which geographical obstacles to social and cultural arrangements loose importance and people are not ignorant of such happenings. Implies that culture which is peoples way of existence due to exposure and influx of foreign ways of life have brought a disharmony in social, institutional and cultural relations in host environment such that group and factions emerge professing various and divergent ideologies.
The uniformity which cultures, in every society stand to uphold have been to a large extent no longer obtainable, There are tribes who are at the verge of losing their mother tongue as a result of import of foreign language culture. food, clothing, trade cultures and many more.
I stand to agree with policy makers point of argument for their cases are evident and not far from reality.
IJIGA CHRISTIAN ADAKOLE
217/24255
EDUCATION/ECONOMICS
During the 1990s and till recent times, policymakers have argued that globalization has led to significant economic growth and improvement in human welfare. On the other hand, some daunting challenges such as Increased poverty, unemployment, and social disintegration have also accompanied globalization.Do you agree? Please discuss and share your perspectives on this.
Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.
globalization has led to significant economic growth and improvement in human welfare in the 1990s, yet at the same time globalization has caused Increased poverty, unemployment, and social disintegration.
Globalization indeed, has led to several positive impacts in the world. It has led to a sharp increase in trade and economic and financial exchanges. It had fostered rapid global industrialization that allowed rapid development of many of the technologies and commodities we have in existence today. Also, knowledge has become easily shared and international cooperation among the brightest minds speeded things up.
However, despite it’s benefits, the consequences of globalization had led to an increased poverty, unemployment and social disintegration especially in the developing countries.
One will ask, how is that even possible?
Well, first, considering the fact that most of these developing countries are largely populated, the introduction of technology for example Robots and Complex machines in the manufacturing and Agricultural sector, has led to an increase in unemployment as more sectors demanded fewer labour. This automatically increases the poverty level of these countries since most of their citizens are unable to find work.
Furthermore, the existence of Globalization has initiated an unhealthy competition between the infant and domestic industries of a country and their foreign counterparts. Since these infant industries are still new and do not really know how to take advantage of the Economies of scale in the foreign market, it means they have been exposed too earlier and will eventually lead to their fast extinction, however this incidence is not good for a developing country.
Globalization has enormously resulted to uneven development of various sectors in these developing countries. It has largely created inequality, thus widening the gap between the rich and the underprivileged in these countries. People who had an earlier access to technological know-how took advantage and got rich while majority who could not, got poorer.
It greatly led to the neglect of the Agricultural sector. The Agricultural sector is the breadrock sector of every nation. It is expected from the stages of development that a country must have strongly established her agricultural sector before moving on to another sector. But then, globalization made this not to be achievable. A lot of people have abandoned their agricultural work in the rural area and have migrated to the Urban area where they hope to see “modern white collar jobs” brought about by globalization. But do you know what happens? Do they really find those jobs? Definitely No, most of these developing countries do not have the capacity yet to provide enough job for the large population residing in the so called “Urban area”, thus this leads to a greater unemployment, poverty and underdevelopment.
Finally, the society is no longer as united as it was before the introduction of Globalization. This globalization has led to social disintegration. How? People no longer communicate or interact with each other. This has resulted to many ethnic crises, bigotry and favouritisms amongst others. These are not good for countries especially those that are still developing. Another example is that lack of adequate interaction and communication has hindered local production and this will continue to increase unemployment and poverty.
In summary, globalization has come to stay and we cannot hide from it anymore, but to leave it unchecked, unmonitored and unpromoted will pose as a huge problem later. Countries should always carry a thorough research on most of these advanced countries to find out how they have been coping with globalization while incorporating their specific inherent features notwithstanding.
One cannot deny the fact that the overall positive impacts outweighs the negative impacts of globalization. Therefore, it is time we embraced it more and changed our method of adoption and assimilation.
OGUMBA JOY CHIDINMA
2017/242028
EDUCATION ECONOMICS
exclusivejoy2.blogspot.com
williamsjoy77@gmai.com
Globalization has become a whirl wind blowing across the world due to the advancement in information and communication technology, which invites more people to interact while shrinking the geographic boundaries between all countries into a global village. The unequal effect of globalization has preponderantly distorted third-world economic development. There is a lack of infrastructure in every sector of the economy.
Poverty, accompanied by its consummate terminal deceases has been rife. The agricultural sector is drastically affected. The education sector is poorly funded. The income per capita has been on the downward trend with no meaningful result from policy changes. Corruption due to bad government has become the order of the day as workers strive to survive with meager income that cannot cover consumption, let alone savings and investments. The Nigerian situation has generally been a calamity as the various macroeconomic indices applied by the government have not been able to positively turn around the economy in this globalizing world. Inflation, unemployment, armed banditry, and other vices continue to be on the increase, thereby inhibiting foreign trade investment. Apart from the above the inherent cultural and social values, constitute major barriers to desired corresponding result in earnings.
Name: ONAH GEORGE CHIEDOZIE.
REG. NO: 2017/241453.
DEPARTMENT: ECONOMICS
Globalization means the continuous movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe. According to WHO “globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows. According to the Committee for Development Policy ”globalization can be defined as:…”the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers … and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.”
Effect (Negative) of globalization in the economy.
Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization.
Apart from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. From languages to traditions or even specific industries. That’s why according to UNESCO, the mix between the benefits of globalization and the protection of local culture’s uniqueness requires a careful approach.
Finally Globalization leads to unemployment, the infant industry that would have been promoted to encourage employment is discourage.
Izuogu Chiamaka Goodluck
2017/242101
Economics Education
chiamaka.izuogu.242101@unn.edu.ng.
GLOBALIZATION AND IT’S EFFECT
According to the Committee for Development Policy, Globalization can be defined as the increasing interdependence of world economies as a result of the growing scale of cross – border trade of commodities and services, flow of international capital and wide and rapid spread of technologies. It reflects the continuing expansion and mutual Integration of market frontiers and the rapid growing significance of information in all types of productive activities and marketization.
Globalization has been of tremendous benefits to man in the developed and developing countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure. Some argue that globalization is a positive development as it will give rise to new industries and more jobs in developing countries.Globalization aims to benefit individual economies around the world by making markets more efficient, increasing competition, improving foreign direct investment, limiting military conflicts, and spreading wealth more equally.
Globalization also have its side effects to the developed nations. These include some factors which are jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows etc.. Others say globalization is negative in that it will force poorer countries of the world to do whatever the big developed countries tell them to do. I would say globalization leads to majority of the pandemics and epidemics been encountered by man e.g Coronavirus etc.
I recommend that a rebalancing of globalization is necessary to restore more voice to labour and its needs for job and income stability while focusing attention globally on where the biggest economic gains can be made.
Okere Success chigoziem
2017/243145
Globalization and it’s effect
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
Definitions of Globalization by the World Health Organization (WHO)
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
What Is Globalization in the Economy?
According to the Committee for Development Policy (a subsidiary body of the United Nations), from an economic point of view, globalization can be defined as:
“(…) the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers (…) and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.”
How Do We Make Globalization More Just?
The ability of countries to rise above narrow self-interest has brought unprecedented economic wealth and plenty of applicable scientific progress. However, for different reasons, not everyone has been benefiting the same from globalization and technological change: wealth is unfairly distributed and economic growth came at huge environmental costs. How can countries rise above narrow self-interest and act together or designing fairer societies and a healthier planet? How do we make globalization more just?
According to Christine Lagarde, former President of the International Monetary Fund, “debates about trade and access to foreign goods are as old as society itself ” and history tells us that closing borders or protectionism policies are not the way to go, as many countries doing it have failed.
Lagarde defends we should pursue globalization policies that extend the benefits of openness and integration while alleviating their side effects. How to make globalization more just is a very complex question that involves redesigning economic systems. But how? That’s the question.
Globalization is deeply connected with economic systems and markets, which, on their turn, impact and are impacted by social issues, cultural factors that are hard to overcome, regional specificities, timings of action and collaborative networks. All of this requires, on one hand, global consensus and cooperation, and on the other, country-specific solutions, apart from a good definition of the adjective “just”.
Examples of Globalization (Concept Map)
Because of trade developments and financial exchanges, we often think of globalization as an economic and financial phenomenon. Nonetheless, it includes a much wider field than just flowing of goods, services or capital. Often referred to as the globalization concept map, some examples of globalization are:
Economic globalization: is the development of trade systems within transnational actors such as corporations or NGOs;
Financial globalization: can be linked with the rise of a global financial system with international financial exchanges and monetary exchanges. Stock markets, for instance, are a great example of the financially connected global world since when one stock market has a decline, it affects other markets negatively as well as the economy as a whole.
