Globalization Cause And Effect Essay
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Transcript of Globalization Cause And Effect Essay
SCHOOL OF FOUNDATION AND CONTINUING STUDIES
Writing and Research Skills 061
NAME : Syazrul Ikhwan Bin Zainol
STUDENT ID : 7E0B8184
GROUP : 1E3
COURSE OF STUDY : Foundation in Engineering
LECTURER : BaEllison Ludan Mayan
TITLE OF ESSAY : Globalization
DATE OF SUBMISSION : 12th November 2010
DECLARATION
I declare that this project does not incorporate without acknowledgement any
material previously submitted for any institution of higher education; and that to the
best of my knowledge and belief, it does not contain any material previously
published or written by another person except where due reference is made in the
text.
Miri, 12th November, 2010
Syazrul Ikhwan Bin Zainol
7E0B8184
TABLE OF CONTENT
NO. Contents Page
1. Abstract1
2. Introduction2
3. Background3-5
4. Cause Paragraph 16
5. Cause Paragraph 27
6. Cause Paragraph 38
7. Transition Statement9
8. Effect Paragraph 110
9. Effect Paragraph 211
10. Effect Paragraph 312
11. Conclusion13
12. Reference List14-15
13. Bibliography16-18
14. Appendix19
ABSRTACT
The principle of this essay was to study the causes and effects of
globalization. To accomplish this essay, secondary research method was used.
Resources such as Internet and books were used as the research materials. This
essay was done in techniques like researching, drafting, writing, editing, planning,
proof reading and brain storming. After reading on the research materials gained, it
was found that the three main causes of globalization were the efficiency of
international transportation, the growth of information technologies (IT) and making
international trade and enterprise profitable. Meanwhile, three main effects of
globalization were corruption, air pollution and the spread of education. In
conclusion, the concept of globalization is world without borders promises a future to
change the social, political and economic things as we know them will be radically
different and probably threatening in many ways. Thus, globalization must be
interpreted precisely if it is ever going to bring about a improved life for everyone in
this universe.
1
INTRODUCTION
Globalization from the word global means the spreading throughout the
world and the intend of having a globalised community is to have interdependence of
the world and its people with the concern of self-development and self-interests.
Now days, people can easily connected to each other than before. In fact,
information and money transferring quickly than ever. Besides, services and good
manufactured in certain country are increasingly spread to all parts of the world. This
tremendous phenomena can be described as “globalization”. Basically, globalization
is the interaction among countries in order to develop the global economy and
society. Moreover, process such as regional economies, societies and cultures that
had contributed significantly to the development of global network of communication,
transportation and trade is classified as globalization. Globalization is fast ever
growing force that changed the world into better living place and key factors that
contribute to globalization are the efficiency of international transportation, growth of
the technologies and making international trade and enterprise profitable.
2
BACKGROUND
Globalization is the process that has been growing on for the past 5000 years,
but it had increased drastically since the corruption of the Soviet Union in
1991(Riggs.2000). AT the beginning stage of globalization concept is referred to
“restructure” the world economy during the late twentieth century. The globalization
strictly emphasis on the rapid change in the technical, social, political and territorial
organization of investment, production and trade. Besides, the most obvious change
that caused by globalization are the transnationalization of communication,
commerce production and politics which had increased the volatility of the market
demand and the strategic ascendance of financial capital also specialised services.
In fact, the key factor of (NGO’s) and alternative government organization (AGO’s).
Globalization is also known as a process along four dimensions which are economic
globalization, the formation of world outlook, democratization and political
globalization. Noticeably, globalization is a comparer and controversial trends that
include technological developments, cultural dynamics and organizational strategies
for global competition which had increasing since 1980’s. Currently, the
globalization wave has been driven by the policies that economies to be opened
domestically and internationally so that international industrial and financial business
structure to grow rapidly in all countries. In fact, the key factor that triggers
globalization is the advanced information technologies that changed people’s life.
