Impacts of Globalization
Globalization is the process through which the world is flattering progressively consistent as result of amplified business interactions, social interactions, and exchange of ideas. Globalization has significantly impacted social, political, and economic aspects of human life. Globalization has helped to open up boundary barriers that existed in the relationship between countries in the globe. Because of opening up of the barriers, several changes have occurred in political structures, culture, education, and technology. The changes have been both positive and negative depending on the people experiencing them in different parts of the globe. This paper will explore the impacts of globalization on different aspects of human life in different parts of the world.
Impacts of Globalization
Globalization has been gradual, but it has changed how business is done in the 21st century. Globalization has helped the world to remove trade barriers that denied international market a chance to thrive. Massive market reforms have taken place allowing the investors to venture into different markets worldwide. Elimination of barriers has enabled nations to depend on one another in an attempt to enhance their economic growth. Globalization has presented the concept of an open and unified global economy. Through globalization, the world has developed exceptional communication and transport infrastructures. Subsequently, globalization has enhanced the free flow of investment capital, people, and data movement from one part of the world to another (Ganesh et al. 2005). Technology is one of the factors that have affected heavily on growth and development of technology. Better means of communication have made it easy for people in different parts of the world to interact and transact business (Ganesh et al. 2005). Better communication tools such as mobile phones, teleconferencing, email, and spread of internet and information flow are all as a result of globalization. Moreover, new communication technology as enhanced running of international corporations in different parts of the world. For instance, it is possible to use software to run an international corporation with branches in different parts of the world. Moreover, new means of making payments have been adopted as a result of the integration of technology across the globe. The new forms of making payments are allowing international organizations to transact business while in different parts of the world without the fear of challenges in receiving payments. Moreover, improved technology has made the international market secure by implementing advanced security mechanisms.
Opening up of market barriers has led to increased competition among nations. As a result, the level of technology has risen to meet customer’s expectations. The high customer’s expectations have made it necessary for transfer and sharing of technology among organizations and nations serving the international market. Sharing of technology has improved quality of goods and services produced and the rate of production (Muhammad et al. 2011, p. 294). New technology has helped capital-intensive companies to adapt to the market needs and contain the level of competition in the market. That has helped many companies to improve their sales and endear themselves to their customers.
Additionally, globalization has impacted heavily on the transportation technology by introducing new improved transportation machines. Free flow of goods and people in different parts of the world has been enhanced through profound means of transport. Use of fast jets, airplanes, electric trains, and ships has eased the way of doing business by enabling people to access different parts of the world easily. It is projected that about $1 billion foreign exchange dealings occurs daily with approximately $9 trillion of products handled across borders and about $2 trillion of services offered between different nations ((Muhammad et al. 2011, p.294)). New technology in the transport sector is not only helping organizations to reduce the cost of business operation but also to access different parts of the world, distribute goods and services and look for new markets.
The way of doing business has also changed significantly in the 2nd century as a result of the spread of the internet. Availability of internet as allowed global organizations to market their goods and services worldwide through online platforms. New technology platforms such as social media have changed the way business transactions conducted. Utilization of online marketing has enabled the global organization to access wide scope of customers thus increasing their sales and presence in the international market. Moreover, businesses have been able to increase interactions with their customers, which has helped most businesses to take care of customer’s needs effectively.
Impact of Globalization on Socio-Economic Structures
One of the important aspects of globalization is that it has led to a market liberalization thus widening the market for goods and services. Establishment of organizations in different parts of the world has helped to create employment opportunities for many people. The chances of employment have transformed people’s life by enhancing the standards of living. Moreover, globalization has significantly contributed to the growth of the global economy. Foreign direct investments have played an important role in spurring economic development, especially in the developing countries. The revenue raised through foreign direct investment is utilized in improving social and economic conditions of the involved nations. Moreover, the establishment of International Corporations in the developing countries has enabled the developing countries to benefit from new improved technology, which is essential for economic development.
Other than fostering economic development, globalization is blamed for increasing inequality in economic development. Globalization has aided the developed countries to exploit the least developed countries (Fougner 2006). The developed countries have the quality technology, which enables them to produce quality goods against the inferior from the least developed countries. Despite opening chances of employment in the developing countries, globalization denies the developing countries a chance to compete successfully (Hartungi 2006). Some economists feel that the peril of segregation from the growth crescendos of commercial globalization is important in the emerging markets (Huynen et al. 2005, 14). The exclusion of some of the countries from the global market has created a big disparity in the economy of the devaluing and developed countries. The richest countries that control the economy of the world are prospering while the least developed countries are lagging behind. The richest countries in the world account for 20% of the world population, but they account for 65% of the world economy (Sharma 2004, p. 29). Sharma (2004, p. 29), argues that the least developed countries account for over 70% percent of the global population, but they account for only 18% of the world economy.