Cultural globalization: refers to the interpenetration of cultures which, as a consequence, means nations adopt principles, beliefs, and costumes of other nations, losing their unique culture to a unique, globalized supra-culture;
Political globalization: the development and growing influence of international organizations such as the UN or WHO means governmental action takes place at an international level. There are other bodies operating a global level such as NGOs like Doctors without borders or Oxfam;
Sociological globalization: information moves almost in real-time, together with the interconnection and interdependence of events and their consequences. People move all the time too, mixing and integrating different societies;
Technological globalization: the phenomenon by which millions of people are interconnected thanks to the power of the digital world via platforms such as Facebook, Instagram, Skype or Youtube.
Geographic globalization: is the new organization and hierarchy of different regions of the world that is constantly changing. Moreover, with transportation and flying made so easy and affordable, apart from a few countries with demanding visas, it is possible to travel the world without barely any restrictions;
Ecological globalization: accounts for the idea of considering planet Earth as a single global entity – a common good all societies should protect since the weather affects everyone and we are all protected by the same atmosphere. To this regard, it is often said that the poorest countries that have been polluting the least will suffer the most from climate change.
The Effects of Globalization
The Benefits of Globalization
Globalization has benefits that cover many different areas. It reciprocally developed economies all over the world and increased cultural exchanges. It also allowed financial exchanges between companies, changing the paradigm of work. Many people are nowadays citizens of the world. The origin of goods became secondary and geographic distance is no longer a barrier for many services to happen. Let’s dig deeper.
The Engine of Globalization – An Economic Example
The most visible impacts of globalization are definitely the ones affecting the economic world. Globalization has led to a sharp increase in trade and economic exchanges, but also to a multiplication of financial exchanges.
In the 1970s world economies opened up and the development of free trade policies accelerated the globalization phenomenon. Between 1950 and 2010, world exports increased 33-fold. This significantly contributed to increasing the interactions between different regions of the world.
This acceleration of economic exchanges has led to strong global economic growth. It fostered as well a rapid global industrial development that allowed the rapid development of many of the technologies and commodities we have available nowadays.
Knowledge became easily shared and international cooperation among the brightest minds speeded things up. According to some analysts, globalization has also contributed to improving global economic conditions, creating much economic wealth (thas was, nevertheless, unequally distributed – more information ahead).
Globalization Benefits – A Financial Example
At the same time, finance also became globalized. From the 1980s, driven by neo-liberal policies, the world of finance gradually opened. Many states, particularly the US under Ronald Reagan and the UK under Margaret Thatcher introduced the famous “3D Policy”: Disintermediation, Decommissioning, Deregulation.
The idea was to simplify finance regulations, eliminate mediators and break down the barriers between the world’s financial centers. And the goal was to make it easier to exchange capital between the world’s financial players. This financial globalization has contributed to the rise of a global financial market in which contracts and capital exchanges have multiplied.
Globalization – A Cultural Example
culture globalization definition benefits effects examples
Together with economic and financial globalization, there has obviously also been cultural globalization. Indeed, the multiplication of economic and financial exchanges has been followed by an increase in human exchanges such as migration, expatriation or traveling. These human exchanges have contributed to the development of cultural exchanges. This means that different customs and habits shared among local communities have been shared among communities that (used to) have different procedures and even different beliefs.
Good examples of cultural globalization are, for instance, the trading of commodities such as coffee or avocados. Coffee is said to be originally from Ethiopia and consumed in the Arabid region. Nonetheless, due to commercial trades after the 11th century, it is nowadays known as a globally consumed commodity. Avocados, for instance, grown mostly under the tropical temperatures of Mexico, the Dominican Republic or Peru. They started by being produced in small quantities to supply the local populations but today guacamole or avocado toasts are common in meals all over the world.
At the same time, books, movies, and music are now instantaneously available all around the world thanks to the development of the digital world and the power of the internet. These are perhaps the greatest contributors to the speed at which cultural exchanges and globalization are happening. There are also other examples of globalization regarding traditions like Black Friday in the US, the Brazilian Carnival or the Indian Holi Festival. They all were originally created following their countries’ local traditions and beliefs but as the world got to know them, they are now common traditions in other countries too.
Why Is Globalization Bad?
The Negative Effects of Globalization
Globalization is a complex phenomenon. As such, it has a considerable influence on several areas of contemporary societies. Let’s take a look at some of the main negative effects globalization has had so far.
The Negative Effects of Globalization on Cultural Loss
Apart from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. From languages to traditions or even specific industries. That’s why according to UNESCO, the mix between the benefits of globalization and the protection of local culture’s uniqueness requires a careful approach.
The Economic Negative Effects of Globalization
Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the “losers” of globalization. As a matter of fact, a recent report from Oxfam says that 82% of the world’s generated wealth goes to 1% of the population.
The Negative Effects of Globalization on the Environment
environment globalization definition benefits effects examples
Many critics have also pointed out that globalization has negative effects on the environment. Thus, the massive development of transport that has been the basis of globalization is also responsible for serious environmental problems such as greenhouse gas emissions, global warming or air pollution.
At the same time, global economic growth and industrial productivity are both the driving force and the major consequences of globalization. They also have big environmental consequences as they contribute to the depletion of natural resources, deforestation and the destruction of ecosystems and loss of biodiversity. The worldwide distribution of goods is also creating a big garbage problem, especially on what concerns plastic pollution.
Globalization affects all sectors of activity to a greater or lesser extent. By doing so, its gap with issues that have to do with sustainable development and corporate social responsibility is short.
By promoting large-scale industrial production and the globalized circulation of goods, globalization is sometimes opposed to concepts such as resource savings, energy savings or the limitation of greenhouse gases. As a result, critics of globalization often argue that it contributes to accelerating climate change and that it does not respect the principles of ecology. At the same time, big companies that don’t give local jobs and choose instead to use the manpower of countries with low wages (to have lower costs) or pay taxes in countries with more favorable regulations is also opposed to the criteria of a CSR approach. Moreover, the ideologies of economic growth and the constant pursuit of productivity that come along with globalization, also make it difficult to design a sustainable economy based on resilience.
On the other hand, globalization is also needed for the transitioning to a more sustainable world, since only a global synergy would really be able to allow a real ecological transition. Issues such as global warming indeed require a coordinated response from all global players: fight against CO2 emissions, reduction of waste, a transition to renewable energies. The same goes for ocean or air pollution, or ocean acidification, problems that can’t be solved without global action. The dissemination of green ideas also depends on the ability of committed actors to make them heard globally.
Okere success chigoziem
2017/243145
NAME: OKOLI MARYANN AMAUCHE
DEPT: ECONOMICS EDUCATION
REG NO: 2017/243272
GLOBALIZATION AND ITS EFFECTS
Globalization is a process of global economic, political and cultural integration. It has made the world become a small village; the borders have been broken down between countries. ”The history of globalization goes back to the second half of the twentieth century, the development of transport and communication technology led to situation where national borders appeared to be too limiting for economic activity” (Economic Globalization in Developing Countries, 2002). Globalization is playing an increasingly important role in the developing countries. It can be seen that, globalization has certain advantages such as economic processes, unemployment, technological developments, poverty, political influences, health systems, social and natural environment factors. It has a lot of benefit on our daily life. Globalization has created a new opportunities for developing countries. Such as, technology transfer hold out promise, greater opportunities to access developed countries markets, growth and improved productivity and living standards. However, it is not true that all effects of this phenomenon are positive. Because, globalization has also brought up new challenges such as, environmental deteriorations, instability in commercial and financial markets, increase inequity across and within nations.
