SO684 Globalisation

The term “Globalization” in recent times has the developed as a popular and controversial issue, though often remaining an undefined concept. However in a comprehensive manner, the term is implemented in order to encompass the increase rate in trade and liberalization policies along with the reduction in transportation expenditure, technological transfer, economic changes and societal transitions (Azzimonti, De Francisco and Quadrini 2014). To the extent, the impact of globalization is concerned; the discourse related to globalization tends to consider simultaneously its influence on economic development, employment, income distribution. Globalization process, as a procedure of qualitatively elevated level of the economic life internalization, constitutes several dimensions namely political, social, and cultural as well as informative (Ezcurra and Rodríguez-Pose 2013). These dimensions of globalization process tend to influence human behaviour in several approaches and apart of positive impacts, they further differentiated impact on the environment. As the theme of “Globalization” has become widespread in contemporary times, thus it has been developing into one of the vital aspect which penetrates across communities (Meyfroidt et al. 2013). However, it has been argued that the wide spread global values of human life in relation to economic, industrial, political, cultural, social and technological along with several other areas have been effective. The thesis statement of the essay is “Analysis of constructive and unconstructive impact of globalization on economic, political, environmental, societal factors.”

Globalization is often regarded as an elite discourse, which constructs as well as interprets the phenomenon in particular ways (Epstein 2018). However, it has been claimed that the notion of globalization is identified as an inexorable and inevitable external force which purposes to create distinct areas of avenues as well as threats for societies and communities and thus further been proved particularly influential (Azzimonti, De Francisco and Quadrini 2014). These understandings of globalization constitute a self-actualizing quality which has further been dynamically fostering integration through reforms such as privatization and deregulation (Sassen 2016). Furthermore, the role of Nation State in this regard has been noted particularly in the process of facilitating the process of globalization through policies such as liberalising trade, eliminating capital regulations and generating flexible labour markets (Aguado, Alvarez and Domingo 2013). However, this explanation highlights the differentiated characteristic of globalization, whereby some individuals, groups and communities have developed more globally associated as an outcome of globalization while others have been encountering recent forms of disconnection and exclusion. It has been claimed by Cohn that the impacts of the globalization processes are often complex whereby some may constitute both positive and negative dimensions and enable new and more frequent and abundant forms of associations (Cohn 2016). However, such processes of globalization can also generate new forms of competition into the industrial sector which tend to develop certain sense of insecurity regarding the occupational factors.

According to the theoretical aspects of the relative comparative beneficial factors, both economical factors and foreign direct investment (FDI) must take into consideration the surplus rate of labour in developing nations. These approaches however are claimed to stimulate the development of specialization in areas concerning labour-intensive activities and further involve an expansion in domains of local employment (Epstein 2018). However, on the contrary, the analysis of certain recent studies has underlined the conclusion that the degree of employment impact of the elevating trade does not necessarily pose constructive impacts for the developing nation. Furthermore, it has been noted that when the aggregated factor of productivity elevates in emerging countries as a significant outcome of globalization, the rate of employment or service enhances economical impact. These impacts further have to be analysed with the direct labour-consuming effect of the imported technologies. In other words, it can witnessed by the developing countries that the ultimate employment effect on the rate of growing trade is relied on  the process of interaction between level of productivity growth and output development in traded goods sectors as well as in non-traded sectors.

At this juncture, it can be recognized that with the development of foreign capital in developing countries, FDI spawns positive employment impacts both openly and indirectly through job formations within distributors and retailers along with a vital tertiary employment impact though the process of producing supplementary resources and further elevating the aggregate demand of those developing countries (Lukovi? 2015). As these factors of job disarticulation impact can further be elevated with the inflow rate of globalization, it will further tend to increase the rate of interest and further result to the reduction of domestic investment rates. However, Ince et al. (2015) further claim that the generalized impact of trade and FDI has been recognized as indecisive from the theoretical aspect. Furthermore it is immensely crucial for modern theorists to evaluate these associations and further observe both the direct as well as indirect impacts of globalization pertaining to the domestic employment condition of globalizing developing countries (Meyfroidt et al. 2013). The significant impact of globalization is noted to be significantly shaped by the mechanism of political and economic governance in operation. An Anglo-Saxon model has been recognized to have been influential in nations like US, UK, Australia and Canada that is based on low rates of employment regulation and employee support (Ince et al. 2015). While on the other hand, a prominent Rhineland model of France and Germany has been recognized to have united stringent employment protection regulations with increasing levels of worker sustainability (Smith, Finney  and Walford 2016).

