Globalization Positive Effects

University Ameri prat College Skopje School of work Administration net paper Spring Semester 2011 supranational heed &038 Globalisation InstructorStudent prof Dimitrios E. Akrivoulis Vlatko Bogoevski ID 9243 Skopje, April, 2011 Table of content globalisation shock absorber of the globalisation Positive notions of the globalisation channel magnitude Competition battle coronation and Capital Flows inappropriate deal issue in all(prenominal) over riddle of Technical Know-How administer of Culture mobilize of Education Legal and Ethical set up Negative disturb of the globalisation engagement issues Safety and hostage concerns Environmental issues opposite cast bulge out fixuate What is the lick of the globalization surgical process in India Globalization effect to the Indian women What atomic number 18 the main players in the process of Globalizations Transnational Corporations Investors World con expressionr Organization World slang a nd IMF U. S. treasury Dep inventionment NGOs rustle The purpose of this paper is to introduce, discuss, and analyze the emergence of Globalization. Specifically it ordain discuss the demonstrable and nix set up of the Globalizations, and how it reflected to the Indian market.In addition, it allow provide information of the main players in the globalization process and which organisations played the well-nigh important rule in put up the global equity and regulations. summary It is clear that globalization is something to a crackinger extent than a purely economic phenomenon manifesting itself on a global scale. Based on my broader question of the topic of globalization and its set up, we may dissolve that the process has had m either authoritative and negative cases. Some countries gained much than put ons than others some multitude lost their rent outs go some of them cash in mavins chips employment using the benefits of the globalization.Taking the compulsive aspect in the process, I believe that international organizations and regimes require to support the phenomenon of globalization by implementing fair rules and regulations equal for all players and countries. International organization a similar(p) WTO, World edge, IMF own to foreseen the countries especially growing countries to change the criteria of attracting international companies in which the resources, safety and realm perceptual constancy go a counsel be the main criteria of attracting contradictory capital, rather than exploitation labor rip or neglecting the main safety and environmental standards.By creating a fair competition the impulsion of multi nationals companies entrust slow tear d give birth and will provide room for pay offment and carry on of small and medium companies. Strict law and regulations has to be foreseen from the international organizations to the governments and main players (multinational companies) in the process of gl obalization in which they will monitor the set up and take the dependable actions that will boost only the positive and unspoilt aspects. Globalization People in the founding be much more connected than ever before.Goods and services produced in Asia or Africa short after atomic number 18 available on the other continents in the populace. Travelers moving in other countries more frequent. International communication based on last technology achievements, (the mesh) annoy large number to communicate in much easier way than ever before. Information, data, and m whizy fuse argon switch all or so the humanness quickly than ever. This phenomenon has been named as Globalization. In the innovative innovation globalizations has been identified as scheme of communications and relations among the countries that will servicing to develop the global economy and large number living standard.It closely refers to the integration of trade and industry, political and cultural swaps all over the world. 1 Joseph Stiglitz, an economist and winner of the Nobel Prize defines globalization as the closer integration of the countries and flocks of the world brought about by the enormous diminution of make ups of transportation and communication, and the breaking down of artificial barriers to the coalesces of strongs, services, capital, companionship, and race across borders. 2 concern of the globalizationSome argue that globalization is a positive teaching as it will process to develop new industries and will attain more jobs in developing countries, while other says that the globalization is negative. They believe that it may force lighter countries of the world to do any(prenominal) the big authentic countries tell them to do. other facepoint is that developed countries, alike USA, Canada, argon the iodines who may lose out because they be involved in outsourcing many of the manufacturing jobs that use to be done by their own citizens.Pos itive effects of the globalization The positive effects be numerous and extremely beneficial for everyone in all countries. The following effects be shit been identified as the major benefits of the Globalization Increased Competition Its more than obvious if the market is bigger and more companies could offer the products at the identical market and under same conditions the nett consumers would feel the benefic in ground of fiscal and tonus. Customer service approaches to takings pose led to improve quality of products and services.As the domestic companies set out to fight out conflicting competition, they atomic number 18 compelled to raise their standards and client satisfaction levels in order to pass in the market. Employment Many companies like NIKE, Mercedes, Procter&038Gamble, have transferred the issue into developing countries having the prob big businessman to use the benefits of it, like reducing the unemployment rate, higher(prenominal) government reve nue expectation delinquent to different taxes and so on However, the employment benefit of the globalization may have negative effect. collect to global nature of the businesses, state of developing countries tummy obtain employment opportunities, only when the developed countries have lost jobs on account of this affectment of jobs to the developing world. investing and Capital Flows cardinal of the most positive impacts of globalization in China is the flow of unusual capital. Many companies have instanter invested in China by starting line the production factories there. Chinese companies which have been performing well, both in China and abroad, will attract a lot of inappropriate investment, and pushes up the reserve of foreign central available in China.This is besides one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition. Foreign foxiness Foreign trade has had positive im pact records in the history. Globalization process through different organization like World Trade Organization, IMF and others have been established with a view to adjudge and regulate the trade activities of the countries. 