This evaluates the positive and negative impact of globalization on developing nations in the following proportions;
1- economic processes, unemployment and poverty
2- Education and Health Systems
3- Culture Effects
1- economics processes, unemployment and poverty
Globalization helps developing countries to deal with rest of the world increase their economic growth, solving the poverty problems in their country. In the past, developing countries were not able to tap on the world economy due to trade barriers. The developed countries were able to invest in the developing nations, creating job opportunities for the poor people. It is clear to see that globalization has made the relationships between developed countries and developing nations stronger, Developing countries depend on developed countries for resource flows and technology, but developed countries depend heavily on developing countries for raw materials, food and oil, and as markets for industrial goods”. One the most important advantages of globalization are goods and people are transported easier and faster as a result free trade between countries has increased, and it decreased the possibility of war between countries. Furthermore, the growth in the communication between the individuals and companies in the world helped to raise free trade between countries and this led to growth economy. we must also note the many disadvantages that globalization has created for the poor countries. One reason globalization increases the inequality between the rich and poor, the benefits globalization is not universal; the richer are getting rich and the poor are becoming poorer. Many developing countries do benefit from globalization but then again, many of such nations do lag behind.” In the past two decades, China and India have grown faster than the already rich nations. However, countries like Africa still have the highest poverty rates, in fact, the rural areas of China which do not tap on global markets also suffer greatly from such high poverty . On the other hand, developed countries set up their companies and industries to the developing nations to take advantages of low wages and this causing pollution in countries with poor regulation of pollution. Furthermore, setting up companies and factories in the developing nations by developed countries affect badly to the economy of the developed countries and increase unemployment.
2- Education and Health Systems
Globalization contributed to develop the health and education systems in the developing countries. We can clearly see that education has increased in recent years, because globalization has a catalyst to the jobs that require higher skills set. This demand allowed people to gain higher education. Health and education are basic objectives to improve any nations, and there are strong relationships between economic growth and health and education systems. Through growth in economic, living standards and life expectancy for the developing nations certainly get better. With more fortunes poor nations are able to supply good health care services and sanitation to their people. In addition, the government of developing countries can provide more money for health and education to the poor, which led to decrease the rates of illiteracy. This is seen in many developing countries whose illiteracy rate fell down recently. It is truth that, living standards and life expectancy of developing countries increase through economic gains from globalization. According to the World Bank (2004) ” With globalization, more than 85 percent of the world’s population can expect to live for at least sixty years and this is actually twice as long as the average life expectancy 100 years ago”. In addition, globalization helped doctors and scientists to contribute to discover many diseases, which spread by human, animals and birds, and it helped them to created appropriate medicines to fight these deadly diseases. For example, HIV/ADIS, swine flu and birds’ flu whole world know about these diseases and they know how to avoid it. By globalization, there are many international organizations, such as, Non-governmental Organization (NGO), World Health Organization (WHO) and UNESCO, trying to eliminate illiteracy and deadly diseases in the world and save the life. In spite of these positive effects of globalization to the education and health fields in the developing countries. However, globalization could have negative impacts also in these fields; globalization facilitates the spread of new diseases in developing nations by travelers between countries. Due to increased trade and travel, many diseases like HIV/ADIS, Swine Flu, Bird Flu and many plant diseases, are facilitated across borders, from developed nations to the developing ones. This influences badly to the living standards and life expectancy these countries. According to the World Bank (2004) “The AIDS crisis has reduced life expectancy in some parts of Africa to less than 33 years and delay in addressing the problems caused by economic”. Another drawback of globalization is, globalized competition has forced many minds skilled workers where highly educated and qualified professionals, such as scientists, doctors, engineers and IT specialists, migrate to developed countries to benefit from the higher wages and greater lifestyle prospects for themselves and their children. This leads to decrease skills labour in the developing countries.
3- Culture Effects
Globalization has many benefits and detriment to the culture in the developing countries. Many developing countries cultures has been changed through globalization, and became imitate others cultures such as, America and European countries. Before globalization it would not have been possible to know about other countries and their cultures. Due to important tools of globalization like television, radio, satellite and internet, it is possible today to know what is happening in any countries such as, America, Japan and Australia. Moreover, people worldwide can know each other better through globalization. For example, it is easy to see more and more Hollywood stars shows the cultures different from America. In addition, today we can see clearly a heavily effect that caused by globalization to the young people in the different poor nations, it is very common to see teenagers wearing Nike T-Shirts and Adidas footwear, playing Hip-Hop music, using Apple ipad and iphone and eating at MacDonald, KFC and Domino’s Pizza . It is look like you can only distinguish them by their language. On the other hand, many developing countries are concerned about the rise of globalization because it might lead to destroy their own culture, traditional, identity, customs and their language. Many Arab countries such as Iraq, Syria, Lebanon and Jordan, as developing countries have affected negatively in some areas, their cultures, Developing Country Studies http://www.iiste.org customs and traditional have been changed. They wear and behave like developed nations, a few people are wearing their traditional cloths that the used to. Furthermore, globalization leads to disappearing of many words and expressions from local language because many people use English and French words. In addition, great changes have taken place in the family life, young people trying to leave their families and live alone when they get 18 years old, and the extended family tends to become smaller than before (Kurdishglobe, 2010).
Conclusion
In conclusion, as we can see, the process of globalization has involved all the countries around the world. Developing countries such as India, China, Iraq, Syria, Lebanon, Jordan and some Africa’s countries, have been affected by globalization, and whether negatively or positively, the economies of these countries have improved under the influence of globalization. The size of direct foreign investment has increased unemployment increased due to technological advancement, poverty increased the poor are getting poorer and the rich getting richer and a lot of bad habits and traditions erased, but also globalization has brought many drawbacks to these countries as well. Many customs and cultures are disappeared such as traditions clothes and some language and expressions have changed. In addition, the violence and drugs abuse are increased and a lot of deadly diseases have spread under the influence of globalization. However, although globalization has many disadvantages, we believe that globalization has brought the developing countries many more benefits than the detriments.
GLOBALIZATION EXPLAINED
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
POSITIVE EFFECTS OF GLOBALIZATION
Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure.
i) Global market.
Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management is seen by the sudden increase of number of transactions across the borders. In protecting yields and maintaining competitiveness, businesses are continuing to develop a wide range of their footprint as it lowers cost and enjoys economies of scale (Shah A.,2009)
ii) Cross-cultural management
Globalization tend to be the realm of elite because in many parts of the world they are the only people who are affluent enough to buy many of the products available in the global marketplace. Highly educated and wealthy people from different backgrounds interact within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often embraces western styles of products and pattern of behavior in order to impress others. Today Western culture and patterns of behavior and language are staples of international business (Asgary N. and Walle A.H.,2002).
iii) Foreign trade
Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the global. These countries which export goods get comparative advantages. Organizations have been established with a view to control and regulate the trade activities of the countries in the world so to have fair trade. World trade organizations emerged as a powerful international organization capable effectively influencing individual governments to follow international trade rules, copyrights, policies on subsidies, taxes and tariffs. Nations can not break rules without facing economic consequences (Piaseck R. and Wolnicki M., 2004
iv) Resource Imperative
Developed countries need natural and human resources of the developing countries while developing countries need capital, technology and brainpower of the wealthier countries. Developed countries’ economies are increasingly dependent on the natural and human resources of the developing nations. Growing interdependence of nations and their activities on one another fostered by the depletion of natural resources; as well as overpopulation (Harris P.R.,2002).
V) Foreign investment
One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we also need to see is the amount of Foreign Investment Inflow that flows into the developing countries. Indian companies which have been performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in India. This is also one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition.
I know that globalization has also created many negative effects, but I believe it’s always better to look to the future with optimism and hope. Tomorrow, hopefully, we will be able to minimize or even eradicate the evil forces that give globalization a bad name. Thus we will be able to move forward with peace and harmony”(Kulkami A., 2009)
i) Poverty alleviation
As far as poverty reduction is concerned, globalization played a role in poverty reduction in developing countries. In deed most developed countries experienced reduction in poverty in the proportion of their living below the poverty line, including fast developing countries like China, India, Vietnam. While other countries like Sub-Saharan Africa registered an opposite trend (Lee E., 2006).
ii) Employment situation.
Through globalization, people from different countries are provided with jobs opportunities within the global. It has created the concept of outsourcing. Developed countries prefer to provide work to developing countries where costs are cheap. Work such as customer support, software development, accounting, marketing and insurance are given to developing countries like India. Therefore the country that is given the work enjoys by getting jobs.
iii) Technology
This is a powerful force that drives the world toward a converging commonality. It has proletarianized communication, transport, and travel. People from different places everywhere wants all the things they have heard about, seen, or experienced through technology. Organizations through its managements can obtain knowledge from different places in the world that can be used in the organization.
Conclusion
Globalization is a since qua non for the Economy of the nations to thrive. meanwhile,it’ impact positively and negatively to the socio, cultural and Economic structure of the world. However the world can not do without interaction with it’s self.
