Why Globalization Matters? Critically Discuss the Implications of Globalization for Firms and Countries. Use Examples to Support Your Arguments.
1. Introduction
On the threshold of 21st century, international communities have been drastically globalised or internationalised as the World Trade Organisation (WTO), which is the successor to the General Agreement on Tariffs and Trade (GATT), launched in 1995. As many countries agreed to open to foreign intercourse, international trade, financial markets and foreign investment have been rapidly grown as well as the changes in culture have been undergone. The term ‘globalisation’, in this manner, refers to ‘a process of increasing international dependence in which countries become more integrated with one another economically and culturally.’ (Bentley et al., 1999, p.177) It is generally supposed that the origin of current globalisation was from the end of the Cold War. The American president in the late 1980s, George H. W. Bush, proclaimed ‘new world order’ which involved that “countries would cooperate peacefully as participants in one worldwide market, pursuing their interests while sharing commitments to basic human values.” (Lechner and Boli, 2004, p.7) In other words, economic and political interdependence would lead to more shared interests, which would help to grow economy and create both wealth and solidarity. The spread of market-orientated policies and individual rights promised to improve the well-being of billions of people. However, this positive perspective on globalisation has been strongly criticised by many socialists who see globalisation as the latest stage in the development of international capitalism. They have been argued that globalisation is westernization by another name, that is, it undermines the social and cultural unity of other cultures and is therefore exploitative, oppressive and harmful to most people in many places, especially in developing countries. Moreover, surprisingly, even developed countries are also undergoing some disadvantages from globalisation, leading to social problems. As Waters (1995) suggested, therefore,
On the threshold of 21st century, international communities have been drastically globalised or internationalised as the World Trade Organisation (WTO), which is the successor to the General Agreement on Tariffs and Trade (GATT), launched in 1995. As many countries agreed to open to foreign intercourse, international trade, financial markets and foreign investment have been rapidly grown as well as the changes in culture have been undergone. The term ‘globalisation’, in this manner, refers to ‘a process of increasing international dependence in which countries become more integrated with one another economically and culturally.’ (Bentley et al., 1999, p.177) It is generally supposed that the origin of current globalisation was from the end of the Cold War. The American president in the late 1980s, George H. W. Bush, proclaimed ‘new world order’ which involved that “countries would cooperate peacefully as participants in one worldwide market, pursuing their interests while sharing commitments to basic human values.” (Lechner and Boli, 2004, p.7) In other words, economic and political interdependence would lead to more shared interests, which would help to grow economy and create both wealth and solidarity. The spread of market-orientated policies and individual rights promised to improve the well-being of billions of people. However, this positive perspective on globalisation has been strongly criticised by many socialists who see globalisation as the latest stage in the development of international capitalism. They have been argued that globalisation is westernization by another name, that is, it undermines the social and cultural unity of other cultures and is therefore exploitative, oppressive and harmful to most people in many places, especially in developing countries. Moreover, surprisingly, even developed countries are also undergoing some disadvantages from globalisation, leading to social problems. As Waters (1995) suggested, therefore,