positive

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Globalization

Globalizationreferstotheabnceofthewallsofmatchboxesthatevery

countryhad,betweenthemlvesbadonsuspicion,mutualdistrustand

differentcountries,infactdividedintoworlds,and

thereforecouldnevermanagetodealwithnaturalholocaustsanddeadly

epidemics,izationhas

strengthenedthenexusandhashelpedustoknoweachother’sneedinabetter

elpedtodemolishthowallsthatparatedusandcurbedour

izationhasprimarily

becomeafiscaltermbutitsimpactisnotlimitedtotheeconomyofthe

countriesonly,thetermglobalizationactuallyreferstoeveryaspectoflife

likecultural,social,psychologicalandofcour,political.

Itistruethattheimpactofglobalizationisvisibleandaffectslargelythe

politicsandtheeconomyofthecountrybutitffectonthemindtandthe

’slikethe

Icebergtheorywhereinwhatwedoandsayareatthetipandwhatwethink

eisnotvisiblebutmanifestationsatthetop

ieshereaswellwherepeopledonotchangeabruptly

butmaybeafteradecadethechangestartsshowingandemsradical.

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ArjunKulkarni

PositiveEffectsofGlobalization

Itwouldberatherdifficulttodiscusstheextentofthepositivesthat

ll,herearesomeofthe

positiveeffectsofglobalizationandthepositiveimpactstheyhavehadonso

manydemographicgmentsofsociety.

IncreadCompetition

Oneofthemostvisiblepositiveeffectsofglobalizationistheimproved

errviceandthe

'customeristheking'approachestoproductionhaveledtoimprovedquality

ofproductsandrvices.“Asthedomesticcompanieshavetofightout

foreigncompetition,theyarecompelledtoraitheirstandardsandcustomer

satisfactionlevelsinordertosurviveinthemarket.”Besides,whenaglobal

brandentersanewcountry,itcomesinridingonsomegoodwill,whichithas

eatescompetitioninthemarketanda'survivalofthe

fittest'situation.

Employment

Withglobalization,companieshaveforayedintothedevelopingcountriesand

soneofthepositiveand

negativeeffectsofglobalization,dependingonthepointofviewyouwishto

ivenanopportunitytoinvestintheemergingmarketsand

lopingcountries,thereis

oftenalackofcapitalwhichhindersthegrowthofdomesticcompaniesand

hence,cas,duetoglobalnatureofthebusiness,

peopleofdevelopingcountriestoocanobtaingainfulemployment

developedcountrieshavelostjobsonaccountofthismovement

ofjobstothedevelopingworldandhenceitisapinchfeltbypeopleintheFirstWorld.

InvestmentandCapitalFlows

OneofthemostvisiblepositiveeffectsofglobalizationinIndiaistheflowof

companieshavedirectlyinvestedinIndia,bystarting

productionunitsinIndia,butwhatwealsoneedtoeistheamountofFII

companieswhichhavebeen

performingwell,bothinIndiaandofftheshores,willattractalotofforeign

investment,andthuspushesupthererveofforeignexchangeavailablein

alsooneofthepositiveeffectsofglobalizationinUSandother

developedcountriesasdevelopingcountriesgivethemagoodinvestment

proposition.

ForeignTrade

Whilediscussingthepositiveeffectsofglobalization,howcanIleaveoutthe

ativeadvantagehasalways

radeoriginatedinthetimesofearly

kingdoms,usly,

peoplehadtoresorttounfairmeansanddestructionofkingdomsand

,itisdoneinamorehumaneway,

whooperateinuncivilizedways,nowhave

tofacetheWTOandotherworldorganizationsthathavebeenestablished

withaviewtocontrolandregulatethetradeactivitiesofthecountries.

