Category: Globalization

Introduction

Globalization is generally described as the intensification of the environmental and communal interconnectedness. The circulation of people, resources, information and cultural symbols from a global scale perspective hastens it (Wilhelmina, 2010). In fact, globalization appears to be an amalgamating process that links knowledge and resources. On the other hand, localization is the institutionalization of the execution of policy within a particular place. However, this process guarantees that all goods and services that can rationally be supply locally are done. Studies show that it is not competition based on the cheapest but on collaboration for the best. In essence, it is out of these two concepts that another paradigm emerges dubbed as Glocalization. This is the crossing point of the global and the local. According to Matusitz (2011) assertions, it is the cooptation of the global and the local. The process involves the forces of cultural homogenization and heterogenization, relationships, synchronization and equilibrium.

Globalization and glocalization both have an impact on the environment since they involve the movement of people in pursuit of financial wellbeing, social interactions and cultural acceptance. This means that people will move for different reasons to different locations. In Belgium, the three sets of concepts exist with glocalization recently taking a centre stage in a variety of circles including economic, food and doing business. In the Belgian perspective, it is a fresh cultural mix and change of model as well as practices targeted at adjusting to the local mindsets. The concept has resulted in the concentration of people in some areas as they pursue economic wellbeing while still considering cultural practices and social interactions. This study explores Belgium to establish whether there is significant environmental impact resulting from both globalization and glocalization.

Research Questions

1. Has glocalization been successful in Belgium?
2. Does globalization and glocalization impact on the environment?
3. Do they affect the environment in the same way?
4. How do the economy, social interaction and culture in view of globalization and glocalization contribute to the degradation of the environment?

Below is the satellite Google Map for the location of Belgium

Literature Review

According to Wilhelma et al (2010), the globalization concept reflects the aspects of intensification of the geographical location with social interconnectedness often circulated by the movement of human. The movement consequently leads to the interaction of different cultures with different ways of doing business. Typically, globalization is about spreading business as wide as possible with the aim of increasing profitability while reducing geographical distances. Wilhelma et al (2010) argue that globalization is a practice that results in the increased integration of the national economy while reducing the importance of political borders as far as financial, political and social aspects are concerned. The emerging and leading economies have been at the centre of globalization as individuals and businesses continue to flatten the world through global integration. The integration according to the authors has been facilitated by the competition among businesses and companies. Technology, particularly electronic media and computers continue to enable people anywhere to go global when they desire.

According to the authors, technology continues to make it difficult for one to separate globalization from localization and glocalization. The continuous interaction between the global and the local is brought by the fact that they are embedded in each other. The authors state that the global and local processes reconstitute each other since none of them is a uni-linear process as they occur simultaneously. The global processes do not exterminate the local differences but lead to the homogeneity of culture to a reasonable degree. Hence, they are consequently referred to as glocalization. Based on study literature, glocalization helps in the creation of social conditions that enable the localization of cultural innovations during the global-local dealings.

Similar to other scholars such as Khondker (2004) and Matusitz (2011), Wilhelma et al (2010) are also concerned about the emerging consequences of tensions between globalization and glocalization in socio-monetary development and the wellbeing of humanity. The authors state that glocalization can be viewed from the perspective of the flow of ideas, information, knowledge, traditions, money and commodities with the final objective of protecting and rebuilding the domestic economies globally.

They indicate that scholars have been seeking to understand how worldwide growth influence the local-level growth and how it forms and intercedes with the local influences in rising cities. As Khondker (2004) indicates, it is from this view that successful global products and services will enable the glocalization influences to be useful to the consumer globally and among diverse cultures. Such aspects make glocalization important as it entails the collaboration of global solutions with the unique domestic answers.

Ernst and Young (2011) as a result claim that there is less movement of people to far places. People tend to remain within a particular location where they can have economic benefit, maintain the culture and socially interact. Belgium is a small country with an open economy. There is high capital movement and a high-speed internet infrastructure (Ernst & Young, 2011). The locals trade from their localities online. This means that there is less movement. Consequently, the concentration of people in one location results in environmental degradation. People tend to remain within specific locations within the country particularly in the industrial areas. Further, the concept of glocalization has resulted in the diminishing capability of the country to attract foreign investment according to Ernst & Young (2011). Foreign investors typically adhere to the laws of the host country regarding policies such as corporate social responsibility (CSR) unlike the investors operating in their own country.

According to Khondker (2004), in social and economic arenas, glocalization as a concept is widely used than any other term or concepts that emerged before it. The author indicates that it involves the unification, integration and adaptation of two or more processes one of which must be local. In Belgium for example, one may find a wide range of examples in matters of business and technology. These have been made possible by the entry of foreign investors with foreign products manufacture in the country but have adapted to local tastes. Domestic companies that exported products also practice the same as they seek to integrate the globalization and localization of the products and services.