GLOBALIZATION EXPLAINED
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.
According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
POSITIVE EFFECTS OF GLOBALIZATION
Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure.
i) Global market.
Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management is seen by the sudden increase of number of transactions across the borders. In protecting yields and maintaining competitiveness, businesses are continuing to develop a wide range of their footprint as it lowers cost and enjoys economies of scale (Shah A.,2009)
ii) Cross-cultural management
Globalization tend to be the realm of elite because in many parts of the world they are the only people who are affluent enough to buy many of the products available in the global marketplace. Highly educated and wealthy people from different backgrounds interact within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often embraces western styles of products and pattern of behavior in order to impress others. Today Western culture and patterns of behavior and language are staples of international business (Asgary N. and Walle A.H.,2002).
iii) Foreign trade
Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the global. These countries which export goods get comparative advantages. Organizations have been established with a view to control and regulate the trade activities of the countries in the world so to have fair trade. World trade organizations emerged as a powerful international organization capable effectively influencing individual governments to follow international trade rules, copyrights, policies on subsidies, taxes and tariffs. Nations can not break rules without facing economic consequences (Piaseck R. and Wolnicki M., 2004
iv) Resource Imperative
Developed countries need natural and human resources of the developing countries while developing countries need capital, technology and brainpower of the wealthier countries. Developed countries’ economies are increasingly dependent on the natural and human resources of the developing nations. Growing interdependence of nations and their activities on one another fostered by the depletion of natural resources; as well as overpopulation (Harris P.R.,2002).
V) Foreign investment
One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we also need to see is the amount of Foreign Investment Inflow that flows into the developing countries. Indian companies which have been performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in India. This is also one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition.
NEGATIVE EFFECTS OF GLOBALIZATION
I know that globalization has also created many negative effects, but I believe it’s always better to look to the future with optimism and hope. Tomorrow, hopefully, we will be able to minimize or even eradicate the evil forces that give globalization a bad name. Thus we will be able to move forward with peace and harmony”(Kulkami A., 2009)
i) Poverty alleviation
As far as poverty reduction is concerned, globalization played a role in poverty reduction in developing countries. In deed most developed countries experienced reduction in poverty in the proportion of their living below the poverty line, including fast developing countries like China, India, Vietnam. While other countries like Sub-Saharan Africa registered an opposite trend (Lee E., 2006).
ii) Employment situation.
Through globalization, people from different countries are provided with jobs opportunities within the global. It has created the concept of outsourcing. Developed countries prefer to provide work to developing countries where costs are cheap. Work such as customer support, software development, accounting, marketing and insurance are given to developing countries like India. Therefore the country that is given the work enjoys by getting jobs.
iii) Technology
This is a powerful force that drives the world toward a converging commonality. It has proletarianized communication, transport, and travel. People from different places everywhere wants all the things they have heard about, seen, or experienced through technology. Organizations through its managements can obtain knowledge from different places in the world that can be used in the organization.
Conclusion
Globalization is a since qua non for the Economy of the nations to thrive. meanwhile,it’ impact positively and negatively to the socio, cultural and Economic structure of the world. However the world can not do without interaction with it’s self.
In as much as globalization has led to rapid rate of growth and development, it is also worthy to note that it has also caused some inevitable problems like poverty, unemployment and social disintegration
In justifying how it has caused poverty I’d like to point out the fact that in developing countries mixing up with developed countries, the developed countries who claim they are assisting the developing countries only contribute to areas like the health sector, agricultural etc they almost would not contribute to industrial and manufacturing sectors cause they always want to be on top.
Also it has led to unemployment because jobs that were performed by humans are now being performed by machines, like the Automated teller machine has replaced so many bank staffs, and I’d like to add that big firms in developing countries like Nigeria are more likely to employ staffs who schooled abroad and has had experience abroad compared to people who gained knowledge here , because they believe that those who went abroad are more experienced
Lastly, talking about social disintegration, you find out that citizens of developing countries are more enticed with the culture of the white people, neglect that of our ancestors, this is seen in scenarios where if you invite them for social activities like new yam festival for example, the number of people showing interest is low, but when you invite them to watch big brother, or go for a concert where a foreign celebrity like Drake or cardi B is present, there is often a mad rush for it, it is quite unfortunate that the old ways (cultures) of our people are gradually dying out.
Despite remarkable progress in the fight against poverty during the past few decades, the proportion of the poor living in developing countries is still on the high side. Many countries have promoted integration as an important development strategy; however, its impact on welfare of the poor is still unclear. In this study, we examine the roles of education and health dimensions of human capital in globalization and its impact on the poverty gap and the child mortality rate using cross-country panel data covering 110 developing countries between 1970 and 2015. We use a model based on system generalized method of moments (SGMM) to control for unobserved heterogeneity and potential endogeneity of the explanatory variables. The empirical results reveal that globalization reduces poverty gap and child mortality rate, and that an increase in the stock of human capital in developing economies improves welfare outcomes. The study also finds that human capital strengthens the negative impact of globalization on poverty gap and child mortality rate. For example, should enrollment in secondary school in Nigeria (in 2013) be increased from 39.2% to 61.6%, on average, it could translate into 2508 fewer under-five child deaths. We recommend that interconnectedness and promotion of human capital development should constitute a fundamental component of policy mix targeted at enhancing reduction of poverty and child mortality rate in developing countries.
The role of the nation-state in globalization is a complex one in part due to the varying definitions and shifting concepts of globalization. While it has been defined in many ways, globalization is generally recognized as the fading or complete disappearance of economic, social, and cultural borders between nation-states. Some scholars have theorized that nation-states, which are inherently divided by physical and economic boundaries, will be less relevant in a globalized world.
While increasingly reduced barriers regarding international commerce and communication are sometimes seen as a potential threat to nation-states, these trends have existed throughout history. Air and sea transportation that made same-day travel to other continents possible and greatly expanded trade among countries did not abolish the sovereignty of individual nations. Instead, globalization is a force that changed the way nation-states deal with one another, particularly in the area of international commerce.
Multinational corporations, in particular, challenge nation-states to confront the unique issue of foreign direct investments, forcing nation-states to determine how much international influence they allow in their economies. Globalization also creates a sense of interdependence among nations, which could create an imbalance of power among nations of different economic strengths.
The role of the nation-state in a global world is largely a regulatory one as the chief factor in global interdependence. While the domestic role of the nation-state remains largely unchanged, states that were previously isolated are now forced to engage with one another to set international commerce policies. Through various economic imbalances, these interactions may lead to diminished roles for some states and exalted roles for others.
NAME: UMELO CHIDERA NICOLE
REGISTERATION NUMBER: 2017/259589
EMAIL: nicoleumelo@gmail.com
THE PERILS OF GLOBALIZATION.
I vividly remember a time when I was asked to make a presentation on globalization and its benefit. I also remember gushing so much about the benefits of globalization. placing my comments on the negative impacts of globalization is a chance for me to balance the scales.
Like me, when called upon to give talks on the impacts of globalization, many people are so focused on its positive impacts, it then seems there is nothing wrong at all, however, the negative side of globalization is just as important as the positive. What then are these negative impacts?
1. Globalization has helped to promote eurocentrism: in the course of connecting the world, globalization has helped to spread abroad the gospel of Eurocentrism that European nations are in fact so much better than other nations. this has so thoroughly affected many countries especially developing countries who have lost faith and confidence in their policy makers to fashion out customized policies that are meant to improve conditions in such countries, and even when policies are recommended, they are shut down because they are not European models. This unfortunately promotes underdevelopment in such countries.
2. Unhealthy competition: while globalization has opened countries up to new and improved systems, it has also set infant industries up for failure by exposing them to aggressive competition in the form of advanced foreign companies who are able to utilize economies of scale more than these infant industries.
3. A thorough raping of cultural and traditional systems: of course, those that argue against globalization in Nigeria focus on the fact that globalization has helped raze our culture and turn our systems into something that looks like the white man’s society. Many children can hardly make correct phrases in their mother tongue without getting tongue tied, the value system in the society has crashed and is still crashing.
4. Toxic imports: just a we have imported the white man’s practices we have also imported his goods. While there is a very high percentage of good and healthy imports, there is also a very high percentage of toxic imports. worst still, globalization has opened some countries up as dumping grounds for other nations.
5. Economic issues: since the world became more connected, the Nigerian currency has greatly reduced in value when compared to some other countries. As a result of this, Nigeria has run into complications in its economy.
