Globalisation Has Benefited Everyone Brought Advantages Economics Essay

Globalisation Has Benefited E preciseone Brought Advantages political sparing EssayProponents of globalization ar of the candidate that it has benefited e trulyone and helped to pull millions upon millions out of destitution. more thanover a close analysis of the modifys of globalisation tell a very different story. While it is true that globalisation has benefited many, it has had an equ altogethery lay waste to subject on the lives of many others and made true development more of a mirage rather than a reality (Dunning, 2003). This essay willing critically break down and discuss the benefits and disadvantages of globalisation and will conclude by either agreeing or disagreeing with the above statement.Even though globalisation is the buzzword today, it has been in beingness in or so form or another for over a century. After World War II many regions of the world that were reeling from the devastating effects of the war, came together to create trade agreements that wo uld help each of those regions to put forward in the post war era. The European Union is one such(prenominal) trade agreement as is the NAFTA agreement, GATT, APEC, ASEAN and many others. Due to the advances made in technology, especially in the telecommunication patience, globalisation saw a speedy gain in the latter part of the 20th century (Guillen, 2001). The last-ditch goal of globalisation was to liberalise formerly closed economies, integrate issue economies and create one huge global providence that would not lone about(prenominal) decrease trade barriers and increase trade and corporation but would likewise help poorer and ontogeny nations to become industrialised thus uplifting the sustentation standards of billions (Grewal, 2006).While the goals and objectives of globalisation be noble, such goals and objectives are not very easy to achieve. Even though the above may look wakeless in theory, in reality it is easier said than done and usually causes more dama ge to economies, the social fabric of nations and the environment as a solid (Surez-Orozco Qin-Hilliard, 2004).With the onset of globalisation in its current form, which began in the late eighties and has been gathering steam, many manufacturing organisations in the west take in seen their profitability increase. The contend for this positive effect on the bottom line has been chiefly delinquent to the fact that globalisation al confuseded these companies to relocate their manufacturing plants to maturation countries, where labour is cheap. In doing so they were able to reduce the cost of the products and become more profitable. While such a relocation, may study benefited the developing economy where the plant was move to, it left huge numbers of individuals unemployed in its home commonwealth (Helbling, Batini Cardarelli, 2005). Thus it can be stated that while one economy gained jobs and was able to uplift the living standard of many, another economy muzzy jobs, which had an equally devastating effect, while the company in question go along to earn profits and prosper.During the 1990s and to date, India is one such arena that has benefited vastly from globalisation. Throughout the past decade or more many European and North American, technology companies have outsourced their software development to India, which rose up to the challenge and has become a global IT giant. While such a growth in usance has benefited the country and helped to create a saucy middle class, globalisation has not been as favourable to its closest neighbor Sri Lanka. Sri Lanka with a literacy rate of 90% has seen much orthogonal work out enthronisation in the garment sector. While this has helped the country to keep un utilization levels down, the semi-skilled or low skilled nature of the jobs that are accessible to its citizens does not help the country to grow and prosper to the level that globalisation has aided India (Schmidt Hersh, 2000). On the contrary, Sri Lanka has seen a severe increase in underemployment of its university educate youth, who due to the insufficiency of livid collar jobs, have had to resort to working in the garment industry (Kiggundu, 2002). As is discernible from the above, while globalisation benefits one segment of the population, its affects are not equal, on the contrary they are mixed, thereby it can be stated that the above statement is not accurate in its view of globalisation.Proponents of globalisation often cite the fact that increased demand for trade from developing countries, create an inflow of foreign exchange revenue and increases employment opportunities, which in turn helps the country to develop (Bhagwati, 2004). While this is true to some extent, there is an equally disadvantageous side to this phenomenon. In order for employment opportunities to increase in an economy, it requires output growth to exceed productivity growth. At the same time for profitability to increase, it needs produ ctivity growth to surpass output growth. This conflict in the two, results in companies opting to increase productivity at the expense of output growth. Thus even though the developing economies have bent backwards to attract foreign direct investment by providing tax cuts, capital and inwrought resources etc, in the hopes of boosting domestic employment and earning foreign exchange revenues. The companies that enter the country usually plunder the capital and natural resources made available to them (Samli, 2002). And instead of making use of the labour that is available to them, they automate their production processes to a great extent. Further they return much of the profits earned to the parent company and its shareholders who are often house physician in developed economies (Smith Debrah, 2002). Here again it is apparent that while globalisation has helped businesses to develop and become more profitable, the benefits of globalisation are often enjoyed by the developed eco nomies, rather than the developing economy that were supposed to benefit, in the scratch place.As a part of the initiative to liberalise an economy, most developing economies were forced to reduce welfare spending in terms of healthcare, grooming and social assistance. Further in order to attract foreign direct investment into the country, most of these economies were required to relax their stringent labour laws, which have resulted in the exploitation of workers (Murshed, 2002). While it is true that many multi-national companies are presently operating in developing economies and have helped to increase employment levels indoors the country. The lack of strong labour laws, allow these companies to pay meagre pay to their employees and not a living wage as is the ethical issue to do. This combined with the lack of universal health care and education has a devastating affect on the workers (Brysk, 2002). While they may have a job and are able to earn a living, their wages are usually insufficient for paying for more than food and rent. Thus making it impossible for this segment to educate their children adequately (Mittelman, 2002). Thereby causing a vicious cycle, where the children end up in low skilled or semi skilled jobs much like their parents and unable to breakout of poverty (Midgley, 2007). The lack of education and healthcare also has a catastrophic affect in the long term for the economy, as it will never be able to make the leap from being a developing economy to a developed economy as long as its citizens lack a strong education (Micklethwait Wooldridge, 2001). Further this lack of education not only will increase the wealth disparities within the economy, but it will also continue to increase the disparity between developed and developing nations in the long run.Based on the discussion above it is apparent that globalisation has been very advantageous to businesses. While it is a fact that some countries like India and China have benefite d immensely from globalisation and seen the prosperity of their citizens increase to unprecedented levels, other countries have not been so lucky. On the contrary, globalisation has succeeded in further increasing the social challenges faced by these countries and pushed the breathing in of becoming a developed economy further out of their secure (Micklethwait Wooldridge, 2001). Therefore it can be stated that the statement Globalisation has benefited everyone. It helped all the people to increase their living standards, brought advantages to organisations and businesses and enabled economies to develop is only partially true.