The Three Main Aspects Of Globalisation Economics Essay

The ternary Main Aspects Of globularization stintings EssayAssignment questions The current spherical downturn, the worst since the Great Depression 70 years ago, pounded the last perk into the coffin of world-wideization. I believe that de globalization is an opportunity.Walden Bello, The virtues of deglobalization, 3 September 2009, athttp//www.fpif.org/articles/the_virtues_of_deglobalization.In a year when the with child(p) of Qatar round of sight negotiations is technically doable, accord to World shift Organisation Director-General Pascal Lamy, discuss the issues raised by Walden Bello.Table of ContentsIntroductionWTO was born in 1995, with the important objectives of establishing the rules and promote the swops among terra firmas (World Trade Organisation 2010). Institutions goal could be traced back to Bretton Woods system, delimitate up to stabilizing world monetary system. To promote cooperation, ministerial assembly has been set up once every ii years as a stage for brainstorming of the ideas and concerns. At 2001 meeting in Doha, Doha Development Agenda, known as Doha round, was initiated. Though initially concentrate on disassembling impediment to peck for poor countries, its emphasis has been further to accept globalization and facilitation of world flip-flop because it is perceived as an engine of harvest-festival and sharing of prosperity it transfers capital, expands merchandise, introduces new technology, promotes women as labour forces, and maximises wealth to trade (Fergusson 2008). Pascal Lamy, WTO chief, enounced in 2010 that Doha round would ensure ample predictability and security, the value of which has been proven in the recent crisis. Though it is difficult to kill trade impediment and negotiation issues, in November 2011 the roadmap for globalization cooperation is agreed to be Technically Doable (Trade law content for s protrudehern Africa 2010).Though globalisation sounds very promising, there also u rinate been galore(postnominal) critiques on the idea. First, globalisation has been argued to be a greedy tool of bring outed estates to colonize maturation countries by destines of and through economic laterality globalization drives out topical anaesthetic competitors, increases imports, drains boodle out of countries, allows substantial nations to exploit natural resources of belowdeveloped countries, and exhausts non-renewable resources. Moreover, with the 2008 global financial crisis, globalisation was seen as a conveyance of economic depression preferably than a driver of prosperity. Every untaught has adopted a oftentimes protectionism attitude towards exotic investment. Bello, one of the leading critics of globalisation, suggested his idea of the deglobalisation paradigm, looking at nationalization as an opportunity and a more stabilized ersatz to growth. He has, instead, asked the states to emphasise trade in national rather than global level, protect l ocal economy, upgrade quality of life, and promote regional more than global institutions (Bello 2009). rule 1 The globalisation or deglobalisationSo is globalisation really beneficial or dis receipts to the participants? Is Doha Round sentiment correct that globalisation is a focal point to increase trade cooperation? Is Walden Bello aright about his deglobalisation paradigm? Attempting to scrutinize this dilemma, this report will try to encounter from two facets with arguments from those who support as hearty as critique of globalisation, search the woos and benefits of globalisation and, lastly, seek the result to the question how the nations could maximize the benefits and sully and limits the costs of globalisations?Supporter of GlobalisationGlobalisation has three main aspects which ar economic, indemnity-making and socio-cultural (University of Leicester 2009). Economic aspect focuses on the integration of global economies as well as diminish of trade and ca pital across nation borders. Socio-cultural aspect emphasises on the exchanging of social and culture. Social aspect includes lifestyle, perception, and communication. Culture includes value, belief, tradition, and norm. The semi presidential termal aspect targets on interchange of political contact among countries (Held & McGrew 2005). The pros of globalisation would be explored through these mentioned aspects.Figure 2 three main aspects of globalisationEconomic aspectGlobalisation has encouraged more trades and increased the flow of capital among nations For instance, businesses tin seek their funding from extraneous banks that pass the most warring interest rate (Bhagwati 2004). MNEs have more flexibility to operate as well as locate their operations in any countries that offer advantages (e.g. cheaper labour cost or closer proximity with the customers) For example, more US corporations moved their labour intensive productions to mainland China because Chinese workers have demoralise wage than the American counterpart. As a result, the world consumers can acquire goods and services at a lower price. Moreover, economic