What is Globalisation?

Environmental Aspects

Environmental problems are increasingly becoming global problems. Therefore, countries are no longer able to look at environmental issues in isolation. This has been dramatically illustrated for example by the nuclear disaster at Chernobyl, the depletion of the ozone layer and acid rain over Scandinavia. Countries now need to act collectively (as per the Rio Conference) for there to be any chance of reversing or just slowing the damage being caused to the environment.

Globalisation involves certain risks, such as environmental degradation due to development, shifting employment patterns leading to stress and anxiety, heightened job insecurity and de-skilling (such as the infamous 7-Up case in Malta last year), decline in traditional influences and loss of self-identity, erosion of family patterns, and democratization of personal relationships.

Capitalism/ Labour/ Economic Aspects (Main disadvantage section)

Economically, greater world integration or globalisation has been greatly encouraged since the Second World War, with the introduction of free trade agreements such as GATT (General Agreement on Tariff's and Trade). Additionally, regional trade agreements have also been developed, which have included 'single markets' established by the European Community and NAFTA (North American Free Trade Agreement). ufyyKDu Visit coursework ee in ee fo ee for ee more

3rd World countries are seen as a sight for cheap labour and low maintenance factories. Studies show that major companies such as Nike and Shell have factories in Africa whereby they exploit the cheap labour costs (www.pbs.org/globalisation). The governments of these 3rd World countries compromise their culture due to the fact that they have been brainwashed into believing that the capitalist world that the west nurtures is a better way of living. Globalisation has caused a world system of exploitation producing what Friedman coins a world elite. This new class system perpetuates the dark side of capitalism as fewer individuals are getting richer and a lot more people are getting poorer. This new elite now has the capital and the political power to exploit any nation to make money.

Globalisation of the economy has not been based purely on free trade but also on the free movement of capital. This has promoted direct foreign investments from one country into another (e.g. massive Japanese investment into the EU, especially the UK) which has had a strong influence on the globalisation of the national economies. As an economic phenomenon, globalisation has resulted in a shift away from a world of distinct national economies to a global economy in which production is distributed internationally and finance is able to flow freely and instantly between countries. Multinational businesses have vast economic powers, whilst institutional investors and financial gurus such as George Soros are capable of influencing the currency rates, economic policies, and interest rates of individual nation states (e.g. September 1992, the UK was forced to leave the European Exchange Rate Mechanism). The framework of rules within which economic activity takes place is increasingly defined within the international framework of organisations such as the WTO (World Trade Organisation), the IMF (International Monetary Fund), the World Bank, the OECD (Organisation for Economic Co-operation and Development) and G7-8 summits, together with the regional trading blocks such as the European Union and NAFTA.

It is a common belief when discussing the impact of globalisation upon the state, that it is almost certain to lead to a loss of democracy, as the powers of the state are likely to be compromised in the context of both economic and social functions. This is a belief questioned in substantial detail by Norina Hertz of Cambridge University in her most recent book entitled, "The Silent Takeover". In the silent takeover, she defines the extent to which democracy in the modern world is at risk from the rising trend of global capitalism. When concluding, Norina argues that there is a loss of democracy which she refers to as a "democratic deficit" resulting from the tide of globalisation, as although governments exist as elected representatives of the people, they are more willing to consider the needs of "big business", rather than the needs of the electorate.coce cer sececew orce cek ince foce ce:

"The apparent inability or unwillingness of our elected representatives to defend our interests against those of business has created a cycle of cynicism. People do not look to government to solve their problems, and politicians therefore have little to lose if they focus their attention on business rather than on voters." (Norina Hertz, 2001)cobb bbr sebbbbw orbb bbk inbb fobb bb;

Furthermore, it is apparent that globalisation is almost certain to result in a minimized role for the state in the allocation of economic resources, in favour of multinational firms which aim to maximize profits and produce at the lowest cost of production. However, as Sir David Henderson suggests, even if all the economic barriers to free trade were to be removed, there would still be a role for the state in the provision of public goods which would be underprovided if provision were left to the freemarket due to the freerider problem.coad adr seadadw orad adk inad foad ad.

A major economic barrier which would need to be overcome before the true effects of globalisation could be realised exists as the use of protectionism by national governments. Protectionism exists as the means by which governments are able to protect domestic industries from overseas competition, most commonly through the use of tariffs and quotas. For example, in March 2002 the US government imposed a variable tariff on imported steel to protect the heavily inefficient US steel industry from more efficient overseas competition. However, it is often argued that protectionism leads to a less allocatively efficient allocation of resources, as resources are concentrated upon the supply of goods and services in inefficient domestic industries, which lack a comparative advantage relative to goods and services produced abroad. Thus by removing protectionism from international markets and allowing a free movement of capital between states, economy's will be forced into concentrating resources upon the supply of goods and services which benefit from a comparative advantage, or in more simple terms, can be produced at a lower opportunity cost of supply relative to other goods and services produced domestically in the economy. As a result of this, global output is almost certain to rise, arguably leading to an increased standard of living for all people as both the range and quality of both capital and consumer goods should improve as firms seek new and innovative production techniques. Consequently, the removal of trade barriers as a result of the pursuit of global capitalism is almost certain to be beneficial to the entirety of mankind as the long run trend rate of GDP is almost certain to be upwards, almost certainly resulting in a higher standard of living, and higher real incomes, although the latter is obviously subject to alterations in the Retail Price Index. Weber enveloped goldilockz's rationalisation .

A common critique of globalisation is that although collectively it results in increased economic growth, many academics believe that it results in an inequitable distribution of income, or more simply, a rising gap between the rich and poor. A study by David Dollar and Aart Kraay of the development research group of The World Bank entitled "Growth is good for the poor", evaluated whether or not there is a proportionate financial benefit to the poorest fifth of society derived from economic growth compared to the rest of society. In their findings, Dollar and Kraay stated that:coad adr seadadw orad adk inad foad ad:

"It should come as no surprise that the general relationship between growth of income of the poor and growth of mean income is one-to-one."(Dollar and Kraay, World Bank) Durkheim suppressed goldilockz's structuralism idea.

Furthermore, Dollar and Kraay identified that so called "growth-enhancing policies" are socially desirable with the aim of successfully reducing poverty, as opposed to being damaging to the poorest groups in society.cobg bgr sebgbgw orbg bgk inbg fobg bg;

"What we do learn is that growth generally does benefit the poor as much as everyone else, so that the growth-enhancing policies of good rule of law, fiscal discipline, and openness to international trade should be at the center of successful poverty reduction strategies." (Dollar and Kraay, World Bank)coag agr seagagw orag agk inag foag ag.

Similarly to the aforementioned findings of the study by Dollar and Kraay, Bill Clinton made a thought-provoking speech at the World Economic Forum in 2000, in which he suggested that the pursuit of global capitalism is a way in which the income distribution in society can be narrowed.coaa aar seaaaaw oraa aak inaa foaa aa.

"We have to reaffirm unambiguously that open markets are the best engine we know of to lift living standards and build shared prosperity." (Bill Clinton, World Economic Forum 2000) g6rxi from g6rxi coursewrok g6rxi work g6rxi info g6rxi

Thus if the aforementioned findings and views of Clinton, and Dollar and Kraay are to be believed, it would be unwise to suggest that globalisation leads to anything other that an equitable distribution of income, and thus should be a favourable economic and social goal for respective governments to pursue.coed edr

A further factor which is crucial to consider when evaluating the impact of globalisation is the effects which it imposes upon both domestic and international labour markets. Firstly it is clear that globalisation will result in increased labour market flexibility, as it will become far easier for people to move between jobs domestically, and furthermore internationally as labour legislation is removed and barriers between states are broken down. For example, as a result of the continuing decline in the UK manufacturing sector in favour of tertiary sector industries, it is likely that labour skilled in the service sector will migrate to the UK from abroad in pursuit of high wages and as a result, unskilled labour in the UK will be forced into either relocating abroad to countries which posses a comparative advantage in secondary sector industries, or competing for relatively few jobs in the UK manufacturing sector with low wages. This is a clear example of a way in which a freer movement of labour could result in diminishing job opportunities for unskilled workers in developed western democracies as a result of cheaper labour in developing countries. However, although the decline in job opportunities for unskilled workers could be perceived as one of the failings of globalisation, the resulting labour market specialization is almost certain to lead to more productively efficient production techniques, a point which was identified by Adam Smith in "The Wealth of Nations" Chapter 1 - Of the division of labour, where he examines labour market specialization in context to a pin factory. Heidegger enveloped goldilockz's postmodernism theory.

