Académique Documents
Professionnel Documents
Culture Documents
Effects of Globalisation
an immense enlargement of world communication and a world market (Fredric Jameson) the intensification of world-wide social relations (Anthony Giddens) the compression of the world and the intensification of consciousness of the world as a whole (Roland Robertson)
Globalization in its current phase has been described as an unprecedented compression of time and space reflected in the tremendous intensification of social, political, economic, and cultural interconnections and interdependencies on a global scale. (Stegler)
Considering all the definitions above GLOBLASTION : Globalization (or globalisation) is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture.
-- stretching of social relations across the globe -- world becomes smaller -- world is experienced as one place - capitalist market spreads everywhere
Effects of Globalisation
social relations are stretching across the globe. capitalist markets are spreading everywhere the negative consequences of capitalism are spread globally Increasing travel and migration (international tourism and domestic diversity) Increasing communication and interaction between peoples (through all sorts of media)
Groups and cultures increasingly losing have a territorial basis The gap between Rich and Poor is increasing Distance are becoming almost irrelevant (the end of distance)
Most regions of the world are getting increasingly interconnected. While this interconnectedness across countries has many dimensions cultural, political, social and economic. Lets look at globalisation in a more limited sense. It defines globalisation as the integration between countries through foreign trade and foreign investments by multinational corporations (MNCs).
Lets understand Globalisation and its impact through the key idea of Integration of production and integration of markets
If we look at the past thirty years or so, we find that MNCs have been a major force in the globalisation process connecting distant regions of the world.
Globalisation has been facilitated by several factors. Three of these have been highlighted: rapid improvements in technology, liberalisation of trade and investment policies and, pressures from international organisations such as the WTO.
Arguably, the first multinational Knights Templar business founded in 1120, Jerusalem organization was the Knights Templar, founded in 1120.After that came the British East India Company in 1600 and then the Dutch East India Company, British East India Company Founded in 1600 founded March 20, 1602, which would become the largest Dutch East India Company, company in the world founded March 20, 1602 for nearly 200 years.
Coca-Cola Corporate Office Midtown Atlanta, Georgia | Turnover Unknown | Employees 150500+ | Business Beverage | Country of origin-United States ; Introduced-1886 ; Area served-Worldwide Reliance Industries Limited Founded-1966; Founder- Dhirubha Ambani; Headquarters-Mumbai, Maharashtra, India; Area served-Worldwide; Employees-23,519 ; Area served-Worldwide Sony Corporation Corporate Office Minato, Tokyo, Japan | Turnover 80 Billion Dollar | Employees 162000+ | Business Conglomerate Corporation ; Founded-7 May 1946 (as Tokyo Tsushin Kogyo); Area served-Worldwide IBM (International Business Machines Corporation ) Corporate Office Armonk, New York, U.S.| Turnover 107 Billion Dollar |Employees 434246+ | Business Computer Hardware , Software, IT Services & Consulting | Area served-Worldwide
3.Competition from MNCs affects local industry adversely. 4.In the pursuit of profit, multinational companies often contribute to pollution and use of non renewable resources which is putting the environment under threat.
5.The MNCs are profit oriented. They show a strong tendency to take up the production of those commodities in which they can earn a high profit margin. They ignore the production of more important commodities if they do not give them the required profit margin. This results into the allocation of resources to the production of low priority goods. The local producers also show a tendency to enter into the low priority industries if they are more profit earning.
6.The MNCs are accustomed to use a particular type of technology which is suitable for conditions in developed countries. They bring that technology to the developing countries, but that technology is not suitable for the developing countries. There is excessive supply of labor in developing countries. The technology introduced by MNCs is not proper for absorbing labor. It aggravates the problem of unemployment.
7.Often the MNCs give a cordial treatment to their own persons & a step motherly treatment to the staff belonging to the host country. This creates discontent amongst the staff & labor.
8.The MNCs often use their money power for bringing pressure upon the government & political parties of the host countries. They interfere in the administration of the developing countries.
9.MNCs often use their economic power to get acess from host governments without giving safe working environment for labour and tries to close the mouth of officials.
While globalization has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition. Fair globalization would
create opportunities for all, and also ensure that the benefits of globalization are shared better.
Lets understand the Negatine effects of Globalisation through MNCs by some examples :
BHOPAL GAS TRAGEDY
Is Because of Qwench for Money
UCIL ,Bhopal
oUnion Carbide India Limited (UCIL) was a chemical company established in 1934, eventually expanding to employ 9,000 people working at 14 plants in five divisions.[1] UCIL was 51% owned by Union Carbide Corporation (UCC) and 49% by Indian investors including the Government of India. o UCC is now a subsidiry of an American MNC , Dow Chemical Company o Factors leading to the magnitude of the gas leak mainly included problems such as; storing MIC in large tanks and filling beyond recommended levels, poor maintenance after the plant ceased MIC production at the end of 1984, failure of several safety systems due to poor maintenance, and safety systems being switched off to save money.
Pollution of Rivers
Expansion of MNCS led to Industrialisation in Developing Countries It is indirectly Leading to the Pollution of Rivers. GANGES POLLUTION Countless tanneries, chemical plants, textile mills, distilleries, slaughterhouses, and hospitals contribute to the pollution of the Ganges by dumping untreated waste into it. Industrial effluents are about 12% of the total volume of effluent reaching the Ganges. Although a relatively low proportion, they are a cause for major concern because they are often toxic and non-biodegradable.
In the eighteenth century, Indian silk was in demand in European markets. As the market expanded, East India Company officials tried to encourage silk production to meet the growing demand. Hazaribagh, in present-day Jharkhand, was an area where the Santhals reared cocoons. The traders dealing in silk sent in their agents who gave loans to the tribal people and collected the cocoons. The growers were paid Rs 3 to Rs 4 for a thousand cocoons. The Middlemen made huge profits. The silk growers earned very little.
In this way East India Company exploited indian economy destroying lives of thousands of Indians .
Globalization is the process of rapid integration of countries. This is happening through greater foreign trade and foreign investment. Technology, particularly IT, has played a big role in organizing production across countries. Liberalization of trade and Summing up investment has facilitated globalization by removing
barriers to trade and investment. While globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition. Fair globalisation would create opportunities for all, and also ensure that the benefits of globalisation are shared better.