Growth is a common description. A large segment

Growth
in past decades has allowed the world to evolve into the global marketplace
familiar in the world today. The integration of national economies has led to a
wider span of capital being spread across the world’s national boarders. Internationalisation
has created an increase in foreign trade and international tourism, which has
been generated by development in technology. However, as with most concepts,
challenges arise through conflicting political views stemmed by globalisation.

This essay will both define and discuss globalisation as well as giving a brief
history. It will also consider the three competing views on globalisation that
are neoclassical, Marxist/Socialist and structuralism, criticising and assessing
the views that each of these perspectives hold. The conclusion will contain an
overall summary and synthesis of main findings.

 

It
is paramount that the definition of globalisation is defined, as it can be seen
as very broad and complex. In its simplest form globalisation can be regarded
“as the increase over time of international trade and services” (Wetherly and Otter,
2014:263) which is a common description.

 

A
large segment of globalisation is trade; this is seen as a vital feature in
ensuring the “economic activity within countries or regions” (Ibid). An example
of the economic activity can be highlighted through the forecast of the UK
economic growth, which is shown to “pick up to its fastest rate in years in
2018” (Independent, online: 2017). If trade were not to exist, this would
impact businesses, as their power to “specialize”(Weterly and Otter, 2014) would
be in jeopardy as well as the ability to divide labour effectively across
regions. International trade, allows trade to be accessed over international borders,
this style of trade has been challenged due to the debate on whether it looses
its original nature; however, it has been proven to be effective through the
expansion of European nations in 15th century. Modern trade has been
stretched allowing rapid growth, obtained by capitalism being powered by the
industrial revolution. It is shown that even though modern trade may seem
positive and influential in today’s global economy, external factors can
interrupt the growth of trade; an example of this is the U.K, which has
suffered a decrease in GPD from 1.8% in 2016 to 1.4% in 2017 caused by the
shock of Brexit (PWC, 2018).

 

The flow of
communication has influenced globalisation with the rapid improvement of communication
impacting the world through transportation and telecommunications (Weterly
and Otter, 2014).

This development of communication has assisted business and certain countries,
significantly. For instance, in New Delhi, India due to the advancement of 4G
technology, the Information and communication sector is “expected to create
employment avenues for almost 8,70,000 individuals by 2021” (EconomicTimes,
2017); which for developing such as India has helped decrease the rate of
unemployment and consequently poverty. Although, communication at times can be
recognized as a problem within the business world, such as language barriers
and miscommunication by the information not being filtered properly by other
businesses. This can be applied to current news of the company “Mars” where
miscommunication with its subcontractor caused a defect batch of Skittles,
which led to the company using the batch for cattle feed (Dailymail, 2017).

This was Unknown to the CEO who “said that the factory that made the spilled Skittles
was not approved to do so”(DailyMail, Online: 2017); this mistake gained media
attention very quickly again showing how the reputation of a company can be
exposed as a cause of miscommunication.

 

 

Globalisation is a topic that has sparked large
debates throughout the years. With the scholars examining the global
marketplace has provoked the contrasting perspectives on globalisation that
will be discussed in this essay. (Weterly and Otter, 2014)

 

The first of the three main perspectives is the neoclassical perspective. This
viewpoint disputes ideas that are applicable to economics; politics and the
need to reduced the amount of control over the trade and the global marketplace
(Ritzer and Atalay, 2010). Critic of the perspective, has be shown to both
“Adherents, and vociferous” (Ritzer and Atalay, 2010: 72). Neo-classical
economic policies highlight the benefit that globalisation embraces; it regards
itself as having economic freedom which in turn creates economic growth (Ibid).

Within the business workplace, trade and the global financial marketplace
allows the economy to grow and expand as the government have little influence in
the control of the marketplace, allowing for free and diverse movement for
businesses and allows them to stay innovative or risk loosing competitive
advantages (Wheatsheaf, 1985). These economic polices have brought
on positives to the idea of globalisation; for instance free trade has been
established thus linking to how the neo-classical perspective involves itself
with the theory of absolute & comparative advantage (Ralph.E, 2011). This
concept comes from the field of normative economics; with the idea being based
around the benefits from specialisation of products that are, produced in large
quantities which in turn needs an intensive rate, therefore creating a reverse
labour force in developing countries (Myrdal, 1956; Prebisch, 1959), opening up
a increase in unemployment in countries which are at high rates of this e.g.

India and Africa. Additionally, the neo-classical view enables the trade
between global nations to be agreed permitting specialisation to occur and the
division of labour amongst nations, allowing for an increase in the output in
terms of global goods (Taylor, 2017). An example when applying it to the
general business world can be exhibited through the trade between India east
India and U.K that dates back to 1600 with the mutually agreed trade of “raw materials such as
tea, jute and rubber to the UK”(Nasta, Dr Stadtler., et al: 2017), which is still
occurring in the modern era today, with both countries benefiting; with the
trade deal aiding the development Indian through funds from the UK, The rapid change in technology has
forced a rapid rise in “global economic activity” (Weterly and Otter, 2014:
265), profiting from both communication and transport. In terms of transport,
the cost have fallen drastically during the last decades thus allowing cheaper
imports of goods for business therefore creating more success. The development
of Internet has had a major effect on globalisation, and has endorsed global
business activity, for example the use of communication through face-to-face
contact, mail and telephone. This advancement is practiced in the USA, where
there ideas are very much focused around the idea of technological development
highlighted by the US president who stated 
“our future depends on reaffirming America’s role
as the world’s engine of scientific discovery and technological innovation” (OSTP, 2010), these
enforced views by the USA on technology has led to a far more superior trading
rates with economic boarders because of transport expansions allowing trading
with more countries, thus opening windows for devolving countries to gain a absolute &
comparative advantage (Levin, 2001), with dominating countries.