SpreadofTechnicalKnow-How

WhileitisgenerallyassumedthatalltheinnovationshappenintheWestern

world,duetoglobalization,theknow-howalsocomesintodeveloping

tglobalization,theknowledgeofnew

inventions,medicineswouldremaincoopedupinthecountriesthatcameup

toimprovedpoliticalties,

spoint-thespreadofknow-

how,canalsobeexpandedtoincludeeconomicandpoliticalknowledge,

tobviouxampleofthespreadof

knowledgeisthattheWesternworldtodayarewakinguptothebenefitsof

AyurvedaandYoga,whiletheWesternantibioticsandfloodingtheIndian

marketsimprovingthequalityoflife(andthelongevitytoo)ofpeopleinIndia.

SpreadofCulture

Thepositiveeffectsofglobalizationonculturearemany!Notallgood

ldthatweliveintodayisa

ofoneculture,ifreceptive,

tendtoetheflawsintheircultureandpickuptheculturewhichismore

ieshavebecomelargerastheyhave

welcomedpeopleofothercivilizationsandbackgroundsandcreatedawhole

gstyles,languagesandcustomshavespread

ecanbesaidaboutmovies,musicalstyles

ohavemovedfromonecountrytoanother,

leavinganimpressiononaculturewhichhasadoptedthem.

SpreadofEducation

Oneofthemostpowerfulpositiveeffectsofglobalizationonwomenandmen

,youcanmoveinthearchofthebest

educationalfacilitiesintheworld,nlivingin

UScanevengotoanothercontinentforanewexperienceandsomecours

sinterested,onecaneven

getaspecializationinsubjectsindigenoustoacountryandspreadthat

xampleofthatishowtheAmerican

managerswenttoJapantolearnthebestpracticesinthefieldofmass

productionandincorporatedthatknowledgeintheirownproductionunits.

LegalandEthicalEffects

Gonearethedayswherethelimitedjurisdictionbecameahindranceinthe

aysduetointernationalcourtsofjustice,

thecriminalscannolongerekasyluminaforeigncountry,butwillbe

lobalization,thereisalsoan

understandingbetweenthecurityagenciesandthepoliceoftwoormore

,it

isnowpossibletocatchtheperpetratorsofcrimeirrespectiveofwhich

undoubtedlyoneofthegreatest

positiveeffectsofglobalizationonsociety.

OrganizationsforEnvironmentalandSocialConcerns

Incognizanceofthedamagethathasbeencaudtoourworldovertheyears,

theindividualnationshavedecidedtocometogethertofindawaytosaveour

zationsmonitoringclimatechangeaswellas

thowhichlookatthewelfareofouranimalsandmarinelife,are

undoubtedlyoneofthepositiveeffectsofglobalizationontheenvironment.

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Thenegativeeffectsofglobalization

themare

listedbelow.

shappenedbecaumanufacturing

workisoutsourcedtodevelopingnationslikeChinawherethecostof

mmers,editors,scientists

andaccountantshavelosttheirjobsduetooutsourcingtocheaperlocations

likeIndia.

ersandchildworkersare

standardsareignoredtoproduce

cheapgoods.

rpeoplehadstable,plelivein

djobcompetition

hasledtoreductioninwagesandconquentlylowerstandardsofliving.

Terroristshaveaccesstosophisticatedweaponnhancingtheirabilityto

istsutheInternetforcommunicatingamong

themlves.

Companieshavetupindustriescausingpollutionincountrieswithpoor

regulationofpollution.

FastfoodchainslikeMcDonaldsandKFCarespreadinginthedeveloping

areconsumingmorejunkfoodfromthejointswhichhasan

adverimpactontheirhealth.

haregettingricherand

thepoorarebecomingpoorer.

BadapectsofforeignculturesareaffectingthelocalculturesthroughTVand

theInternet.

EnemynationscanspreadpropagandathroughtheInternet.

DeadlydiaslikeHIV/AIDSarebeingspreadbytravellerstotheremotest

cornersoftheglobe.

Localindustriesarebeingtakenoverbyforeignmultinationals.

Theincreainpriceshasreducedthegovernmentsabilitytosustainsocial

welfareschemesindevelopedcountries.

Thereisincreainhumantrafficking.

MultinatonalCompaniesandcorporationswhichwerepreviouslyrestrictedto

commercialactivitiesareincreasinglyinfluencingpoliticaldecisions.

