Globalization in Shanghai China

Globalization in Shanghai China

1. Introduction

Globalization is a process whereby people, businesses, and probably governments interact through international trade with the help of technology and modern transport and communication systems. According to Held and Mcgrew (2000), ‘Globalization may be thought of initially as the widening, deepening speeding up of worldwide interconnectedness in all aspects of contemporary social life, from the cultural to the criminal, the financial to the spiritual.’ Globalization of towns, therefore, can be measured through several factors as will be discussed below.

2. Containerization in shanghai

Containerization is one parameter of globalization. It is the standardization of transport systems in transporting goods, using steel containers of a common size as a way of enhancing trade. Industrialization in Shanghai has led to an increased need for a standardized way of transporting their products. Shanghai is known to be the busiest container port in the world.  Therefore, it had to adopt the use of standardized containers for transporting goods to reduce wastage of resources and increase scalability.

3. Culture and its McDonaldization in shanghai

In addition to that, culture also influences the culture of a town, leading to its McDonaldization. This is a phenomenon whereby organizations adopt the same characteristics in fast food chains. There is more efficiency, predictability of the service quality, standardization and control. As trade rises every day in Shanghai, it has attracted a lot of investors from all across the world, requiring standardization of services, especially in hotels. However, the city has still not adopted the full McDonaldization in all its hospitality service points. As hotels vary from very Porsche and expensive hotels to cheap ones in the same town, it has become rather difficult to embrace a common culture in service delivery.

4. Changes in global communications, internet, satellite TVs and phones

Either communication and transport technology is well developed. It has good roads, world standard. Communication through mobile phones is also enhanced. On fact, the city has several technological development zones developing communication and network pieces of equipment. They include Shanghai Caohejing Export Processing Zone. This has really added to its globalization status.

5. Rate of immigration into shanghai

Globalized cities also attract more new residents. This is due to the high rate of industrialization, leading to labour demands. As a result, more people are attracted by the many business opportunities that come with a dense population. In shanghai,  the population of the immigrants by 2000 formed at least 24% of the total population. This was about 3.8 million people. This population comprises of Chinese bot immigrants into the city and the non-Chinese. However, low skilled workers, immigrants face social stigmatization due to their low income.

6. Increased share of production associated with TNCs and MNCs

The city has also become a centre of both the transnational corporations and multinational corporations. It is a home for not less than 700 regional headquarters of multinational corporations. These have attracted foreign investors into the city, maintaining its fast development and globalization trend.

7. Increased world trade due to reduced economic barriers (qualified)

As a result of many investors and high population,  shanghai has become a large centre of exchange, both locally and internationally. This has also been contributed to by the Chinese’ government reduction of trading barriers nationally.

8. Increased flows of foreign capital through currency markets/ global circuits of economy

Either, shanghai is a home for the 4^th largest stock exchange market based on market capitalization. Thes allows liquidity in the flow of foreign currency, an indication of global trade involvement in shanghai.

9. Increased Foreign Direct Investment

The government of China has attracted many foreign investors by reducing trade barriers. For instance, there are many US-based companies in the city with major production facilities. They include Dupont,  Rohm & Haas general electric which were set up in 2010.

10. Global governance, NGOs

The city is also a centre for global studies. This has been one of the major attractions for global governance in the city. This was the only way out for a global city, like Shanghai, to manage the imbalances between global and national governance.

11. Conclusion

Shanghai is a globalized city with most of the characteristics of globalized cities, as discussed above.