"Even in a small manufactory of this kind where ten men only were employed, and where some of them consequently performed two or three distinct operations ... those ten persons ... could make among them upwards of forty-eight thousand pins in a day." (Adam Smith, The Wealth of Nations)

They suggest that negative consequences of this may include a reduction in the power of governments to control their own affairs. Although this is an important issue, worry from the perspective of an economist is the extreme pursuit of economic development with no consideration of health or ecological issues

However, a disadvantage of globalisation is that the UK is dependant on imports, especially as it is a net importer. For example, it is more than a nuisance if OPEC restricts supply or push up prices. goldilockz, please do not redistribute this paper. We work very hard to create this website, and we trust our visitors to respect it for the good of other students. Please, do not circulate this paper elsewhere on the internet. Anybody found doing so will be permanently banned.

Also, globalisation could mean the loss of domestic jobs and higher unemployment, which is why President Bush earlier this year imposed a tariff on steel. He did this to protect the interests of the US steel industry, although it was met with retaliation. Hence it can be said that globalisation is beneficial only when everyone is willing to participate in it and cope with it. Protectionism can often get in the way, but then again protectionism is to 'protect' the country.code der sededew orde dek inde fode de.

Seeing as the UK is more dependent on imports that exports, globalisation can add to its balance of payments deficit, which hit 33 billion pounds in 2001. Of course, it depends however on the elasticity of demand for both exports and imports.

There is much debate over the effect of Globalisation, some argue that national cultures are becoming similar, which is known as Homogenisation whilst others claim that resistance is taking place. Tunstall, who is in favour of Homogenisation, focuses on the dominance of the culture and states that it is difficult for nations to protect their own culture and therefore national cultures are being eroded. Sturner, who is against Homogenisation focuses on MTV Europe and states how it is independent from its US parent company. Paul claims that because there is a massive increase in migration and immigration during the last half oh the twentieth century cultural pluralism has occurred. this means that many different cultures exist in a single society. Paul argues that this leads to cross fertilisation of cultures and creates new cultural identities. He also claims that the emergence of new cultures is not inevitable and that in many cases there is a fierce resistance to Globalisation. Globalisation can be linked with the collapse of communism. Some claim that the world economy is evidence of world capitalism. Lash and Urry claim that modern societies have reached a new global stage. They argue that disorganised capitalism has occurred and this means that powerful multi-national companies exist separately from any particular nation state. They argue that such companies can undermine the power of individual nation states, such as, such companies can shift their manufacturing operations to LECD's (Labour costs cheaper) for example, Nike, Reebok and Ford.c While global forces seem to weaken the power of the nation state from outside, they can also do so from within. Trans-national and global relationships may also strengthen 'localism or small scale nationalism'. Ethnic and national groups seeking independence from large states can look to trans-national organisations or system of security to assist them in asserting their independence claiming nationhood. In Western Europe Scottish nationalists have stressed the practicality of becoming independent from England while remaining within the EC.Bonnet states 'It has come to seem that almost any people with a shared culture or language now comes to define itself as a nation. And once they define themselves as a nation, the logical step in the contemporary world is sovereign independence and national self-determination. from this point of view the power of the nation states is under threat from two directions: Internationalism threatens to reduce the power of states to exercise power independently; the second is small scale nationalism and localism threaten to undermine the unity of existing states.coce cer sececew orce cek ince foce ce!

However, many people have argued that there has been a great revival of nationalism in recent decades. Individuals usually seem to identify more with their nation then any other grouping. Nationalism can be seen as present in the 'new racism' described by Gilroy in demands for independence by the Scottish and Welsh in Britain, Basques in Spain and Bretons in France. Nationalism was important in the collapse of the USSR with demands for independence coming form Lithuania, Estonia, and the Ukraine and elsewhere contributing to the break-up of the country. Whether or not Anderson is right to attach such importance to nationalism, it has certainly been neglected in much social theory and it is clearly an important feature of social life and one which shows little sign of becoming less important.

The main concern of the International Forum on Globalisation (IFG) is 'the emergence and growth of corporate trade and banking institutions that are not accountable to democratic processes or even national government'.

Globalisation has raised fears that the sovereignty of nation states is being undermined. If sovereignty can be defined as the ability to exercise control without outside interference, then nation states are clearly experiencing diminishing sovereignty. Governments must recognise and work on the assumption that most issues they are required to deal with are affected by or will affect to some extent the international competitiveness of the country.cofa far sefafaw orfa fak infa fofa fa:

Governments' own responses to globalisation or the search for joint solutions to global problems have further effects upon sovereignty. Participation in international organisations or the adoption of international agreements puts limits on policy options available to governments. This may even require modifications to long-standing domestic policies and practices.coee eer seeeeew oree eek inee foee ee:

Interdependence is narrowing the degree of domestic policy independence. Unilateral action may not be the most effective way to achieve policy goals. For example, the exploitation of resources such as fisheries would inevitably result in the severe depletion, if not destruction, of common stocks (European Common Fisheries Policy) . Many other important policy goals cannot be met by governments acting alone. In combating environmental problems and international crime etc, the interests of individual nations, therefore, may only be protected by collective action. This coursework from www.coursework.info

The competition for international investment encouraged by the activities and mobility of multinational enterprises means that most traditional domestic policies such as education and training, taxation, social protection, economic regulation and labour legislation have become international. Even a nation's domestic management policy is a matter of great concern to its trading rivals, because this will ultimately affect a country's efficiency and consequently its competitiveness. Government policies must increasingly be made more consistent with or competitive against those of their main trading rivals. This was highlighted by Britain's decision to opt out of the Social Chapter of the Maastricht Treaty.

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. Critics like author Naomi Klein say that multinationals exploit workers around the world by shifting production to the cheapest locations. 87fdIk from 87fdIk coursewrok 87fdIk work 87fdIk info 87fdIk

One major concern expressed is the influence of Trans-national corporations (TNCs) on the politics of the host country. Aside their control of two thirds of all world trade and 80 per cent of foreign investment, it has been argued that (for TNCs) profits rule, not people. Governments have been accused of bowing down to businesses, even to the extent of subverting the democratic system and moral values in a country. Chiquita, an American TNC with banana-producing presence in the Caribbean Islands lost some of its patronage from the EU to smaller Caribbean farmers and as a result lobbied the US Congress to approve higher taxation of British imports such as Cashmere sweaters by up to 100%.cofa far sefafaw orfa fak infa fofa fa;

Free trade and foreign direct investment may take jobs from workers in the advanced industrial economies and give them to cheaper workers in poor countries. The North American Free-Trade Agreement (NAFTA) means that there no restrictions to stop an American manufacturer closing down a factory in the United States and opening a new one in Mexico. The increase in the local supply of labour caused by the redundancy could drive down other wages while the workers in the LDCs are drawn into jobs that exploit them.cofe fer sefefew orfe fek infe fofe fe.

The processes of globalisation have facilitated the destructive impact of TNCs on the environment. They capitalise on the reluctance of governments to enforce environmental laws on them. Even when governments prosecute TNCs for violating environmental regulations they let them off with a slap the wrist, for example, ICI being fined only £51 540 for its pollutive activities, despite an annual profit of more than £630 million. Nike uses bags of sulphur hexafluoride in its trainers as cushions (SF6 has 35,000 times the global warming potential of CO2). Animal Kingdom, a 500-acre addition to Disney World, Florida was built on natural wetland thus leaving animals caught in the wild to die. goldilockz, please do not redistribute this work. We work very hard to create this website, and we trust our visitors to respect it for the good of other students. Please, do not circulate this work elsewhere on the internet. Anybody found doing so will be permanently banned.

Multinationals are criticised for using child labour in some countries where there is ineffective legislation, as a way of cutting costs. According to the ILO, in 1996 73 million children between the ages of 10 and 14 work in the world. There was a storm just before the 1998 World Cup, after footballs bearing the Manchester United club crest were being made by child labourers in India, working for as little as 6p an hour.