Thepositiveaspectofglobalization

tersofglobalizationargue

theirargumentsarelistedbelow.

chassoftware

development,customersupport,marketing,accountingandinsuranceis

ompanythatoutsourced

theworkenjoysthebenefitoflowercostsbecauthewagesindeveloping

kersinthe

pingcountriesgetaccesstothe

latesttechnology.

nefitstheend

consumers.

Increadmediacoveragedrawstheattentionoftheworldtohumanright

adstoimprovementinhumanrights.

/resou

rces/facts/globalization

GlobalizationFacts&Figures

InequitableDistribution

Amongthe4.4billionpeoplewholiveindevelopingcountries

THREE-FIFTHShavenoaccesstobasicsanitation

AlmostONE-THIRDarewithoutsafedrinkingwater

ONE-QUARTERlackadequatehousing

ONE-FIFTHlivebeyondreachofmodernhealthrvices

ONE-FIFTHofthechildrendonotgetasfarasgradefiveinschool

ONE-FIFTHareundernourished

The3RICHESTPEOPLEintheworldownaststhatexceedthecombined

grossnationalproductofALLLEASTDEVELOPEDCOUNTRIESandtheir

600millionpeople.

Therichest20%oftheworld’spopulationenjoysashareinglobalincome

thatis86timesthatofthepoorest20%.

Morethan1.2billionpeopleintheworldliveonlessthat$an

50%1billioncannotmeettheirbasic

consumptionrequirements.

Theastsofthe200richestpeoplearemorethanthecombinedincomeof

41%oftheworld'speople.

Ayearlycontributionof1%oftheirwealthor$8billioncouldprovide

universalaccesstoprimaryeducationforall.

Industrializedcountrieshold97%ofallpatents,andglobalcorporationshold

90%ofalltechnologyandproductpatents.

Over80%offoreigndirectinvestmentindevelopingandtranstition

economiesgoestojust20countries,withChinareceivingthemaximumshare.

Debtreliefforthe20worstaffectedcountrieswouldcostbetweenUS$5.5

billionto$7.7billion,LESSthanthecostofONEstealthbomber.

InequitableConsumption

Basiceducationforallwouldcost$6BILLIONayear;
$8BILLIONisspent

annuallyforcosmeticsintheUnitedStatesalone.

Installationofwaterandsanitationforallwouldcost$9BILLIONplussome

annualcosts;
$11BILLIONisspentannuallyonicecreaminEurope.

Reproductivehealthrvicesforallwomenwouldcost$12BILLIONayear;


$12BILLIONayearisspentonperfumesinEuropeandtheUnitedStates.

Basichealthcareandnutritionwouldcost$13BILLION;
$17BILLIONa

yearisspentonpetfoodinEuropeandtheUnitedStates.

$35BILLIONisspentonbusinesntertainmentinJapan;
$50BILLIONon

cigarettesinEurope;
$105BILLIONonalcoholicdrinksinEurope;
$400

BILLIONonnarcoticdrugsaroundtheworld;and
$780BILLIONonthe

world'smilitaries.

20%oftheworld'speopleinindustrializedcountriesaccountfor86%oftotal

privateconsumptionexpenditures,
whilethepoorest20%accountfor1.3%

Theoverallconsumptionoftherichest20%oftheworld’speopleis16times

thatofthepoorest20%.

Theshareofthepoorest20%oftheworld'speopleinglobalincomeis1.1%,

downfrom1.4%in1991.

Thereare16carsper1,000peopleindevelopingcountriesand405carsper

1,000peopleinindustrializedcountries.

Onaverage,developingcountrieshaveonedoctorforevery6,000people

whereasindustrializedcountrieshaveoneforevery350people.

Sources:UnitedNationsDevelopmentProgramme,HumanDevelopment

Report2000(NewYork:OxfordUniversityPress,2000);Human

DevelopmentReport1999(NewYork:OxfordUniversityPress,1999);

HumanDevelopmentReport1998(NewYork:OxfordUniversityPress,

1998).