Another segment relates to the mass communication particularly TV encoding. In fact, in the broadcasted realism comedies, sitting comedies, as well as plays there are endeavors to glocalize. There are requirements that during these televised programs, the producers should integrate aspects of environmental awareness to the public. The form of civic education is usually effective, as many Belgians remain appealed by the glocalized programmes. In some instances, the attempts to glocalize are not always successful but the idea of fusion is thrilling to the Belgians.

Findings

Globalization fortifies the global consciousness that permeates both the local and global (Matusitz, 2011). Ernst and Young (2011) state that globalization is not a fully homogenous process. In fact, it is only devised towards some level of cultural homogenization. At the same time, it allows people to identify themselves powerfully with their local culture. On the other hand, glocalization adds precision to the current globalization approaches in addition to being another take on niche marketing that is now global. The process brings together harmony between cultural homogenization and heterogenization, consistency and adjustment, regularity and tailoring, convergence and variance, generalization as well as particularism (Robertson, 1995).

Almost everything currently has some resonance with glocalization in Belgium. Beginning from the inflow of resources, knowledge, technology, employees, songs, and cinema to the popular culture has some glocalization connotation. Depending on the position one takes with regard to glocalization, it can be a gallant or a menacing process. Some view glocalization as a menacing and brakeless locomotive that squashes everything on its path. Others view the benefits of glocalization and get on board en route for monetary development and modernization. The term was originally used in Japan settings. Marketing specialists used the term to mean that Japanese products ought to be localized. The experts felt that the products of Japanese origin go with local tastes and interests yet remain global in relevance and reach hence coining the word.

In Belgium, there is a wide range of products stocked in local stores yet they were not manufactured in the country. This is attributed to the fact that most of the social practices and classes assume a local taste or character. Organizations in this respect expand internationally while imposing on the local clientele. Such global companies may not have gone global all the way. There are multinational companies in Belgium that are partly global. Others are partly regionalized while others are partly localized. These corporations involve diverse spheres including asset groups, commercial procedures, delivery series and products that best fit the domestic consumer behaviors and preferences in diverse locations. The same companies can be different in terms of business practices so that the element of glocalization may reflect in the operations.

As a concept of geography, globalization has a significantly lengthy record. The theory investigates the emergence of a global cultural system arising from the movement of people from one location to another because of the economic, social and cultural developments. Consequently, it investigates the impacts of globalization on the environment. The assertion is founded on the fact that people move to places they consider to be of high economic value-addition to their lives where they can freely interact with others while the cultural setting is fitting. When all these factors are considered, the economic perspective overrides others, as humans are known to consider the financial status as the first priority. It is within this context that we find that the movement of people in Belgium is typically based on economies.

People will inherently move to locations that will favor them economically. There is hence a tendency for people in Belgium to move to the major cities. Observably, the high population in the Belgium cities occurs due to globalization arising from the financial considerations that have more impact on the environment compared to the impact of other factors including social and cultural. Naturally, there is less movement of people for cultural and social consideration hence lesser environmental impact arising from globalization.

Many scholars have mapped out recent glocalization processes in the dissemination of faith and traditions, social interactions through trade and commerce. As social borders increase from the neighborhood community through nations to worldwide society in the context of globalization, the study of societies reverts to the study of the worldwide community. This is a clear illustration of how ideas, knowledge and learning occur without necessarily moving physically. Glocalization occurs the same way. Besides, it is further fortified by the availability of the internet, electronic media and telephones in Belgium.

Below is a satellite map for the location of Belgium

In the diagram below is a photo taken from a street in Luxembourg Belgium.

Conclusion

This paper underscores the impact of both globalization and glocalization in Belgium on the environment. From the study, it is evident that the movement that was initially brought about by globalization had the impact of foreigners entering the country. The industries that were setup by the foreign investors had significant impact on the environment. In fact, the employees would also contribute in the degradation of the environment. The degradation is attributed to the fact that the employees would settle within cities and the neighborhood in large numbers. Consequently, the environment would be littered with few policies in place to guard against environmental pollution. The industries were mainly setup for heavy machinery operation and production as Belgium was an emerging economy with a lot infrastructure requiring construction. As a result, emissions were intense contributing to the degradation of the environment.

