Globalization has allowed nations to trade
Globalization is principally an economic concept involving the process by which there is the integration of markets, trade and investments. The world economy is increasingly treated as a single market, with interdependent production, consuming similar goods, and responding to the same impulses (PIIE, 1998) It is reflected in the explosion of foreign direct investment (FDI). The process is supported by the existence of limited barriers to enable the flow of trade products and services between nations. There is also a cultural element, as ideas and traditions are transacted and integrated.
Globalization has allowed nations to trade and cooperate with each other in many aspects other than economic. A case in point is the Paris Agreement on Climate Change, where 195 countries agreed to work towards reducing their carbon emissions for the cleaner global atmosphere.
Does Globalization work?
Mostly features of globalization cannot be measured with the ease, so determining its operation causes arise of varied arguments. Notably, there is an increasing share of consumption of goods that are available from the same companies all over the world. The technology that is used to produce these goods is increasingly standardized and invariant to the locality of production. The production concepts have largely become the shared property by the whole of mankind.
The internet hosts globalization as it has revolutionized connectivity and communication, so people share their ideas much more widely. The advent of email made communication faster than ever. The invention of faster container faster ships, trains and aeroplanes has enabled efficient movement of goods and people around the globe.
The host of technological advances has led to the world enjoying liberal trade, free movement of people and near-free flow of capital. It has brought forth an unprecedented rise in prosperity.
Globalization presence is indicated by the multinational company’s establishments overseas which contribute to the local economies because the company will invest in local resources, products and services. An added advantage is the Corporate Social Responsibility (CSR) where the corporates invest in medical and educational facilities. (PIIE, 1998). There has developed an evolution of ta global economic school of thought of the increasing degree of convergence in economic thinking and techniques. There is a disappearance of national schools of economic theory, and adoption of internationalization, the Homogenization, or globalization of economics.
The deep issue of the survival of globalization undeniably evokes varied points of view among scholars, decision-makers and nations. The age of globalization is the present-day world market economy which has increased immensely from the productive labour force to building new manufacturing and service centres throughout the world. The demand for energy and commodities has been boosted, creating vast possibilities for increased consumption. New pools of savings are adding to global capital flows that are drawn to investment opportunities offered by both emerging markets and transforming developed economies (Zoellick, 2007). The transfer of expertise, technologies, information, and applied practical knowledge is highly competitive. This depicts the apparent durability of global Homogenization.
The international flow of trade has immensely increased, creating more open economies which lower the cost of goods and services. While the procurements from developed economies remain vital, new trade patterns reflect regional and global supply chains.
This is an indicator that globalization is developing and graduating in levels depicted by poverty eradication (Zoellick, 2007). Nearly 300 million people have managed out of extreme poverty due to internationalization.
On the flip side, globalization is much less of a reality in other fields than it is in the economic one. Many zones remain on the peripheries, and some are lagging behind. The exclusion is due to many factors including conflicts, poor governance, corruption and discrimination. Ironically Homogenization offers incredible benefits and still enhances elimination, grinding poverty, and environmental damage.
The global cultural domain displays diverse national, regional and local, disparities. During the second half of the 20th Century, American consumer culture spread across the world. While American blue-chip companies became sources of U.S. soft power, for instance, Coca Cola and Walt Disney. U.S. economic supremacy transformed into real, “hard” power, the historically. The non-interventionist U.S.’s foreign policy used her economic, military, and cultural dominance to manoeuvre global affairs and political developments (freedomlab, 2019). She did so by promoting a democratic and liberal world order. Apparently, this stimulated increased international trade or internationalization; the world became more amalgamated in political and cultural aspects. The world witnessed another globalization boom as digital technology, and the neoliberal world order turned it into a “global village”.
Globalization results in unequal benefits to the billions in middle-income countries. Who are on the lowest steps of the development ladder. Most nations experience social tensions due to weakening political fabric cohesion. The middle-income countries need to retain offering inclusive development and adopt environmental policies for sustainable prosperity.
There are increasing resultant disparities as indicated by the strong evidence of growing inequalities between developed and other societies, and within communities. Eventually, it leads to a high notch of economic stratification between the rich and the poor, at regional, national and ultimately international levels. International comparisons can be critiqued on the basis of the fiscal economy effects on countries and, statistics indicate the material disparities.
In the face of internationalization, there are many other domains with inadequacies. Attention is drawn to the immigration of citizens. Highly skilled professionals have a comparatively high degree of mobility, but those without skills often face obstacles in migrating to higher-wage countries. Despite the difficulties, substantial proportions of the labour forces of some countries are in fact working abroad: for example, around 10% of the Sri Lankan labour force is now abroad.