3 splay of Technical Know-How It is generally assumed that all the innovations happen in the developed countries.Due to globalization the know-how comes into developing countries that help them to use the benefits of it and hie up the developing process. Without globalization the knowledge of new inventions, medicines would remain in the countries that came up, and no one else would benefit. But repayable to improved political ties, there is a flow of information both ways. Spread of skillful know how may be counted as one of the most positive aspect of the globalization. 4 Spread of Culture This effect of globalization has many positive impacts but in like manner we may find it as cause of intolerance surrounded by different nationalities that leads to wars.Societies have become larger as they have welcomed people of other polishedizations and backgrounds and created a substantial new culture of their own. Cooking styles, languages and tradition have spread all due to globalization. The same can be verbalize about movies, musical styles and other art forms. They too have moved from one country to another, leaving an impression on a culture which has adopted them. Spread of Education One of the most powerful positive effects of globalization to the people is the spread of education. People from different continents may study abroad and gaining the positive realize may not find in their own country.A good example of that is how the American managers went to Japan to l soak up the best practices in the field of mass production and unified that knowledge in their own production units. Legal and Ethical Effects done for(p) are the days where the limited legal power became a barrier in the pursuance of criminals. These days du e to international courts of justice, these criminals can no longer seek aegis in a foreign country. Due to globalization, there is also an understanding between the security agencies and the police of two or more different countries who will come together to curbglobal terrorism.This is undoubtedly one of the greatest positive effects of globalization on society. 5 Negative impact of the globalization Globalization has the negative side as well. Opponents of the globalization point out to the following negative effects Employment issues Many companies have transferred the manufacturing work in developing countries like China where the cost of the production goods are lower. That stand fors less(prenominal) jobs for the people in developed countries. Programmers, restrainer and others in developed countries lost their job due to outsourcing to cheaper location like Pakistan, India. Etc.In redundant, globalization has led to exploitation of labor. P Prisoners and tyke workers are employ to work in inhumane conditions while safety standards are ignored to produce cheap goods. billet insecurity seems to be real problem of globalization. While in the past people had stable and permanent jobs, today they survive in constant dread of losing their jobs to competition. Increased job competition has led to remuneration reduction and lower standards of living. Safety and security concerns Advanced technology does not mean that always will be used in a proper way, like to improve the people life or to benefit the global economy.Terrorists use the internet to communicate between themselves and also they have access to sophisticated weapons that increase their ability to inflict damages. This is undoubtedly the negative effects of the globalization. 6 Environmental issues Many companies in the developing countries have set up the industries causing pollution due to the poor environmental regulation. Other negative effects icky aspects of foreign cultures are affecting the topical anaesthetic cultures through TV and the Internet. Enemy nations and organization can spread propaganda through the Internet.The domino effect in the Egypt and Libya come as the exit of fast and easy carry of transferring information. Deadly diseases are being spread by travelers to the remotest corners of the globe. The increase in prices has trim the governments ability to nurture social welfare schemes in developed countries. Multinational companies and corporations which were previously restricted to commercial activities are increasingly influencing political decisions. 7 What is the influence of the globalization process in IndiaIndia assailable up the economy for foreign investors in the early nineties. The new government has enforced law, regulations, and globalization strategy that will be in favor of international businesses and radically pushed forward market oriented economy. The government of India made changes in its economic indemni ty in 1991 by which it allowed reign foreign investments in the country. As a result of this, globalization of the Indian Industry took indue on a major scale. loosening that was established in the 1990s include the following major changes Modifying of the industrial licensing regime, lessening in the number of areas reserved for the cosmos sector, Amendment of the monopolies and the restrictive trade practices, Start of the privatization programme, drop-off in obligation rates and change over to market determined exchange rates. 8 Over the years the liberalization of the Indian market become reality, more and more sectors opened up for foreign direct investments facilitating the entry of industries like mark, pharmaceutical, petroleum, chemical, textile, cement, retail and etc.One of the great changes, the sharply reduction of the tariffs rates contributed to urge on up the process of foreign investment. The Indian tariff rates reduce from average of 72. 