Nike, the sports garment producer previously owned manufacturing plants in the US and UK. Now however 100% of its production capacity is sub contracted to Asia. Typically these countries include South Korea and Taiwan. At the moment partnerships are diminishing as wage levels "spiral" making production costs greater. New networks of contractors have been sourced in Indonesia, Malaysia and China. The Nike Athletic shoe factory in Wellco, China, sees shocking working conditions with workers in shoe production paid approximately 87 US cents per hour if experienced, workers are expected to commit between 77-84 hours per week, 11-12 hour shifts per day, and 7 days a week. This is however not where the slaves labour ended. Workers are fined if they refused to work overtime; there is no enhanced pay rate for those who do overtime; the overwhelming majority have no legal work contract; corporal punishment for slow work was common place and there was the arbitrary fining of talking and of pregnant and older women (above 25 years). Most workers had never heard of Nike's code of conduct. (No Logo N.Klein, Flamingo 2000) yet it is these workers who make the millions of dollars for the company each year.cobc bcr sebcbcw orbc bck inbc fobc bc:

The lack of legislation for workers and indeed human rights in general, coupled with the cheap labour and material costs make the Far East the ideal choice of location for firms like Nike. However, people are becoming aware of how global agreements such as NAFTA are perpetuating sweatshop labour and how institutions such as the World Bank are not helping peripheral economies. Admittedly global companies do offer opportunity, but only in the short term, with jobs anyway amounting to little more than slave labour. b5bNE from b5bNE coursewrok b5bNE work b5bNE info b5bNE

In conclusion it is possible to see that the rise and growth of the united global market has led to the rise and all conquering domination of the Trans national corporation. N.S.M's are the opposition to firms such as Nike and Gap seeking to open the eyes of the world to their plight. This essay has shown the intervention from organisations such as the W.T.O and NAFTA has led to great opposition. These organisations are seen as invasive and non productive to economic development, whilst also promoting the homogenisation of cultures. The future of globalisation is by no means in doubt and I have no hesitation I saying that it will grow from strength to strength and N.S.M's will never manage to eradicate the Trans national corporation and the domination of wealth. What N.S.M's such as the P.G.A will achieve is to give the topic of globalisation greater publicity, making people aware that the global market, although good for the developed west has a cruel and somewhat uneven flip side

Marxism and other theories

Stuart Hall has pointed out that 'the great discourses of modernity', Liberal and Marxism, both led people 'to expect not the revival but the gradual disappearance of the nationalist passion'. In Marxist theory classes, not nations, would become the great historical actors while liberalism saw national differences as being eroded by a global market in which trade limited all parts of the world. a number of contemporary sociologists also claim that a process of Globalisation has been taking place. in this process national boundaries become less significant in social life: communication systems such as satellite TV transcend them. The world's financial markets are linked by technology so that movements in share prices in one country can instantaneously affect prices on the other side of the world. International organisations such as the UN and the EC also reduce the importance of nations, while travel gives individuals a less localised view of the world.coee eer seeeeew oree eek inee foee ee:

Stuart Hall claims that individual nations states may respond to globalisation in a number of ways, he identifies three: Cultural Homogenisation, this is where the national cultures and identities are eroded, the main course of this is multinational media and improved communications and travel, such as, Mc Donald's and Coca Cola; Cultural Resistance, which is when the national states may act to preserve their identity, for example, the French government have acted to protect their language against Americanisation. All over the world there is a resistance to Globalisation, for example, Anti-Mc Donald's campaigners, and Islamic Fundamentalism, which is where many Islamic states reject western influences and see it as a threat to their ID; Emergence of New Identities/Hybridity, the global nature of the media, greater migration, allows natural cultures to mix and influence one another. As a result national cultures are consistently changing, i.e., are fixed but not dynamic. and therefore new national identities are emerging.

The Dependency Theory, which derives from Marxist thought, largely supports the view that globalisation benefits rich industrialised nations more than developing countries. As UN Secretary-General Kofi Annan pointed out in his recent report on the impact of globalisation, the world's poorest countries have not just been left out of the equation; they have also borne the negative impacts of globalisation on their economies. Theorists believe that through setting up Trans-National Co-operations in developing countries, poor countries are forced to depend upon western countries. Frank put forth the idea that the less developed world has under-developed because western powers have invaded poor countries and exploited their human and material recourses through colonialism. Even though TNC's can create some employment, the work is often badly paid. Trade in each of the major commodities is dominated by a handful of multinational companies that have the power to dictate prices to small producers. The global market strongly favours the rich, as they are the ones who control it. Rich countries force poor countries to sell them cash crops rather than manufactured good, and subsequently very little financial benefit flows from the rich to poor countries. Prices for primary commodities (excluding oil) have fallen by 50% in real terms over the past 20 years, and the trend is set to continue. For countries dependent on these commodities, globalisation is directly responsible for their economic decline.

The Modernisation Theory would disagree with this assessment, as they would point out the possible benefits developing countries can gain. Modernisation theorists would argue that the presence of TNC's would create a capital for growth and development within the country. This would definitely be a positive element to globalisation, as it would allow the poorer countries to develop and modernise. TNC's would also introduce technology for modernisation, create employment and create access to foreign markets. Each of these aspects of TNC's would be beneficial for the hosting countries. However, it is clear that though there are some benefits for developing countries, they are far outweighed by the benefits reaped by the more developed world. Also, countries such as the UK have been able to maintain their developed status due to extracting resources directly from developing countries. For example, the UK recruits teachers and nurses from developing countries and brings them over to work in the UK. Therefore, developing countries are unable to develop, as their skilled and educated members are leaving for more developed countries, where they can be guaranteed employment and higher wages. This is extremely unfair, as the developing countries then remain dependent on the economically developed countries for aid, as they are prohibited from developing their own societies.

Developing Countries

The History and Past of Globalisation

Globalisation is a phenomenon that has been in existence for centuries, from the development of the spice industry through until the present day. The emergence of the internet and the widespread use of telecommunications and digital technology as well as the improvements in global transport infrastructure have combined, making the ease of developing a global network increasingly simpler. Axford sights the historical dimension, pointing to the impact colonialism and imperialism upon the development of a global market. Giddens, on the other hand, focuses upon locality and territory, arguing that globalisation is not about grand centre stage activities such as corporate mergers but increasingly about the autonomy of life worlds. What scholars share is the notion of social connection and interaction.

The Roman Empire was a global society as the Romans ruled much of the known world. They used colonialism as an economic process in order to globalise themselves. From these colonised areas they obtained goods and raw materials which they could ship across the world.

Economic "globalisation" is a historical process, the result of human innovation and technological progress.

Economic globalisation is not a new phenomenon. The world has experienced periods of extensive economic and political integration in past centuries; some have been more pronounced. The early 16th century or late 19th century were, most notable, two golden "golden eras" of commerce, characterised by open markets and extensive international trade. Yet the current globalisation process is fundamentally different in it's scope, depth, and institutional characteristics. The current process of integration is truly global; as well as multidimensional It is market-based, driven by powerful economic forces, and accelerated by a technological revolution. It is also supported and shaped by an extensive and ever-growing web of international organisations and rules, formal and informal, public and private

Globalisation, on the whole offers huge scope to improve the efficient allocation of resources and derive the benefits of international trade. It is fuelled by trade, movement of factors of production, the increasing number of Multi-National Corporations and the new technology. enJ Visit

There are four main factors that have contributed to globalisation in recent years. Firstly, there is the freer movement of goods and services between countries. This is known as free trade and theoretically each country should concentrate in the production of those products in which is has absolute advantages, the greatest comparative advantages or the least comparative disadvantages.cFree trade is promoted internationally and regionally by a number of trading blocs and organisations like so called "world wide clubs" and "regional clubs". The most important and relevant one is probably the World Trade Organisation (WTO). The WTO has pushed along globalisation because it discusses trade issues, establishes agreed rules and takes appropriate measures when these rules have been broken. It has 130+ members and membership is conditional on the grounds that countries must follow trade policies of a broadly free trading nature.c

The other main trading bloc is the EU. It has helped globalisation because it enjoys a single currency that further unites and integrates the current 15 members. The EU allows the liberty of inter-member movement with goods, services and labour alike. Free trade has lead to globalisation in recent years because countries can enjoy exports and imports of great quality and lower prices. Globalisation is also about improving current economic situations, and if consumers are satisfied then they tend of spend more, hence generating a larger amount of money in the economy which in turn inspires even more globalisation.

Another factor which has led to the process of increased globalisation is the freer movement of the factors of production, i.e.: land, labour, capital, enterprise. If we first consider the physical capital like tools, infrastructure and raw materials; in the past it was more convenient for a country to just make use of it's own resources. It was either extremely expensive or not allowed for these to move about. But since deregulation, freer movement of factors of production exists.