Furthermore, Lukovi? has identified one significant area of globalization whereby process of globalization has influenced the daily lives of individuals through the accessibility of the labour market as well as other employment factors (Lukovi? 2015). Labour has been noted to be develop increasingly globalized through the emergence of global labour expenditures that are further been based on the progress of recent labour supplies in emerging nations particularly China and India. However, as consequential the shares of employees in the globalized market related to the rate of national resources has witnessed a decline across a major section of the world, further signifying a severe deterioration of the labours’ negotiation position relative to resources and capital (Gereffi 2013). However, the vital impacts of such wide-encompassing forces have reformed the state of UK labour markets over the past number of decades with critical impacts pertaining to patterns of inclusion and marginalization. Furthermore, Lukovi? (2015) reports a distinctive positive impact of trade flexibility in the decline of business-profits taxation rate, it has been claimed that factors related to trade openness along with resource mobility do not significantly condense the competence level of the government to tax, nor facilitates the areas for increasing the rate of progressivity of the taxation system. Certain studies have revealed  that trade and businesses attains several beneficiary factors from the state’s role in economy as well as society, in particular from the domain of public investments in human and physical capital and from redistributive rate of costs which tend to condense social tensions that emerge from economic dislocation (Lukovi? 2015).

However, on the other hand, political factors relating to the formation of regional trade blocks or involvement of globalization in several international treaties may further serve a role by acting as a precursor to greater economic integration (Cohn 2016). These political factors further act as an indication of greater economic involvement through the opening of industrial markets to liberated trade along with the consequent development occurring in societal dimensions. Furthermore, on the other hand, greater degree of political assimilation on a regional level reveals a considerable degree of propensity to transform to integrated regional cooperation that is pertaining to the form of trade obstructions. Cohn (2016), other hand is of the argument that the vital impact of these materializations related to political integration of globalization on the societal sphere of developing countries reveal high degree of complexities to predict. However, it may be conceivable to not that political globalization can be identified independently as a vital facilitator of critical economic forces (Smith, Finney  and Walford 2016). Moreover, disparity in the impacts of political in contradiction to economic globalization forces for instance have been identified in recent observations through the evaluation of the vital outcomes of globalization forces on economic progress and development (Cohn 2016).

The impact of the rate of production volume has been noted to have articulated the environment pollution level as a consequential factor of the elevated degree of resource output in the developing nations (Aguado, Alvarez and Domingo 2013). As the impact of technology implies to the reduction of damage towards the environment, the rate of impact tends to arise with the emergence of advanced technologies by foreign investors which are in comparison with technical expertise of local enterprises tend to be reveal greater degree of accountability to the environment. For instance it can be noted that these local enterprises tend to reveal less energy sensitive and promote mechanisms of environmental management to their purpose (Mangra, Cotoc and Dumitru 2014).

Therefore, to conclude it can be stated that the economic, social or technological growth are induced by the globalization process which constitutes both positive and negative impacts on the country’s developmental state. As factors related to FDI has been recognized as a vital mechanism for influencing such process, unconstructive outcomes of this process may be successfully be eradicated through effective financial and environmental state policy. Individuals increasingly comprehend the relative rate of economic strengths and weaknesses of the globalization as elements of particular national political understanding and not as a consequential factor of diverse accepted advantages. Thus, the assimilation of these elements makes it evident that the contemporary age of globalization will be recognized as one of the vital global struggles over economy.

References

Aguado, S., Alvarez, R. and Domingo, R., 2013. Model of efficient and sustainable improvements in a lean production system through processes of environmental innovation. Journal of Cleaner Production, 47, pp.141-148.

Azzimonti, M., De Francisco, E. and Quadrini, V., 2014. Financial globalization, inequality, and the rising public debt. American Economic Review, 104(8), pp.2267-2302.

Cohn, T.H., 2016. Global political economy: Theory and practice. Routledge.

Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.

Ezcurra, R. and Rodríguez-Pose, A., 2013. Does economic globalization affect regional inequality? A cross-country analysis. World Development, 52, pp.92-103.

Gereffi, G., 2013. A global value chain perspective on industrial policy and development in emerging markets. Duke J. Comp. & Int'l L., 24, p.433.

Ince, A., Featherstone, D., Cumbers, A., MacKinnon, D. and Strauss, K., 2015. British jobs for British workers? Negotiating work, nation, and globalisation through the Lindsey Oil Refinery disputes. Antipode, 47(1), pp.139-157.

Lukovi?, S., 2015. The impact of globalization on the characteristics of European countries’ tax systems. Economic Annals, 60(206), pp.117-139.

Mangra, M.G., Cotoc, E. and Dumitru, A., 2014. Sustainable Economic Development Through Environmental Management Systems Implementation.

Meyfroidt, P., Lambin, E.F., Erb, K.H. and Hertel, T.W., 2013. Globalization of land use: distant drivers of land change and geographic displacement of land use. Current Opinion in Environmental Sustainability, 5(5), pp.438-444.

Sassen, S., 2016. The Global City: Strategic Site, New Frontier. In Managing Urban Futures (pp. 89-104). Routledge.

Smith, D.P., Finney, N. and Walford, N., 2016. Introduction:‘On the Move’in the Twenty-first Century and Contemporary Internal Migration in the UK. In Internal Migration (pp. 17-30). Routledge.