5% in 1991-92 to 24. 6 in 1996-97. Though tariff rates went up slowly in the late nineties it touched 35. 1% in 2001-02. India is commit to reduce tariff rates. Peak tariff rates are to be reduced to be reduced to the stripped with a peak rate of 20%, in another 2 years most non-tariff barriers have been dismantled by knock against 2002, including nigh all quantitative restrictions. 9 One of the major impacts of the globalization in Indian industry is that many international companies have solved to invest there curiously in the pharmaceutical, petroleum, and manufacturing industries. It helped Indian economy to develop significantly. Those investments has reduced the unemployment rate in country and brought highly advanced technology that helped to make the Indian Industry more technologically advanced. The various negative effects of Globalization on Indian Industry are that it increased competition between the foreign and domestic companies.Goods produced by the foreign companies were cheaper and discontinue to the one produced by the domestic companies. It reduced the profit of the domestic companies and many people lost the jobs. This happened mainly in the pharmaceutical, manufacturing, chemical, and steel industries. The negative effects of Globalization on Indian Industry are that with the approach of technology the number of labor call for decreased and this resulted with higher unemployment rate. 10 Globalization effect to the Indian women Globalization has had negative implications for Indian women.According to estimates from World Development Indicators, Women work two-thirds of the worlds running(a) hours, produce one-half of the worlds food, but earn only ten percent of the worlds income, and own less than one percent of the worlds property. 11 In India most of the women work two effective time jobs. One in a factory where they are paid almost nothing, theother is in home where they are paid nothing. One example of womens labor being exploited wou ld be the Noida Export Processing Zone, which is 24 km fromNew Delhi. These districts prefer to hire women because they are more atomic number 101ile and more rich in men.In short they are easier to control and less likely to retaliate against less than ideal working conditions, which are barely what thousands of women encounter 12 hours a day. The zone is dangerous, hot, and unsanitary. Unnecessary body searches are routine. thither are no maternity benefits and minimum wage is never enforced. Women who become gravid or marry are instantaneously fired. Overtime is compulsory but women are paid lower rates than men. In order to avoid being fired, women shape to unsafe abortions performed by unqualified doctors. In the zone respiratory problems, pelvic subversive disease, and sever cases of dehydration and anemia are common. 12 What are the main players in the process of Globalizations Transnational Corporations Large corporations (such as Nike, Hanes, Dole, Exxon, etc. ) tha t operate mostly in developing countries, are not regulated by any international body and because make a profit is their main responsibility, they a great deal move factories in nations that offer the last(a) wages, environmental standards, taxes, etc. with aim to maximize the profit and lower the production costs.Of the worlds primary economic financial powers (with the largest revenue), 49 are countries and 51 are corporations. 13 Investors Investment firms, banks, mutual funds and hedge funds, etc. , who move money around constantly, buying and selling internationally. World Trade Organization The General Agreement on Tariffs and Trade and international trade reason which developed at the Bretton Woods Conference. This group also created WTO the United Nations, the World bank building and the International Monetary Fund.The WTO develops and enforces trade rules for all member nations for example it can decide that certain countrys environmental standards are unfair barrier s to trade. World Bank and IMF The World Bank and IMF make loans for development purposes (roads, power plants, etc. ) to developing countries to move people out of poverty and into self-sufficiency. When poor countries fall behind in loan payments (they cannot seek bankruptcy protection like corporations such as Enron can), the Bank makes additional loans that dictate the poor countrys economic system so it can pay back the growing interest.These structural adjustment policies (SAPs) have meant countries in Africa, for example, have had to cut back funding for wellness care, education, and social services. People in these counties moldiness now grow food for exporting to pay off loans rather than for aliment their own people. U. S. treasury Department U. S. Treasury department controls 17% of the World Bank and IMF decision-making power by giving it a larger share of power than any other country in decisions. It also plays a dominant role in the WTO. Many of its decisions in t hese bodies are influence by the U. S.Treasury Department which handles financial and property matters for U. S. Government. NGOs Non-governmental organizations are a wide range of non-profit groups representing different communities and segments of civil society. Such groups are increasingly working together through growing networks to make for positive change and economic justice to people in poverty and without power. 14 tendency of references http//global_india1. tripod. com/negative. htm http//www. scribd. com/doc/49266417/Effects-of-Globalization-on-Indian-Industry http//www. buzzle. com/articles/negative-effects-of-globalization. tml http//iecblogs. org/informational/globlisation-its-impact-on-india http//usforeignpolicy. about. com/od/trade/a/whatisgz. htm http//mindtools. net/GlobCourse/gdef. s hypertext mark-up language http//ezinearticles. com/? The-Positive-Effects-of-Globalization&038id=1126427 http//www. buzzle. com/articles/negative-effects-of-globalization. html http//iecblogs. org/informational/globlisation-its-impact-on-india Business administration And Management (For Delhi University B. Com Hons. 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