This freer movement of factors of production, which includes capital and labour mobility has led to globalisation as different countries' resources has become open to the world market. The United Arab Emirates, for example, exports a large amount of aluminium and generates a massive sum of money from this. However, to do this is has to obtain bauxite (the raw material) and this is possible because of the freer movement of factors of production.cofb fbr sefbfbw orfb fbk infb fofb fb.

The 3rd factor is the freer movement of firms; more specifically globalisation has been led by the growth of Multi-national Corporations (MNCs). They are such an integral part of globalisation that the sales of MNCs such as General Motors and Ford exceed the entire gross domestic product of many countries. This hypothesis from www.coursework.info

A Multi-national corporation is a company that has significant production operations in at least two countries, e.g. Starbucks or Sony. These large firms exist because of economies of scale, marketing, and lots of political power.cobc bcr sebcbcw orbc bck inbc fobc bc.

MNCs help globalisation because without them there would be far less trade and innovation. MNCs have increased the amount of world output significantly and this has improved living standards throughout. MNCs create new jobs in other countries, giving rise to opportunity for the country they are operating in, and generating money for their own country. Multi-national corporations and globalisation is inevitably leading to a shifting in production from the First World to the Third World, where labour is cheaper. This is an example of globalisation as countries become more interdependent on each other.

The fact that this has been taking place for so long has ensured that no country is capable of surviving on its own because nobody is self-sufficient. People today are becoming more interdependent because a global mentality is being encouraged and taught. However, true globalisation was slowed until 1990, the end of the Cold War, because until then the world was divided in two. Nonetheless, many colonised countries (including Malta) still display strong influences, especially in language and culture, adopted from their colonisers. Therefore, globalisation inflicts social change upon a country or area. People are being socialised into other cultures. However, this doesn't necessarily mean that a country is losing its own culture - it is simply updating it.

Implications for businesses

The process of globalisation has three distinguishable phases for the individual business:

Companies with a national focus look to expand their markets by selling abroad.

o They develop bases in overseas markets from which they can service their sales activities.

o They go on to develop sources of inputs based on the cost advantages of a wide variety of locations.

Global companies have passed through each of these phases and have fully integrated operations. They then go on to expand through inorganic growth.

Firstly, a free movement of capital will induce free movements of foreign direct investment, allowing multinationals to locate in countries which are most favourable to their economic sectors. Thus a tertiary sector company will wish to locate in a country which has a comparative advantage in the tertiary sector, whereas similarly, a manufacturer will wish to locate in a country which possesses a comparative advantage in secondary sector industries. Secondly, as a result of capital being more mobile, firms will be able to alter their location to coincide with changes in the conditions of supply to ensure that they are operating in the most profitable economic climate. However, it can be argued that the rising market share of multinational firms in domestic markets leads to a loss of national identity as smaller firms, and independent businesses are pushed out of markets as they cannot compete with the huge cost advantages of larger firms which supply homogenous goods and services, two widely publicised examples of such multinational firms exist as McDonalds and Starbucks.

Another consequence of globalisation is that there has been increased competition domestically and internationally. Increased competition forces domestic UK firms to be efficient if they want to retain profitability and as part of competitive practices prices are lowered to consumers and quality is improved. Because of this consumption may well rise, leading to a boost in aggregate demand and economic growth, as shown below. Another factor contributing to higher AD would be exports as well.coaf afr seafafw oraf afk inaf foaf af.

Globalisation and technology has also given UK firms the power to exploit economies of scale and to gain x-efficiency through computers, the Internet, etc. With reference to the airline industry, the low budget airlines enjoy massive efficiency and economies of scale as they have minimal administration costs due to flights being arranged via the Internet, and communication costs have fallen dramatically in real terms. iE7 from iE7 coursewrok iE7 work iE7 info iE7

Again, due to successful firms within the UK, more money is generated and through the multiplier factor (which states that an increase in autonomous expenditure will lead to an even greater increase in national income), this will feed in to increase consumption and hence aggregate demand and economic growth. This dissertation from www.coursework.info

Another advantageous implication of globalisation for the UK economy is that foreign investment into the UK will increase due to freer movement of money capital. Aggregate Supply and aggregate demand will increase, leading to an uncertain outcome with inflation and an unambiguous increase in economic growth as shown on the next page.coge ger segegew orge gek inge foge ge.

UK trans-national companies will seek to establish a global trading platform in markets where they have a significant position, which is what MNCs do, and through this they generate not only profit for their home country, but create many jobs and opportunities for the foreign country they are operating in, reducing poverty and arguably narrowing the income distribution gap between rich and poor. goldilockz, please do not redistribute this dissertation. We work very hard to create this website, and we trust our visitors to respect it for the good of other students. Please, do not circulate this dissertation elsewhere on the internet. Anybody found doing so will be permanently banned.

Finally, the last major advantage of globalisation is that it, and the advancing factors that propel it, will act as a long run supply side policy. This means that aggregate supply will shift to the right over the forthcoming years as the economy expands and increases in productive and allocative efficiency. In the long run, inflation will fall and economic growth will increase to the benefit of both parties of consumers and firms.

One benefit as H. Katrak suggests is that "A country may overcome some of the difficulties of increasing investment from undemocratic resources by participating in international trade." Globalisation and openness make market access easier. Small firms which have been previously unable to export because of restricted access to foreign markets, or because of the high cost of overcoming administrative or technical barriers, can now sell their products and services abroad. The enlargement of their markets will enable them to produce more and benefit from scale economies, making them even more competitive. The resulting competition increases product quality, widens the range of available goods and keeps prices low.

Globalisation is creating jobs and bringing more prosperity to developing countries which have joined the process. While labour standards in these countries are still lower than in industrialised nations, they are rising. There is considerable evidence that multinationals investing outside their home country or region pay higher wages than local firms, create new jobs at a faster rate, and spend much more on research and development (R&D). While wage differentials will continue between rich and poor countries, they reflect factors like the level of qualification of workers and their relative productivity. Moreover, in answer to the critique of poor working conditions, workers who produce foreign products are grateful for their employment.coff ffr seffffw orff ffk inff foff ff.

Some multinational corporations do contribute to rural and urban development in their host countries. Shell Petroleum, the largest oil producing company in Nigeria has since the 1950s awarded scholarships to students in the oil-producing areas. Chevron spent $27,196,649 in 2000 on charitable contributions worldwide and in 2000 BP Amoco spent a total $81.6 million on social investment in countries where it operates.

Globalisation also allows the expansion of businesses which have come to be seen as very vital to some national economies, and to citizens. Growth markets were embraced with glee in the twentieth century by businesses such as McDonalds and Coca-Cola. They are able to expand and remain competitive by offering franchises to interested businesses. The same advantage offers Fedders the chance to sell in the vast Chinese market and to export to other Asian countries, as well as to foster new relationships with Chinese component suppliers who may be able to meet demand for lower-cost components in US factories. 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.

Overall, it can be seen that though globalisation does bring about some benefits for the developing countries, there is a prevailing sense that the rich industrialised nations gain much more than the developing countries.

Developing countries are often delighted to welcome multinational companies but there are two sides to the argument.code der sededew orde dek inde fode de.

Advocates of a free market system and 'market forces' argue that multinationals are subject to the same basic laws of supply and demand as any other business form. A host economy gains many benefits from allowing multinationals to operate. y4gkiZZi from y4gkiZZi coursewrok y4gkiZZi work y4gkiZZi info y4gkiZZi

Þ Unemployment is reduced. Multinationals are major employers of labour and can help alleviate unemployment blackspots (e.g. Nissan in the North East of England). In addition, ancillary firms such as component manufacturers and suppliers of canteen and cleaning services grow in the local area and provide additional employment.codc dcr sedcdcw ordc dck indc fodc dc;

Þ Other factors of production are employed more fully and are used more efficiently through the competition generated by the multinational. Qv9tC Visit coursework bc in bc fo bc for bc more cours bc Do bc not bc redistribute Qv9tC

Þ Advanced technology is introduced. Examples in the UK include the work that Honda did with Rover, and technology-based multinationals such as Epson (printers), Sony (home entertainment), bringing in new ideas and expertise into our economy. Training in more advanced techniques and skills also develops in the local area. This project from www.coursework.info

Þ Modern work practices which highlight teamwork, shared goals, and employee participation in decision making.coeg egr seegegw oreg egk ineg foeg eg.

