ESSAY Globalisation affects the worlds PAPER 4

economies in a very positive way.

Discuss

In the present age, globalisation is playing an increasingly important role in

our lives. With globalisation, the world has become integrated economically,
socially, politically and culturally through the advances of technology,
transportation and communication. But, whether it is a blessing or a curse has
sparked a heated debate. Some people argue that globalisation has a
fundamentally beneficial influence on our lives, while many others contend that
it has a detrimental effect as well. It is undeniable that globalisation has resulted
in both positive and negative effects which must be addressed accordingly. On
the positive side, it enhances competitiveness, improves living standards and
promotes cultural exchange. Conversely, there is a loss of cultural identity and
an evolvement of modern colonisation.

To begin with, globalisation has contributed to the world's economies in

many beneficial ways. The advances in science and technology have allowed
businesses to cross over territorial boundary lines without any restriction. To start
with, globalisation encouraged many corporations to become international
groups. The advancement of these multinational enterprises into less developed
economies contributes to the local technology and employment. Consequently,
not only do these subsidiaries tend to become more productive and competitive,
but also the local companies, thereby raising the quality of goods, services and
the world's living standard. Developed economies leverage on the cost-benefit of
doing business in less developed economies while at the same time open up
opportunities for the local economies in terms of employment and investment.
Ultimately, it enhances competitiveness, thereby benefiting consumers in terms
of better products and innovation.

Taking advantage of the low cost of labour in the poorer countries, several
companies from the more developed countries have already ventured to
establish foreign operations or branches. This kind of business activity will
provide more influx of cash or investment funds into the less developed
countries. A consequence of this is more development, as infrastructure has to
be in place for the new setups to operate. Specifically, when a multinational
group establishes a factory in a developing country, the new equipment, the new
management skills and the job vacancies are all in the best interest of the local
society. Hence, the local community benefits from such investments. Moreover,
jobs are created, as these multinational enterprises are there in the first place to
take advantage of the lower cost of production. Subsequently, with a stable
source of income, living standards of the local community improves. The adage,
'make hay while the sun shines' triggers local businesses to leverage on the
technologies to spinoff companies and venture into related businesses. With
better living standards, social problems may seem less serious.

Globalisation not only plays a pivotal role in enhancing competitiveness and

improving living standards, but also in promoting cultural exchange between
different countries. In essence, people worldwide can get to know each other
better through globalisation. Globalisation has virtually made the world
borderless. With the advent of the Internet, people are connected 24/7. The
Internet is a source of invaluable information, including the cultural aspects of
most countries. Moreover, there are many online cultural communities, hence
making cultural exchange effortless. Globalisation stimulates interest in cross-
cultural exchange and promotes better understanding of the world at large. This
mitigates misunderstanding and leads to lesser conflicts. Evidently, there are
more and more Hollywood blockbusters showing cultures other than American,
for example 'Kungfu Panda' and 'The Mummy'.

However, globalisation is not without the negative effects. Inevitably,

globalisation has severely affected young people. The younger generation has
become more brand conscious. Today, it is very common to see teenagers
wearing Nike T-shirts and Crocs footwear, playing music on Apple iPods and
eating at Subway in the metropolises. The culture that took generations to form
just vanished from the radar in these cities. Sometimes, you can only distinguish
them by their language. Moreover, social problems may set in if these
youngsters do not have the means to support their expensive habits. The adage
'cut your coat according to your cloth' may not even exist in today's young
minds. Meanwhile, in some developing countries, foreign direct investment has
resulted in sweat workshops. Deplorable working conditions and exploitative
wage rates are causes of concerned. For instance, reports show that some
teenagers employed by Nike's contractors work in smelly factories over 14 hours
a day, but are only paid fifty cents per hour.

Moreover, a modern form of colonisation will also evolve. Large corporations

that invest or take over offshore businesses may cause certain power pressure
on local governments of the less developed countries. These economies may be
at the merce of such multinational enterprises. While on one hand these
investments enhance development, on the other hand local governments may
have to submit to the demands of these large corporations. Additionally,
unemployment rates in the more developed regions may also escalate as
corporations choose to outsource to the cheaper workforce in less developed
countries. People in these developed countries may find it difficult to make ends
meet, and consequently may engage in undesirable activities. This is a cause of
social concern. Another crucial social aspect of globalisation is the risk and
danger of epidemic diseases, which can easily be spread as transportation
becomes easier and faster in today's advanced society. This is evidenced in the
bird flu disease that has infected most Asian countries over a short period.

In conclusion, I reiterate that globalisation is inevitable despite some adverse

effects. Nonetheless, the benefits of globalisation far outweigh the drawbacks. It
can be mutually beneficial if individuals, companies and governments use a more
balanced approach to deal with issues related to globalisation. Much thought
should be given to matters relating to the financial or economical gains verses
the social, political or ecological concerns of the world. A consensus should be
reached on how best all parties could benefit from globalisation - a stance
whereby corporations not only make the it profits, but also contribute responsibly
to society. The local government should take measures to enhance culture
assimilation and combat sweat workshops. If all parties concerned can create a
nexus of trust, globalisation is beneficial for everyone despite some
shortcomings. Unquestionably, with advances in technology and innovation,
globalisation is here to stay.

(1,023 words)