Friday 5 September 2008

My final essay

Essay

“Summarise the main effects of globalization and discuss to what extent they are beneficial to your subject area”

Essay Plan:

1 Paragraph: Introduction
2 Paragraph: Economics and international trade
3 Paragraph: Environment
4 Paragraph: Culture
5 Paragraph: Subject area: Marketing
6 Paragraph: How marketing effects the world: positive and negative
7 Paragraph: Conclusion

It is generally agreed that international integration, during the last period of history, is the world network in every sphere between countries, people, companies and markets. Integration has turned into a new kind of relations. Clothes, food, furniture, gas, oil are being exported and imported from place to place crossing long distances, spending low money for labour and looking for mutual cooperation. Communication technologies, such as Internet, television and different kinds of transport make easier to contact people between each other and make them closer. Because of improvements in traffic infrastructure, one is able to reach one’s destination in a relatively short period of time. According to Adam Smith ( Adam S. cited in Reith Lecture 2007), “ nothing seems more likely to establish this quality of force than that mutual communication of knowledge and an extensive commerce from all countries to all countries”. As well as people communicate, goods are being sold all over the world markets. Marketing takes the leading position of global integration. On the other hand, world integration has weakened the position of poor countries. Poverty is widespread across the developing countries, which have five-sixths of the world’s population. K. Annan (1998) notes that millions of people experience the globalization which infringes on their financial interests. This essay will discuss global cooperation in economics and international trade, culture and environment weighing up the advantages and disadvantages of important spheres of globalization. Marketing as the main effect of global integration will be analyzed and the main positive and negative effects will be presented.
Economics and international trade have been the most important engines of world integration over the last 50 years. With international trade, financial transfers and foreign investment, the economy is increasingly internationally interconnected. According to Angela Merkel (2006) , there is a mutual influence of world economy and trade. Transnational corporations are the economic basis of global integration. According to Financial Times Germany (2002), there are many big companies as Johnson and Johnson, Microsoft, British Petroleum, most of which belong to the United States of America, United Kingdom and Japan. The positive effects of transnational companies are workers in the developing countries can get employment and receive high salaries. Developing countries get access to the latest technology . As World Bank has mentioned China’s opening to the world trade has increased the population’s level of income three times higher by 1999.
Environment is the other aspect of world integration. As is known, environmental problems has called up the international community and organizations to cooperate on the international level. For example, World Environmental Organization’s main task is to prevent the environmental degradation and destruction. Global environmental problems like cross-boundary pollution, over fishing on oceans, climate changes and ozone layer problem are solved by discussions and financial support of countries. The problem is that companies have set up industries causing pollution in countries with poor regulation of pollution. Growth of population and increased volume of consumption, have caused the reduction of natural resources. According to Kyoto Protocol (1997) , 182 countries have ratified the document , which have required to reduce gas emissions. However, countries have no obligation beyond monitoring and reporting emissions, which shows governments do not have responsibility for the environment.
There is a great level of cross-cultural contacts between people and countries , which appear in exhibitions, seminars, tourism and education. Communications between nations gives the inter cultural exchange. As World Commission (1995) notes “the international dissemination of culture was, at least, as important as economic processes”. However, many countries participating in global activity have to accept Western culture, which is nowadays in most of the countries of the world. It results in disappearing of local cultures as well as local languages. Every year several languages disappear in the world. The spread of values, norms and culture tends to promote Western ideals of capitalism. Some aspects of foreign cultures are affecting the local cultures through TV and the Internet. It is easy also to spread propaganda through internet, because it is un ruled. There is an increase in the desire to use foreign ideas and products, adopt new practices and technologies and be a part of world culture. Nevertheless, there are organizations , such as UNESCO and WORLD HERITAGE , which protect and support many disappearing cultures in the world.
After the movement of goods and capital to the markets around the world during the last century, globalization has internationalized marketing to produce, promote, supply and distribute products. Marketing companies search for the markets all over the world and sell goods for different countries. As Amartya Sen (2002) has noted “the markets of countries can not work by themselves in global relations- indeed, it can not operate alone even within a given country”. Strong markets require significant state and transnational intervention. The power of global marketing can be valued on the level of world trade for the last years from 20 $ to 46$ million. Companies like Nike, Coca-cola, Levis and other major companies spend huge sums of money in promoting and sustaining their brands, as well as others. IBRD describes globalization as an increasing economic interdependence of the countries of the world as consequence of the increasing volume and variety of the international movements of the goods, services and international streams of the capital, and also more and more fast and a technology wide circulation» .
World trade has grown fast and with the growth of demand, countries producing goods and exporting them, using other countries labour. They are facing not only positive results , but also negative.Nowadays there is a tendency to produce goods out of the country, because they can avoid the cost of employing international staff, which is expensive. For example, China today provides labor resources for most countries, which is cheap and of high-quality. Companies can design in Italy and then make in different country and sell it all over the world, though the company’s head office has been in the other city. The research of markets has become easier with the use of communication technologies and internet websites. It helps them to market their product and service. However, most countries promote their production on the world market and face international competitiveness. The more products companies produce, the more products they suggest for the customers. Furthermore, world marketing also faces big risks because of instability of exchange rates, and instability of the governments, trade barriers and other factors. Local industries have been taken over by foreign multinationals, that local products lose their markets, because of high competitiveness.
Globalization has become deeper in all spheres and cooperation is the necessary tool for countries to stay active in the world community. It has become an important part of our life to use technology communications , such as Television, Internet, and transport facilities, which we can use to move around the world. Transportation and communication are also important in distribution of goods, which is a part of marketing. Marketing tends to be the necessary tool in every business. However, globalization has not only positive influence on the world, but negative. There is a growing disparity between the richest countries and the poorest countries and growing inequalities within most countries around the world and globalization , as it is managed, has played an important role in both of these disturbing trends. As Times (2007) reports the number of people in poverty in Africa has doubled in the last two decades. Africa was left, by its colonial legacy, with neither resources nor the education, for instance, to take advantage of the new technologies that make such a difference in India and China. Globalization for supporters and critics will be a process. Global integration has continued to spread and has been the subject of discussions. “People should achieve greater control over the runaway world” ( cited in Reith Lecture 1 1999).