Þ There is greater choice and higher income. Consumers benefit from wider product choice and the economy gains through the multinational's activities, both at home (employment rises, tax revenue is generated and greater expertise improves economic competitiveness), and by exporting (balance of payments benefits).cofe fer sefefew orfe fek infe fofe fe:

The policies of a multinational will not always benefit the country in which it is based causing a series of tensions as a result of the economic power it wields.coca car secacaw orca cak inca foca ca;

Þ The multinational concentrates on its own interests rather than those of the host country:

§ It may decide at short notice to move production out of the country, causing unemployment and other economic problems to the areas affected, and hitting the host's country's balance of payments and level of economic growth. rQzEpAX Visit coursework db in db fo db for db more project db Do db not db redistribute rQzEpAX

§ It can adjust its costs between its various subsidiaries to gain maximum benefits from one country's lower taxation requirements jNfV7 Visit coursework fe in fe fo fe for fe more dissertation fe Do fe not fe redistribute jNfV7

§ It has the power to move it's reserves between different countries, gaining financial advantage but causing currency fluctuations. SKXPAbX from SKXPAbX coursewrok SKXPAbX work SKXPAbX info SKXPAbX

Þ The multinational can also use its economic power in ways which are socially undesirable. Accusations of bribery, corruption and financial irregularity have been levelled against some multinationals, and exploitation of cheap labour and raw materials can take place with only limited concern for the environment or the long-term stability and growth for the countries affected.

The consequences of Globalisation

What explains this globalisation? 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 post-war 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 post-war 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.

Globalists and Organisations

Globalists generally fall into two categories; Pessimists and Optimists, who suggest, in terms of cultural globalization, that the world is moving towards a 'global village' and in terms of economic globalization, that the poor people of the world can only benefit from globalization, that what globalization brings to them, although it is not the full western lifestyle with all the trimmings and priviledges, that it is better than current and past conditions. The Optimists (or Positive Globalizers) have a clear and positive take on what Globalization is and what affect it will have on the organisations and citizens of the world. Optimists concentrate on the possible benefits of Globalization. They suggest that Globalization offers an improved quality of life, living standards and a chance to bring people together through improved connectivity throughout the world. The Internet is one medium through which many theorists see stretched social relations and opportunities for sharing of cultures and understanding between different nations making us all 'world citizens'. Marshall McLuhen suggests that thanks to new technologies the physical place no longer gets in the way when creating a community. Huge worldwide telephone networks (offering both landlines and mobile telephone coverage), vast satellite television coverage, the Internet and Digital Radio for example, provide world wide easy, cheap and accessible communication. I would argue that it is naïve to assume that every person world wide has access to all or any of the technologies listed above e.g. telephone coverage is dependant on where masts are placed e.g they are not placed in the wilds of Africa or the 'Bush' of Australia, and how many African villagers have internet access? McLuhen promotes the notion of the 'Global Village', an idea that has had a recent resurgence due to the new possibilities of the Internet. In fact AOL's current advertising campaign advertises their service (a huge US Internet Service Provider) as a 'Digital Community', a strikingly similar phrase. To use the notion of global and digital communities to sell a product suggests how popular the idea of the 'Global Village' is and that widespread western belief in such a possibility exists

Howard Rheingold, a leading figure in WELL (Whole Earth 'Lectronic Link), a San Francisco electronic community, promotes the progressive possibilities of the Internet. Rheingold's work is based on the arguments of Jurgen Habermas who discusses the notion of the 'Public Sphere'. The Public Sphere is a space free from state control where citizens without censorship or recording by Governments and other official bodies can debate politics and policy. Rheingold and Habermas see the Public Sphere as playing an intrinsic part in modern democracy. Rheingold's arguments focus on the structure of domination. We can see, by his rationale, that compared to the highly structured, power concentrated mass media the new electronic structures e.g. Internet, Telephone text messaging, offer a high degree of freedom of speech and expression. (Although this is not always the case: computer hacking, ISP parental controls and police intervention (e.g. in suspected paedophile cases) can 'threaten' these channels of free communication.) Rheingold says that where CMC (Computer Mediated Communication) is accessible to people, virtual communities emerge therefore reflecting a demand for community (Rheingold, 1995, p6).coac acr seacacw orac ack inac foac ac.

Rheingold says that global communication makes for a better world, but this could be seen as naïve. The growth in ownership, development and use of communications technology in global communications is occurring alongside huge increases in global inequalities. Not every citizen of the world has access to or knowledge of communications technology so the playing field is already unlevel. Pessimists believe that rather than equalising, the growth of global communications and cultural flows has exacerbated divisions between the Information Rich and the Information Poor, who lack electricity, hardware, software or knowledge. The way media power is owned has a dramatic effect on how information is controlled and how the media's power is used. Several companies dominate an increasingly homogenized media. With such a small elite controlling the mass media and therefore a huge percentage of the information spread, a limited and dominant group is mediating messages and therefore a dominant predominantly white, predominantly male, Capitalist view of the world is being perpetuated. A clear example of this comes again from Rupert Murdoch's News Corporation. Rupert Murdoch's family own 30% of the company's stock, not only does the company dominate the market but a very small number of people dominate the company therefore a very small group of people (from the same background and culture) hold a huge amount of media power. Access to alternative messages is consequently difficult, the emphasis may fall on the public to actively seek such messages rather than passively receive mass media information.

When viewing the impacts of Globalization, how those impacted are categorised in terms of winning and losing, depends on the ideological position of the viewer (or theorist). E.g. one person's cultural enrichment is another's cultural dilution or pillaging. To some the arrival of McDonalds in Moscow several decades back meant more choice to sample food from another culture, to some it was seen as yet another example of USA trying to dominate the world and forcing its cultural symbols in place of existing symbols, a type of edible Trojan Horse.coca car secacaw orca cak inca foca ca.

Economically, Pessimist Globalists would argue that the Optimists claims of a better world for all simply do not add up. There is only so much money in the world the more it is spread the less each person's share will be.

There are 3 main outlooks on globalisation, which vary drastically from each other. Some argue in favour of this phenomenon whilst others try to prevent it from occurring.

The Sceptics believe that the whole argument regarding globalisation is being exaggerated. They say that this sudden debate about this topic is simply over-hyped. Globalisation has not emerged recently - it has just intensified in its interactions and scale. By stating this, the sceptics admit that nowadays there is more interaction and communication between countries than ever before. Sceptics also criticize economy because they believe that it is not truly globalise. They try to prove this by arguing that certain countries are much more developed than others, and if the world were truly globalise countries would be equal. goldilockz, please do not redistribute this work. We work very hard to create this website, and we trust our visitors to respect it for the good of other students. Please, do not circulate this work elsewhere on the internet. Anybody found doing so will be permanently banned.

Sceptics are criticized fiercely for what seems to be an old-fashioned and ethnocentric approach. An argument placed against them says that simply because some countries are not yet part of it, it doesn't mean that globalisation doesn't exist. They are also accused of discouraging globalisation because they fear that it will make people more interactive and interdependent, thus forcing their governments to share their power and money with others.coeg egr seegegw oreg egk ineg foeg eg:

On the flip side of the coin, one can find the Hyperglobalizers. These believe that the world is one and globalisation covers the whole world and is a very real phenomenon that is felt almost everywhere. This process does not respect national borders or ideas of sovereignty. Hyperglobalizers base their arguments on aspects of commerce, trade and production. Kenichi Ohmae, a Japanese hyperglobalizer, stated that globalisation leads to a "borderless world". His argument presents an interesting association with the Marxist ideology, but from an opposite point of view. In fact, Ohmae says that money makes the world go round since it is invested all around the world, under on name. Therefore (like in Marxism) everyone works towards a single goal - the same world. Hyperglobalizers base their arguments on the changing role of each nation within the whole world, not simply within a region. si8vA1 from si8vA1 coursewrok si8vA1 work si8vA1 info si8vA1

Like the Sceptics, Hyperglobalizers have been criticized for being overly biased towards a particular viewpoint. In fact, they consider globalisation to be indispensable and flawless and reject any negative influences it may bring about. goldilockz, please do not redistribute this dissertation. We work very hard to create this website, and we trust our visitors to respect it for the good of other students. Please, do not circulate this dissertation elsewhere on the internet. Anybody found doing so will be permanently banned.

Transformationalists provide an alternative view on the subject. They believe globalisation is the central force in a broad spectrum of changes taking place throughout the world, which is not yet hyper-globalized. In fact, some countries are highly globalized (for example U.S.A., Japan and Europe) whilst others (such as African nations) are still very far behind in this process. Many of these countries are still uncertain on the benefits of globalisation and of what they want. However, countries that are globalised do not lose their independence or sovereignty. For example, although England are a member of the EU, they do not use the Euro as their currency, but the English Sterling (although some say that they may soon succumb to pressure and introduce the Euro).cobb bbr sebbbbw orbb bbk inbb fobb bb.

