...Globalisation has intensified inequality Globalisation has built a set of prospects for mainly large firms around the world with declines in tariffs or creation of free trade areas (Celik 2010). Although globalisation has increase economic growth substantially it does however also increase the economic and social gap within and between countries. Income inequality in particular is the effect of globalisation through foreign direct investment. According to the World Development Indicators 2005 (World Bank, 2005), the richest country Norway has a per capita income of $43, 400 whereas the poorest countries Burundi and Ethiopia have a per capita income of $90. These show the huge gap between the poorest and richest countries per capita income. These numbers raised the question “Has globalisation led to a greater income inequality or less?” In the article ‘Is globalisation reducing poverty and inequality’, Wade (2004) questions the empirical basis of the neoliberal argument. The neoliberal argument says that the distribution of income between the entire world’s people has become more equal over the past two decades and the number of people living in extreme poverty has fallen. It states that these progressive trends are due in large part to the rising density of economic integration between countries, which has made for rising efficiency of resource use worldwide as countries and regions specialize in line with their comparative advantage. This is partially true as...
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...geographical locations? Like many other concepts within the social sciences, globalisation is a highly debated and controversial issue with a diversity of opinions ranging across a broad spectrum. At one end of the spectrum, there are those who view globalisation as the source of many of the major social problems currently affecting developing countries. At the other, are those who view it as a process that will dissolve boundaries between nations and promote global unification. Similarly, definitions of the terms ‘Global North’ and ‘Global South’ are just as varied with the term ‘globalisation’ also carrying many different and often contrasting meanings. According to Modelski, Devezas and Thompson (2008, p.13), globalisation is not a new concept but rather, diachronic, or ‘a process in time’. The authors viewed globalisation as a historical process, the understanding of which required tracing it far back into the past (Modelski et al. 2008, p. 13). However, Heywood (2007, p. 143) suggests, that because globalisation refers to such a wide range of things, e.g. policies, strategies, processes or an ideology, it may be concluded ‘slippery and elusive’ understanding of globalisation arises from its involvement in so many different areas of academia and the extensive and continuing discussion therein surrounding its properties. Regardless of different views on the definition and scope of globalisation, ‘Global North’ and ‘Global South’ have more specific criteria, although these...
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...Pro-globalists highlight the advantages of globalisation. Do you agree with their pro-globalist arguments, that globalisation is good? Globalisation is good in the sense that globalisation is a growing economic interdependence of the new innovative world system. But there are some individuals who disagree with globalisation. I believe that globalisation helps most of the countries to explore in free market ideologies which helps them to increase their financial situations better than prior. According to Robertson globalisation referred as 'the shrinking of the world and an intensified consciousness of the world as a whole' (Robertson, 1992). Also globalisation helps to understand about ‘the dissemination of habits, values and technologies in such a way that it influences peoples' lives around the whole world' (M. Albrow, 1997). I firstly agree to the point that globalisation improved the manufacture of goods and services which states that the Organisation for Economic Cooperation and Development (OECD) explained globalisation as “an increasing internationalisation of markets for goods and services, the means of production, financial systems, competition, corporations, technology and industries” (Impact of Information Systems on Society, 2011).Due to the globalisation, countries united each other and share their goods and services which enables them to transport their properties rapidly. For instance, World Trade Organisation (WTO) aids to promote goods and services because they...
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...If you care to count, globalisation is a thirteen-letter word. Perhaps that is why many are tempted to believe that there is a primeval curse on the phenomenon. As the focal point of unending controversy, globalisation has been both lauded to the skies and decried vehemently – often for the same effects. And in a world where economic integration is widely viewed as “detrimental” to poorer nations, many would agree emphatically with the motion of the house – that globalisation is imperialism repackaged. While making their zealous arguments, however, most critics overlook the fact that by very definition globalisation and imperialism are near-polar opposites. A natural confusion, considering the growing trend of socialistic thought. After all, Lenin wrote extensively about how capitalism was nothing but the parasitic exploitation of the weak nations by the powerful. Central to this perspective is the one where multinationals are considered as monopolistic villains operating in a global playing field without regulations. Here again, with the yoke of the British and the East India company barely off their backs, former colonies can but look upon the phenomenon of integration with deep distrust. And thus, what is in fact the concept of unfettered trade among all countries was blown up to the proportions of an exploitative force to crush developing nations for the selfish interests of the capitalists. At the very onset of our argument, therefore, we arrive at an ambiguity. The...