Glocalization that is the latest trend taking shape in Belgium appears to retain the population in a central place. The fact that culture and social interaction are integrated with the economic aspect is playing a central role in ensuring that people remain in specific location and this appears to be detrimental to the environment. The availability of communication infrastructure including the internet and mobile phones makes it unnecessary for people to move. Via using the technology, companies and individuals are able to sell products online from their homes and offices. This makes it unnecessary to migrate as the population seeks to remain together for social purposes. The success of glocalization in Belgium will result in further environmental degradation of the country. However, the extent at which it will affect the environment is a question that will require further research so that appropriate measures can be put in place.

References

Ernst & Young (2011). Belgian economy among worlds most open. Web.

Khondker, H. (2004). Glocalization as globalization: Evolution of a sociological concept. Bangladesh e-Journal of Sociology, 1(2), 1-9.

Matusitz, J. (2011). Disneys successful adaptation in Hong Kong: A glocalization perspective. Asia Pacific Journal of Management, 28(2), 667-681.

Robertson, R. (1995). Glocalization: Timespace and homogeneityheterogeneity: Global Modernities. Thousand Oaks, CA: Sage Publishers.

Wilhelmina, Q. et al. (2010). Globalization vs. glocalization: Global food challenges and local solution. International Journal of Consumer Studies, 34(4), 357-366.

It is undeniable that globalization describes the path that the world is taking technologically and economically. Nations all over the world have become intertwined in financial relationships that make them dependent on each other. Markets are becoming increasingly free with the global demand and supply for major technological and agricultural products.

Since the end of cold war, all nations are increasingly adopting the capitalist economic system which encourages world trade. Technology, particularly information technology, has also played a great role in dissolving national barriers to create an increasingly uniform social system. All these aspects of the modern society constitute globalization.

While some analysts consider globalization desirable, some people argue that this phenomenon is a slow drift of the world towards tyranny and domination by some privileged class. A global economic system and global information technologies dominated by economically superior nations are leading the world towards tyranny and domination.

Analysts Alan Taylor and Maurice Obstefield argued that the apparent economic globalization is actually trade between rich countries while poor nations are sidelined (Friedman, 2008). Trade among countries in the north is fair since countries depend on each other enhancing their economic security.

However, the nations in the south are sidelined and exploited for raw materials and labor. Thus, globalization has one set of countries exploiting another group of weaker countries. As this consolidation of economic power continues among rich countries, the economically weaker countries lose bargaining power for their contribution to the world economy. Thus, globalization is not as fair or uniform as it might seem (Friedman, 2008).

Robert Lucas also analyzed the idea of capital and concluded that the apparent movement of capital from rich countries to poor countries is deceptive. The common perception is that the poor countries are benefitting from the investments made by rich countries (Friedman, 2008).

However, the amount of returns the poor countries get from provision of labor, raw materials, and infrastructure to aid production by multinationals is much less that the benefit the rich countries get from the cheap labor and low overhead costs they have in developing countries.

According to Lucas, the overall effect is that poor countries are exploited by rich countries. Much of the labor force in poor countries becomes dependent on the multinationals leading to tyranny by foreign countries. The multinationals act as representatives of their countries of origin and may coerce their host countries into any kind of agreements.

In addition, the capital invested in developing countries is a small proportion of the movement of capital in the world market. The small economies of the developing countries amplify the apparent investments so that they appear to be huge investments (Friedman, 2008). Thus, the movement of capital among rich countries is obscured by their huge economies making the investments in them seem small.

Information technology is the leading cause of all kinds of globalization. Cultures are slowly merging to form one uniform culture around the world. Information technology began with development of air transport and mass media. News travel around the world as fast as they do within a country. This spread of culture has been amplified by emergence of the internet in the early 1990s.

Social networking and mail services on the internet have enabled people to interact socially over the internet. More people are continuously joining the internet community. Entrepreneurs own companies that provide the internet services and access from rich countries. Through these companies, people from the developed countries are able to control the information that people can access over the internet all over the world.

They have the ability to influence world opinion. In addition, they collect a vast amount of personal information from people around the world. This way, the majority of the world population can be controlled through the internet giving companies that provide internet services an immense power (Mishkin, 2009). It is obvious that the internet is used for the benefit of the developed countries.

Other analysts argue that globalization is the path to global prosperity. The most significant benefit of globalization is the spread of technology from developed countries to the developing countries. Since most of the developed countries are always more technologically advanced than developing countries, technology and scientific knowledge always flows from the developed countries to the developing countries (Rodrik, 2010). This enables the developing countries to keep up with the global economic development.

Another argument is that developing countries cannot generate enough capital to match the labor in their economies. Yoav Friedman describes globalization exclusively as a process of movement of capital. Although he blames movement of capital for the spread of financial risk over many countries, he also argues that mobility of capital is important for global economy and stability (Friedman, 2008).