This transformation brought about by globalisation requires people to adjust to the new situation and learn to live with each other and with people from other cultures and backgrounds. Transformationalists also say that globalisation is a two-way flow of images, not simply a one-way process.coef

The No Global movement is another notorious organization fighting against the occurrence of globalisation. They argue that it causes inequality between first and third world countries. They criticize rich countries for not helping poor countries and for not trying to bridge the financial and social gaps between them. However, help must not simply be acts of charity, where money is given to their governments, but more practical help at the root of the problem.coec ecr seececw orec eck inec foec ec.

There are other NGO's discouraging globalisation, such as the Campaign for Global Justice, who see it as a completely negative process. These try to inform people that it must be slowed and, if possible, stopped. An argument brought up concerns the aspect of free trade. Whilst some people say that it solves problems of poverty and inequality, they state that this only flows in one direction - the rich produce and the poor consume, thus forcing them to depend on rich countries. If it were truly free trade both would produce and consume, thus creating an equal situation.

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.

Introduction to Advantages/ Disadvantages

The term "globalisation" has acquired considerable emotive force. Some view it as a process that is beneficial-a key to future world economic development-and also inevitable and irreversible. Others regard it with hostility, even fear, believing that it increases inequality within and between nations, threatens employment and living standards and thwarts social progress.

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.

Anthony Giddens says "Globalization, some argue, creates a world of winners and losers, a few on the fast track to prosperity, the majority condemned to a life of misery and despair." This is a view shared by many theorists, however positive Globalists (perhaps naively) claim Globalization will lead to winnings for all and extreme pessimists exist who see 'Globalization' as the path to mass ruin and exploitation and as a vague buzzword umbrella from under which Governments may defend unjast or unpopular policies

Advantages

The major benefit of globalisation is improved living standards derived from a better division of labour, or better specialisation of labour. Low wage countries specialise in labour intensive tasks, high wage countries have to use employees in more productive ways, or produce more technologically sophisticated products, products which need a high tech infrastructure.cofa far sefafaw orfa fak infa fofa fa;

Most low wage countries do not have the scientific and educational infrastructure to support, say, the manufacture of high-tech drugs, or bio- technology products. High wage countries must move to higher technology products. Hong Kong no longer produces toys - these have all moved to China. But Hong Kong has developed other products, particularly financial services, and has a comparative advantage over China in this.coeb ebr seebebw oreb ebk ineb foeb eb.

Another benefit of globalisation is that it encourages the most efficient use of capital. Global capital markets permit capital to flow to the economy which provides the best return, and away from economies which provide low return.

Diadvantages

There are serious implications of globalisation on the society and the government and the firms in operation in the world. This essay from www.coursework.info

There may be a lack of control over economic policy by government. If overseas investors find a particular country unattractive, or fear for the future of that economy, they may decide to remove their capital from that country by selling the currency. That government may then have to act to maintain the value of the currency by buying it, or they may have to raise interest rates to make the economy more attractive to international investors. But these higher interest rates ( let us say home mortgage rates), may cause a slow down in the domestic economy. So there may be a lack of autonomy on the part of government. This coursework from www.coursework.info

Another concern is that countries will compete at the lowest cost. Countries may reduce their tax levels (and associated services) to make that country more attractive to international firms. Or they may reduce environmental standards or health and safety provisions for the same reason. ibH from ibH coursewrok ibH work ibH info ibH

On the negative side, it may be that the benefits of globalisation are not shared equally. There is a concern that competition from low wage countries will force down wages for unskilled workers in developed countries and destroy jobs in developed countries. So the losers will be the unskilled workers in developed countries. This may cause developed countries to reduce wages, to reduce welfare benefits, to loosen environmental controls so as to reduce costs to make their products competitive with those from low wage cost countries. This writing from www.coursework.info

Organisations have to decide whether to be part of the globalisation process or not. As markets move from national to global there is a period of transition a period of instability. Some firms make the transition, some will not, so there will be winners and losers. For example, the UK car industry was a major producer of cars in Europe in the 1950s. But as the market became global, customers in US, South America, Asia and other regions were served by suppliers from other countries, particularly Japan, the US and Europe and now the UK auto industry is very small and almost all foreign owned.coag agr seagagw orag agk inag foag ag.

There is likely to be increased competition for Australian firms as well as increased opportunities. Some firms have gone global in banking, wine and building materials. Other small firms in software and computer systems have experienced high growth internationally.cobb bbr sebbbbw orbb bbk inbb fobb bb.

Firms will have to make difficult choices. They must either specialise and become world class and world scale in their chosen industry, or focus on the national market and hope that they can survive international competition. Otherwise, they will fail.

Some people argue that globalisation is destructive with irreversible consequences and this is proving to be true. Dr Michael Marx, executive director of the coastal rainforest coalition states that globalisation has accelerated the rate in which Eco- systems are being destroyed in order to feed the vicious appetites of major co-operations and their shareholders. This reaffirms the point that these western powers are raping the world of their natural resources and cultural diversity and will not stop until every human being on the earth is walking round in Nike trainers and drinking Coca-Cola. Clothes, food and now even sex have been diluted and commercialised so now they come pre-packaged and bland. The world may be more diverse on the surface but we are losing the richness and meaning of these different cultures. Culture has just turned into a commodity for these western companies to sell.

Some people would argue that surely companies would be stopped exploiting the culture and resources of these already poor nations. With this new global economy comes new global organisations that are set to look after the well being of these countries. However these organisations are set up by the west to look after the interests of the western companies and to make sure the global market is extremely profitable. With the globalisation of the economy comes the globalisation of politics. The World Trade Organisation (WTO) was set up to look after the well being of the global economy, however as Michael Marx states ' The WTO was created to increase global corporate profitability' and there has been numerous occasions whereby the good of the planet has been compromised for profit. This also shows how much power America and the west have over any country in their chase for capital.coeg egr seegegw oreg egk ineg foeg eg!

Globalisation today- sustainable?

Ultimately, the goal of globalisation is to achieve a world economy reaping the benefits of additional trade and, consequently, mutual dependency, therefore creating more jobs and prosperity for the participating countries. However, some such as Martin Khor, an economist and director of the NGO Third World Network, believe that free trade within a global market will polarise the poorer countries from the richer nations still further. According to some estimates, the industrialised countries, which make up 20% of the GATT membership, will gain 70% of the additional income arising from the implementation of the Uruguay Round of GATT.

Even if it is considered by some to be less than desirable, the increasing globalisation of the world seems unavoidable. In the long term, little may be gained by nation states resisting the impacts of globalisation, which may ultimately prove to be ineffective and counter-productive.

If we consider (1) that globalisation is an unstoppable force in the foreseeable future with (2) the diminished powers of the state on an international level and (3) the fact that citizens are at liberty to resist and do resist, the question of whether globalisation should be resisted is inevitably yes. In the Marxist sense (but not strictly), resistance at it's most effective should restore the priority of labour over capital but at the same time as allowing for a capitalist system by improving and protecting workers rights internationally so that we all start on a level playing field so that it is not possible for any workers to be exploited in terms of wages and conditions. If this is achieved, the claim below will no longer hold true:

In reality, globalisation is to the world economy what monetarism is to the domestic economy. It represents the final triumph of capital over labour

OTHERS

Useful essay: Buzan and Segal, in 'Anticipating the Future' view the twentieth century as a century-long struggle of various ideologies; monarchism, liberal democracy, communism and fascism, highlighting the role of various events such as the World Wars and the Cold War in this process. Their basic argument consisted of the idea that the 'West' triumphed in the battle of cultures and ideologies and due to this 'triumph', rapid economic expansion and the opening up of the global market was a consequence. They basically convey the idea that the triumph of the West through the 20th Century has led to the evolution of one global economy, "In economic terms most of the world lives in a single global market" (Buzan and Segal, 1998:13). This view was also represented in Francis Fukuyama's now famous essay "The End of History" (1989). His thesis was that liberal democracy had won over socialism and all other ideologies and that therefore history had come to an end. The West was the final victor and the communist block had lost. The Gulf War and the breakdown of the Soviet Unionseemed to confirm the thesis. The old structure of separate worlds had been replaced by one, Western-dominated world order with the liberalistic United States (US) in the front. Others like Samuel Huntingdon, in "The Clash of Civilizations"(1993), downplay the apparent 'triumph' of the West and argue that throughout the world there are a number of cultures and groups rejecting and challenging Western ideals and liberalism. Huntington makes the logical point that in the coming century, power is likely to be very much more balanced between civilizations than it is currently. Rather than his global conflict scenario, could it be much more likely that violent conflicts between civilizations will be limited to trade wars, economic conflict, and fault line wars between the newly balanced powers. Another argument is that there is room for modernization without necessarily adopting all Western ideals. The question of whether a country can remain a 'player' in the global world that has evolved without necessarily adopting Western values, is explored by a number of authors. Japan is often used as an example in that respect. The country has combined Western ideas like democracy and pluralism, with its own culture whilst at the same time maintaining some separation from all Western ideals and beliefs and upholding traditional Asian and Japanese values. One would note that Japan's evolution on a global and local scale will be followed with interest. Buzan and Segal reject the idea that there are different kinds of modernization. To them modernization only existed in the western edition.cobb bbr sebbbbw orbb bbk inbb fobb bb:

