October 13, 2008

Some thoughts about Globalization

Today we have had our first GBE course, I have some thoughts about the Globalization.

When you sitting in the car ready to drive to school in the morning, your car is Toyota which made in Japan, your beautiful clothes is manufactured in China, the coffee you are drinking was imported from Brazil, when you listening CDs, the songs are recorded from American singer¡­ such and such, every product around your life nowadays are coming from different countries, this is because the Globalization. Generally speaking, it let the world become more integrated and more interdependent.

Why the world is globalised?

The improving technology is a very remarkable facilitator for Globalization, it brings distant market almost accessible. Ages ago, we use to travel around world by boat, it took years to travel from Europe to Asia, then we have train and then Boeing Aircraft which takes us to anywhere in the world we want within 24 hours. The new E-business making even more convenient for people, they can use the computer at home or office to purchase, sell or exchange goods and services, to serve customers with partners, to transact within a company.

Also the governments¡¯ agreements open the world market, drives the cost down, e.g. WTO reduce of trading barriers, this also helps Globalization.

There are good things about the world to be globalised.

  • We can have great new market opportunities, especially for those home market is small or saturated, they can explore aboard. For example, China has great opportunities for E-industry as only 160 million in 1.36 billion population are currently internet users, also it is huge space in car industry as 1 out 7 people has a car. These are great chance for those internet producer and car producer.

  • Allow companies to reduce overall production cost though access to low cost labor. Also to access resources that is unavailable or more costly at home market. E.g. Japan lacks natural resources, if it wants to develop their car industry, it must use steel from other countries.

  • It can create jobs, say labor from India they are low wage but highly skilled workers. They are welcomed by developed countries. For example, some company¡¯s call centre just set in India as the labor cost is cheaper than in their home country and Indian people also speak English. Also, India is a location for software- writing operations.

  • It brings economic growth stimulation, the world¡¯s GDP has significantly increased since 1960s is because of the globalization.

  • lIncrease consumer¡¯s income. Like the example above, Indian worker are paid good salary compare with domestic level.

Globalization also causes problems.

  • It destroys manufacturing jobs in wealthy, advanced countries. For example China, the world manufactory base, many countries set their manufacturing line in China to use the cheap labor cost, letting their home unskilled workers losing jobs.

  • To some degree, it might cause loss of sovereignty, because globalization trends to nationalization. It eliminate the national boundaries, mix up and unite the culture.

- 5 comments by 1 or more people Not publicly viewable

  1. overall i think globablisation produces more gain than losses, sadly people’s concern with self interest (including multi national corporations) means that the gains are not produced as much as it should be (trade barriers) or that it produces negative social/economic effects on the countries being exploited. this is where the government is vital in ensuring maximum benefits are gained from specialisation, and minimum loses inccurs to those who may suffer from globalisation. Protectionism, in my opinion , can be used for a short term to buffer the transistion of industry but should not be used as mean to shield industries from competitive oversea exporters.

    It is true that one effect from globalisation is countries may lose it national identity and become increasing interdependent with other countries, but what is the problem with that? dont you think it’s great that we have people from so many countries in wmg? wouldnt it be great if that is in china, japan, taiwan ? people understand each other better and greater harmony could be enjoyed by you and me?

    now time to go to bufet dinner i think… starving

    14 Oct 2008, 18:29

  2. “Like the example above, Indian worker are paid good salary compare with domestic level.”

    As you mentioned in your blog….Call centers have helped many people get higher salar or probably increased the average salary for the middle class.

    I know of a lot of people who used to only make 50 Pounds a month. Now they make about 180 Pounds per month because of the call centers. It has definately given our economy some boost and helped improve the lifestyles of quite a few Indians

    23 Oct 2008, 19:14

  3. Yes of course, but also as I said, it might eliminate those cultures differences, there would be less and less languages in the world in the futrue. To some degree, it might not be a good thing.

    23 Oct 2008, 20:41

  4. abiska deli

    The industry in the U.K is affected by globalisation; globalisation may do this by affecting how costs alter to changes in economic goings on in the United Kingdom or by affecting how prices raise to changes in costs, for example, the quick rise in global food and energy prices over the past year. It destroys manufacturing jobs in wealthy, advanced countries. For example the UK, many countries set their manufacturing line in LEDCs to use the cheap labor cost, letting their home unskilled workers losing jobs. However it can affect the UK in a good way, as it can provide jobs from companies moving here and everyone will get more profit.

    26 Nov 2008, 20:55

  5. fishing tackle

    Globaslization will only work if th eplaying field is fair, look at African countries for instance. They suffer the credit crunch everyday.

    08 Jan 2009, 13:37

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