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...businesses need to be aware of the global context of their markets. Having read this chapter you should be able to: G G G G Learning outcomes understand the difference between globalisation and internationalisation outline the main elements of globalisation illustrate the role of the multinational enterprise introduce the implications of globalisation for business Key terms Capital market flows Consortium Cross-subsidisation Customs union Emerging economies Foreign direct investment (FDI) Franchising Free trade area Globalisation Hyperglobalisation Internationalisation International trade Joint venture Licensing Multinational enterprise (MNE) Regionalism Regional trade agreements (RTAs) Strategic alliance Transfer pricing Transformationalism Globalisation versus internationalisation 39 Introduction Businesses operate in a global context: even if they do not trade directly with other countries, they might be affected by a domestic shortage of skilled labour or may be subject to developments on the global financial markets. There is a difference between globalisation and internationalisation in the business literature but both result in increased exposure to global forces. This means that businesses need an understanding of the process of globalisation. The nature of globalisation is changing; it used to mean the...
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...Globalisation can be defined as the increased interconnectedness of society and the people, cultures and identities within it. Around the world various cultural traditions, beliefs, food etc. can be seen as either already having a permanent place within other societies or as being slowly integrated. Simply, globalisation can be seen in the food we eat and the products we buy. The advancements of new technology, the ability to book a flight cheaply and the influence of international media corporations means that various parts of the world are becoming more westernised and increasingly multicultural – Like the UKs. While this may sound like a good thing in theory, it can be argued that globalisation can cause fundamentalism in response, meaning that some groups of people and individuals respond to globalisation in a hostile way as they see the introduction and integration of various other cultures as threat, to what they see as, their own dominant culture. Steve Bruce identified one function of religion as creating cultural defence. When applied to a context of globalisation and fundamentalism it can be said that some communities feel that their culture and identity is threatened not by individuals but by alternative ideals and beliefs from other cultures. For example In the 50s Western capitalist powers had significant influence in Iran, which in turn resulted in the implementation of pro-Western regime. In 1979 there was a revolution in protest to the regime and an Islamic...
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...Globalisation and Rising Inequality in Australia Is Increasing Inequality Inevitable in Australia? Tom Conley Griffith University Introduction I want to dedicate my government to the maintenance of traditional Australian values. And they include those great values of mateship and egalitarianism.1 10 years ago a Mitsubishi type development would have flattened people psychologically. Now they take it in their stride … 2 Policy-makers and commentators have long been cajoling Australians into accepting that they are a part of the global economy, which means an acceptance of a whole range of ‘new realities’. One of the major themes of the pro-globalisation position is that Australia has accepted these new realities and adjusted well to globalisation by embracing economic liberalism. The results, it is argued, have been overwhelmingly beneficial. John Howard points out the Australian economy has grown for fourteen years straight – a remarkable achievement by any standards. This success story of growth has tended, however, to override more disaggregated, negative analyses of social outcomes in Australia. A less sanguine part of this new globalising ‘reality’ appears to be an acceptance of rising inequality. Indeed, it is often implied that rising inequality is a spur for growth. The argument is that everyone is better off, it’s just that some people are better off than others. While commentary is often not explicit about the association of globalisation and rising inequality...
