Pros And Cons Of Globalization Essay Titles

Table of contents

List of abbreviations

Register of illustrations

1. Introduction

2. What is globalization ?
2.1. History
2.2. Characteristics of globalization

3. Globalization of the economy
3.1. Globalization of goods and capital movement
3.2. Globalization of transportation
3.3. Globalization of communication and internet

4. Consequences of globalization
4.1. Major advantages of globalization
4.2. Major disadvantages of globalization

5. Conclusion

Bibliography

List of abbreviations

Abbildung in dieser Leseprobe nicht enthalten

Register of illustrations

Illustration 1: Expected world air cargo traffic

1. Introduction

Globalization is one of the major topics and challenges of our time. It describes the process of the worldwide increasing interconnection of economy, politics, culture and environment. This compression affects individuals, society and institutions as well as countries. It can help to increase prosperity, social justice and global networking in order to make the world more equal. In the following seminar paper, the prime importance will be the look at the effects of globalization on the world economy in general.

Despite the advantages of globalization, the negative side with all the disadvantages should not be neglected. Therefore, it is essential to look at the advantages and disadvantages that are created by globalization. The question is to ask, if globalization really has the force to make the world more equal and who are the winners or the losers of it ? The available seminar paper tries to answer that question with a critical analysis of the topic.

Chapter two pays attention to the fact what globalization really is and tries to identify the major characteristics of globalization. Chapter three concentrates on the consequences and effects of globalization on the world economy. The fourth chapter tries to identify the advantages and disadvantages. The seminar paper ends with a short result in chapter five, providing a short summary of the whole theme.

2. What is globalization ?

2.1. History

In literature, a huge uncertainty about the beginning of globalization is existing. For this reason an exact definition is not possible. To give a short overview, this seminar paper covers only three starting points of globalization.

The first evidence can be found in the fifteen century, when in the aftermath of the European conquest Chistoph Kolumbus tried to find the sea way from Europe to India in 1492 and Vasco da Gama finally found it in 1498. The consequence of that special discovery resulted in the first worldwide contract in history, by name the contract of Tordesillas in 1494.1 After Ferdinand Magellan sailed around the world the contract of Tordesillas developed further into the contract of Zaragossa.2

Another definition says that globalization started with the industrial revolution between the 18th and the 19th century when mechanical mass production developed and the demand for raw material raised. Especially the rising demand for cotton contributed to the expansion of the industrial revolution throughout Europe and not only England, where the industrial revolution once had started. Furthermore, higher amounts of coal and iron were needed in order to satisfy the higher demand for cotton. Therefore, small inventions were indispensable to improve production and transportation systems.3

More modern views say that globalization started in the middle of 1980. The leading world economies agreed for a reassessment of the rates of exchange. The reassessment was recorded in the Plaza-Accord of 1985. The goal of that change was to achieve a revaluation of the YEN and the Deutsche Mark towards the US-Dollar and the British Pound, in order to correct dissimilarities in the trade balances of those countries. But the actual effect were major financial transactions worldwide. The intended effect was not be reached.4

2.2. Characteristics of globalization

The previous chapter reveals that an exact definition of a starting point of globalization is not possible. To find an exact definition about globalization is also hard. Therefore, it is important to identify the important characteristics of globalization.

Globalization can be seen as a process of changes that intensifies global relationships in numerous levels. Thereby, a global interdependence arises in areas such as economics, politics, culture and environment. It is possible to divide the changes into four different types. First of all globalization means an expansion of various activities in social life, politics and economics throughout countries and continents. As a second point that characterizes globalization, the expansion of worldwide interconnection of trade and financial transactions, together with an assimilation of different cultures, can be considered. This mentioned interconnection has also effects on global collaboration and processes and it helps to improve systems of communication and transportation, so that ideas, information, capital of investors and all different kind of goods can spread out into the world more easily. Last but not least, this global connection involves that events taking place in one country are able to have effects on many other countries. This means that the frontiers between global and domestic matters are fluently.