Thus, capital from larger economies is needed for economic development and production to increase. People in a developing country are employed by the multinationals; through their wages, the domestic economy obtains bargaining power to purchase what it needs in the international markets. Some analysts say that this flow of capital from the rich countries to the poor countries is necessary to enable weak economies to participate in international trade.

Social networking over the internet and mass media is another major player in the process of globalization. Some analysts argue the worlds societies are interconnected trough the use of social media and mass media (Hickman, 2012). John Hickman focuses on the positive aspects of globalization. He depicts social media as a forum where ideas are generated in an open platform. Knowledge is passed from one society to the other through mass media. The societies become integrated into one global community (Hickman, 2012). This integration is necessary for cohesion and peace around the world. Through such cohesion, development and trade are possible.

Globalization has several analysts arguing in its favor or against it. Although the immediate impression created by the essence of globalization indicates that it is a positive phenomenon and an advantage for the world society, the truth is that globalization is leading the world towards tyranny (Rodrik, 2010).

The worlds poor nations are becoming poorer and more dependent on the rich nations (Mishkin, 2009). This financial dependency makes them weak and susceptible to manipulation. It is also evident that the long-term effect of information technology that is instrumental in all forms off globalization is one global culture.

This culture is based entirely on the culture of the dominant nations. Since these nations own communication companies and mass media corporations, it is obvious that the material broadcast contains aspects of culture from powerful countries (Rodrik, 2010). The ultimate outcome of globalization is tyranny by one or a few wealthy nations. This may put the control of the world in the hands of a few people.

References

Friedman, Y. (2008). Globalization of capital movements. Israel Economic Review, 2(2), 45-78.

Hickman, J. (2012). Social Media & Globalization. Interactive cultures Web.

Mishkin, F. (2009). Is Financial globalization beneficial. Columbia University Journal, 4(5), 85-102.

Rodrik, D. (2010). Who needs the nation state?. Economic Geography, 3(1), 4-36.

The development of globalized communities introduces tangible shifts to the marketing and economic systems. Workers all over the world become aware of the new tendencies in exploring the employed environment. They are more independent and goal-oriented in the search for privileged job positions. The shifts in awareness are largely predetermined by changes in ideological and political outlooks on the education and flexibility.

Indeed, the rise of the globalization process has triggered technological change, which, in its turn, has affected todays economy. As a result, the focus on high skilled workers, introduction of advanced technologies and products, and globalized vision of the development of economies identify future development of employment opportunities. Globalization, therefore, has a potent impact on the working environment in terms of employment expansion rates, technological change, and economic goals.

Reevaluation of the working landscape is indispensible for employers and policymakers to respond to these revolutionary trends. The necessity of mapping the perspectives of workforce increases as far as external factors are concerned. On the one hand, many employees are ready to meet new opportunities and access new professional challenges to achieve their purposes. On the other hand, many workers largely depend on labor union, government, and large corporations ensuring security and protection.

The emerged discrepancy, therefore, leads to reconsideration of priorities that employment expansion establishes at the threshold of the millennium.

In this respect, Judi and DAmico argue, &more and more individuals now undertake journeys through the labor force, rather than hitching rides on the traditional mass transportation provided by unions, large corporations, and government bureaucracies (233). Hence, for workers, the emerged possibility can become a challenge because not all of them are ready to face the employment expansion.

Technological change is considered the main consequence of globalization. It has also transformed significantly the principles and mode of production, as well as has reconstructed the overall working process. On the one hand, the process of automation can replace manual labor and lead to the increase in job positions. On the other hand, the introduction of sophisticated products creates new opportunities for high-skilled and ambitious employees who are ready to advance their knowledge and enter new training programs.

To underline the importance of such perspectives, Friedman notes, there will be plenty of good jobs out there in the flat world for people with the right knowledge, skills, ideas, and self-motivation to seize them (239). Every American is now free to choose whether they should depend on labor corporations or shape his/her own path of professional development. Technological change, therefore, makes both employers and employees reassess their opportunities, perspectives, and experiences.

Aside from new modes of production, technological innovation blurs the gender and race boundaries. Focusing on brain as the priority in applying for a job position provides women and elder generations with a possibility to enter the profession. At the same time, low-skilled and unskilled workers face serious competition and can be put aside the current employment market.

The relocation of priorities is largely predetermined by the emerging economic and global trends that have also led to re-evaluation of employees who has not acquired the necessary skills and knowledge in a technologically biased environment. Consequences of inadequate education, as well as extreme divergence in goals and objectives, make the working landscape even more challengeable.

Indeed, the globalization process has not only affected the production field, but has given rise to the emergence of new requirements to individuals. Thinking globally, therefore, is the main condition to succeed in the new realm and be able to compete with other skilled workers. According to Freeman, In the United States, new middle jobs are coming into being all the time; that is why we dont have large-scale unemployment, despite the flattening of the world (241).