References:
1. Gray ,J. ( 2000) “Does globalization bring liberty?”, viewed 15 August 2008,
Available from:http://business.timesonline.co.uk/tol/business/economics/article1402854.ece
2. Lewitt, T. (1983) "The Globalization of Markets." Harvard Business Review, viewed 17 August 2008, pp. 92
4 Goryunov , I. (1998) Izvestiya, 22 August, p.8
5. World Commission on Culture and Development, Paris, 1995, p. 186
6. World Economic Outlook, 1997, p. 45).
7. Jeffery, S. (2002). What is globalization? The guardian, 31 October,
Available from: http://www.guardian.co.uk/world/2002/oct/31/globalisation.simonjeffery
8. Giddens, A. ( 1999) Lecture 5: Democracy – London
Runaway world. Reith lectures for BBC, viewed 27 august 2008,
Available from: http://bbc.co.uk/radio4/reith2007/lecture5/shtml
9. Giddens, A. (1999) Lecture 1: Globalisation – London
Runaway world. Reith lectures for BBC, viewed 20 august 2008,
Available from: http://www.bbc.co.uk/radio4/reith1999/lecture1.shtml
10. Stiglitz J., 2007, ‘Globalisation fails to help the poorest’, The Times, 19 February, viewed 28 August 2008,
Available from: http://business.timesonline.co.uk/tol/business/economics/article1403536.ece
11. Sachs ,J. (2007) Lecture 5: Global Politics in a Complex Age
Available from: http://www.bbc.co.uk/radio4/reith2007/lecture5.shtml
12. United Nations Framework Convention on Climate change, 1994
Available from: http://unfcc.int/2860.php
13. Kyoto protocol ,1998
Available from: http://unfccc.int/resource/docs/convkp/kpeng.pdf


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