3
Cause 3
One of the causes of globalization is the efficiency of international
transportation as a fundamental element supporting the global market. International
transportation refers to a factor that causes international trade to extend more rapidly
because international trade requires infrastructures which can support trade between
several companies. Since, half of the global trade occurs between locations of more
than 3000 kilometres away, most international goods movements involve several
modes especially when the destination are far away from each other. Maritime
shipping and air transport are one of the transportation modes which concerned with
international trade. One of the advantages of Maritime transportation is, it handles
about 90 percents of the global trade which includes a series of getaways granting
access to main production and consumption region (Jean, 2010). Meanwhile, the
importance of air transport is, it carries international air freight which is about 70
times more precious types of good than its maritime counterpart (Jean, 2010).
6
The driving factor that leads to the process of globalization is the growth of the
information technologies (IT) which had changed the world dramatically. In the early
1990’s, the development of computer hardware, software and telecommunication
had caused the wide spread improvements in access to information and economical
potential. Information technologies provides the communication networks that
facilitates the innovation of products, ideas and resources among nations and people
throughout the world (Bestshy,2010). Since, application of IT spread extraordinarily
rapid almost every aspect of life in this industrial societies are depend on the product
based upon and enhanced information technology. For instance, only scientists were
using the internet had transformed into commercial networks, which allows users to
make transactions, for businesses to manage the flow of production inputs and
markets products. IT makes life easier for people as it provides websites, chat room,
instant messaging, systems, e-mails and other internet based communication
system to collaborate and exchanging ideas with each other.(Information, technology
and globalization,2006). Briefly, the innovation of IT had changed society drastically
and have created new jobs promoted the growth of new markets and increased
international trade and investment.
7
Cause Paragraph 3
Another cause that triggers rapid globalization is making international trade
and enterprise profitable. Economist believed that globalization increases the
economic opportunity and prosperity to the developing world. International trade
become significantly profitable throughout the process of openness to foreign direct
investment stimulating of domestic capital formation and enhancing efficiency and
productivity by the foreign direct investment can contribute to the economic growth.
Indeed, trade liberalization is being found to increase economic opportunities for
consumer and producers to lift up earning for workforce and that under greater
openness to trade, resources tend to be reallocated away from less efficient
activities and towards productive activities. Surprisingly, Foreign Direct Investment
(FDI) managed to attract the openness towards the free flow of capital, which leads
to the development of domestic investment and contribute to employment generation
for economic growth. For instance, the growth of world trade can be reflected by the
explosion of Foreign Direct Investment (FDI) in developing countries which had
increased from USD 2.2 billion in 1970 to USD 154 billion in 1997 and resulted in
national capital market to become integrated drastically (Zaher,2008). Financial
openness certainly helps to increase the depth and breadth of domestic financial
markets which cause to increase the efficiency in financial markets through lower
costs and improved resources allocation.
8
Key Words
Globalization - Globalization is the integration of the countries and peoples of the
world. Globalization also cause the gigantic reduction of costs of
transportation and communication, and the breaking down of artificial
barriers to the flows of goods, services, investment, knowledge, and
people across margins(from Globalization and its Discontents,2004).
Corruption - The act of corrupting or making decomposed, or state of being damage
or putrid, decomposition or disorganization(Brainy Quote,2001).
Restructure – construct or form a new or provide with a new structure.
territorial organization of investment- The definition of space and spatial organization
as being produced, and structured through the
organization of social relationships, has been
thoroughly developed(Swyngedouw,1992).
Transnationalization - transnationalization is essentially related to the rise in the
importance of markets and their dependence(
Transnationalization, Globalization and their effects on mid-
career mobility transitions,2008).
Volatility of the market demand - volatility refers to a variable’s degree of
unpredictable change much more towards standard
deviation of an asset’s price over time based on
market demand(What is volatility? ,n.d).
4
International industrial and financial business- Industrial international
competitiveness is an important
branch in the research field of
international competitiveness(Chuang Li, 2008).
Cultural dynamics - dynamising role of cultural heritage and interaction between
culture and society: past and present(Cultural Dynamics,2009) .
Democratization-is the institutions and practices evolve and are spread both within
and across nationwide and civilizing limits(Democratization,2010).
