2018

2018
GLOBALIZATION

K.M.R.N.Chandrani
A/16/077
FND 115
Faculty of Arts
Peradeniya University of Sri Lanka
Introduction of globalization
Over the last century, efforts have been made to bring various countries together. All
these efforts have been applied in enabling human beings on the earth’s surface to come
together in all aspects of life. These aspects of human life include social, political and
economic aspects. Conflation effort has been seen to bear fruits. In the current years,
the world has been visualized as being a global village, where the interactions of the
people in the world, has been of equivalent to the interaction in one village or locality.
Almost all parts of the world are interconnected to the rest of the world in different
ways. Barriers, which initially individual countries, have been removed. In the recent
times higher levels of conflation have been achieved. Initially, countries only integrated
economically. This is now outdated. Other areas of human life have also been put in
the circle of conflation. This is commonly referred to as globalization.

Is globalization a process?
Globalization is the process by which countries, economies and regions have been
integrated in a global network. Countries’ economies, cultures, and societies have been
placed in the global networks of communication, trade, transportation and immigration.
In the past, globalization primarily used focus on the part of the world involving
economy. Only factors of the economy were considered as an important part of the
globalization. Foreign investment and international flow of capital and trade were held
high in the globalization chart. The range of globalization has been widened to bring in
other activities and areas such as sports, media, socio-culture, technology and politics.
Biological factors such as environmental and climatic changes have also been regarded
highly. Various factors have played important roles in making globalization a success.
Effective communication across the world has been a major contributing factor. Costs
of communication have reduced drastically, leading to enhanced communication. This
has been facilitated by the growth of information technology since it has enhanced the
communication process. Transportation network and immigration links has also been
cited to be critical in globalization.

Impact of globalization
As indicated, globalization has various effects. It has played a major role in the current
development in the world. One of the main areas that globalization has affected greatly
is the environment. The environment encompasses living things and non-living things
that have been put in their place by activities of human beings. Globalization has
affected the environment both positively and negatively.

Globalization has caused increased consumption of different products. This has caused
to increased production of goods and services in order to satisfy the global market. This
has increased the stress on environment, which impacts the cycles of ecology.
Globalization of trade and market has also caused to increased transportation of finished
goods and raw materials across the world. Fuels used in transportation of these goods
have increased the levels of pollution to the environment. Transportation across the
world has also resulted in other environmental predicaments such as the intrusion of
landscape and noise pollution. Depletion of non-renewable energy sources such as
gasoline has also brought environmental concerns.

Need of globalization
Aircraft transport, which is an important part of global transportation, usually emits
gases, which results in depletion of the protective ozone layer. This has caused the
greenhouse effect, which has brought about negative climatic changes. Plastic, a major
pollutant, is an important part of manufacturing. Plastic is commonly used for
preserving and packaging goods for export and since it is a non-biodegradable, it forms
a large part of environment toxic pollutions. Globalization has caused to
industrialization. Industrial chemicals and wastes usually find their way into the water
bodies and the soil. These harmful industrial products have caused the deaths of
organisms.

In conclusion, globalization today is evident and undeniable, and the scale of

globalization is continuously growing. Although it is yet to define the modern society
as a complete Post-Cultural society, it is getting so close to the society where distinction
between different societies in nonexistent. The globalization will continuously drive the
world to the post-cultural society and the world will form a unity as a single society in
near future. Globalization should not be thought of as a solution for everything. It
merely provides opportunities. Those who take advantage, they flourish and those who
do not they sink. Globalization is not supposed to produce equality of outcome but it
produces equality of opportunity for those with right mindset. Hence the developing
countries have to focus on economic restructuring building market supporting
institutions and creating efficient regulatory mechanisms.

Importance of Globalization
Globalization allows countries to benefit from economic synergy and collaborate in
handling political, social and economic challenges. A global economy expands the
reach of buyers and sellers for governments and countries. A broader marketplace
allows producers to convey more for their goods, and a global supply network gives
public and private entities more buying options.
Globalization also increases opportunities for companies to expand operations in
foreign markets. By accepting foreign investment, a government promotes build-up of
its infrastructure. Foreign companies may also hire local employees, which increases
domestic employment levels. American companies expand into foreign markets,
develop new revenue streams and bring some of that money back into their U.S.
operations. This increased capital allows for business expansion and increased levels of
hiring.

Government leaders are able to communicate about ways to mutually improve

economic conditions and shares in the positive economic results. Openness between
governments and industry leaders contributes to shared knowledge and resources.
Many industries hold international meetings in which companies share insights and
trends that benefit all involved.

More domestic competition also forces some companies to grow internationally or risk
failure. Developing nations present opportunities to not only develop new revenue
streams, but tap into new pipelines for capital.

Advantages of Globalization
Following are some of the important advantages of globalization for a developing
country.

 Globalization helps to increase the long run average growth rate of the economy
of the country through.
 Improvement in the allocative efficiency of resources, and increase in labour
productivity and reduction in capital-output ratio.
 Globalization makes domestic industries of developing countries to become
conscious about price reduction and quality improvement to their products so
as to face foreign competition.
 Globalization facilities consumer goods industries to expand faster to meet
growing demand for these consumer goods which would result faster expansion
of employment opportunities over a period of time. This would result trickle-
down effect to reduce the proportion of population living below the poverty
time.

Disadvantages of Globalization
Globalization has many disadvantages also. Following are some of the disadvantages.

 Globalization usually results greater increase in imports than increase in exports

leading to growing trade deficit and balance of payments problem.
 Globalization paves the way for redistribution of economic power at the world
level leading to domination by economically powerful nations over the poor
nations.
 Although globalization promotes the idea that technogical change and increase
in productivity would lead to more jobs and higher wages but during the last
few years, such technological changes occurring in some developing countries
have resulted more loss of jobs than they have created leading to fall in
employment growth rates.
 Globalization has alerted the village and small-scale industries and sounded
death-knell to it as they cannot withstand the competition arising from well-
organized MNCs.
 Globalization has been slowing down the process to poverty reduction in some
developing and under developed countries of the world and thereby enhances
the problem of inequality.
 Chart Title
60

50 50 49.1
47.3
46.5
46.3
45.9
44.7
43.3
43.2
40.9 41.6
40 40 40.2
39.2
37.9 38.4 37.3
36.5
33.8 34.2 34.9
33.2
31.4
30 29.3
25 25.6
23.9 24.3 23.5
22.8 22.5
20

10

0
2011 2012 2013 2014 2015 2016 2017

sampath peoples NDB commercial BOC