Project on Globalization:-Nature and Scope
Submitted to: Dr. B.K. Mahakul Faculty – Political Science
Submitted by: Avinash Kumar Masram Semester – V (political science major) Roll no. - 39
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TABLE OF CONTENTS 1. 2. 3. 4. 5. 6. 7. 8.
Acknowledgement……………………………………………………….3 Objective…………………………………………………………………4 Introduction ……………………………………………………………..5 Globalization it’s Nature ………………………………………………..6 Effects of Globalisation……..…………………………………………..7 Conclusion ……………………………………………………………...11 Bibliography ……………………………………………………………12 Webliography……………………………………………………………12
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Acknowledgements I feel myself highly elated, as it gives me tremendous pleasure to come out with this dynamic topic, " Globalization: - nature and scope”. Words fail to express the deep sense of glee to Dr. B.K Mahakul Faculty of Political Science, H.N.L.U Raipur. The dialectics and dynamics of this topic provoked me to come out with project. I would like to thank him for guiding me in doing all sorts of researches , giving me suggestions and having discussions regarding the project topic by devoting her precious time .I thank all those who have helped me in the completion of this project from the bottom of my heart . I would also like to extend my heartfelt thanks to the library staff that have been relentless in their help and support in providing any material whenever required. Thanking you. Avinash Masram Roll .No 39
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Objective
To study process of globalization To study its nature and effects
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INTRODUCTION Globalization is the process of international integration arising from the interchange of views, ideas, product and other aspect of culture. Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities. Though scholars place the origins of globalization in modern times, others trace its history long before the European age of discovery and voyages to the New World. Some even trace the origins to the third millennium BCE. In the late 19th century and early 20th century, the connectedness of the world's economies and cultures grew very quickly. There are heated debates about globalization and its positive and negative effects. While globalization is thought of by many as having the potential to make societies richer through trade and to bring knowledge and information to people around the world, there are many others who perceive globalization as contributing to the exploitation of the poor by the rich, and as a threat to traditional cultures as the process of modernization changes societies. There are some who link the negative aspects of globalization to terrorism. To put a complicated discussion in simple terms, they argue that exploitative or declining conditions contribute to the lure of informal "extremist" networks that commit criminal or terrorist acts internationally. And thanks to today's technology and integrated societies, these networks span throughout the world. It is in this sense that terrorism, too, is "globalized."
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Globalization: - It’s Nature The main strands for the nature of globalization are:1) 2) 3) 4) 5)
Increasing and deepening interconnectedness of societies in different parts of the world Almost unimpeded flows of financial capital, news and cultural images across the world Rising activity and power of multinational companies (MNCs) Rising economic growth accompanied by rising inequalities in many countries A global consumer cultura in the making More travel and migration by more people from more countries to more countries; faster methods of transport and electronic communication so that
time and space is increasingly being 6) Greater awareness by the public of what is happening in the world and of the possible implications for their own country. 7) The rapid growth of government and non-government supranational organizations that supplement, supplant and support the activities of the nation-state. This mindset led to the creation of world trade governing bodies, such as the World Trade Organisation and the Organization for Economic Co-operation and Development and The European Union. These organizations set out to liberalize trade through the removal of import/export tariffs and protectionism by governments. The rapid increase in the rate of globalization has been facilitated by the introduction of technology which has allowed fast communication and transport between geographically distant places. The admission of China into the world trade market has increased supply and demand for finished products which is further boosting industry around the world.
EFFECTS OF GLOBALISATION 6
Globalization seems to be looked on as an unmitigated “good” by economists. Unfortunately, economists seem to be guided by their badly flawed models; they miss real-world problems. In particular, they miss the point that the world is finite. We don’t have infinite resources, or unlimited ability to handle excess pollution. So we are setting up a “solution” that is at best temporary. Positive Effects of Globalization Globalization has become one of the most debated subjects of recent times. It has been hailed as one of the best things to happen to the world by its proponents, while opponents have labeled it as neoimperialism. Despite its challenges, the positive role it has played in changing the lives of millions of people around the world is commendable. In the following passages, we will try to gain an insight into the positive effects of globalization. 1) Increased Competition one of the most visible effects is the improved quality of products due to global competition. Customer service and the 'customer is the king' approach to production have led to improved quality of products and services. As domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market. Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates competition in the market and a 'survival of the fittest' situation. 2) Employment With globalization, companies have forayed into the developing countries and hence generated employment for them. But it can turn out to be either good or bad, depending on the point of view you wish to see it from. It has given an opportunity to invest in the emerging markets and tap the talent which is available there. In developing countries, there is often a lack of capital which hinders the growth of domestic companies and hence, employment. In such cases, due to global nature of the businesses, people of developing countries too can obtain gainful employment opportunities. But the developed countries have lost jobs on account of this shift of jobs to the developing world and hence it is a pinch felt by people in the First World. 3) Investment and Capital Flows A lot of companies have directly invested in developing countries like Brazil and India by starting production units, but what we also need to see is the amount of Foreign Direct Investment (FDI) that flows into the developing countries. Companies which perform well attract a lot of foreign investment and thus push up the reserve of foreign exchange.
