Impact of Globalisation

The Impact of Globalisation
Globalisation is the growth of a business/country by expanding around the world. Globalisation affects everyone in a broader sense; however when discussing globalisation it is usually in regard to either developed countries (which are countries with a highly developed economy, have a high amount of GDP per capita, have advanced technological infrastructure and a high HDI.) or developing/third-world countries (which are countries with a lower living standard, underdeveloped infrastructure and low GDP per capita.)

Globalisation has its advantages and disadvantages to businesses/countries and its people living in both developing and developed countries. Globalisation creates jobs, forces competition in companies and increases global economic growth. Job creation is important especially in developing countries; it brings in foreign technology and ideas. When a third-world country is introduced with the culture and the standards of developed countries it improves their work and living conditions over time. It brings in new technology, equipment and infrastructure to help assist in the creation or gathering of goods. It also brings in new sources of revenue as well as giving people opportunity to earn money. All this allows the country/businesses and its people to improve their infrastructure, technology, health, living standards, finances and economy. Globalisation creates competition and a worldwide market where people can access products from around the globe. When a business/country is able to cut costs in one area; they can improve their goods or lower the price, thus winning competition and ultimately benefiting consumers. With this consumers feel comfortable with spending, creating more revenue and thus providing more jobs both in developed and developing countries. This in turn assists in the improvement of the country’s economy. Globalisation assists in the handling of politics and relations with other countries. Better relations with other countries are beneficial as they can share information and can have better communication where interests are shared.

Globalisation is a controversial topic to some, its principle idea being; outsourcing to a different country where costs can be cut to improve profit. This is usually done as wages or supplies in other countries are cheaper. The general consensus is that globalisation makes the rich richer and ‘poor’ poorer. As work conditions, minimum wage and need for money are different in other countries, some multinational corporations are accused of exploiting these third-world countries. They can force unfair work conditions and living conditions as these workers need what little money they receive to survive. Furthermore, due to incompetence and cost reduction they can harm the natural resources and cause ecological damage to other countries. Some of these corporations also gain substantial power and can influence political decisions. With this great power comes great responsibility, if a company crashes it may cause a crash in the market and affect many areas in the economy. In some developed countries there are social welfare schemes or doles, where people who do not work still receive money from the government. Due to globalisation and the belief where debt and spending without a surplus in income is okay, the country is in a dangerous position. As jobs are being outsourced and employment rates dropping in developed countries, more welfare money is given from tax payers. People also continuing to spend on credit (that is usually financed by foreign investors) even though there are chances they may eventually lose their jobs. The people living in these developed countries cannot compete with workers from developing countries, as their pays are less and the fact that they are generally more competent.

Globalisation will lead the world both developed and developing into new places. The now developed countries will slowly be lead into debt and financial crisis (as shown by Greece.) and developing countries will continue to strive and improve their infrastructure, finances, economy and technology. In developing countries they will eventually become considered developed countries. As free trade continues their market will rise. Depending on how the government manages these countries, they can continue to strive and become global powers or they could end up similar to how the United States is currently, in debt and with many problems. In the cases of many developed countries they will see their currency drop, their market value decline, companies going into bankruptcy and an increase in unemployment. People will continue to look for jobs and potentially move to wherever money lies (most likely China).

Globalization benefits the global community. The developing countries that are in need of a better education, health and living standards, infrastructure, jobs etc. They will continue to improve. The things that developed countries bring into developing countries in the long run improve the nation. Even though the environment can be harmed, the positives will outweigh the negatives. The gains from globalisation also benefits the ‘high-ups’ in businesses and the consumers in developed countries as goods are cheaper for consumers and due to cuts in other areas executives can be paid more. It is obvious that developing countries benefit the most out of globalisation. Regardless of the ethics that some corporations have in regard to living and work standards for their workers in the long run it is beneficial for the people of the developing countries. There has been a minimal advantage by developed countries as currently they sit on the top of the world and appear to be well off. This misconceived image is preventing them to grow. The way these developed countries are growing is by globalisation and outsourcing. Whereas developing countries are now given massive chances to grow and become stronger global powers.