 

The second perspective is the Marxist/Socialist perspective. These views suggest that
globalisation is negative; by interpreted as very unequal, in terms of the economic
and political divide. This divide has unfortunately enabled growing partitions between the worlds rich and poor (Petras, 1999), this
is know as imperialism where the link between the spatial levels and society
has created separation in income and wealth (Weterly
and Otter, 2014). Its
been shown that the richest motherlands remained growing in regards to the
economic wealth, where as the poorest part are visually continuing to decrease,
which created a strong inequality with our global state; even though a
consensus showed that “globalization should fulfill a positive role in reducing
and eradicating poverty” (M. Katowice, 2015) proving the clear aim that as of
yet, been unachieved. The (guardian, 2017) has found that since 1980’s “0.1% of the world’s population have
increased their combined wealth by as much as the poorest 50% – or 3.8 billion
people” (Neate, 2017), evidently empathises how this is an on going problem,
which needs to be resolved. Networking on a global scale has enabled people
to connect and combine different
cultural beliefs. Businesses need to recognise how to work with this cultural
flow and identify the difficulties that this can cause (Weterly
and Otter, 2014). Cultural dilution can occur when different business have
different ideas and views about certain movements; this can be illustrated by
the clashes “between
how the trade and internet communities work “(unctad, Online: 2017) where trade
negotiations conform to a government to government process but Internet discussion
and policy developments take a more multi-stakeholder approach (Hwang,
2010). Globalisation
has allowed businesses to understand, that by forming a firm relationship with
production “across national boundaries”(Wetherly and Otter, 2014:264) they are
able to ustlise and benefit from the advantages of low cost and added welfares
of certain geographical locations. However, this comes at an added cost with
the exploitation of undeveloped countries and its labour force (Ghani, 2016).

This idea can be applied to real life examples, where companies such as Apple
have gained from the inexpensive labour Cost in Asia; finding their employees
working at a rate as low as $1 an hour contrasting greatly with the current
minimum wage of U.S.A, $7.25 (Business Insider, Online: 2012). With this Apple
is able to create larger profit margins in terms of production cost and sale of
production. Physiological factors are also considered by Apple as its believed
that “China’s workforce is much hungrier and more frugal than many of their
counterparts in the United States”(Ibid) highlighting
another specialist benefit being used effectively. However, as with most
positives, negatives do occur. Apple have been cutinised for its exploitation
of labour and failing to protect its workers; this is evident by examples of
employees working 18days in a row, with 16 hour shifts and overall, very poor
working conditions (BBC, Online: 2014).

 

 

Structuralism
perspective is the third and final view. This perspective separates itself from the other views; in the
sense that it doesn’t actually take a side in the good or bad debate about
globalisation but rather adheres to the ideas that “globalisation is good but….”
(Wetherly
and Otter, 2014:270). An issues with globalisation is that many of the
countries lack the same capability’s (Ferraro, 2017), this has led to the
global economic system being effected, for example weaker less developed
countries are unable to respond to changes as well as richer countries. This is
expressed by how “currency can be used as a way of buying capital”
(Quora, 2016) and if the rate of currency distort, this then creates problems
as trading may be effected with richer countries, leading to decrease in
production (ibid).  Another factor that
structuralism holds is the movement with migration and the argument on whether
it is a good or bad concept. Migration “the movement
of people to a new area or country in order to find work or better living
conditions” (Oxford dictionaries, Online: 2018) has aided the advancement of
trade and investment at a global scale. Unfortunately, due the negative
attention that migration has developed over the years it is often over looked
that immigration has partaken as a major role in the growth of business
activity and its economy, this is evident through recent research
establishing how “In the past five years, the UK population has been
boosted by net migration of around 1,000,000” (ecomonicshelp, Online: 2017)
again showing the positive effects of migration. Furthermore, migration
effectively contributes to human capital caused by labour supply. Immigration
has boosted innovation and technological support, initiated by the movement of
highly skilled migrants around the world; and is partly the reason for many of
the current technological devices and modern innovation seen today (Forbes,
Online: 2016).

 

    

In conclusion, it is clear that the extreme
transformation of globalisation in the past few decades has aided nations in
the world of business known today. With the new era of globalisation, comes the
unfortunate divide between rich and poor through social class. However, the
addition of new technology has been a major reason for the increase of
globalisation and has allowed new developing countries to become more stable
trough trading and transport advancements. Finally the three main perspectives
discussed in this essay all have different viewpoints however are all vital in
the future of globalisation and its successes as well as work that needs to be
made to improve.