Whenever or whenever we go, the problems of global issues are constantly being discussed. We argue, we quarrel and we participate in heated discussions to prove our opinion about one topic – what is globalization and what effect and possible results are to be expected. Nevertheless, do ordinary people actually know anything about this term? An interesting point of view was expressed by Giovanni Sartori (1989, p. 185), an Italian political scientist, who called the term “globalization” as a “trap-word” and called for awareness while analyzing this phenomenon. Globalization is a duplex phenomenon which indicates the change in societies by their unity and interdependence, as well as produces menace to normal development of national markets and cultures.
Globalization is a worldwide known process, which reveals its essence through objective reality of modern civilizations. This is the reflection or a so-called “ambilateral imprint” due to the constant widening process of globalization and its speedy expansion. It is a mass stream, or a flow, which goes through borders and takes everything – people, thoughts, mass media, politics and other spheres of life, the Internet, computer viruses, drugs, arms, food, fashion etc. As Richard N. Haass (2006), the President of the Council on Foreign Relations wrote about globalization, he assured that globalization is the tool to make sovereignty of all countries weaker. Globalization penetrates in every society even if it is closed from the outer world. Therefore, every multinational team should be informed about the risks of globalization and its effect on economics and culture of less developed countries.
The key negative side to be considered is competition. Presumably, everybody knows what it is, but not everybody knows at which point it should stop so as not to cause drastic changes and considerable alteration. Globalization is simultaneously an effect and a cause (Scholte, 2005, p.39). Leading business companies compete for their recognition and appraisement, which makes them “march into battle” and turn a blind eye on ordinary working people. They try experimenting on products, salaries, people’s expectations and, consequently, complicate the situation, which may already be dreadful and hopeless. Moreover, due to a constant durable race, they always try to shift their manufacture into countries, where the average salary may sound ridiculous to most people. As a result, completion is observed as a phenomenon that begets competition for survival and constant challenge.
The second drawback of globalization is that it makes local and world market stand closely together, whereas the first one is vulnerable and “sits silently in the shade”. At one point, we may see interconnections between these two; however, these connections are so deep-rooted and interdependent that sometimes nothing can be done to prevent this enormous dependence. Such concepts were expressed by Mike Featherstone (2002, p.7): “Globalization of capital, Dezelay remarks in his contribution in this collection, also entailed the globalization of the market in services to finance, commerce and industry”. Judging from the said above, local economy is unsteady and always dependent on the world economy, which leaves less and less space and spheres to be controlled by local authorities. This explains the statement made by Lowell Bryan (2010): “…emerging-market economies have a structural advantage that is grounded in the operation of the global economy. That is why, globalization makes all markets turn into one unity controlled by a limited number of people.”
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The third possible risk concerning globalization is demographic displacement. There are no nationalities, members of which stay at one place for too long. We are people and have unpredictable problems, which make us move from one place to another. Here comes another term to be taken into consideration – “migration”. For a lot of scientists, this term is a defining feature of globalization (Hayes 2006, p. 101). Labor force flows from one country to another searching for better working condition, safe life and “greener grass”. However, is there anything good when all working people abandon their countries and leave their constant citizens to pay bigger taxes? As we may know, less developed countries do not have sophisticated policy of retirement benefits. In Russia, Ukraine and other Post-Soviet countries about 30% from salary are taken from working people to pay pensions. Consequently, if all youths will go abroad, who is going to guarantee a pension to old people, and if there would be higher taxes, would it be enough to get by? Unfortunately, nobody knows the exact answer, but migration is a burning issue, contradictions of which are born due to globalization.
While taking into consideration everything mentioned above, it is obvious that multi-national companies might face some ethical problems operating in less developed countries. Every business has an interest in making a profit, and nobody would argue that this is not true. Production may be various – clothing, food and beverages, cigarettes and alcohol. The last two elements may cause a scandal that nobody would have courage to solve. For instance, if to take a country where there is an increasing number of alcohol-addicts, local citizens without such addiction would not appreciate a mass production of alcoholic beverages to be placed in their city. Furthermore, nobody wants to live near a factory producing cigarettes. People are always aware of their health condition, and they do appreciate if government takes care of it instead of allowing international companies interfere in their life and make big sums of money out of it on the calamity of disillusioned and desperate citizens.
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The second factor that companies may come across is environment. Environmental policy is always being governed by local authorities who define when and why particular measures should be taken. Nevertheless, when an international company comes into a city, and it is introduced by the governor to the citizens, only good standards and qualities of production are being discussed. After a short period of production, people may notice that grass is not so green, children cannot swim because of pollution and radioactive elements that kill fish and provoke skin irritation. This list may not even come to an end while nobody knows what the manufacturer actually is doing behind the high wall and what to expect. That is why, to avoid raising ethic issues in the sphere of environment they should remember “…that respect for human rights is broadly accepted as a pre-condition for sustainable development, that environmental protection constitutes a pre-condition for the effective enjoyment of human rights protection, and that human rights and the environment are interdependent and inter-related” (Robinson, 2002, p. 8).
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Globalization is an inalienable part of modern life since early nineteenth century. This process is perpetual, and it incorporates more and more thoughts, items and spheres. It is the phenomenon when markets integrate worldwide (Spence, 2011). It is the totality of challenges and problems to be faced and solved nowadays, which should be considered by international companies. Before starting setting up a new business, multinational companies should not have a smattering, but clear guide what globalization is and what problems they are going to face. “Globalization leads to more globalization. It is a buzzword used to describe a variety of accelerating processes continually altering our experience of the world” (Steger, 2010, p. 9). Globalization could be compared to a “mouse” that has a flexible body and sneaks everywhere. That is why, every educated business man should think over every possible detail towards globalization while starting new business in less developed countries.
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