Another globalization paradox is presented by the greater influence of developing countries as their place in this evolving global system is unclear. Based on this, questions arise of how large developing countries will interact with developed countries, and with the poorest and smaller states of the world.
Globalization should be geared towards achieving sustainable human development that is both more comprehensive and radical. Given that there is the ever greater complexity of internationalization, the interdependence of world phenomena should be tailored to bridge the gap of the increasing disparities within each society (Etherington, 2003). The influence of economic arguments, sustainable human development offers a framework for responding to the challenges of globalization.
Globalization should adopt a multi-lateral approach to being inclusive and sustainable. This presupposes that in order to be considered sustainable, a policy, trend or process should be acceptable to a wide range of people in society. This is when internationalization is geared to eradicate poverty, enhance development with environmental conservation, and create individual proliferation. Inclusive globalization presumes that poverty breeds instability, disease, and destruction of common resources in the environment. Poverty can lead to fragmented societies that can become breeding grounds of conflicts and wanton destruction. Homogenization should have a more inclusive discourse on international issues that matter in the context of crafting a sustainable future for all. A more socially dynamic form of internationalization is possible, if ostracized perceptions should be included in the policy debates. There will be stimulation by the questioning of existing policies and areas of agreement, as well as the need to develop approaches that take account of all people’s interests and realities.
In a retort to the impacts of globalization, human and world-wide conception of sustainable development enables us to be more aware of the risks faced by humankind and the planet. It shows that concerted global regulations are necessary and possible. A challenging is posed on the pre-eminence of economic arguments and schools of thought.
The world can get into divisions of regional blocks with new economic hubs. Based on this premise, the history of globalization shows that previous periods of deglobalization were mostly driven by policy decisions like Nixon’s decision to suspend the U.S. dollar’s fixed convertibility to gold in 1971 (freedomlab, 2019). Furthermore, technological novelties may lead to relative benefits in the global economy. In the regions that formerly were underrepresented in the global trading system due to dependency on global export markets. This determines the life of globalization.
With digitization, globalization will become prolific as nations will catapult into creative production processes. If technology was to be decentralized, it could mean that countries will have less influence as actors of economic activity. The corporations and decentralized production models will advance future economic productivity and exchange.
International rivalry can pose restrictions and challenges to the development of the global economy, but the surge of internationalization seems much powerful than this and other possible challenges.
The future of globalization
In this modern age, the waves of both globalization and deglobalization can be clearly seen. The original wave started after the great depression, followed by the current wave one after the fall of the Berlin wall. The abysmal subject of internationalization indisputably arouses different perceptions, among governments and people globally. Due to its negative and positive effect, it’s crucial to determine whether to adopt or reject globalization.
Universalization will be sustained by its effect of poverty reduction, as depicted in countries that outsource labour leading to industrial growth. Further more, this causes more money to flow into the economy of the country form a different one (Globalization: What’s New, What’s Not And So What?). The downside of it is, that states that have a high cost of labour lose out on job opportunities, as companies seek to reduce the cost of manufacturing.by producing in regions that have cheaper labour.
The strides of global proliferation will continue to be taken ,due to the improvement of cash flow between nations as they can easily borrow cash to develop their economy, more so the developing countries.
Globalization will thrive due to the current competitive industrial production. Corporates will strive to render superior services and products cheaply. The corporations that will not evolve to suit the demands of the 21st-century customers will be phased out due to the economies of scale.
Homogenization is emerging better due to innovations and new technologies in transport and communication, increasing efficiency in mobility and exchange. For example, the USA, Canada and Russia united to create space ships, to achieve in space exploration. This led to the faster connection of internet speeds impacting the world.
The global proliferation will be accelerated by the need to resolve the global challenges that keep emerging and evolving like climate change, Corona pandemic and terrorism. They demand a set up where governments may be held accountable for their responsibility to resolve. The loopholes are that it may lead to the powerful nations controlling the less powerful country. Primarily so, because they have dominance and are wealthy (Belk 2019). This political interference is contrary to the initial purpose of cohesion in Homogenization.
Internationalization will keep growing due to the increasing migration of citizens from the developing countries to the industrial powers in search of higher-paying employment opportunities. All countries need to embrace each other as the exchange of labour and money is mandatory.
However, this can lead to instability in the employment industry of the developed country (Belk 2019). it is thus leading to exploitation of the immigrants by the employers to pay less than the standard rates. It has been associated with xenophobic tendencies and racial discrimination in the receiving countries which undermines globalization.
Conclusion
Globalization is here to stay, and every nation should adopt Homogenization of all countries as a way of life to help them cope with the new world. Of so many possibilities to enable the provision of better health care, transport, communication and also ease the way trade is carried out