Business and Management
Submitted By Raiii
Globalization has benefited developed countries more than developing countries. To what extend do you agree with this statement? Globalization is widely discussed subject. Therefore, it is not that easy to explain such a complicated term in simple words. The advancement in technology such as mobile phones, airplanes, telephones and the internet have made the growth of transport and communication networks possible and more convenient. This means that people and countries can exchange information and goods more quickly and in a less complicated way. This is called globalization. Since, there is an active trade among countries, the products that are manufactured are affordable. The products can be purchased by more people since they are priced cheap. However, the trade of economic goods and products are not only the matter that takes place, but also services, knowledge, cultural goods and even languages. Simply, globalization can be described as the borders being removed so that countries become economically, socially and politically interdependent on one another. There are both benefits and consequences to globalisation for developed and developing nations which impact aspects of society such as employment, level of foreign investment, brain drain/gain and aid (UNESCO, 2014).
Globalization has helped countries to developed greatly in all the economy and society. Researchers from different parts of the world have gone through this topic and there are some of them who believe that the whole world could benefit from globalization and every countries enjoys the benefit of globalization (Zhang & London, 2011). For instance, let's take the current employment situation of Germany. Germany has one of the lowest levels of unemployment. In 2013, Germany's average unemployment rate is 5.3%. At present, the chances of getting a job is outstanding in a number of sectors such as information technology, infrastructure and wearable products such as clothing. The unemployment rate among people between the age of 15-25 is 7.9%. This is one of the lowest rates among 27 European states. Germany has also managed to maintain a good balance between the dual-system i.e. vocational training and education. Therefore, there is an good chance of finding a good job for anyone with vocational training or graduates. Regardless of the fact, there are more opportunities for the people with higher qualifications such as university graduates; but people with vocational training or those without any of these, their possibility of employment is much low. Furthermore, regarding foreign investment, despite globalization's negative effects, Germany is good at exports. Because of its highly competitive industry, it has placed itself among the winners of globalization. Around 55,000 foreign companies are already functioning in Germany employing 3 million people, already. This led Germany to acquire £ 6.5 billion in 2013. Globalization gave Germany more of brain gain which are diverse. Even though, people prefer to get a professional licence from other part of Europe just in case if they need in the future. Also, Germany is providing aid in over 10 countries in collaboration with Australia. The agreement is between the Australian Agency for International Development (AUSAID) and the Federal Ministry for Economic Cooperation and Development, Germany. With this collaborative approach, these developed countries will be providing some financial aid to developing countries such as Philippines, Cambodia, Pakistan and South Africa to improve the accessibility and health service and maintain sanitation. Consequently, Germany has broaden their access not only in their local market but also all over the world. Germany entertains the benefit of globalization such as trade liberation, improved living standard, improved life expectancy, increased foreign direct investment, positive environment outcomes, reduced cost, growth in liberal democracies, poverty reduction and respect for other identities. But as it is said that where there is light, there is also shadow, due to globalization and the intense exchange of goods, people and the environment often suffer mainly in developing countries (Hamilton & Quinlan, 2013). Unfortunately, the adverse effect of globalization have prevailed over positive effects mostly in developing countries. Globalization turned out to be a threat for developing countries because of the impacts that it showed in its process in developing countries. For instance, Indonesia, a developing country which had 11.24% of unemployment rate in 2012. This figure accounts to be one of the highest unemployment rate among developing countries (Trading Economics, 2014). There is a state of commotion because of the adverse impact of globalization that has led Indonesia in difficulty. Therefore, people migrate to other countries. People have a hard time finding job for their survival. Chances of getting any job is too tough. Likewise, some of the industries in Indonesia have restricted foreign investment. The consequences faced by the country is critical. This has effected Indonesia in many sectors such as advertisement, broadcasting, electricity generation, small-scale power plant, health care, pharmaceuticals, provision of port facilities, retail, telecommunications, provision of content services and venture capital (Finance Asia, 2014). In addition, brain drain has also affected the nation not only in Indonesia, but also all over the world. In Indonesia, people who are educated, talented and professionals tend to migrate to developed countries such as America, Australia and Europe to grab better opportunities and also to increase their standard of living. This results crisis in the nation persuading more people to migrate to developed countries. Similarly, another problem that Indonesia is facing at present is child mortality. If we compare the mortality rate of Indonesia with Australia, it is 30 times more likely to die when giving birth. There is inadequate amount of drinking water and sanitation. Australia and Indonesia, with a joint venture, is trying to have an effective development partnership to improve health, education, boost economic growth, support poor and strengthen democracy. Australia supported Indonesia with AUD 1 billion as a fund to help the eradicate poverty (Australian Government, 2014). So, there is a big difference between developed countries and developing countries in terms of globalization. Developed countries can take huge advantage from developing countries. Globalization has benefited developed countries more than developing countries. There are some reasons that how developed countries take advantage from developing countries. "They are such as giving away of national sovereignty and some new forms of MNCs, turn down of the state as a protector of individuals and groups and the rise of virtual states depending on investment and production abroad, not to mention the fact that due to the size of the top MNCs having GDPs bigger than a country like Indonesia for example, this creates an impression that governments have surrendered their power to capitalism". The idea of letting people access the global market is a good approach to advance or upgrade their standard of living; but meanwhile, there is a chance of people to migrate to developed countries. If two things are two sides of the same coin, they are very closely related although they seem different. This statement pertains the current situation of globalization as there are both pros and cons happening revealing a huge impact on people and environment. The policies that are enabled for free movement across the borders of goods, products and capital have placed a nation at the extreme level. This will rise the migration pressures in the years ahead (Beeharry, 2011). In conclusion, certainly, there is no doubt that globalization has helped consumers to consume products, to entertain in the environment, to adapt culture, to feel secure and exchange ideas among countries. The positive impacts of globalization are emerging multinational companies' research into technology that is eco-friendly and an increase in environmental awareness. On the contrary, there are some unfavourable consequences such as damaging the environment which is export oriented. over use of natural resources effects the environment in a long term. Also, there has been some serious issues with globalization. Some preventive measures have been adopted to prevent the adverse impacts. It is obvious that globalization cannot be stopped and many countries suffer with the influence of globalization. therefore, it is necessary for all the world to establish a structure that can sustain environmentally and socially. Establishing a form or a structure to maintain a balance between people and environment would allow all humanity to cut costs. Globalization has also affected negatively the environment through global warming. If there is a continuity in global warming, people may suffer from natural disasters (UN, 2007).
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