opportunity has been expanded, from municipal to regional and global consumers, as technology such as internet or cheaper transportation make possible for sight to seek out new business connections (e.g. franchise). With more players mete outing the same goods to target customers, tilt is increased consumers will get the benefit of cheaper price. on that point be legion(predicate) institutions among countries to encourage economic quislingism such as WTO, OPEC, APEC, ASEAN, EU and UNCTAD.Socio-cultural aspectNowadays, the communication, info turn, and mass media have been raised. This dish ups reduce the communication barrier so that people from different culture, life style, and society have more instinct of each early(a) (Tomlinson 1999) For example, internet helps people to communicate easier and to find the informat ion (such as news, fashion trend, education). Moreover, gayy US and UK universities open the opportunity by offering distant learning program with granted degree for foreign students who can non afford high cost of living in the countries. This could help those people to improve their quality of life. Some problems such as poverty, health care, grammatical gender equality, child labour, and global warming are difficult or unattainable to solve by individual nation. Globalisation has do such issues global awareness and concerns. It encourages harmony and willing from every country to help attack the problems (e.g. the global warming meeting held in Denmark). There are many transnational organizations that help promote collaborations and tackle socio-cultural issues such as UNICEF, UNEP, UNESCO, and WHO. semipolitical aspectPolitical tension was no wanter individual problems betwixt conflicting nations. Poverty in the Caribbean means more drugs on the streets in Washington and London. Conflict in the Balkans causes more refugees in Germany and here in the UK (Stiastny 1999). These problems can only be addressed by international co-operation. Globalisation promotes the circumstance of state interaction. Whether nations like it or not, we are all internationalists. There are a lot of collaborate institution among countries to strengthen the political collaboration UN, EU, and G7. Many conflicts were encouraged to be solved through still approach, such as negotiation. After the end of cold war, globalisation inspires nations to develop friendly relationship, to help nations work together to improve quality of life, and achieve world harmony.Anti-GlobalisationGlobalisation became an unending controversy (Bhagwati 2004). Many critics are a suckst globalisation because they can notice its disadvantages. To analyse how negative of the globalisation, the cons of globalisation would be seen through the same aspects as the benefits has seen through.Economic aspec t agree to the labour flow has died from developed countries to developing countries because the corporations always focus on maximising expediency and try to find the lowest labour cost. The developing countries obviously have lower labour cost than developed countries. While craft is change magnitude in developing countries, this make developed countries people losing job as well, especially for labour level.There are also many moments of crisis exit from globalist project such as Asian financial crisis (1997), the collapse of WTO Ministerial conference in Seattle (1999), and the collapse of stock market in Clinton sail through (Bello 2004). Moreover, when the depression happens to one country, it will easily opening to early(a) countries. For example, Greece great crisis heavily impact to countries in Europe zone and early(a) countries in the world. This is because the crisis has reduced the investors confidence. Then this made Euro currency drop sharply as well. For ot her example, the root cause of the hamburger crisis may not be trainly from globalisation. However, the globalisation stimulates and spread its effect throughout the world.Socio-cultural aspectGlobalisation made the flow of culture happened, for example, the American and Western culture spread all over the world. The more powerful countries cultures have weakened the cultures of the others. The personal corporations, which have the capital to invest, will have influence over the countries, in the case of media, society, and individual. Because of wider range of transportation and communication in the world, the decease will be easily spread from one country to another country. For instance, the Swine flu, which started from Mexico, distribute to other countries all over the world. Increase of environmental concerns and sustainability in developing countries because the distribution of factory, especially the polluting making factory, from developed countries to developing countrie s. Moreover, the war could be happened from competing for the world resources such as oil, coal, and iron.Political aspectCerny (1997251) states that the transformation of the nation-state into a competition state lies at the heart of political globalization. The less developed countries maybe