The Disadvantages

&
by

Advantages

of Globalisation

Michal Wilczek Student ID # 8584 Spring Semester 2007/2008

As far as one can look into the pages of history, the economic exchanges between communities and countries were similar to the shape of the sinus function. The world expanded and grew rich by leaning on the intensification of these exchanges, in spite of periods of crisis or destabilisation. The fall of the Berlin Wall opened a new page of history marked by an expansion never known, until then, by the business of the possessions and of the services, financial exchanges, circulation of information and knowledge. The globalisation of exchange, the sign of an increasing interdependence between men, human activities, the economic and political systems, raise questions that are yet to be answered. With the development of the new information technologies and the communication, we attend a development of the cultural, scientific, technical exchanges. This phenomenon is still hard to define, despite various web sites and publications displaying various linking definitions and theories, on the advantages and disadvantages of the process of globalisation. After a brief skim through those sources, one single sentence can be stated, to start the discussion - globalisation has become a common expression used to describe the world we are living in. Why? People around the globe are more connected to each other than ever before. Information and money is flowing more rapid than ever. Goods produced in one part of the world are increasingly available in its counterpart. International travel is more frequent and global scarcity. Ironically, globalisation is not a new idea. International trade developed way back, with traders including Marco Polo and discoverer Christopher Columbus. The development of trade and new ways of transport, including frigates and caravels, used while discovering Northern and Southern America, and even the creation of railroads, are all origins of the revolution. But, to be precise, in accordance to the flow of this assignment, the starting point of globalisation of the 20th and 21st century, will be in the post World War II period and the beginning of the Cold War era 1. The new means of transportation and techniques of communication, allow consumers to participate in the immediate information level of globalisation. The present stage of
1

communication is no longer a

The Cold War, due the technology race, enabled the faster development of technology including satellite communication. It, indirectly, is responsible for the creation of the Internet. 2

globalisation is allowing people to participate international trade from their desk, thus directly influencing the world economy, much higher than at the beginning of the century.2 On the other hand is the political and economic level, where globalisation is the process of denationalisation of markets, politics and legal systems 3. Comments like those allow us to understand that the core sense of globalisation is economics. The global behavioural trends are going through some major changes as well. If we take a look back at the last decade, it is starting to take different forms, including international trade, as well as a rapid growth of imports and exports, not forgetting investments, foreign loans and bonds, and many others. Economic globalisation has different consequences on businesses all over the world tends to be one of the most influential aspects of human life. Despite that countries all over the world are trying to remain interdependent in many possible ways. Unfortunately, there is probably no area of human activities left, not affected by globalisation. As harsh as it may seem, human beings all over the world listen to the same music, eat the same food, wear the same clothes, and decide war and peace issues amongst one another. From an experts perspective, sociologist Anthony Giddens defines globalisation as a decoupling of space and time, emphasising that, with instantaneous communications, knowledge and culture can be shared around the world simultaneously4. Apart from that Kofi Annan once stated that arguing against globalization is like arguing against the laws of gravity5. The better side of the medal proves that nowadays people, all over the world, have become closer than ever before. Economically, domestic goods and services have a greater probability of export and promotion in comparison to previous years. This particular phenomenon affects the economic business and exerts a wide influence on society leaving about foreign

In 1973, as in 1913, the world trade represented 12 % of the world production. In 2005, this proportion is crossed in 23 %.
3

Governmental institutions discuss the consequences of this political and economic restructuring on local economies, human welfare and environment. It is one of the most important features of present world.
4 Source 5

: http://www.globalisationguide.org/01.html : Date of reading 22/04/08

Source: http://www.corpwatch.org/article.php?id=589 Date of reading : 22/04/08 3

the growth of the developing countries as the main cause of globalisation and it bringing both opportunities and disadvantages to the present. Ever since the development of international business, there have been many issues

concerning communication, cultural differences and marketing. The number of quotas, tariffs and trade barriers has been steadily declining, allowing an average businessperson, to conduct business abroad, easier than half a century ago. The improvement of communication, through the introduction and constant development, high speed and accessibility of the Internet, has allowed international exchange to be done at a click of a button. Large corporations as well as smaller companies have decided to take a step forward and spread their operations from the domestic to the international market, in order to find new customers, opportunities and increase in their revenue. These companies are the ones facing increased pressure from cultural differences, waiting on the market, where a new service, product or marketing campaign will be introduced. In order to meet these global challenges, marketing departments of such companies must be ready to standardise their organisation, apply the rules of globalisation, respond to local differences and run an in-depth marketing analysis and research of the target foreign market. Omitting any of these goals can result in misunderstanding, miscommunication or other consequences. Globalisation modifies the nature of the local and international conflicts, and in particular multiplies the tensions with religious, ethnic and linguistic characters. It is necessary to note, the oppositions between West and Arabic world, based on diverse traumatise, such the colonisation, and which engender contrasted reactions going of the refusal of the cultural imperialism to the attraction for the western model The impact of globalization is noticeable in popular culture as well. Whether its music, films or TV shows, the Americanization process is slowly taking over every part of the electronic pop culture. Some local music television stations, including Viva Polska and Mtv Deutschland, in the European Union, have received orders to play only 10% of foreign video clips, thus leaving 90% for local artists. France became the key player in fighting for the domestic products of European pop culture. Back in the year 1989, the French government persuaded the European Community to decree that 40% of TV programs