Political globalization- Political globalisation refers to the increasing number and
power of human links which influence or direct the world as a
whole.
5
Transition Statement
These are the three causes that planted the seeds for rapid globalization and
the effects of globalization that people will face are the corruption, pollution and the
spread of education.
9
Effect Paragraph 1
The first effect of globalization is the corruption of economic and political in
the particular developed country. As developing nation’s increases the involvement
in world economy, the strengths of the financial and governmental institutions are put
into test. If the institution are strong, the economic gains from globalization but if they
are weak, bulk of gains are lost which leads to the corruption of the nations. In fact,
the bankruptcies of so many companies also affect the government because banks
will accumulate loans while losing values of clients due to recession-government
which depend on companies taxes and banks will suffer terrible reduction in revenue
and development expenditures which leads to the corruption of a nation (Mahathir,
2002, 230). Besides, corruption affects the poorest country the most, especially
poorer countries as they usually export agricultural good which does not make a lot
of profit as larger countries provide all sorts of financial aid such as subsidise for
their farmers to lower the market price under the free trade ( Shah,2008). Corruption
of a nation would probably destabilize development and worsen inequality, distorting
the decision for making in favour projects that benefits the nation and increase the
debt of the nation as a result of lost in global economy.
10
Effect 2
One of the bad effects of globalization is pollution that is caused by factories
such as chemical waste and air pollution. Most of the manufactures nowadays are
just throwing the waste chemicals into the nearby river and producing air pollution
without considering about the cleanliness of the environment. All that come into their
mind is the profits without bothering about the consequences of doing such things. A
number of researchers consider that there is a bond between income per capita and
the environment where negative an effect rising with per capita income – well
developed nations where per capita is low, and more pressing social needs enjoy
priority over environmental regulation (Ruan, 2010). Negative effects on the
environment such as air pollution still occurs although the governments in some
developed countries enforced rules on the protections of the environment. In
addition, globalization contributes air pollution because big industry takes opportunity
from careless environmental controls in developing nations and moves its
manufacturing facilities to such “pollution asylum” from where air pollution travels
around the globe of world without obstacles (Pollution Effects on Humans, Animals,
Plants and the Enviroment, 2008).
11
Effect Paragraph 3
Globalization has a positive side as well and the positive effect globalization is
the spread of education. Education is vital for people as it acts like an instrument to
enhance our knowledge, develop our skills and talent that can produce educated
workforce that will be a great profit to the country in the future (Yeoh et al. nd, 11).
The massive spread of education at all levels because the consequence of widely
available schooling as a result of globalization process in this century. Regarding the
role of schools- globalization has become significant chapter of study especially in
the field of comparative education, which applies social theories. Besides, the effects
of globalization on education also triggers the development in technology and
communications such as innovation of learning system across the world such as
ideas and knowledge to adapt the students into information based society. It helps in
shaping children to be the future citizen into global citizen who are intelligent with
broad range of knowledge to apply in the competitive society and thus reflects the
cultural imperialism (Chinnamma, 2005). Education system now face the dual
challenge of producing students with the fundamentals knowledge, skills and value
needed to be spirited in a global market while at the time producing graduates who
are responsible to be good citizen towards their country and the world.
12
Conclusion
In conclusion, as globalization continuing progressed virtually in all countries
during this century which caused by the efficiency of transportation, growth of
technologies and making international trade and enterprise profitable .However,
there are some effects from the globalization which apparently can be classified as
positive effects and negative effects. The negative effects of globalization are
corruption of a nation and polluting countries by producing chemical waste and air
pollution. Meanwhile, spread of education throughout world is one of the positive
side of globalization. Thus, the international community should endeavour by
strengthening the international financial system, through trade and aid to help the
poorest countries integrate into the world of economy so that allows them to grow
more rapidly and cut down the poverty in that particularly country. By this way, all
people from all countries have a chance to gain benefits from the globalization
process. Finally, people should realise that although we can identify and analyse the
process of globalization, we should not imagine that this process of globalization will
go on forever and that this process is irreversible.
13
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18
APPENDIX
19