Summarized, globalization has a massive impact on the world and of the interconnection between all parts of the world and all areas of life.5

3. Globalization of the economy

3.1. Globalization of goods and capital movement

Globalization has a great influence on the world economy. This influence finds expression especially in the areas of capital and goods movement. Other areas that are influenced by globalization are transportation, communication and internet and last but not least in the mobility of people around the world.

In the period of 1960 to 2008 the statistically documented exports of goods increased by more than 15 times, while the statistically documented production of goods increased by only 5,4 times.6 The number of foreign direct investments increased from 1970 to 2007 from 13 to more than 1,800 billion USD. From 1980 to 2007, the volume of worldwide trade increased from 2,4 to 17,0 trillion dollars. In 2007, goods and services that were worth about 13,600 billion USD were exported worldwide in the amount of about 3,300 billion USD.7 The data shows that globalization has influenced worldwide investments, services and good exports in a positive way. Also the possibility of Free Trade Agreements can have a wide effect on international trade activities.

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1 http://www.thenagain.info/webchron/americas/tordesillas.html, retrieved 05.01.2013.

2 http://www.bpb.de/veranstaltungen/dokumentation/130248/globalisierung-geschichte-und-dimensionen- eines-begriffs, translated, retrieved 05.01.2013.

3 http://www.bpb.de/veranstaltungen/dokumentation/130248/globalisierung-geschichte-und-dimensionen- eines-begriffs, translated, retrieved 05.05.2013; http://narvellstrickland1.tripod.com/cottonmillhistory2/index1.html, retrieved 05.05.2013.

4 http://www.bpb.de/veranstaltungen/dokumentation/130248/globalisierung-geschichte-und-dimensionen- eines-begriffs translated, retrieved 05.05.2013; Fed of St. Louis, http://research.stlouisfed.org/publications/review/92/05/Intervention_May_Jun1992.pdf, retrieved 05.05.2013.

5 http://www.polity.co.uk/global/whatisglobalization.asp, retrieved 05.06.2013.

6 http://www.bpb.de/nachschlagen/zahlen-und-fakten/globalisierung/52543/entwicklung-des- warenhandels, translated, retrieved 05.08.2013.

7 http://www.bpb.de/nachschlagen/zahlen-und-fakten/globalisierung/52575/auslaendische- direktinvestitionen-pro-jahr, translated, retrieved 05.08.2013; http://www.zeit.de/2006/47/Grafik-1, translated, retrieved 05.08.2013; http://www.bpb.de/nachschlagen/zahlen-und- fakten/globalisierung/52543/entwicklung-des-warenhandels, translated, retrieved 05.08.2013.

It is difficult to find more modern topic for thoughts as global integration. There are many essays on globalization written by scientists, politicians, journalists, businesspersons, religious figures and people of art. Dozens of conferences and symposiums, hundreds of books and thousands of articles are dedicated to this occurrence. There are many approaches to the understanding of definition “globalization”. Some people think that it is natural process of integration of different cultures. Another people consider that it is new form of colonialism. The rest of the people agree with the fact that, humanity can freely promote world fund thanks to internationalization. It is also good question to determine advantages and disadvantages of such versatile process as global integration. However, let us look at first on definition of “globalization” or “internationalization”. 

Definition  and history of “globalization”

If we look in definition dictionary, we will see the description of word “global”. The definition of adjective “global” is relating to the whole world, entirely or comprehensive. According to different encyclopedias, we can formulate definition of process “internationalization” by own words as process of unification of all world spheres of life (political, economic, cultural) into one own system, which use all countries in the world. Now let us take an excursus to the history of globalization. First signs of it we can observe in ancient times. In particular, Roman Empire was one of the first states, which strengthened the domination on Mediterranean. It led to deep interlacement of different cultures and appearance of local division of labour in Mediterranean regions. The origins of global integration take part XVI and XVII centuries when sustainable economic growth in Europe, combined with advances in navigation and geographical discoveries. That’s why, Portuguese and Spanish traders spread all over the world and engaged in the colonization of America. In the XVII century Dutch East India Company, which traded with many Asian countries, has become the first genuine multinational company. In the XIX century, rapid industrialization has led to an increase in trade and investment between the European states and their colonies, and the United States of America. During this period, unfair trade with developing countries was in the nature of imperialist exploitation. In the first half of XX century process of global integration was interrupted by two world wars and share their period of economic downturn. After the Second World War, globalization resumed at an accelerated pace. It contributed to the advancement in technology, which led to rapid sea, rail and air transport, as well as access to international telephone services. However, globalization began to gain big spans in the 1990-s.