at disadvantage and losing of control from developed countries. The illegal trade in drugs, arms, intellectual property, people, and money is booming. Like the war on terrorism, the commove to control these illicit markets pits political sympathiess against agile, stateless, and resourceful networks empowered by globalisation. Governments will reach out to lose these wars until they adopt new strategies to deal with a larger, unprecedented spit out that now shapes the world as much as confrontations amid nation states once did. (Naim 2003)How to make it works?In the earlier sections, the benefits and disadvantages of globalisation were discussed. two aspects seem to have good reasons t o support the arguments. To seek the ultimate answer to the question that is globalisation good or bad? we may set out to the point to accept the fact that globalisation is both. It depends on many interacting and interdependent forces that are the product of the dynamics of conflict and collaboration. Therefore, it is almost impossible to cook singlehandedly that whether the globalisation is always good or bad. The emerging and more pragmatical question is that how could state maximise the benefits and minimise the impact brought about by globalisation? To answer the question, Dicken (2010) suggested that countries should balance the forces of globalisation and anti-globalisation by sticking to the facts and that they should formula and enact essential policies to both exploit the positive consequence and, at the same time, limit negative effect of globalisation. The major policies adopted by the states could be broken down into four main categories which are trade strategies, foreign direct investment (FDI) strategies, industriousness strategies, and labour market strategies.Figure 3 Striking balance between benefits and costs by state policiesPolitical PolicyGlobalisation leads to a creation of corporation and preaching space, with the increasing trend towards emergence of international organization such as UN. Government should recognize the benefits of participation and collaboration through such international stage. For example, the suspected development of Nuclear weapon and Submarine conflict between North Korea and South Korea heighten the political tensions and be both countries to film in war which would not be beneficial to both parties and would not be appreciated by other countries. South Korea developed a strategy to pressure North Korea through international stage by bringing the topic and concern to UN. Under the spotlight of globalisation, North Korea was under pressure to alter its stance and forced to negotiate or threatened sanctio ned by other countries. Such example stresses on the political policy that becomes even more important tool of government that can help achieve states interest or goal.Trade PolicyTrade policy includes import and export trading. The objectives of trade policy against imports are dogmatic import quotas, import licenses, rule of origin, subsidies to domestic producers, and protecting domestic firms from foul competition. Also, the objectives of this policy against exports are setting export targets, creating free trade zone, and control voluntary export restraint. The example of major trade agreement among countries government are EU, NAFTA, AFTA, EFTA, and ASEAN. For example, China and U.S. are the world second and third largest exporter of fabric products (World Trade brass instrument 2010). U.S. textile industry got impact from low cost textile from China which distress local U.S. producers. U.S. government granted policy to limit import cheap cloth from China and influence exp ort in this industry to China. Moreover, U.S. tries to influence WTO committee to oppose China from WTO because China heavily subsidise its textile industry and manipulate its currency to gain export advantages. U.S. government also granted trade agreements with several countries, such as the U.S. Korean Free Trade Agreement (KORUS), to reduce the U.S. job losses from original text favours Korean textile exporters (National Council of Textile Organization 2011). These policies accent on the trade policy that government enforcing its current trade rules.Foreign Direct Investment PolicyThere are two main categories of FDI polices which are inward investment by foreign firms and external investment by national firms. Normally, the inward investment by foreign firms has more concerns. For example, Tesco, UKs largest retailer, firstly enter to Thailand in 1998 (Tesco Plc 2011). From this approach investment, there are both advantages and disadvantages to Thailands economy which need go vernments hand to maximise benefits and reduce costs. On one hand, for employment aspect, this big investment helps local people, especially who unconnected jobs from Asian crisis in 1997, had jobs in the stores and offices. Nowadays Tesco Thailand is holding approximately cardinal thousand local employees and continuously having plans to develop its human resources. On the other hand, there are many local grocery stores in Thailand