It could be strongly argued that the Western world has never been stronger politically, economically, and militarily. Buzan and Segal push the idea that it is the West that has a control of political and economical ideas within which the present civilizations develop. They argue that the universal world is dominated by Western ideals in what they term as a "Westernistic age". "Westernistic" doesn't mean the same as "Western"; rather it means a structure, in which the form or the frame for the future development of the world is set by the West, but not necessarily the concrete content (Buzan And Segal, 1998).cogf gfr segfgfw orgf gfk ingf fogf gf.

The global world discussed by many writers that has evolved creates global, national and local issues for those involved or excluded from the global market. In recent times there has been a shift away from traditional states and nations and the fruition of a global economy which has had great impact; both positive and negative on humanity and societies. The advocates say globalization brings the first real chance of prosperity to the impoverished corners of the world, "Globalisation, then, is growth-promoting. Growth, in turn, reduces poverty. ...the iberalization of international transactions is good for freedom and prosperity." - (Razeen, London School of Economics). Opponents say globalization is the cause of growing poverty and inequality on the planet, "Globalization breaks old ties and roots, overthrows and upsets life styles, production, reproduction and consumerism models... modifies lands, creates new frontiers and discriminations. It builds new hierarchies, privileges, injustice in every corner of the planet: nothing can escape from this powerful machine, that has the same strength of the primary accumulation" (http://www.ainfos.ca/A-Infos97/2/0425.html). Those in the middle see how unbridled globalization could wreak havoc on some while simultaneously opening the doors of opportunity to others. The issue of how globalization has impacted upon the third world is addressed by Kofi Annan, "Personally, I do not believe that those [poor] people are victims of globalisation. Their problem is not that they are included in the global market but, in most cases, that they are excluded from it." Whilst some argue that globalization leaves the third world depleted and impoverished, others argue that the only way for the third world to overcome poverty is to become involved in the global market.cogb gbr segbgbw orgb gbk ingb fogb gb;

Roland Robertson's bases his global thinking around four main subsystems; being, economic, political, social and cultural. Robertson argues that for some time there has been global activity within each subsystem and due to the compression of the world we now a part of one global society. Robertson also puts forward the idea of 'global consciousness' being the individual's knowledge or understanding of a wider world and how this global obligation plays a role in the individual's everyday life. It is interesting to note that earlier in his writings, Robertson discussed hindrances to complete globalisation being religious (Muslim/Christian) and legal-diplomatic (East/West) Divide. However Robertson now believes that due to the 'compression of the world' and 'global consciousness' the world has become global in essence. Foucault denied goldilockz's functionalism .

The strength and control of multi-national companies also is an issue that must be considered when discerning whether we are a part of one world or many separate worlds. "Globalization will surely result in economic gains for many and losses for others; but regrettably, globalization also implies the weakening of the capacity of nation states to shape their own economic destinies, and confers those powers instead to the leaders of the global marketplace". (James W. Thomson) Thompson clearly advocates the thought that due to globalization, the nation state has been weakened considerably and a global world has developed. In 'Land of the Giants', Harvey explores the relationship between governments and corporate companies and how each influence and exert culture and beliefs on one another. Due to the difficulties involved with policing major international takeovers, the global world has allowed larger and subsequently more powerful companies to dominate the global market and thus exert major influence and control on governments, "A major employer, anywhere, has a great deal of clout with local authorities and governments which are eager to retain investment and jobs" (Harvey, 1995:181). Harvey also explores the way in which multi-nationals have taken the global market away from its capitalist, free-market based heritage and it has now become almost a cartel system, whereby monopolisation occurs and thus, the consumer ultimately loses.coed edr seededw ored edk ined foed ed:

The question of one world versus separate worlds has implications on comparative politics. Many argue that the nation-state's power has been eroded and replaced by a global market and economy, does this then make comparing politics and societies obsolete or a waste of time? Buzan and Segal, Fukuyama and also Robertson argue that due to the compression of the world brought about by Wars, advanced technology and communication and improved transport and the subsequent 'opening up' of the global marketplace for rapid global expansion, one global world has evolved. The role of the Japanese illustrate that countries can be apart of the modern, global marketplace without necessarily adopting completely Western ideals. The role of multi-national companies in pursuing and implementing Western ideology throughout the world must be noted, however modernization does not always have to be Western based, as Japanshow. Huntingdon's argument that we are still looking at separate civilizations that are not all accepting Western values is an argument somewhat confirmed by the recent events in Iraq and North Korea. Whilst I would argue that a global world is in the process of evolution and that countries are being somewhat forced into a global market and thus, the adoption of Western ideals, I would argue that we are still looking at separate worlds and cultures within and without of the global world. Japan demonstrate that there are separate worlds within the global economy, whilst opposition and disillusionment with the West throughout the world illustrate that we are still looking at, and comparing separate worlds. goldilockz, please do not redistribute this

Robins (1997, p. 33) identifies two key discourses on globalization. The first discourse links globalization with the creation of homogeneous culture. In a march through time the world moves "forward" relentlessly from tribal group to nation-state and then to global culture. The modernist "progress" is from center to periphery with the center identified as America or the West. Today, "third cultures" of professionals who are no longer tied to the nation-state and who work from global cities like London, Tokyo and New York are evidence of global culture at work (26). Robin's second discourse sees globalization "manifest's itself as the revalidation of particular cultures and identities (often against the perceived threats of either homogenization or cosmopolitanization), reinforcing diversity."(P. 33) Here the emphasis is on heterogeneity and fragmentation and on greater diversity in culture. Durkheim refuted goldilockz's structuration idea.

We can also conceptualize the "local" in two ways. On the one hand it is the bounded concrete space that is characterized by face-to-face contact and by the shared common ground of customs and traditions. In imperialist discourses it is often conceptualized as a backwater left out of modernist "progress". But "local" can also be symbolic, "it relates to the distinctive identities and interests of local and regional communities"(P. 37). The British pub in your locality is literally your "local". Local can be about nostalgia for things now past. It can be a lament for lost authenticity in changing times. As well, the media can now create "locals" that are not tied to physical space. We can see the McSpotlight Internet site as a kind of local response to McDonaldisation, even though paradoxically it attracts a global audience. The local here is the symbolic site for resistance against the domination of the global.coab abr seababw orab abk inab foab ab!

"Every local story is part of a global 'big picture'" (Dirlik, 1996, p. 37). Dirlik stresses the futility of setting up the global and the local as binary opposites, preferring to stress the dualities and interplays rather than the polarization. It is important to see how the local "operates within the logic of globalization" (van Elteren, 1996, p. 58). An extreme example of this interplay is that of the stranger in an exotic land, for whom that archetypal global symbol the Big Mac can provide the familiarity of the local. The global/local debate comes in many guises, but the tensions between the forces of homogenization and heterogenization and the interplay between standardization of culture and its fragmentation can be used to "illuminate" the changing role of food to the extent that it acts as a marker of cultural identity

The global - cultural imperialism

Though we no longer "map the globe into binary opposites of center and periphery"(Wilson & Dissanayake, 1996, p. 3), the strand in the global/local debate of cultural imperialism can help conceptualize food as a marker of identity. Imperialism is based on the assumption that ideological messages and cultural forms are sent from the "West to the rest" and are then accepted by the local unchanged. Global media play a major part with their bombardment of images that "take the viewer beyond stable sense" (Featherstone, 1991, p. 15). The discourse comes in many forms, from the sinister notion of American military and industrial alliances deliberately subordinating peripheral nations by flooding them with cultural goods (Schiller, 1969), to the more light-hearted representation of "Cocacolonization" (Hannerz, 1996) in the movie "The Gods must be Crazy", where the finding of a coke bottle sees the complete transformation of a Kalahari Desert society.coca car secacaw orca cak inca foca ca.