should be domestic 6. Another matter, fought for by the French Government, included strengthening the complex system of support, taxing cinemas, which were only playing foreign films in order to support French film production. Some of the members of the French government got so aggravated by the amount of foreign productions on the French market that in 1993, they threatened to sabotage the GATT trade round, in order to exempt audio-visual materials from free trade agreements. German officials fight the film part of globalization in their own, unique way. Germany is the worlds largest dubbed-film producer, where every foreign film entering onto German theatres has to be dubbed by a group of actors, with similar voices to original characters. Poland, on the other hand, chooses to subtitle most of the imported movie productions, dubbing only movies for children, like Shrek or Bee Movie. These statistics are not surprising, when we take into account the costs of a Hollywood production, which are on average equal to $100 million 7. Once a US movie is successful on the domestic market, copies start flooding foreign markets. In my opinion, nothing influences culture and mentality as much as the movie industry. Taking into account that Hollywood is the largest movie producer in the world the cultural change process, started with Americanization, cannot be stopped. An article in the Economist stated that one reason for Hollywood's success is that from the earliest days it was open to foreign talent and foreign money.8 Further matters, included within the body of the article argue that the more Hollywood becomes preoccupied by the global market, the more it produces generic blockbusters made to play as well in Pisa as Peoria. Such films are driven by special effects that can be appreciated by people with a minimal grasp of English rather than by dialogue and plot. The Western Culture stands as an example for on of the disadvantages of the process of globalization. It has a strong influence on various aspects of global politics, market trends, pop culture and international relations. Being one of key players of globalization, the USA is continuing its strong influence of change and adaptation of foreign countries into the creation of a global system of communication and trade - where else to build a concrete foundation for the future existence, than influencing a foreign countries culture. Through
6

December, 2005 Edition of the Economist, edited for class purposes ; Source : n.rediff.com/getahead/2005/dec/snapq.do : Date of reading 22/04/08
7 8

Source : http://www.globalization101.org/uploads/File/Culture/cultall.pdf : Date of reading 23/04/08

Source : http://www.globalization101.org/index.php?le=issue&pass1=subs&id=123 : Date of reading 23/04/08 5

the introduction of mass media and the international distribution on American motionpictures, the US made itself a steady position for dictating what is right, what is wrong, what is hot and what is notwhile diminishing what was unique about each and every country, through diminishing the lack of ones identity, patriotism and support of the ultimate country. This is truly, a enormous impact on culture. Local culture especially. There are countries fighting fiercely with globalization, striking local industries and traditional products. Some include coffee shops in central Italy, being slowly pushed out from the market by its American, franchise equivalent, Starbucks. Luckily enough, most Italians are traditionalists, especially when it comes to coffee and restaurants, and the fight for keeping local specialties, is yet to be won. Unfortunately, the same statement cannot be pulled for Hyper/Mega/Super Markets that are the main reasons for local food stops or even small business shutdowns. Foreign companies, including Real, Wal-Mart, Makro/Metro, Tesco enter foreign markets with their catchy slogans, low-price/high quality promises flooding a local market with foreign products and killing off local entrepreneurship's. The good sides of this process, however, are job opportunities, provided by every marketplace. Summing it all up, there are not more advantages than disadvantages of globalization and vise versa. What can be said, is that the process of globalization is inevitable. The pace globalization has gone through, while setting new standards and regulations has gone too far to be omitted. As dull as it may seem, the disappearance of various domestic matters and the expansion towards a global unity of economic sense might prove valuable for the future generations. Unfortunately, this in only one side of the medal...

Michal Wilczek #8584

Bibliography :
Jeffrey D. Sachs Globalization and patterns of economic development Springer Berlin / Heidelberg 1610-2886 (Online) Stanley Fischer Globalization and Its Challenges Print ISSN: 0002-8282 Volume: 93 | Issue: 2 May 2003

Internet :
7 http://www.globalisationguide.org/01.html http://www.corpwatch.org/article.php?id=589 http://www.globalization101.org/uploads/File/Culture/cultall.pdf http://www.globalization101.org/index.php?le=issue&pass1=subs&id=123 http://www.darkseptemberrain.com/ideas/advantages.htm http://e-sparc.com/articles/458/1/ Globalization---Advantages--Disadvantages/ Page1.html http://answers.yahoo.com/question/ index?qid=20070605062141AApVVkH