Globalization
Globalisation
refers to a world in which societies, cultures, politics and economies have, in
some sense come closer together. Actually, there are four major events which
increase the pace of globalization
including the collapse of the Soviet Union, the opening up and relaxation of
trade restrictions with China, the rapid development of the Internet and the
rise of India as a world centre for technology and economic development after
2000.
In the present age,
globalization is playing an increasingly important role in our lives. But in
the meantime whether it is a blessing or a curse has sparked a heated debate.
Some people argue that globalization has a fundamentally beneficial influence
on our lives, while many others contend that it has a detrimental effect as
well.
As to
the advantages of globalization, there are three main advantages. Considered as
one of the most crucial advantages, globalization has led to the generation of
numerous employment opportunities. Companies are moving towards the developing
countries to acquire labor force. This obviously caters to employment and
income generation to the people in the host country. Also, the migration of
people, which has become easier has led to better jobs opportunities. Another very critical advantage that has aided
the population is the spread of education. With numerous educational
institutions around the globe, one can move out from the home country for
better opportunities elsewhere. Thus, integrating with different cultures,
meeting and learning from various people through the medium of education is all
due to globalization. Developing countries or labor-intensive countries have
benefited the most. Finally, Capital, the backbone of every economy, is of
prime importance for the proper functioning of the economy. Today, transferring
money through banks is possible just by the click of a button, all due to the
electronic transfer making life very comfortable. Many huge firms are investing
in the developing countries by setting up industrial units outside their home
country. This leads to Foreign Direct Investment, which helps in promoting
economic growth in the host country. For
example, the UK has proved particularly attractive to overseas investors
particularly from North America and Asia. For the UK, foreign investment has
become an integral source of production, employment and income in both
manufacturing and service sectors. In UK manufacturing alone, foreign capital
accounts for over one fifth of employment, a quarter of output and nearly half
manufacturing exports. We are also seeing a fast growth of foreign
investment in the service sector. London for example has by far the largest
foreign exchange dealing platform in the world – much of which is provided by
foreign banking institutions located within the City.
We cannot deny that
globalization does exert some negative influence on us. On the one hand, it
caused uneven wealth contribution. It is said that the rich are getting richer
while the poor are getting poorer. In the real sense, globalization has not
been able to reduce poverty. Instead it has led to the accumulation of wealth
and power in the hands of a few developed economies. Therefore the gap between
the elite and the underprivileged seems to be a never ending road, eventually
leading to inequality. On the other hand, globalization results in environment
degradation to some degree. The industrial revolution has changed the outlook
of the economy. Industries are using natural resources by means of mining,
drilling, etc. which puts a burden on the environment. Natural resources are
depleting and are on the verge of becoming extinct. Deforestation is practiced
owing to the non-availability of land, thereby drastically reducing the forest
cover. This in turn creates an imbalance in the environment leading to climate
change and occurrence of natural calamities.
In conclusion, Globalisation
is a trend and is here to stay, however, global organisations are being
encouraged to think globally, act locally.
