Critical Thinking of Globalization

Introduction

A thousand year old phenomenon Globalization, initiated by the Silk Road which linked Europe and China has widely broadened in today’s scenario. It is defined as a progression of unification of diverse countries across the globe enhanced by foreign trade, international investment, flow of technology and labour. Globalization has diversely affected the political, social, cultural condition of various countries in negative and positive manner.

Argument Against Globalization

1. Global Economic Recession- International Trade makes all countries dependent for trade on each other which has currently led to financial crises. For Example, Increase in oil prices and collapse of U. S Market has decreased the global investment as in 2008, industrial average of Daw Jones decreased by 7. 7% i. e. 679. 95 points.
2. Exploitation of developing Nations- The powerful nations exploit developing nations for scarce natural resources, cheap labour as MNC’s have massive power and huge capital investment. Developed Nations impose policies on developed nation’s government that destabilizes the democratic process of weak nations For example; Structural Adjustment Program introduced by World Bank in African nations depressed their economies drastically.
3. Unemployment in Industrial nations- Outsourcing of Cheap labour has created unrest among workers of employed nations because of unemployment as producers opt for low wages labour.
4. Cultural Dissonance- Homogenization of different cultures is observed at materialistic level among elite group leading to socio cultural gaps between them and marginalized strata of society. It leads to Metropolitanism, Gangesterism, Racism, Parochialism and terrorism globally.
5. Income Inequality- Neoliberal policies, a component of Globalization is help responsible for the income discrepancy between agrarian based and industrial nations. As a result of Financial speculation by developed nations makes them more richer and developing nations poorer.

Argument in favour of Globalization

1. International Trade- The establishment of International Institutions such as GATT, IMF enhanced by low cost transportation, communication and technology led to easy flow of international trade across the globe. Due to stronger competition among foreign and domestic players, consumers gets benefit from low priced end products.
2. New International Division of Labour- It has led to the International industrial shift from core to peripheral nations which results in low production cost and increasing quality standards, known as Trade Creation Effect. For Example; USA has shifted manufacturing activities to European nations and China.
3. Globalization of Finance- The World Bank comprising of 5 associations, have primarily objective of giving financial aid to peripheral nations while concentrating on technology health, education, sanitation and development of SME’s in order to increase international trade. Example, USA receives large amount of capital loan from semi-peripheral nation i. e. China.
4. Technological development – It is characterised by the “IT Revolution” which has transformed the transportation, communication sector through satellite, emails, optic networks significantly boost international trade and exchange of ideas, resources and products irrespective of geographic boundaries. All these factors contribute to economic unification.

Critical Thinking

Among several researchers, Globalization being advantageous or disadvantageous is intense subject matter for discussion. According to my outlook, Globalization is advantageous, therefore I completely support it.

In 2010, Barack Obama condemned nations who believe globalization as danger. Apart from the above stated advantages, it helps to achieve goal of free flow of capital and labour. This freedom leads to economic prosperity and peace in world. Economic theories add weight to my statement as comparative advantage followed by developing nations leads to better allotment of resources providing employment, better living conditions. Globalization decreases the likelihood of war as nations are interdependent especially among super powers.

It helps poor nations as developed nations give them financial aid to overcome issues of poverty. For example, USA provided financial aid to African nations. Also the message of democracy is spread to several nations with the power of international media. In a nutshell, globalization has become an important part for people, companies and national governments as it is a ongoing process and cannot be ignored. The disadvantages cannot be completely faded away but efforts by international government, associations such as WTO can minimize its negative impact on society.

Globalization is not a bad process and it can work efficiently if domestic industries of developing country are given safeguard against ill impact for example, before entering into foreign boundary MNC’s should indulge into subsidiary alliance or Joint ventures with domestic players.

Referencing 

1. http://www. economicgeography. org/index. php? option=com_content&view=article&id=94:history-of-globalization&catid=98:inf&Itemid=85
2. http://www. nytimes. com/2008/12/02/business/02markets. tml
3. “World Regions in Global Context”, A world of Regions, Third Edition. , Marston et al, Pearson Prentice Hall, 2008, pp. 8
4. “World Regions in Global Context”, A world of Regions, Third Edition. , Marston et al, Pearson Prentice Hall, 2008, pp. 528.
5. Notes # 4 at e centennial- https://e. centennialcollege. ca/d2l/lms/content/viewer/main_frame. d2l? ou=31622&tId=667303
6. http://www. worldbank. org/depweb/beyond/beyondco/beg_12. pdf