Sources of internationalization in all spheres of life

When we talk about globalization, we will of course view this process concerning such spheres as economics, culture, and politics. And what do you think? What is your opinion? If you do not like to write globalization essays, you can use the help of our essay writing service. Some useful information you can find here. Origin of globalization is compelled due to some sources. The first source is scientific and technical progress, which has led to the improvement of transport and sphere of communication. Success in computer technologies has allowed committing a breakthrough in information service. This has occurred thanks to establishment of Internet and e-mail. The second source can be regarded as giving the status of the world economy as a free. Thanks to taken measures, prices on goods and services has become cheaper. The third source can be hardily regarded as appearance of transnational companies. World was captured by transnational companies. Almost everyday all humanity drink or eat products of such companies (Coca-Cola, Pepsi, McDonalds). All people wore clothes of leading companies (Adidas, Nike). Microsoft, Apple, Windows, Android, iOs. This list can be continued forever. Thanks to process of transnationalization, we can use and consume such production and goods from abroad, which our country does not have. It is safe to say, that transnational companies have taken over the reins of government on information and financial markets. Economics of all countries is acting now as one mechanism. Market economics is playing central role today. More and more free enterprises appear in Europe and countries of former Soviet Union. The culture of all nationalities has become united. Because of that, mass media has become more uniform. English has got the status of international language. Influence of national states begins to weaken. Global problems are solved by international organizations such United Nations Organization, World Trade Organization and so on.

Good and bad sides of globalization

Such process as globalization, obviously has as advantages and disadvantages. In this essay about globalization, I will give examples of positive and negative effects of it on humanity and planet.

Advantages

The emergence of international competition is the first plus of globalization. As domestic producers, so as multinational companies can compete with each other. Strong competition leads to appearance of high quality production. World trade is profitable in modern situation. Appearance of new trade unions promotes process of globalization. Modern technologies are rooted almost everyday in all spheres of human life with aim to increase performance. This is achieved thanks to scientific and technical progress. Countries, that are lagging behind in economic development, can overtake advanced countries. They can catch up economics and strengthen positions in world arena. Humanity has become more tolerant, so there are no prerequisites for wars and conflicts, racism and wars for natural resources.  International tourism is flourishing. People can visit other countries and get acquainted with the culture of other nations.

 Disadvantages

Mainly, rich countries and individuals receive bulk of benefits. There are no benefits for countries with low growth of economics. National values are lost. We start to forget our own culture, traditions and customs. There is a risk of sole ruler. Too much power will be concentrated in hands of such ruler or maybe whole country. Some industries from world trade will get profit, growth of qualified workers, while others do not get support from state, become uncompetitive. Because of that owners lose money, people lose job. Service sector becomes more prioritized, while industry loses its positions. People need to look for new job with aim of receiving the money. Presence or absence of experience in specialty of workers has started to play important role because of competition. Qualified workers get high salaries, while others get almost nothing or does not have salary at all. This leads to unemployment. Unemployment leads to poverty. More about the reasons of poverty, you can find in essay on poverty. However, it can be also as a plus. People will need to train, develop and get qualification. Environment suffers from anthropogenic influence. Many rainforests are cut down. Oceans and seas are massively polluted by plants. There is a depletion of minerals. Generally, all this facts harm humanity and planet

Conclusion

To sum up, globalization is main topic for humanity. Obviously, it has as positive and negative impact on our planet. People should find ways to give emphasis positive changes in order to make world better. Decisions about negative consequences should be solved immediately by world. What is the essence of globalization then, if we doom our world into destruction?

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