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...International Security The future of nation-state as the primary unit of action for world affairs can generally be said to be insecure. This may be mostly due to the increasingly world interconnection and also the move from a society monarchy to a communal one. The idea of globalisation has really intensified the interconnection globally which will lead to the world been interconnected to institutions of economics, politics and society. The challenges posed to nation-state by globalisation include; first, it reduces the ability of nation-state in influencing the economy in that all economic transactions are done in the global stage. Second it increases the transnational bodies which could be political, economic or combination of both. The third aspect is it allows for emergence of super and sub national power centres. Finally, there is the increasing world migrations and non-governmental organisations (NGOs) importance. The insecurity of the nation state has great impact on the US foreign and security policies. There are various ways in which this is affecting the US foreign and security policies; through the introduction of the globalisation system the US policies will be undermined and thus negatively impacting on its security. The United States will also lose its control in the international economy a factor which will lea to other countries undermining its policies. This gradual decline will also widen the scope of security and stability and hence nations will be able...
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...Critically examine the relationship between globalisation, inequality and poverty. The term globalisation refers to the process by which the world has become more connected through advancements in technology, transport and communications and resultantly become integrated in many areas of life. For the purposes of this essay, one will be discussing the relationship between primarily economic globalisation, poverty and inequality in what many have referred to as the ‘third wave’ of globalisation, which has been prominent since the 1980s. Advocates of economic globalisation, understood as “the widening, deepening, and speeding up of worldwide interconnectedness” (McGrew in Ravenhill, 2005: 275) suggest that economic advancement through globalisation is a by-product of well-functioning markets; that countries should specialise in line with their comparative advantage; and that countries should practice free trade as a guiding principle. (Wade, 2004a: 184) Still today there exists huge economic inequality both within and between countries, and mass poverty is an issue which is still high on the agenda of world leaders across the globe. Yet data from the World Bank has shown that the number of people living in extreme poverty, of which it classifies as those living on less than $1 per day in Purchasing Power Parity (PPP) has fallen in the last two decades for the first time in 120 years. (Wade, 2004a: 163) The relationship between globalisation, inequality and poverty thus seems to be...
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...Communicating Corporate Social Responsibility - A Discussion of the CSR Phenomenon and CSR Communication, With Empirical Focus on NOKIA Author: Martin Lykke Jacobsen (271128) Supervisor: Dorrit Bøilerehauge June 2006 MA in International Business Communication – International Marketing, Communication & Public Relations (Cand.ling.merc. – International Informationsmedarbejder) Faculty of Language and Business Communication, English Department, Aarhus School of Business Table of Contents 1 Introduction .............................................................................................................................. 1 1.1 1.2 1.3 1.4 2 Purpose ........................................................................................................................... 1 Theory and Method ......................................................................................................... 2 Delimitation .................................................................................................................... 4 Structure ......................................................................................................................... 6 Corporate Social Responsibility ........................................................................................... 8 2.1 Defining CSR................................................................................................................... 8 2.1.1 Corporate Citizenship ..................
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...Does the process of Globalisation help or hinder wealth creation in developing countries? Globalisation – the procedure of creating an integrated global economy, polity, and society – is an inevitable subject of much of today’s academic literature. It’s a term used in all fields, ranging from economics, sociology, and politics. Scholars address questions of what globalisation is, how it is occurring and who benefits and who loses out (Mold, A. 2007: 67). Some argue that it has helped the world, and more specifically, developing countries. On the other hand, others argue it has held back economic growth and wealth creation in developing countries. This essay will compare between these two arguments; and of course, resulting in my answer in the conclusion. But first, the causes will be described briefly, and consequences of globalisation will be examined in greater detail. After looking at the general impact it has made, it will specify on developing countries. To show evidence, case studies will be used, such as in Argentina, China, India, Morocco and sub-Saharan Africa as a whole; perceptibly linking to the explosion of globalisation that has shrunk the world. It was not until the 1960s that the term – globalisation - started to be widely used by economists and other social scientists. The phrase has since then attained general use in the mainstream press by the later half of the 1980s. Since its initiation, the concept of globalisation has stimulated frequent competing...