Mbaukwu Nkiruka Precious
2017/242425
Economics
Mbaukwuprecious86@gmail.com
Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. According to WHO, globalization can be defined as ” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
According to the Committee for Development Policy (a subsidiary body of the United Nations), from an economic point of view, globalization can be defined as:
“(…) the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers (…) and the rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.”
EFFECTS OF GLOBALIZATION
POSITIVE EFFECTS:
1. Global market: Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management is seen by the sudden increase of number of transactions across the borders.
2. Cross-cultural management:Globalization tend to be the realm of elite because in many parts of the world they are the only people who are affluent enough to buy many of the products available in the global marketplace. Highly educated and wealthy people from different backgrounds interact within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often embraces western styles of products and pattern of behavior in order to impress others.
3. Foreign trade:Globalization has created and expanded foreign trade in the world. Things that were only found in developed countries can now be found in other countries across the world. People can now get whatever they want and from any country. Through this developed countries can export their goods to other countries. Countries do business through international trade, whereby they import and export goods across the global. These countries which export goods get comparative advantages. Organizations have been established with a view to control and regulate the trade activities of the countries in the world so to have fair trade.
4. Poverty alleviation: As far as poverty reduction is concerned, globalization played a role in poverty reduction in developing countries. In deed most developed countries experienced reduction in poverty in the proportion of their living below the poverty line, including fast developing countries like China, India, Vietnam
NEGATIVE EFFECTS
1. JOBS INSECURITY:In developed countries people have jobs insecurity. People are losing their jobs. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This is because the manufacturing work is outsourced to countries where the costs of manufacturing goods and wages are lower than in their countries. They have outsourced to developing countries like China and India. Globalization has led to exploitation of labor. Safety standards are ignored to produce cheap goods.
2. FLUCTUATION IN PRICES Globalization has led to fluctuation in price. Due to increase in competition, developed countries are forced to lower down their prices for their products, this is because other countries like China produce goods at a lower cost that makes goods to be cheaper than the ones produced in developed countries. So, in order for the developed countries to maintain their customers they are forced to reduce prices of their goods. This is a disadvantage to them because it reduces the ability to sustain social welfare in their countries.
3. Unemployment: Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to the current situation.
4. Trade: Average tariff rates continue to be high in many developing countries, including some that have recently implemented trade reforms. Trade policy continues to be an important aspect in globalization at least in some of the lower income developing countries. Widespread use of computers, faxes and mobile phones, introduction of the internet and e-commerce, and quicker and cheaper means of transportation in some cases offered opportunities to developing countries, but in many cases deepened the gap between global firms and traditional industries globalization opened up new opportunities for developing countries to create jobs and expand exports. In practice, many developing countries competing for foreign investors offered longer tax holidays, costly subsidies, and various incentives for multinationals. The competition among developing nations reduced positive net effects of globalization or, at best, delayed them.
Name: Onah Hope Nnenna
Reg no: 2017/249565
Dept: Economics
Email:onahnnenna123@gmail
Leve:300l
Globalization in short, points to the whole effort towards making the world global community as a one village. Goods that were only found in western countries can now be found across the globe. Now under developed areas can enjoy the benefits of scientific advances and industrial progress available in developed countries for the improvement and growth of their areas.
Because of globalization the economies of the world are being increasingly integrated, example mobile phones and internet have brought people closer. The world is becoming a smaller place. Work can be outsourced to any part of the world that has an internet connection because of improvements in traffic infrastructure one is able to reach one’s destination in a short time.
Globalization can also be defined as an ongoing process by which regional economies, societies and cultures have become integrated through a globe-spanning network of communication and trade. The process of globalization includes a number of factors which are rapid technology developments that make global communications possible, political developments such as the fall of communism, and transportation developments that make traveling faster and more frequent. These produce greater development opportunities for companies with the opening up of additional markets, allow greater customer harmonization as a result of the increase in shared cultural values, and provide a superior competitive position with lower operating costs in other countries and access to new raw materials, resources, and investment opportunities.
POSITIVE AND NEGATIVE EFFECT OF GLOBALISATION
Some argue that globalization is a positive development as it will give rise to new industries and more jobs in developing countries. Others say globalization is negative in that it will force poorer countries of the world to do whatever the big developed countries tell them to do.
PROBLEMS ASSOCIATED WITH GLOBALISATION
1) Unemployment: globalization has caused so many people to loose their Jobs in the sense that it has introduced machines that does the works of human beings. Take for instance, in the banking sector, the ATM machine now does the work that humans are meant to do and that has caused the jobs of many
2) Poverty: when there is high rate of unemployment in a country, the rate of poverty will also be high. And that happened as a result of globalization
3) Social disintegration: In a community, people no longer associate with their neighbours now like they do before globalization. Whenever two people are sitting together, you hardly see them chatting and playing together, rather, all their attention will be on their phones. This is what globalization has caused
CONCLUSION
Having seen all these challenges and problems associated with globalization, I agree that that globalization is harmful and also good. It is good because it has made so many things easy for people, like the internet where people get knowledge and so on. And it is also harmful in the sense that it has left so many youths unemployed, thereby increasing the rate of poverty and crimes and also brought about social disintegration and disunity.
Name: Anayo Bright Udochukwu
Reg Number: 2017/249482
Department: Economics
Globalization is the spread of products, technology, information, and jobs across national borders and cultures. In economic terms, it describes an interdependence of nations around the globe fostered through free trade.
On the other hand, some daunting challenges such as increased poverty, unemployment, and social disintegration have also accompanied globalization. However, these have brought about a question to ascertain the claim of positive impact of globalisation.
Yes, I agreed that there has being an economic distortions that accompanied globalisation. Though during the 1990s and till recent times, policymakers have argued that globalization has led to significant economic growth and improvement in human welfare.
Sequentially, the increase in high technical machineries such as robotics like human, drones for surveillance cum videoing and dispatch of good i.e. drop-shipping, change towards renewable energy, etc, are as a result of globalisation. Nevertheless, the production of all this high technical equipment by an industry will be accompanied by unemployment, in the sense that those who don’t have the skill will have to leave the industry. A scenario where a drone is performing the work of a camera man and the pilot of a chopper. A delivery man will be left to languish in hunger due to the little job he does have be taken away by a drone, etc. Above all, as time goes on there will be social disintegration within human level and between national level. Persons who have the require skill to fill in the industry starts the affirmation of first class citizens, while the comparison of low level and high level nation(s) revolves as a result of nation who where able to re-adjust to the trend.
In summation, one clear result of globalization is that an economic downturn in one country can create a domino effect through its trade partners. For example, the 2008 financial crisis had a severe impact on Portugal, Ireland, Greece, and Spain. And for better and worse, globalization has also increased homogenization.
Agbo Jennifer Amarachi
2017/249476
jenniferamarachi.agbo@gmail.com
Economics
Globalization is about the interconnectedness of the people and businesses across the world that eventually leads to global, cultural, political and economic integration. It is the ability to move and communicate easily with others all over the world in order to conduct business internationally.
Globalization indeed, has led to several positive impacts in the world. It has led to a sharp increase in trade and economic and financial exchanges. It had fostered rapid global industrialization that allowed rapid development of many of the technologies and commodities we have in existence today. Also, knowledge has become easily shared and international cooperation among the brightest minds speeded things up.
However, despite it’s benefits, the consequences of globalization had led to an increased poverty, unemployment and social disintegration especially in the developing countries.
One will ask, how is that even possible?
Well, first, considering the fact that most of these developing countries are largely populated, the introduction of technology for example Robots and Complex machines in the manufacturing and Agricultural sector, has led to an increase in unemployment as more sectors demanded fewer labour. This automatically increases the poverty level of these countries since most of their citizens are unable to find work.
Furthermore, the existence of Globalization has initiated an unhealthy competition between the infant and domestic industries of a country and their foreign counterparts. Since these infant industries are still new and do not really know how to take advantage of the Economies of scale in the foreign market, it means they have been exposed too earlier and will eventually lead to their fast extinction, however this incidence is not good for a developing country.
Globalization has enormously resulted to uneven development of various sectors in these developing countries. It has largely created inequality, thus widening the gap between the rich and the underprivileged in these countries. People who had an earlier access to technological know-how took advantage and got rich while majority who could not, got poorer.
