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To What Extent Can the Assertion That Globalisation Is Exploitative Be Justified?

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Introduction

TO WHAT EXTENT CAN THE ASSERTION THAT GLOBALISATION IS EXPLOITATIVE BE JUSTIFIED? Introduction What is globalisation? Globalisation is the exchange of goods and services between nations. Many things can be 'globalised'-goods, services, money, people, information, effects on the international order as well as less tangible things such as ideas, behavioural norms and cultural practices. This makes most nations increasingly dependent on each other. There are organisations that help to foster international trade, notably the World Trade Organisation (WTO), charged with enforcing trade rules agreed to by member countries; the International Monetary Fund (IMF), established to promote international co-operation on finance) and the World Bank (WB) which provides loans to poor countries for development projects) most notably. The world has seen a momentous increase in the volume and value of international commerce, and the pace of global economic integration has accelerated rapidly. The wealth generated by global economic growth has helped to raise living standards and bring remarkable progress in life expectancy, infant mortality and adult literacy across the world. Millions of people have better lives. However, globalisation has become a contentious issue because of form in which it takes place and much debate lies over its place in a moral society. Why is globalisation said to be exploitative? There are groups that have protested against the growth of worldtrade, such as Oxfam, Friends of the Earth and Do it Nike, for various reasons. ...read more.

Middle

Employers in Malmesbury, England see a bonus in Dyson Appliance's decision to relocate its factory in Malaysia, in order to remain competitive. A local employer said: "I suppose in a perverse way this might help us.", because Dyson pays its employees the highest wages in the area, and its relocation would reduce wages. Most outward foreign direct investment from rich countries is not diverted to poor countries but to other rich countries. In the late 1990s, roughly 80% of the stock of America's outward FDI was in Canada, Japan and Western Europe, and nearly all the rest was in middle-income developing countries such as Mexico, Brazil, Indonesia and Thailand. The poorest developing countries accounted for only 1% of America's outward FDI. This means that countries are embracing globalisation at a different pace. The LDCs receive very little funds for investment while the MDCs receive high rates of FDI and can then create more wealth by utilising the funds. Anti-globalisation protesters in Genoa The WTO, IMF and WB remain constant points of criticism of globalisation. Their decisions are generally made in private, influenced by the multinational corporations and their allies in the developed countries' governments. Given their corporate bias, many decisions favour expansion of the power, rights and dominance of the largest corporations, at the expense of smaller, local businesses from the communities they serve. ...read more.

Conclusion

Nevertheless, some groups feel that these multinational presences in their countries conflict cultural norms, as demonstrations by protesters in Russia and India against McDonalds shows. Conclusion Globalisation cannot be seen as a one-size-fits-all cure for poverty. But it is part of a broader mix of solutions for poverty eradication involving the international community and the self-help potential of the poor countries themselves. The alternative of complete poverty is far worse than their current situation and is inconceivable to most people from developed countries. The table below shows how due to globalisation countries have benefited. They have adopted domestic policies and institutions that have enabled people to take advantage of global markets and have thus sharply increased the share of trade in their GDP. GDP, export and investment growth, average, 1990-97 Country GDP Exports Investment Brazil 3.1 6.0 4.0 China 11.9 15.8 14.1 Indonesia 7.5 9.2 10.0 Germany 1.6 5.6 2.3 South Africa 1.5 5.2 13.0 USA 2.5 7.0 5.0 Source: World Bank, World Development Report, 1998 Some people worry that TNCs have in fact grown too powerful for national governments and the WTO to regulate (e.g. the Chiquita case). The good news is that however powerful TNCs may be, they still respond of public pressure. Consumers can object to their actions by boycotting the products of TNCs...but then who compensates the impoverished workers that may loose their jobs as a result? Therefore, the assertion that globalisation is exploitative cannot be wholly justified because along with exploitation it brings with it some positive change. ...read more.

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