which sell goods on average price. When Tesco came with bigger scale of operation, hence higher talk terms power with suppliers, Tesco could sell goods on lower price and wider range of products. Previously, local grocery stores still had more benefit on location because Tesco did not have much stores but nowadays Tesco was distributed to most of cities in Thailand. This made local stores lost customers, lost revenues, and cannot stand. From this concern, government should have foreign direct investment policy to protect its both local stores and peop le by setting price limit not too high and not too low which will affect each other. This help both parties can live together with no exploit each other and maximise the benefits to country.Industrial PolicyIndustry policy has main objectives to support declining industries, encourages strategic industries, stimulate new industries, develop depressed areas, and encourage entrepreneurship. For example, the industrial policy helps many industries in Europe countries to seize the opportunities in global business environment. EU emphasis on technology and ICT skill to help investors and businesses in any industries engage in sustainable and profitable. EU industry would therefore benefit from the fast-growing world market provided by globalisation. In other words, Europe would see rising industrial output, employment, and incomes over the coming decade. The government should give more attention to this policy.ethnical PolicyCultural policy is the government policy which related to natio nal culture and art. The main functions of cultural policy are to promote diversity, accessibility, and heritage of culture. For example, for as long as internet has occurred, China has controlled and monitored its citizens how they use the internet. China government regulates the internet censorship for Chinese internet users via China firewall (James 2009). Although, there are many critiques throughout the world on this censorship, China still blocks and filter near websites that may be sensitive to its society and culture such as democracy topics. China believes that this could prevent its culture to be assimilated from the culture of other countries. For another example, the government from five dollar bill countries, which are Armenia, Azerbaijan, Georgia, Moldova and Ukraine, create culture exchange program, called Kyiv Initiative, which address on the cultural collaboration issues and cultural exchange among five countries. This strategic direction is very much in line with much contemporary thinking in European cultural policy, where there is a similar emphasis on regional and transnational co-operation, e.g. partnerships, networks, artistic mobility, collaboration between cities etc (Council of Europe 2006).ConclusionWhile Bello (2009) stated that deglobalisation is an opportunity, Lamy (Trade law centre for southern Africa 2010) said in completion of Doha Round academic session that globalisation is technically doable. To find the final answer, we should compound both situation and let us see is it desirable? How to make it desirable? According to globalisation have benefits, risks, costs, and disadvantages. Then, to extinguish most advantages of out of globalisation, government should figure the major areas of potential impact from globalisation. If promises of globalisation are a dream, Bello is the wakeup calls for everyone who is enjoying that dream. From the previous sections, the suggestion is that the perspectives that government should adopt is neither globalisation nor deglobalisation but the ultimate decision of government should strike balance between globalisation and deglobalisation, not too extreme to only one side, to get the best way for its own country and the world.The nation need state intervention through state policy and also need learning process of government to maximize benefits and maintain an impact from globalisation. The corporation among the countries is also crucial. In instantly world, everyone is talking about gaining competitive advantages. Government is no exception. Usually, gaining competitive advantage means benefits for themselves but on others expenses. From previous sections, we can see that globalisation has both costs and benefits. Also, now we know how government could manage to extract those benefits and defence those costs. In my opinion, government should defence their benefits from other countries. In the mean time, government should implement the globalisation as win-win si tuation. Government should think and get to thoroughly because they can defence the other countries that tries to extract benefit on them. Draw benefit on our expense. Realise that best benefit man not come only for itself but collaboration to maximize well being. Growing and sustainable together. Now its the learning time how every country should behalf to get benefit from globalisation.Nowadays, the internet is one of engine to propel the globalisation. The net is a medium that allows people to communicate and interact with one another throughout the world.