It greatly led to the neglect of the Agricultural sector. The Agricultural sector is the breadrock sector of every nation. It is expected from the stages of development that a country must have strongly established her agricultural sector before moving on to another sector. But then, globalization made this not to be achievable. A lot of people have abandoned their agricultural work in the rural area and have migrated to the Urban area where they hope to see “modern white collar jobs” brought about by globalization. But do you know what happens? Do they really find those jobs? Definitely No, most of these developing countries do not have the capacity yet to provide enough job for the large population residing in the so called “Urban area”, thus this leads to a greater unemployment, poverty and underdevelopment.
Finally, the society is no longer as united as it was before the introduction of Globalization. This globalization has led to social disintegration. How? People no longer communicate or interact with each other. This has resulted to many ethnic crises, bigotry and favouritisms amongst others. These are not good for countries especially those that are still developing. Another example is that lack of adequate interaction and communication has hindered local production and this will continue to increase unemployment and poverty.
In summary, globalization has come to stay and we cannot hide from it anymore, but to leave it unchecked, unmonitored and unpromoted will pose as a huge problem later. Countries should always carry a thorough research on most of these advanced countries to find out how they have been coping with globalization while incorporating their specific inherent features notwithstanding.
One cannot deny the fact that the overall positive impacts outweighs the negative impacts of globalization. Therefore, it is time we embraced it more and changed our method of adoption and assimilation.
MADUKO MAUREEN ADAEZE
ECONOMICS
2017/249049
GLOBALIZATION AND ITS EFFECTS
Globalization is the process of interaction and integration among people, companies, and governments worldwide. Globalization has accelerated since the 18th century due to advances in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of ideas and culture. Globalization is primarily an economic process of interaction and integration that is associated with social and cultural aspects. However, disputes and diplomacy are also large parts of the history of globalization, and of modern globalization.
This topic examines globalization and its effects on the third World countries with emphasis on the Nigerian economy,Economic growth is the main channel through which globalization can affect poverty. Globalization has brought in some advantages and has impacted values in some countries but in no doubt also has its disadvantages which I will not fail to outline. Due to globalization developed countries claim to help underdeveloped/developing countries whereas they are taking advantage of these developing countries,due to globalization in a developing country( Nigeria) one can decide to establish industries/firms in their country and prefer to hire individuals with experience from other countries instead of hiring labourers in their country and give them the same experience or knowledge about the industry. When firms or industries tend to the above,this would lead to high rate of unemployment in the country thereby hindering globalization.
Secondly ,when industries prefer to hire outside labourers this would lead to high rate of unemployment because when people are not gainfully employed there would be low standard of living whereby people would depend on other people for survival which would lead to hinderance in globalization. Developing countries should stop relying on foreign investment to curb poverty .
Thirdly, Social disintegration is the tendency for a society/economy to decline or disintegrate overtime, perhaps due to the lapse of traditional social support systems. Rapid decline in fertility rates and familyism could lead to social disintegration in developing countries which would lead to a negative effect on globalization. The bond between unemployment,increased poverty and social disintegration depends on the interaction of globalization with the rest of environment.
Okagbue chisom
2017/249552
Economics major 300l
chisom.okagbue.249552@unn.edu.ng
My own point of view
Globalization is first and foremost a result of the expansion, diversification and deepening of trade and financial links between countries, especially over the last ten years. This reflects above all the success of multilateral tariff reduction and trade liberalization efforts. The Fund has played a key role in encouraging current account convertibility as a basis for the expansion of world trade, and more than two-thirds of the Fund’s member countries have committed themselves to this principle by accepting the obligations of Article VIII. Also, economic thought itself has evolved over time, toward the general acceptance of the fact that outward- oriented and open economies are more successful than closed, inward-looking ones. Consequently, more than at any time previously, individual countries in all parts of the world are liberalizing their exchange and trade regimes in the conviction that this is indeed the best approach for growth and development. Moreover, there is a deeper commitment of national authorities throughout the world to sound macroeconomic policies, and to creating a more stable environment for investment and the expansion of economic activity. Finally, with the increasing liberalization of financial markets, and their growing sophistication, capital markets have become integrated, and capital flows are now largely driven primarily by considerations of risk and return.
The benefits of these developments are easily recognizable–increasing trade has given consumers and producers a wider choice of low-cost goods, often incorporating more advanced technologies, and facilitated a more efficient use of global resources. Greater access to world markets has allowed countries to exploit their comparative advantages more intensively, while opening their economies to the benefits of increased international competition. The rapid increase in capital and private investment flows has raised the resources available to countries able to attract them, and accelerated the pace of their development beyond what they could otherwise have achieved.
Moreover, greater openness and participation in competitive international trade have increased employment, primarily of skilled labor, in tradable goods sectors. With the expansion of these sectors, unskilled labor has found increased employment opportunities in the nontradable sectors, such as construction and transportation. The expansion of merchandise trade may also have lessened migrationary pressures. On the other hand, the movement of labor across national boundaries has in many cases lessened production bottlenecks, raising the supply response of recipient economies, and increasing income in the supplying countries through worker remittances. Openness to foreign expertise and management techniques has also greatly improved production efficiency in many developing countries.
But there are also risks to globalization. The ability of investment capital to seek out the most efficient markets, and for producers and consumers to access the most competitive source, exposes and intensifies existing structural weaknesses in individual economies. Also, with the speedy flow of information, the margin of maneuver for domestic policy is much reduced, and policy mistakes are quickly punished. Indeed, increased capital mobility carries the risk of destabilizing flows and heightened exchange rate volatility, in cases where domestic macroeconomic policies are inappropriate. And finally, it is clear that countries that fail to participate in this trend toward integration run the risk of being left behind.
Name: Irueforum joseph emeka
Reg nob: 2017/249519
Email: Josephirueforum@gmail.com
Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.
globalization has led to significant economic growth and improvement in human welfare in the 1990s, yet at the same time globalization has caused Increased poverty, unemployment, and social disintegration.
Globalization creates a greater opportunities for firms in less industrialized countries to tap into more and larger markets around the world,
this can lead to more access to capital flows, technology, human capital, cheaper imports and larger export markets
it allows businesses in less industrialized countries to become part of international production networks and supply chains that are the main conduits of trade.
Globalization is a tool that benefits all sections of mankind.
Globalization negative effects are:
UNEMPLOYMENT
Globalization is a blame to world’s unemployment situation though it brought some jobs opportunities. Despite the fact that it brought jobs opportunities globally but it is still a blame to the current situation. It‘s true that global economic integration and increased travel have resulted in increased competitiveness at the national and enterprise levels, forcing producers to find ways to cut costs, improve efficiency, and raise productivity
“The most important factor to determine the level of employment during 1980-2000 was national or regional macroeconomic policies which were implemented and sustained. In addition those countries with liberal macroeconomic reforms, pursued politics promoting flexible labor markets and employment practices, decentralized industrial relations systems, and judicious enforcement of labor. On the other hand, countries with employment laws, regulations, and policies experienced higher level of employment because they were not able to attract and retain as many new jobs”
WESTERN CULTURE
Globalization has led to the spread of western culture and influence at the expense of local culture in developing countries like Africa. Most people now in developing countries cop what people in developed countries do. So, its like they ignore their own culture and practice western culture For example dressing styles and eating
habits, language. All these can affect management in one way or another example it can cause misunderstandings because of language barrier.
TRADE
Average tariff rates continue to be high in many developing countries, including some that have recently implemented trade reforms. Example,India. Trade policy continues to be an important aspect in globalization at least in some of the lower income developing countries.