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...Globalisation is the process by which businesses or other organizations develop international influence or start operating on an international scale. The world is undergoing rapid globalization as the population rises and there are developments in the information technology industry and as major TNC’s are growing causing their to be larger factories and larger infrastructure. Globalisation has been caused by many things, improvements in transportation means that there are larger cargo ships, this means that the cost of transporting goods between countries has decreased. Economies of scale mean the cost per item can reduce when operating on a larger scale. Transport improvements also mean that goods and people can travel more quickly. There has also been the removal of many trade barriers allowing their to be a free trade system, this means that governments don’t get involved when international trade is occurring. There is a large dispute whether globalisation is good for the world or bad and there are many advantages and disadvantages for it. Globalisation has many advantages as it is making everyone in the world more interconnected and making it easier for people across the world to communicate. The large TNC’s are developing faster than anything else; they are providing employment for people in less developed countries like India and Bangladesh. TNCs bring wealth and foreign currency to local economies when they buy local resources, products and services. The extra money...
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...GLOBALISATION COG: GROUP ASSIGNMENT What is Globalisation? Globalisation might have become a buzz-word off late but it is not a new phenomenon. Globalisation loosely refers to the integrated international activities and might have its roots in economic benefits of specialization and competitive advantage. However, with the increased flow of information and ideas across the nations, globalisation has led to make the world a level playing field with very little barriers. The first wave of the organised globalisation started with nations going global, essentially in the quest of new avenues to increase the revenue from the trade activities and access to natural resources. The scramble for the new markets and natural resources led to imperialism and eventually to wars. In the second wave of the globalisation it was organizations that were going global, again in the search for markets and cheaper resources. As the organizations continued to prosper reaping the benefits of the global supply chain, there was an increasing pressure to further reduce the trade barriers amongst the nations. In the third wave of the globalisation, it’s the people who are going global and has lead to integration of different cultures. The world has become a single market and has presented the organizations with huge opportunities as well as increased competition. The complicated interdependencies have perplexed the organizations and regulatory authorities looking for the sweet spot between growth...
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...Globalisation is the integration of economies through markets across frontiers, an expansion of international trade in goods and services between countries. It can be measured by looking at the UK macroeconomic indicators which are Inflation, Employment, International trade and Economic growth. In all globalisation could be seen to of helped the UK by increased sales and competition, leading to greater salaries and a greater standard of living in the UK. Globalisation has helped to increase competition in not just the UK but all over the world. Within the EU, as certain tariffs and barriers which could stop / make exports harder and more expensive have been relaxed, therefore making it easier for UK to export. As Line 27 states globalisation has been strengthened by communication links and reduce trade controls, therefore making the UK able to take a comparable advantage. The diagram shows that as exports are increasing therefore real national income (GDP) is also increasing (an increase in aggregate demand). Also countries have been able to benefit from specialisation, to become more efficient therefore in turn lowering there costs, making exports more accessible. With Access to larger markets it means that firms may experience higher demand for their products, as well as benefit from economies of scale, which leads to a reduction in average production costs. The argument of specialisation is that all countries will benefit from free trade with increased production...
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...the Business Environment ‘Globalisation has wrought fundamental changes in the global economy and it is evident that the effects of globalisation are more positive than negative’ Assignment 1 Tutor: Robert Waldersee Author: Catherine Whitaker Student No: 211664327 Address: 7/59 Howard St Randwick 2031 Introduction What is Globalisation? Dutch academic Ruud Lubbers, on his website http://globalize.kub.nl/ defines globalisation as: … a process in which geographic distance becomes a factor of diminishing importance in the establishment and maintenance of cross border economic, political and socio cultural relations. Ruud’s definition draws attention to the following main points: • globalisation involves processes that transcend geographic and national boundaries, • these processes are of an economic nature, • there are political implications and considerations, and • socio cultural factors are also impacted. The issue of Globalisation has become a contentious one in recent years. Note the violent demonstrations in Seattle in 1999 and subsequent demonstrations by anti-globalisation groups such as S11. However there are many advocates of globalisation who support the ideals of free trade and free moving economies whose fate is left to market forces. The purpose of this paper is to examine some of the main issues associated with Globalisation and the current debate of these topics...
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