The problem is that not all workers are willing to change their stereotypes and conservative outlooks to fit the requirements of the globalized community. Rather, they prefer to stay anchored to the local production. Combined effects of automation and globalization provide fresh insights into the employment market and introduce new requirements for the employees.

In conclusion, it should be stressed that globalization has a potent impact on the new vision of employed environment in the 21^st century due to the changing patterns of production and consumption. More and more employees are more concerned with the individual opportunities due to the wider access they receive to education and professional self-development.

At the same time, workers who are reluctant to be promoted find it challengeable to enter the globalized community. In addition, because globalization presupposes technological change and automation, a strict division of workers on high skilled, low skilled, and unskilled has emerged.

The modern employment market prefers individuals with the right knowledge, ideas, and insights to those whose thinking is bound to previous patterns of production. Finally, new modes of production and export orientation also provide shift to the existing mechanisms of workforce implementation and, therefore, the leading economies should think over creating the new middle class of workers with high potential and global awareness.

Works Cited

Friedman, Thomas. The Untouchables. Writing and Reading across the Curriculum, 11th ed. Eds. Laurence Behrens and Leonard J. Rosen. Boston: Pearson, 2011. 238-241. Print.

Judy, Richard, W. and Carol DAmico. Work and Workers in the Twenty-first Century. Writing and Reading Across the Curriculum, 11th ed. Eds. Laurence Behrens and Leonard J. Rosen. Boston: Pearson, 2011. 233-237. Print.

Foreign exchange risk occurs as a result of the change in foreign currency exchange rates. For instance, a company that deals with exports and imports may have the exchange rates that it is using changing after agreeing on the terms of trading and before the delivery of the goods. This can either work for, as well as against the concerned party. It is noted that those countries that have unstable economies and have volatile exchange rates are more vulnerable to foreign exchange risks. Some businessmen/women do gamble with the changes in exchange rates to make huge profits. However, this process is extremely risky as it can lead someone into a huge financial loss. An organization may suffer from a reduction in the return of an investment as a result of a change in the rate of exchange between two currencies.

For example, an organization that needs Euros in 6 months the time may protect itself from currency fluctuations through the hedging mechanism that safeguards the value of its money. This process entails investing the Euros in high-yielding financial instruments such as bonds, real estates, precious stones as well as shares and then converting them into monetary means after six months (Hakala & Wystup, 2000). Globalization is the amalgamation of political, cultural systems, as well as economies of the world. Advancement in technology has greatly enhanced globalization in the last ten years.

Many international companies have used advanced technology and especially the great development in Information Technology for their advantage to extend their operations to foreign regions in search of cheaper production regions as well as extending their markets for their products and services. The high rate of globalization that has been witnessed in the last ten years is likely to force all trading nations to adopt a common currency in order to minimize foreign exchange risks that are associated with international trading (Stiglitz, 2002).

Capital is imperative in enhancing the expansion of companies. A private company like Kudler Fine Foods that aspires to expand its operations can opt to do so through various methods. Kudler Fine Foods Company may consider expanding through Initial Public Offering, where it will engage an investment bank to help it in underwriting as well as the allocation of shares to interested investors. Through the money the company receives from the sale of shares, the company can use it to expand its operations to other regions. The limitation with the IPO process is that the company loses most of its revenues to the investors who are allocated shares at a discounted rate by the investment bank, which makes them make huge profits during the first trading day.

In addition, this process is very expensive because of the huge costs that are paid as transaction fees to the investment bank concerned with the deal. The benefit that is mainly associated with the IPO process is that it is a faster process for a company to raise the required capital to expand its operations. Another strategy Kudler Fine Foods Company may consider using to extend its operation is by acquiring another company that deals with similar products. This process is a very common strategy that many firms are nowadays adopting in order to expand their operations.

This strategy is very beneficial to both parties involved as the shareholders who they firm is being acquired are compensated accordingly, and the other company enjoys lesser competition as the acquired firm, together with its customers, become part and parcel of the mother company that acquires it. The main challenge in this type of expansion is the high initial costs that are involved in the acquisition process. The company conducts a valuation and buys the shares of the shareholders of the company being acquired at an agreed rate and also pays a fixed amount as goodwill.

The merger is another common strategy that many companies use to extend their operations. Mergers result from similar companies, offering similar products, and mainly operating in the same markets. Mergers help films to get bigger market shares in order to enjoy the benefits of the volume of scales. The main challenge that is associated with mergers is the duplication of responsibilities since some staffs from the two firms find themselves having conflicting responsibilities that may hinder the efficiency of the resultant merger for a while before they are resolved (Smith, 2012).