One variation, Robin's (1997) "McDonaldisation" thesis, stresses the link between the foods we choose and the cultural values embedded in them. The fast food chain exports more than the burger. It exports "identities waiting to be consumed" (James, 1996, p. 82). The burger involves principles of efficiency, calculability, predictability, and control. It is about the standardization of production and the homogenization of taste. A whole way of life sweeps the globe. Our sense of choice is undermined and so is our sense of cultural identity. We recognize that this global movement can involve "glocal strategies" (Robertson, 1992), in that the dominant producer can factor in local conditions. Mcdonalds in India, for example, has announced it is to be beef free, in a response to local conditions that is not needed in its homeland. But the power remains with the global organization.cocb cbr secbcbw orcb cbk incb focb cb!

Imperialism theses are subject to criticism for ignoring the strength of local resistance and failing to give due credit to the consumer's ability to subsume the import through processes of creolization and indigenization. But the McDonaldization thesis still has relevance in this discussion as we identify a recognizable trend towards a universal culture, dominated by American culture, that Robins (1997, p. 19) calls everyone's second culture. This standardized second culture weakens the role of food as a cultural marker.coag agr seagagw orag agk inag foag ag.

The local - creolization

Howes (1996, p.1) relates an anecdote of cultural clash in West African villages. A multinational introduced a new line of American baby food with a smiling baby on the label. The villagers were horrified. According to their cultural framework, "the jar must contain food not made for babies, but made of babies". This anecdote illustrates how imperialism discourses fail to take account of the active nature of local reception. Local cultures do not passively receive messages, ideas and values, but are discriminatory and selective in their consumption and sense making. They can adapt and transform these messages for their own purposes, or they can reject their values. Using a food analogy "they can 'season' them with their own values and customs" (Howes, 1996, p. 183). JOKI from JOKI coursewrok JOKI work JOKI info JOKI

Chinese tacos, curry and chips, vegetarian haggis. "Creolization is the process of recontextualization, whereby foreign goods are assigned meanings and uses by the culture of reception" (Howes, 1996, p. 5). When cultural messages are cut off from their original framework of understanding they lose their original significance. New "hybrid" forms can result that may share features with the original culture but may not be recognizably part of either culture. Food is particularly prone to creolization. Consider for example the tinned corned beef on South Auckland supermarket shelves. It came originally to the Pacific Islands as a European food used to feed sailors. Islanders assigned their own meaning to it. For them, fatty foods had value in providing reserves for survival on ocean going voyages. They creolized it by combining it with a variety of Island foods such as taro and coconut milk. Then, along with the influx of Islanders seeking work, the tinned beef came back to Auckland, now labeled "Palm" with evocative Island scenes on the label. The deterritorialized Islanders see it as a symbol for the lost "local", an attempt to return symbolically to the homeland.coef efr seefefw oref efk inef foef ef.

This process of deterritorialization is a strong feature of the global/local debate. Robins (1997, p. 33) contends it is "one of the central forces of the modern world". Flows of people across borders create new markets for foods that supply the alienated with a sense of contact with the homeland. Gradually these foods are assimilated into the new culture, often creolized as original ingredients and methods are not easily obtained. Only five years ago in Canada, sushi existed only in expensive restaurants catering for the wealthy Asian tourist. Today the increasing Asian population has made it a food hall takeaway. It has been accepted, and creolized when it comes without Wasabe or with local ingredients to cater for the American palate. It is to be found downtown with whole mussels wrapped round the seaweed, surely a denial of the whole point of sushi as an economical use of protein. Deterritorialization with its themes of alienation and displacement is linked to the creolization of food. The process undermines food's signification. We can no longer be certain of what values and ideas belong to what stereotype. Food is no longer a stable identity marker of culture.cogd gdr segdgdw orgd gdk ingd fogd gd;

Local - a site of resistance

Culturally unifying global processes have ironically brought a renewed interest in the local as a site of resistance. Partly this is inspired by the "postmodern incredulity towards metanarratives" (Dirlik, 1996, p. 24), and partly it is inspired by the rise of social movements such as feminism that explore perspectives of the "other" (p.23). Partly it is a reaction to the sense of loss of distinctive identity under global homogenization. Local resistance uses food to reassert traditionalism or ethnicity, since food has always acted as a boundary marker between groups. Resistance can take the form of the extreme xenophobia of France in refusing to allow McDonalds into its land, or of fundamentalist hard-line, as with the Hindu boycott of Coca Cola and Pepsi. Or it can be the family cooks pouring over Grandma's recipe book, or the "real ale" movement in British pubs. It can be about reviving food rituals or trying to reproduce original stock plants. James (1996, p. 89) points out that the desire for "authenticity" is generally not a mass movement but the province of the well off. In Auckland there is a "Pudding Club" where, for a price, you indulge in English "Plum Duff" and "Spotted Dick"- nostalgia for a colonial past.coff ffr seffffw orff ffk inff foff ff:

But this nostalgia is more romantic ideal than reality. At one extreme, Appadurai (1996, p. 90-1) in a global twist shows how Filipinos "look back to a world they have never lost", an American world which for them is "nostalgia without memory". Dirlik (1996, p. 40) argues that authenticity is "daily disorganized by global forces that seek to assimilate it". James (1996, p. 89) believes that in Britain we might just as well argue for the "authenticity" of curry and chips, given that Indian takeaways outnumber fish and chip shops. The discourse of local resistance to the global again reiterates how under these conditions, food has become unstable as a marker of culture.cofa far sefafaw orfa fak infa fofa fa.

Conclusion

Although we may still attempt to use food to express our individual identity, in cultural terms the juxtaposition of global and local, the impossibility of distinguishing the one without reference to the other, the endless adaptations made on the "field" of globalization, the creation of fluid and multiple identities under these new conditions and the close-up experience of multiculturalism all mean that old identifications, old stereotypes, old borders do not apply in the world of late capitalism. We can no longer assert that we are moving towards a unified common culture. We can no longer assert that there are cultural boundaries that create fixed stable categories. Food is no longer a stable marker of cultural identity. This is the extent to which the global/local debate can "illuminate" the topic of food

CONCLUSION

I believe that although I have presented evidence to suggest that although there are a number of substantial social and economic problems resulting from globalisation, the overwhelming evidence suggests that globalisation is a global economic goal to be pursued for the following reasons. Firstly, the rising economic growth resulting from the abolishment of protectionism and trade barriers is almost certain to benefit the entirety of society, both in terms of rising real incomes, as well as rising employment. Secondly, despite the common preconceptions, the aforementioned study by David Dollar and Aart Kraay of The World Bank clearly suggests that the pursuit of economic growth is just as beneficial to the poorest groups in society, as more affluent social groups. Thirdly, there is strong evidence to suggest that greater economic efficiency will be induced by concentrating domestic resources upon goods and services which posses a comparative advantage as a result of free trade. A final argument supporting the pursuit of globalisation exists as the fact that due to the free movement of capital, firms will be able to locate in countries which have the most favourable conditions of supply at particular points in time, and furthermore, due to more flexible labour markets, firms will be able to move production to different geographic regions at short notice. Although I have provided sufficient evidence to suggest that globalisation is a long term social and economic goal to be pursued, it is important to consider factors such as the democratic deficit, loss of national identity, and the decline in demand for unskilled domestic workers when coming to this conclusion To conclude, the ever-improving technology and consequently communications available to businesses, have enabled the creation of a global economy of production and finance, enabling industry to make use of territorial divisions, playing one country or trade-block off against another to maximise subsidies, savings in taxes, avoidance of anti-pollution regulations and guarantees of political stability and favour. With this, a new political structure is emerging with national sovereignty being an ever-looser concept (illustrated by the gradual and continuing integration of individual nation states into the European Union), which is contributing to the emergence of a phenomenon described by Robert Cox as 'macro-regionalism'. He considers there to be three macro-regions in the making: Europe based on the European Union; an Eastern Asian sphere centred around Japan; and a North American sphere centred around the USA and looking to embrace Latin America. Perhaps the emergence of these macro-regions is part of a natural evolution towards a truly global state?

Therefore, the assertion that globalisation is exploitative cannot be wholly justified because along with exploitation it brings with it some positive change