Globalisation is the interconnectedness between businesses and organisations which develop an international influence on an international scale. Globalisation can involve either the nation state system, world military order, international division of labour, or world capitalist economy.
Nation state system: National cultures, and strategic geopolitical involvements with other states
World military order: Alliances nation states build with each other
International division of labour: Modern industry based on regional specialism in terms of skills, and production of raw materials.
During the twentieth century, the flow of information and communication grew onto a global scale, and became a feature of social life. The rapid development of radio and television broadcasting has travelled through the world. The digitalisation of information has contributed to the globalisation of communication. (Hjarvard, 2009)
Globalisation affects us in many ways as it has positive and negative affects
What are the advantages of globalisation?
As globalisation can be in terms of financial transactions, and trade, this means there will be a free flow of goods and services between countries due to the reduction in trade barriers. (Parker, 2016)
- Globalisation opens doors between nations and creates awareness of race, religion and traditions.
- The global market offers individuals goods based on preferences. These could include buying an iphone, drinking Coca Cola or eating McDonald’s wherever you are in the world as it all very globalised.
- Free movement is another positive of globalisation, as people can travel, allowing the labor force to move
- According to an article by Forbes it stated:
It provides poor countries with infusions of foreign capital and technology, which gives it a chance to develop economically by spreading prosperity. It also creates conditions in which human rights and democracy may flourish.
What are the disadvantages of globalisation?
- In an article written by Robert Parker, he states free trade has killed off the competition between the wealthy countries and the poor.
Robert references a diagram from the BBC to show how the 62 richest people in the world are worth more than the poorest 50%. This demonstrates the continuous widening gap between the rich and the poor due to globalisation.
- Globalisation has made it possible for the US to rule the world
- With the rise of the Western world, globalisation has killed of many cultural traditions like African, Chinese and Russian music and culture. Hollywood movies and music has gained immense popularity and as a result it is promoted on YouTube making it accessible for everyone.
- Globalisation has killed off small companies, as they rule. Google and McDonald’s for example will decide what’s good and bad as they hold the power. As a result, smaller companies are forced to follow as they will not succeed if they create their own trends.
OVERALL: How has globalisation affected the UK economy? (Economics online)
Globalisation has increased the UK’s growth as there are more higher demands for exports and supply as it is a more economically developed country overall. However, this may not always be true as the credit crunch is an example to show how globalisation does not always lead to a stable environment. This occurred in 2008 where the nation suffered economically with banks and investors lending funds to corporations that led to a lot of debt for the borrowers.
Hence, globalisation has both a positive and negative effect for the economy, although it does usually tend to favour Western countries rather than poorer countries.
Collins, M (2016) The Pros and Cons of Globalization [online] available: https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-globalization/#6f8c1e38ccce> [accessed on 16th March 2016].
Economics online, Globalisation, [online] available: http://www.economicsonline.co.uk/Global_economics/Globalisation_introduction.html> [accessed on 16th March 2016].
Hjarvard, S. (2009 ) ‘News Media and the Globalization of the Public Sphere’ in Thornham, S., Bassett, C. and Marris, P. (eds) Media Studies: A Reader. 3rd edition. Edinburgh: Edinburgh University Press. pp. 671-89.
Parker, R, (2016) What are the advantages and disadvantages of globalization? [online] available: https://www.quora.com/What-are-the-advantages-and-disadvantages-of-Globalization> [accessed on 16th March 2016].