Education has significantly been affected by globalization. Globalization has increased the demand for skills and knowledge to cope with new job demands. This has helped in the improvement of the education as more and more people seek to acquire the skills demanded in the job market. Moreover, learning has transformed from the traditional print method to online learning. Advancement in technology has made it possible for people to study and acquire knowledge through online learning (Huynen et al. 2005). Several learning materials are now available online, and it is possible for everyone to gain knowledge without necessary attending classes. Students can also access learning materials via online libraries in their schools. Global mobility has enabled students to have ample chances to study overseas via ‘virtual campuses’ that have been established (Huynen et al. 2005). According to Huynen et al., dispersion of innovation has allowed scholars to collect and analyze data in real time occasioning in amplified volumes of experiential data (2005).
The health sector has also benefited significantly as result of globalization. New technology in the health sector has made it possible to generate improved medicine and medical equipment to deal most of the diseases affecting the society. Global governance through organizations such as World Health Organization (WHO) and World Bank has played a significant in financing medical research, eradicating serious health problems afflicting the world and setting global policies pertinent to healthy living (Huynen et al. 2005, p.9). Moreover, new technological tools such as television, the internet, mobile phones, and others have made it possible to diffuse health information from one part of the world to the other.
Globalization has led to a proliferation of international culture through communication gadgets and personal interactions. There has been widespread of the global culture around the world. Increased interactions between nations through commerce have led to the interruption of local values, traditions, and culture of the affected nations (Pieterse 2015). Consequently, the dominant culture has been taken precedence to the detriment of the weak culture. Subsequently, exposure to a foreign culture can undermine the cultural identity of the development countries, which are the biggest recipient of a foreign culture. Intermixing of culture has made people forget their national culture through the adoption of foreign culture (Muhammad et al. 2011, p. 229). Loss of culture is viewed as one of the negative impacts of globalization on the society. Most of the nation’s especially those in developing countries are forced to adopt the western culture, which is dominant in the sphere of globalization.
The global economy has also been affected significantly by globalization. To ensure peace and stability in international interaction global governance was initiated (Fuchs 2007). The power of global governance is bestowed on international institutions that pass policies that have an impact on learning local politics. The UN, IMF, WTO and World Bank are some of the organizations that are mandated with the responsibility of ensuring global policies are respected. The groups control the interaction among nations on governance, justice, labor, or political issues (Muhammad et al. 2011). International governmental organizations (IGOs) and transnational corporations (TNCs) have been tasked with the responsibility of finding solutions to the problems affecting global relations. Despite being a controversial concept, the global governance through organizations such as the TNCs set rules that are binding to all players of the global market (Fuchs 2007, p. 2). Some of the policies advanced by global governance influence the political decision-making in some countries.
Moreover, the autonomy of a nation is lost when the market become open to all global players. Globalization led to market treaties that deprive a nation its autonomy to make political decisions such as restriction of international market (Yeates 2002, p. 71). The increase increased liberalization of the market cause nations to lose some sense of autonomy.
Globalization phenomenal impact on the current state of the world economy. Elimination of market barriers made it possible to increase mass production of goods and services. Technology in the communication, transport and security has improved as a result of globalization. Despite being blamed for inequality in the development and cultural erosion, the role of globalization in development has been fundamental. The world has evolved and changed the way business is conducted in the world.
Fuchs, DA 2007, Business power in global governance, Boulder, CO: Lynne Rienner.
Fougner, T 2006, The state, international competitiveness and neoliberal globalization: is there a future beyond ‘the competition state’? Review of International Studies, vol. 32, no. 1, pp. 165-185.
Ganesh, S, Zoller, H & Cheney, G 2005, Transforming resistance, broadening our boundaries: Critical organizational communication meets globalization from below. Communication Monographs, vol. 72, no. 2, pp. 169-191.
Hartungi, R 2006, Could developing countries take the benefit of globalization. International Journal of Social Economics, vol. 33, no. 11, pp. 728-743.
Huynen, MM, Martens, P & Hilderink, HB 2005, The health impacts of globalization: A conceptual framework. Globalization and Health, vol. 1, no. 1, pp. 14.
Muhammad, AC, Faheem, MA, Dost, MKB, & Abdullah, I 2011, Globalization and its impacts on the world economic development. International Journal of Business and Social Science, vol. 23, no. 2.
Pieterse, JN 2015, Globalization and culture: Global mélange, Rowman & Littlefield.
Sharma, S 2004, Impact of globalization on world society. In Academic Forum (Vol. 22, p. 05).
Yeates, N 2002, Globalization and social policy: From global neoliberal hegemony to global political pluralism. Global Social Policy, vol. 2, no. 1, pp. 69-91.