Name: ugwoke Kasiemobi Roseline
Reg no:2016/231449
Economic major
Globalization is a process of global economic, political and cultural integration. It has made the world become a small village; the borders have been broken down between countries. ”The history of globalization goes back to the second half of the twentieth century, the development of transport and communication technology led to situation where national borders appeared to be too limiting for economic activity” (Economic Globalization in Developing Countries, 2002). Globalization is playing an increasingly important role in the developing countries. It can be seen that, globalization has certain advantages such as economic processes, unemployment, technological developments, poverty, political influences, health systems, social and natural environment factors. It has a lot of benefit on our daily life. Globalization has created a new opportunities for developing countries. Such as, technology transfer hold out promise, greater opportunities to access developed countries markets, growth and improved productivity and living standards. However, it is not true that all effects of this phenomenon are positive. Because, globalization has also brought up new challenges such as, environmental deteriorations, instability in commercial and financial markets, increase inequity across and within nations. This evaluates the positive and negative impact of globalization on developing nations in the following proportions;
1- economic processes, unemployment and poverty
2- Education and Health Systems
3- Culture Effects
1- economics processes, unemployment and poverty
Globalization helps developing countries to deal with rest of the world increase their economic growth, solving the poverty problems in their country. In the past, developing countries were not able to tap on the world economy due to trade barriers. The developed countries were able to invest in the developing nations, creating job opportunities for the poor people. It is clear to see that globalization has made the relationships between developed countries and developing nations stronger, Developing countries depend on developed countries for resource flows and technology, but developed countries depend heavily on developing countries for raw materials, food and oil, and as markets for industrial goods”. One the most important advantages of globalization are goods and people are transported easier and faster as a result free trade between countries has increased, and it decreased the possibility of war between countries. Furthermore, the growth in the communication between the individuals and companies in the world helped to raise free trade between countries and this led to growth economy. we must also note the many disadvantages that globalization has created for the poor countries. One reason globalization increases the inequality between the rich and poor, the benefits globalization is not universal; the richer are getting rich and the poor are becoming poorer. Many developing countries do benefit from globalization but then again, many of such nations do lag behind.” In the past two decades, China and India have grown faster than the already rich nations. However, countries like Africa still have the highest poverty rates, in fact, the rural areas of China which do not tap on global markets also suffer greatly from such high poverty . On the other hand, developed countries set up their companies and industries to the developing nations to take advantages of low wages and this causing pollution in countries with poor regulation of pollution. Furthermore, setting up companies and factories in the developing nations by developed countries affect badly to the economy of the developed countries and increase unemployment.
2- Education and Health Systems
Globalization contributed to develop the health and education systems in the developing countries. We can clearly see that education has increased in recent years, because globalization has a catalyst to the jobs that require higher skills set. This demand allowed people to gain higher education. Health and education are basic objectives to improve any nations, and there are strong relationships between economic growth and health and education systems. Through growth in economic, living standards and life expectancy for the developing nations certainly get better. With more fortunes poor nations are able to supply good health care services and sanitation to their people. In addition, the government of developing countries can provide more money for health and education to the poor, which led to decrease the rates of illiteracy. This is seen in many developing countries whose illiteracy rate fell down recently. It is truth that, living standards and life expectancy of developing countries increase through economic gains from globalization. According to the World Bank (2004) ” With globalization, more than 85 percent of the world’s population can expect to live for at least sixty years and this is actually twice as long as the average life expectancy 100 years ago”. In addition, globalization helped doctors and scientists to contribute to discover many diseases, which spread by human, animals and birds, and it helped them to created appropriate medicines to fight these deadly diseases. For example, HIV/ADIS, swine flu and birds’ flu whole world know about these diseases and they know how to avoid it. By globalization, there are many international organizations, such as, Non-governmental Organization (NGO), World Health Organization (WHO) and UNESCO, trying to eliminate illiteracy and deadly diseases in the world and save the life. In spite of these positive effects of globalization to the education and health fields in the developing countries. However, globalization could have negative impacts also in these fields; globalization facilitates the spread of new diseases in developing nations by travelers between countries. Due to increased trade and travel, many diseases like HIV/ADIS, Swine Flu, Bird Flu and many plant diseases, are facilitated across borders, from developed nations to the developing ones. This influences badly to the living standards and life expectancy these countries. According to the World Bank (2004) “The AIDS crisis has reduced life expectancy in some parts of Africa to less than 33 years and delay in addressing the problems caused by economic”. Another drawback of globalization is, globalized competition has forced many minds skilled workers where highly educated and qualified professionals, such as scientists, doctors, engineers and IT specialists, migrate to developed countries to benefit from the higher wages and greater lifestyle prospects for themselves and their children. This leads to decrease skills labour in the developing countries.
3- Culture Effects
Globalization has many benefits and detriment to the culture in the developing countries. Many developing countries cultures has been changed through globalization, and became imitate others cultures such as, America and European countries. Before globalization it would not have been possible to know about other countries and their cultures. Due to important tools of globalization like television, radio, satellite and internet, it is possible today to know what is happening in any countries such as, America, Japan and Australia. Moreover, people worldwide can know each other better through globalization. For example, it is easy to see more and more Hollywood stars shows the cultures different from America. In addition, today we can see clearly a heavily effect that caused by globalization to the young people in the different poor nations, it is very common to see teenagers wearing Nike T-Shirts and Adidas footwear, playing Hip-Hop music, using Apple ipad and iphone and eating at MacDonald, KFC and Domino’s Pizza . It is look like you can only distinguish them by their language. On the other hand, many developing countries are concerned about the rise of globalization because it might lead to destroy their own culture, traditional, identity, customs and their language. Many Arab countries such as Iraq, Syria, Lebanon and Jordan, as developing countries have affected negatively in some areas, their cultures, Developing Country Studies http://www.iiste.org customs and traditional have been changed. They wear and behave like developed nations, a few people are wearing their traditional cloths that the used to. Furthermore, globalization leads to disappearing of many words and expressions from local language because many people use English and French words. In addition, great changes have taken place in the family life, young people trying to leave their families and live alone when they get 18 years old, and the extended family tends to become smaller than before (Kurdishglobe, 2010).
Conclusion
In conclusion, as we can see, the process of globalization has involved all the countries around the world. Developing countries such as India, China, Iraq, Syria, Lebanon, Jordan and some Africa’s countries, have been affected by globalization, and whether negatively or positively, the economies of these countries have improved under the influence of globalization. The size of direct foreign investment has increased unemployment increased due to technological advancement, poverty increased the poor are getting poorer and the rich getting richer and a lot of bad habits and traditions erased, but also globalization has brought many drawbacks to these countries as well. Many customs and cultures are disappeared such as traditions clothes and some language and expressions have changed. In addition, the violence and drugs abuse are increased and a lot of deadly diseases have spread under the influence of globalization. However, although globalization has many disadvantages, we believe that globalization has brought the developing countries many more benefits than the detriments.
Globalization is not a new phenomenon from the historical point of view, but the process has greatly
accelerated during the past decades. Economic deregulation, financial liberalization, increased flow of
goods and services – underpinned by the developments in information and communication technology
– have distinguished the new phase of globalization. These new dimensions of globalization have
increased both opportunities and risks for the nations to achieve sustainable development for their
citizens. This has particularly become a major concern as the gains and losses emanating from
globalization have not been shared equitably within and among the country.
Thus, to make the nations capable of realizing the opportunities and managing the challenges of
globalization more efficiently, capacity building of individual countries has become one of the most
fundamental prerequisites for ensuring competitive development. However, this process of capacity
building of the state remains largely conditioned by the contextual realities of specific countries.
NWOBODO IFEANYICHUKWU VICTOR
2017/249535
ECONOMICS
Globalisation is a blessing and a curse. It has led to economic growth and development, technological transfer that has helped to leapfrog the economy of days countries, information and communication transfer, knowledge transfer etc.
But it is not without it’s demerits. This same globalisation as increased neocolonialism Dynamics in developing nations. Competition between domestic markets and more developed countries that have an headstart is also detrimental to developing countries because it leads to unemployment and lower production in supply side and also product mismatch as local consumers are most times not the target market for these products. Globalisation also have effects on a community identity because it leads to feeling of inferiority to more developed countries and cultural appropriation by more advanced countries. And among the technology that is transferred, labour saving capitals are so moved leading to increase unemployment and poverty in recipients country. Note: At times, the case is different in more developed countries as technological progress creates employment in it’s production even if it leads to unemployment in its use. So there is an employment transfer and not replacement. The case is not the same in developed countries.
Esokawu Jonathan C.
2017/249500
Economics
The Globalisation that occurred in the 1900’s was one tagged as “growth accompanied with marginalisation” this term connote a paradoxical development; in this sense, the producer nation experienced skyrocketed economic growth at the expense of the proletariat or labourer (who at that time where largely exploited). While the consumer nations (non producers) experienced increased poverty and unemployment. In addition to this both producer and consumer nations experienced social disintegration.
From the foregoing, Globalisation was a blessing to the capitalist at the helms of affairs in the so called “first world” countries, at the same time a punishment to the labourers that sweat their blood to keep the economy in smiling state. These two paradigms brought about a social disintegration amongst the haves and the have not in this advanced nations. While the masters dined on golden plates and silver spoons the labours burnt coal in the factories to keep production going 24 hours a day with little to no breaks. This social disintegration accompanied with poor working conditions soon became the breeding ground for movements such as Fascism, Communism and socialism that changed the 20th century.