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4) Foreign Trade while discussing the effects of globalization, how can we forget about the impact of foreign trade on an economy. Comparative advantage has always been a factor, even in during old times. While trade originated in the times of early kingdoms, it has been institutionalized due to globalization. Previously, people had to resort to unfair means and destruction of kingdoms and countries to get what they wanted. Today, it is done in a more humane way, with mutual understanding. People who operate in uncivilized ways have to face the WTO and other world organizations that have been established with a view to control and regulate trade activities of the countries. 5) Spread of Technical Know-How while it is generally assumed that all the innovations happen in the Western world, the know-how also comes into developing countries due to globalization. Without it, the knowledge of new inventions and medicines would remain cooped up in the countries that came up with them and no one else would benefit. The spread of know-how can also be expanded to include economic and political knowledge, which too has spread far and wide. The most obvious example of the spread of knowledge is that the Western world today is waking up to the benefits of Ayurveda and Yoga - traditional Indian practices, while the Western antibiotics are flooding the Indian markets and improving the quality of life (and the longevity too) of people in India. 6) Spread of Culture Not all good practices were born in one civilization. The world that we live in today is a result of several cultures coming together. People of one culture, if receptive, tend to see the flaws in their culture and pick up values that are more correct or in tune with the times. Societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Cooking styles, languages, and customs have spread all due to globalization. The same can be said about movies, musical styles, and other art forms. They too have moved from one country to another, leaving an impression on a culture which has adopted them.1 7) Spread of Education One of the most powerful effects of globalization is the spread of education. Today, you can move in the search of the best educational facilities in the world, without any hindrance. A person living in U.S. can go to another continent for a new experience which he may not find in his home country. If one is interested, one can even get a specialization in subjects not indigenous to his country and then spread that knowledge to the home country. A good example of that is how the American managers went to 1 http://www.buzzle.com/articles/positive-effects-of-globalization.html 8
Japan to learn the best practices in the field of mass production and incorporated that knowledge in their own production units. 8) Legal and Ethical Effects Gone are the days where the limited jurisdiction became a hindrance in the prosecution of criminals. These days, due to international courts of justice, criminals can no longer seek asylum in a foreign country and are thus brought to justice. Due to globalization, there is also an understanding between security agencies and police of two or more different countries who come together to curb global terrorism. Hence, it is now possible to catch the perpetrators of crime irrespective of which country they choose to hide in.2 Negative Effects of globalization:Globalization is a very controversial issue today. Opinions vary considerably over its pros and cons. Here we take a look at its negative effects. 1) child labor and slavery :There are various schools of thought who argue that globalization has led to an increase in activities such as child labor and slavery. In countries with little or no accountability, corporations employing children can work smoothly by bribing the officials, which may result in an increase in illegal activities. Critics opine that globalization has resulted in a fiercely-competitive global market, and unethical practices in business are a by-product of this. 2) Increase in Terrorism :Globalization may have inadvertently helped terrorists and criminals. At the heart of globalization is an idea that humans, materials, food etc. be allowed to travel freely across borders, but 9/11 was a ghastly reminder that people with evil intentions can use it as an opportunity and cause damage. 3) Increase in pollution :It is not only the developed nations that are complaining about its negative effects, people in developing nations - where most of the industries have been set up, have their own set of reasons against globalization. They often complain that their cities have been reduced to garbage-dumps where all the industrial waste is accumulated and pollution levels are sky-high. 4) Resentment among people :While the rich are getting richer, the poor are struggling for a square meal. If the current Occupy Wall Street protests are a reminder of how angry people are with the current set-up, then those who govern us should take notice, and work towards alleviating poverty. Ideally, globalization
2 https://sites.google.com/site/nativgatingtheglobalcomau/the-positives-and-negatives-of-globalization 9
should have resulted in creation of wealth and prosperity, but corporate greed and corrupt government has ensured that money is not distributed equally. 5) Spread of Aids :When the first-known case of AIDS came up in America, only few would have traced its origin to Sub-Saharan Africa. Globalization bought people from various countries together, and this is perhaps the reason that a virus from a jungle was transported to almost every country in the world. 6) Degradation of environment :Environmental degradation is an issue which has been debated ferociously in various international meetings, and it has to be accepted that globalization is one of the most important factors that has aggravated the situation. The amount of raw materials needed to run industries and factories is taking a toll on the natural reserves of planet earth, and pollution has severely impacted the quality of air that we need so very much for our survival3.
3 http://www.buzzle.com/articles/negative-effects-of-globalization.html 10
Conclusion The implications of globalization for a national economy are many. Globalization has intensified interdependence and competition between economies in the world market. This is reflected in Interdependence in regard to trading in goods and services and in movement of capital. As a result domestic economic developments are not determined entirely by domestic policies and market conditions. Rather, they are influenced by both domestic and international policies and economic conditions. It is thus clear that a globalizing economy, while formulating and evaluating its domestic policy cannot afford to ignore the possible actions and reactions of policies and developments in the rest of the world. This constrained the policy option available to the government which implies loss of policy autonomy to some extent, in decision-making at the national level.
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Bibliography: 1. Baylis John, Smith Steve and Owens Patricia, The Globalization of World Politics (4th Ed, 2008) oxford university press. 2. Burchill Scott, Theories of International relation, 2005, Palgrave Macmillan, New York. Web Sources: 1. www.economics.about.com/od/globalizationtrade/l/aaglobalization.ht m 2. www.buzzle.com/articles/negative-effects-of-globalization.html 3. www.oilprice.com/Finance/the-Economy/12-Negative-Aspects-ofGlobalization.html 4. www.programsandcourses.anu.edu.au/specialisation/GOIR-SPEC
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