Reference List

Hakala, J & Wystup, U. (2000). Foreign Exchange Risk. Cambridge: Cambridge University Press.

Smith, P. (2012). IPO: A Global Guide. New York: Prentice Hall.

Stiglitz, J. (2002). Globalization and its Discontents. New York: Prentice Hall.

Professional Service Firms

In the current competitive business world, professional service firms have realized that it is vital to attract, recruit and maintain top talent. These firms recruiting business school graduates ensure that they compete effectively with other companies like investment banks.

The business school graduates are used to develop the firms clientele relationship, talent base and intellectual property. The business school graduates are mentored through various programmes and then used to establish an increasing flow of talent that becomes a worthy surround: high quality group, exciting opportunities and rapid career development. It is also clear that the various professional service companies have understood the importance of controlling talent and team building.

Service firms in United Arab Emirates

Some of the companies using both the strategy of focus and differentiation and strategy of focus and overall cost leadership include: Geokinetics, Gyrodata, Ernst and Young, Gartner, Deloitte Consulting, Computer Associates, Cognizant, Computer Science Corporation (CSC), Grant Thornton, Cameron, China Oilfield Service, Challenger LTD, Alix Partners, Arthur D. Little, Bain and Company, Booz and Company, Wipro Technologies, Sapient, Robert Half International, Milliman, Manpower, Core Laboratories. Inc, Logica, Mercer Consulting, Trican Well Services, Monitor Group, Omnex, Oliver Wyman, Egon Zehnder International and Global Intelligence Alliance, Geophysical Services and Flowserve.

Globalization

Globalization can be defined as the emergence of an international society whereby cultural, political, economical, aesthetic attitudes and environmental systems, in other parts, spread rapidly to the rest of the world. The implementation of globalization in the modern society has led to the prospect that cultural differences in business and other sectors would be eroded.

Cultures and peoples unique behaviors of capitalism would be similar, as the universe becomes a single marketplace. The discussion above has some truth in it, though some parts of the world tend to preserve what is unique about their nations capitalism and to prevent interference and spreading.

Strengths and Weakness of Globalization

The benefits of globalization include the unmatched leaps in human advancement. Technology advancement has grown both virtually and physically: mobile telephony, Internet and infrastructure. The spread of trade, people, education and cultures have helped greatly in eradication of poverty and improvement of economic opportunity. However, the negative aspects include inequity between and within regions, increased insecurity and scarcity of resources, food insecurity, cyber security and water shortage.

The weakness of the society as a result of the shortcomings above challenges the core benefits that globalization is the foundation of institutions, business leaders, and regions. It is critical to find proper ways to counter the weakness of globalization because there is a considerate threat that the failure to control globalization can lead to nationalism and xenophobia. Therefore to reject globalization would severely destabilize economic advancement, global cooperation, social growth and poverty alleviation.

Comparative advantage

Comparative advantage is the ability of a region to manufacture or produce goods and services at a lower cost. Dubai is one of the countries that form the United Arab Emirates. Dubai has the most modern and inclusive developed infrastructure: world-class airports, seaports, conference centers, financial service, healthcare, hospitals, universities, restaurants, schools, shopping malls and entertainment regions.

This has kept Dubai ahead in the UAE region. These advantages have made Dubai have a competitive advantage and it has attracted various global investors and the international business society; Dubai has various opportunities specifically for emerging international markets.

Critic

Rieff presents a convincing case in the arguments of globalization. The basis of his argument is the sale of several ports in the United States to a company that belongs to the government of Dubai; there are also negotiations with the Indian government over nuclear weapons and contravening the global laws that govern the production of such weapons. In this article, the author seems to hit two birds with one stone. He makes two arguments in one presentation. While selling the port to the Dubai government and attributing this to the embracement of globalization, he says that the government jeopardizes national security, especially when the country faces threats of terrorism. He also shows the manipulation that the whole concept is shrouded on. America and the European countries purported this concept to expand markets and favor their own economies. While the economic power has shifted to Asia, they are still trying to hang on by trying to gain favor from the countries through these transactions in the name of globalization (Held, 2004). This is echoed by Held, who shows the negative consequences of globalization that countries in Africa have suffered and also the prosperity that countries with conservative economic practices have experienced.