However, for most consumer nations the story was different. High unemployment, increased poverty, and social disintegration plagued the non-producer nation. This unemployment was as a result of an increased interest in non exiting white collar jobs and a shift from agricultural means of subsistence to dependence on crude oil proceeds and importation. While globalisation was busy making Europe wealthy, it was unforgiven in making Africa poor and unemployed; infant industries lost the battle to their foreign counterpart, who had superior technology harnessed for production, dumping became rampant in African nations.
This paradox extends within the Nigeria; the political elite siphoned the wealth created from crud oil export (note that crude oil proceeds are benefits of globalisation). While the citizens suffered hunger and unemployment, the popular solidarity call for a “national cake” was left unattended to. Additionally, the elites were living large and imbibing the western lavished style of living while the majority of the nation’s threw away the culture that had sustained their ancestors to search for greener pastures in the developing urban cities like Lagos and Abuja, at most times dancing to the tones of the “political musicians”
In summary, yes globalisation has a tail of oxymoron. However, with recent advent of the proliferation of technology, developing nations have come to a moment of destiny, should she embrace the opportunities it present and actively minimise it demerits. Then globalisation, alas, would have reached it Pareto Optimal solution for a united world, highly integrated and reasonably fair to all “social class.”
Globalization is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
hanging and developing and becoming increasingly difficult to define. More and more companies are finding themselves managing a global workforce as a result.
Now what are the effects of globalization (positive effects/advantages and negative effects/disadvantages)?
The advantages of globalization for business:
1. Ability to tap into a wider talent pool
When fully taking advantage of globalization, you are no longer restrained by talent that is available in your city. Today your global workforce could work from anywhere in the world with an internet connection opening you up to the brightest and best candidates the entire world has to offer.
2. New ideas due to cultural diversity:
Managing an international workforce includes teams working across different locations, people traveling and moving countries for work, having a range of different work ethics and practices and even religious differences. All of these can be challenges, but overwhelmingly are a positive thing in the workplace as it brings together different ideas and insights and perspectives.
3. Larger markets:
Globalization opens up new opportunities for businesses to sell their goods and services to a much larger markets, which means more potential sales and greater profits. Depending on the organization it can open up other opportunities in terms of distribution, logistics, marketing and management of these goods and services.
4. Earnings changes:
With more and more companies accessing overseas outsourcing opportunities, wages have decreased for many workers in the original countries. Companies in the developing world are able to offer their services at a much reduced rate from those who live in countries with greater living standards. This means that workers in larger countries are affected.
For businesses looking to take advantage of the opportunities offered by globalization, this can include paying lower salaries and having lower overheads when they operate in less developed nations. Other savings can be made in countries that have more favorable taxation and reduced red tape and business costs.
The disadvantages of globalization for business
1. Potential for IP theft:
When products are built overseas in factories on behalf of a company based in another country, there is potential that intellectual property and designs could be copied and stolen and replicated and sold for cheaper elsewhere.
2. Issues with supply chain:
Businesses committed to ethical work practices may find that they cannot always account for these standards being met at every point in their supply chain and operations. For example there may be suppliers, farmers, factory workers, logistics operators who are exploited or work in unsafe conditions.
3. Corruption:
Different standards apply in different countries, and many nations in the developing world are rife with corruption.
Name: Ngwu Osita Enoch
Reg no: 2017/242022
Email: Ositangwu95@gmail.com
Website: Enochonline.blogspot.com
Department: Education Economics
Globalization produces both winners and losers among the poor. Poor workers in exporting sectors or in sectors with foreign investment gained from trade and investment reforms, while poverty rates, unemployment and social disintegration increased in previously protected areas that were exposed to import competition. Even within a country, a trade reform may hurt rural agricultural producers and benefit rural or urban consumers of those farmers’ products.
Globalization has been associated with rising inequality, and that the poor do not always share in the gains from trade. One is that the poor in countries with an abundance of unskilled labor do not always gain from trade reform. Another is that the poor are more likely to share in the gains from globalization when workers enjoy maximum mobility, especially from contracting economic sectors into expanding sectors. Gains likewise arise when poor farmers have access to credit and technical know-how, when poor farmers have such social safety nets as income support and when food aid is well targeted as seen in Ethiopia. One conclusion is that the relationship between globalization, poverty, unemployment, and social disintegration depends not just on trade or financial globalization but on the interaction of globalization with the rest of the economic environment: investments in human capital and infrastructure, promotion of credit and technical assistance to farmers, worthy institutions and governance, and macroeconomic stability, including flexible exchange rates. The existence of such conditions is emerging as a critical theme for multilateral institutions like the World Bank.
Globalization yields several implications. First, impediments to exports from developing countries worsen poverty, unemployment rate, and social disintegration in these countries. Second, careful targeting is necessary to address the poor in different countries who are likely to be hurt by globalization. Finally, the evidence suggests that relying on trade or foreign investment alone is not enough to alleviate poverty. The poor need education, improved infrastructure, access to credit and the ability to relocate out of contracting sectors into expanding ones to take advantage of trade reforms.
Okonkwo Chidinma Alisa
2017/243086
Economics Major 300 Level
Hmmmmm, the development issues in the 1990s brought about market-friendly reform policies as well as globalization. Globalization by definition could mean the process through which a group of people or a nation get to evolve across time through various ways such as advanced technology in the areas of agriculture, transportation, communication, etc. Though globalization has its advantages and it has benefitted most countries but let’s not undermine that it has also brought along with it, some disadvantages or rather demerits.
Now, let’s take a look at countries that have embraced globalization. We’d notice that the developed countries of course that brought globalization are advancing while the developing countries they tend to be “helping” are no where near development. This is in the sense that the developed countries claim to be helping the developing countries whereas they are exploiting from them thereby leaving the developing countries worse off than they were even before.
Another case is that of unemployment. This relates to the fact that these developing countries would establish industries here in their countries but would prefer to hire those individuals that have studied abroad and have that experience rather employ their own labour that is those unemployed in the developing countries thereby increasing the unemployment level. This example is related to that Jerome and Chigozie used in class.
Moving on to the last disadvantage states in the question which is social disintegration. The term is made of two words, social meaning something that has to do with the society and disintegration gotten from dis and integration, which implies for something to dissolve or to divide into parts.
Globalization has come with the issue of making us abandoning our culture and tradition sort of. This in the sense that, globalization has opened our eyes to those aspects of the White Man’s culture that even our “ancestors” quoted by Jerome did not do or embrace but now you see developing countries trying to emulate both the good and the bad of whatever it is the developed countries have termed as “Globalization”.
UDUMA IKECHUKWU OBASI
2017/241441
Economics
ikechukwuuduma9@gmail.com
GLOBALIZATION AND IT’S EFFECTS
This comment examines globalization and its effects on third World Economic development with emphasis on Nigerian economy. Globalization is the process of interaction and integration among people, companies, and governments worldwide. It has accelerated since the 18th century due to advances in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of ideas and culture.. Globalization is primarily an economic process of interaction and integration that is associated with social and cultural aspects. However, disputes and diplomacy are also large parts of the history of globalization, and of modern globalization.
Globalization has become a whirl wind blowing across the world due to acceleration in information and communication technology thereby fostering more interactions as it shrinks the geographical boundaries of all countries into a global village. The unequal effect of globalization has preponderantly distorted third world economic development. There is lack of infrastructure in every sector of the economy. Poverty, accompanied with its consummate terminal deceases has been rife. The agricultural sector is drastically affected. The education sector is poorly funded. Income per capita has been on the downward trend with no meaningful result from policy changes. Corruption due to bad government has become the order of the day as workers strive to survive with meager income that cannot cover consumption, let alone savings and investments. The Nigerian situation has generally been a calamity as the various macroeconomic indices applied by the government has not been able to positively turn around the economy in this globalizing world. Inflation, unemployment, armed banditry and other vices continue to be on the increase, thereby inhibiting foreign trade investment. Apart from the above the inherent cultural and social values, constitute major barriers to desired corresponding result in earnings. The concluding part of this paper focused on the strategies to be adapted to free Nigeria from the clutches of economic relegation. It suggests the panacea to ameliorate or eliminate the negative effect of globalization and to domain the positive side of globalization as a vehicle for economic development of Nigeria and other Third World countries.