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The Globalization

Autor:   •  November 8, 2018  •  2,606 Words (11 Pages)  •  6 Views

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Transport/Manufacturing Technology has advanced since 1960 and has lead development of fuel-efficient jumbo jet, ocean-going freighters and containerised shipping which reduce drastically cost of transport and help to increase international transport.

Positive Impacts

Me, as a Globalization supporter, I believe that this process has the potential to make the world a better place, to create jobs and to reduce poverty in a correct balance of different factors. I think Globalization makes the companies more competitive and low prices of products due the increase of the competitors. There is certainly a worldwide market for companies and consumers who have access to many products from many different countries, for example, everyone in the world can buy a Coca Cola because you can potentially buy Coca Cola everywhere, or an Samsung phone etcetera (or almost everywhere as its extremely hard to find a Coca Cola / Samsung phones in Cuba due the US embargo). The living standards are also higher than ever in terms of healthy, labour rights in developed countries and culturally people has easy access. The resources used are more efficient and there is a greater access to technology. As discussed in Griffith College slides the Liberation of markets appears to enhance income levels, from the last index of economic freedom 2017 there is a direct and positive relation between Country’s Economy Freedom and high income level per capita (appendix 1). Economic freedom has advanced over 100 countries over the past year, which is an increase of 0.2 point to a record level of 60.9 on the 0-100 scale used in the index of Economic Freedom. The Asia Pacific region who most has improved on the ranking and A total of 92 economies, 51% percent of all nations and territories graded in the 2017 Index, have earned a designation of “moderately free” or better. These economies provide institutional environments in which individuals and private enterprises benefit from at least a moderate degree of economic freedom in the pursuit of greater competitiveness, growth, and prosperity. (Heritage, 2017). Another advantage is the free movement of people who can travel almost around the World and labour forces can move easily. In some cases Multinationals companies have moved to developing countries and has provide employment to people to getting them out of poverty (at some cases). In African context and as published by Tood Moss in June 2009 the Globalization impact is divergence among African countries. A handful of countries are becoming a part of the next wave of emerging markets. Those countries are benefiting very strongly from globalization (talking about greater trade, greater capital flows, and particularly greater migration of skilled labour). These are the better economic performers like Ghana, Tanzania, Kenya, and Botswana. They are making their economies more competitive, helping their citizens participate in a global economy and reap the benefits that more circularity of goods, capital, and people can bring. (Moss, 2009)

Negative Impacts

Unfortunately not everything is positive in the Globalization context, or let’s say there is still a long road to run in order to balance the world and make it a better place. I found out many concerns about the Globalization, but the first one that came up to my mind would be about respecting human rights in developing countries. Many production areas of MNE have moved to developing countries in Asia or Africa due the cheapest labour cost and raw material and because there is no strong regulations on those countries the employee are submitted under severe working conditions without decent wages, hours of work, rest, leave periods, etc. (I.L.O., 2017) . Again in the African context, the “African Development Bank” reports a positive trend of African middle class reaching nearly 350 million people due the globalization, however after analysing what means middle class, you can realise that involve people living between 2 and 20 dollars per day which could end up at 800 dollar annually. Also according Bank Statistics 61% of Africans still living below 2 dollar per day and 21% more lives just above that percentage so between 2 and 4 dollar day. (Hart-Landsberg, 2014). Another big concern is the MNE influence over political decisions which shakes democracies and potentially pursue the ideology of selfishness where the rich get richer and poor poorest. As seen in (appendix 3) and according Prof. Jefrrey Sach, there is culture of impunity, based on the well-proven expectation that corporate crime pays. (TNI, 2014). According Forbes, the no supporters of the Globalization, see it as a threat to the world's cultural diversity, which I am not really agreeing; they argue the globalization might drown out local economies, traditions and languages and simply re-cast the whole world in the mould of the capitalist North and West. An example they stated is about a Hollywood film is far more likely to be successful worldwide than one made in India or China, which also have thriving film industries, (Collins, 2015) however (and I will be discussing this topic in the next section) is the Government influence over MNE who should play a crucial role into this game. Last negative impact I’d like to highlight is the fact that minor business are facing disadvantages against MNE due the lack of resources, however I also believe Governments and International Organizations should play another Role into this issues to avoid them.

Governments and WTO as a key player

To my understanding the Governments and World trade Organization should play biggest and strongest roles on the Globalizations and lead together that Tsunami rather than letting the multinational take advantages of many situations. When previously talks about employee’s working conditions and Local country regulations in many developing countries, either the Governments of those countries and WTO should fight harder to prevent inhuman working conditions to their citizens. Looking at the WTO website and reports about what they can do to enhance the globalization in the world, its listed they can help countries to develop, raise living standards, give the weak a stronger voice or support environment and health, (WTO) but certainly they have to increase efforts and balance strategies in different areas especially on reducing poverty; In the case of natural disaster, the WTO failed as have taken almost two years to agree and implement temporary trade concessions for Pakistan where severe flooding forced to move over 20 million people in 2010 (MoneyControl, 2011). Another example is the agricultural subsidies, where the WTO failed to agree how to reduce the huge subsidies paid to rich farmers, whose

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