Background

As mentioned by Rieff, Globalization started after the Second World War with the embracement of the universal rule of law and international agreements of Peace. Though international trade thrived, the 1990s saw a great increase in the desire for economic integration of individual state economies through the liberalization of trade and free flow of capital. Bolstered by the policies that were advocated by international organizations such as the IMF and the UN, as mentioned by Held, countries dropped the restrictions for trade and called for increased trade. The developing world was lured in using debt restructuring that promised prosperity and development on paper. Of course, none of them came to pass, and even some derived negative consequence. Rieff exposes the deceit as a strategy that only expanded markets for exporter (developed world). Indeed, we have seen the effects of globalization. In 2008, the Unites States economy came under intense pressure after the collapse of real estate and mortgage-backed securities went tumbling down. The effects were devastating. Countries in Europe felt the pressure with Ireland experiencing bank runs.

Source of the Controversy

Globalization is facing controversy due to the ineffectiveness of the policies that came with it. The practices of geopolitical and occurrences such as 9/11 have also brought into the limelight the decisions that affected globalization. Held describes the findings of IMF economists who find no significant benefits from globalization. Indeed, the developing world with sensitive economies is likely to be negatively affected due to volatile markets. Again, international law has grown weaker with the war against Iraq is an example of the bending of such laws.

Key Actors and Their Response

As depicted by the authors, the key actors in this game are the countries that rule the world in the UN Security Council and have a say in economic matters. These are America and European countries. They solicited for globalization for their benefits. As illustrated by Rieff, government officials have no concern that India has contravened international law on nuclear weaponry.

The portrayal of the International System

From this, we clearly see the weakening and massive manipulation of global laws and developing nations to react to the yank of strings of the big fish out there. Held shows this through the decision of America to invade Iraq. Globalization has been manipulated for the benefit of the countries that only desire their own economic prosperity (Rieff, 2006).

Limits of Globalization

As illustrated in the article by Held globalization, it is likely to face challenges due to political challenges and borders. Only the aforementioned (America and European) nations account for the majority of the good blocking out the rest of the world.

Regionalism, Community & Citizenship

These are unavoidable when globalization comes to the limelight. The formation of trading blocks in various regions in the world is a stumbling block as some countries are favored in trade despite globalization aiming for the whole world. Citizenship also brings up restrictions due to regulations in various countries concerning noncitizens.

Future of the liberal-capitalist system

The future of the liberal capitalist system is increasingly endangered due to the domination of countries and the disregard of global regulation. Even countries such as the United States that have been thought to champion regulation are losing power, and countries such as India getting power and overlooking regulation on nuclear weaponry.

Reference List

Held, D 2004, Globalisation: the dangers and the answers, Open Democracy. Web.

Rieff, D 2006, Globalization 2.0 New York Times Magazine. Web.

Introduction

Globalization refers to integration and diffusion of global economy through technological changes, integration of cultures, global market regulations, and capital and geopolitical changes (Bondy & Starkey, 2014). Generally, globalization has contributed significantly to the growth of global economies through creation of avenues for capital flow across boarders and enhancement of free trade in the global market. However, one area that remains a challenge to most global managers is global business ethics and their effect to global stakeholders, especially during this period of explosive growth of multinational corporations (Carroll, 2004).

Surprisingly, despite the benefits associated with globalization, it has been associated with rising poverty within societies due to poor economic policies, thus leading to high crime rates (Arnold & Valentin, 2013). Banerjee (2008) further claims that the legal revolution that brought about multinational corporations did not provide clear guidelines on how these MNCs would serve social interests of stakeholders provided they delivered economic benefits.

Looking at the benefits of globalization, there is more concentration on the economic side than on human side of doing business. This is evidenced by continued economic empowerment of MNCs and host economies in expense of ethical business and corporate social responsibility. Indeed, despite worldwide campaign for environmental conservation, many MNCs and developed nations are continuing to degrade and pollute the environment through emission of green gases, thus leading to global warming; this may explain the prevalence of health problems, especially in developing countries. Therefore, globalization is good for individuals as it empowers them economically but bad for humanity, based on ethical considerations and corporate social responsibility.

Effects of Globalization on Individuals and humanity

Various studies have been conducted about globalization, however, most have concentrated on the economic side of globalization and its effect on world economies, but very few have dedicated their efforts on ethical side or effect on humanity. According to Parker and Pearson (2005), globalization seems to be striving to serve the interests of a few individuals and damaging the interests of everyone else in the global environment. Here, although globalization leads to open market opportunities where various businesses can effectively trade over a wide network, the main beneficiaries are the MNCs themselves and the developed countries such as the US.

However, before looking at the human side of globalization, or the lack of it, it is important to understand the contribution it has made to individuals. Generally, the world has become a global village where goods and services are traded freely, thus contributing to development of global economies, especially the emerging markets of China, India and Far East and Southern Asian countries. In addition, globalization gives consumers a chance to enjoy a variety of products from various countries. Moreover, globalization enhances access to credit as it allows credit to flow easily across various countries, thus leading to more income and employment opportunities for individuals (Van Cranenburgh, Liket & Roome 2013).

Despite the above benefits, my position remains that globalization does not respect human rights and thus it is bad for humanity. Global organizations have been striving to comply with demands for global ethics in their operations, but that only ends at being respectful to host countrys ethical standards based on economic empowerment but they do very little on human well-being. According to Carroll (2004), the business ethics touches the interests of all stakeholders in global business, including the community and government.

However, on the humanity side of globalization, there is less contribution to human well-being and quality of life. For instance, the democratization efforts by global economies are being hijacked by powerful multinational corporations, which focus on maximizing their returns in expense of social welfare. In addition, various questions remain devoid of conclusive answers especially when relating globalization to culture and morality. Take for example the its impact on labor market. Although one would argue that globalization has enhanced labor mobility and empowerment of individuals, but the human side of it is degrading, especially considering that, some developing countries have very weak labor legislations that give MNCs an opportunity to exploit workers. According to Carroll and Shabana (2010), business ethics should be directed towards serving humanity from different perspectives including environment social, governance, and business practice.

From the Utilitarianism theory point of view, every stakeholder needs to maximize benefits in light of globalization. However, the concept of globalization usually depends mostly on an individuals viewpoint and perspective. For example, one would argue that globalization usually leads to sustainability, increased democracy and justice; however, the possibilities of insecurity, inequality, and democratic deficits are also very high in a globalized world. Evidently, world security concerns such as racism, terrorism, and violence have increased in the wake of globalization, leading to civil wars in various communities. Moreover, globalization causes creation of new crimes and violence such as computer crime, global sex tourism, and prostitution among women and children. Other effects of globalization include economic insecurity where trade and financial transactions are largely affected (Carroll, 2004).

There are ecological problems associated with globalization such loss of biodiversity and global warming resulting from industrial development and increase in population growth. In addition, globalization is killing traditional cultures by influencing many companies to imitate Western cultures, thus restricting development of traditional cultures, especially in African countries. Other bad affects of globalization to humanity include economic inequalities among countries. For example, due to globalization, poor countries usually face a number of challenges in their financial sectors and cultural imperialism resulting from decolonization (Ke & Wang 2014).

Another area of concern is revolves around gender inequalities whereby, men get more access to global communication networks, global financial, global corporate management, and global governance management than women do. In that sense, women are more disadvantaged in global trade and most of them usually face poor labor recognition and low payment in corporate governance.

Globalization has caused a number of ethical challenges that many managers in organizations have to endure. Therefore, social justice is necessary for multinational corporations, especially in less developed countries in order to reduce cases of corruption and enhance environmental ethical principles and cultural ethics. The effect is elimination of low standard government legislatives, especially those related to labor and environment (Velasquez, 2000). The main ethical principles that are responsible for corporate social responsibility usually help in providing moral management of corporations in diverse cultures (Carroll and Shabana, 2010).

The Utilitarianism theory comes in handy in trying to explain the ethical business practice in line with globalization, especially when corporations are faced with several perspectives on what is just and unjust, as well as moral and immoral in various cultural contexts. They have also led to ethical and moral relativism on what is wrong or right according to various cultures. Therefore, these moral standards help in examining behaviors of individuals in different corporations worldwide (Jones & Millar, 2010).

Particularism theorists argue that ethical disputes can be solved by using moral traditional beliefs and values of a particular culture. However, communitarians assert that life within community provides groups and individuals with moral obligations that are created with social justice and democracy. Therefore, these ethical approaches to environmental ethics promote ethical relativism rather than universally valid moral values, thus helping in solving moral questions in various corporations under social corporate responsibility (Muskat, Muskat, & Richardson, 2014).

Despite all these ethical approaches, it is clear that ethical relativism cannot provide the best solutions to various globalization problems (Carroll and Shabana, 2010). As a result, there is need for corporate managers to develop proper strategies to deal with these globalization problems in a number of cultures. These include problems such as sexual discrimination and racism. Managers should also establish universally valid moral values that can apply in all cultures in evaluating their behaviors, thus promoting social corporate responsibility (Velasquez, 2000).

It is important for all people in these cultures to respect human rights, including both negative and positive, in order to promote humanity and freedom. However, utilitarian theory and human rights theories assume that moral judgment must be based on individuals goals and morality. Therefore, corporate managers should use moral diversity in order to reduce negative effects of globalization through integration of human rights theory and utilitarian theory (Velasquez, 2000).

Again, it will be important for corporations to include absolutism and relativism as their managers promote local moral values in social corporate responsibility. Managers should also incorporate capitalism ethics and regulation on various business dialogues. Moreover, managers should use globalization strategies in order to enhance global business ethics (Merino & Vargas, 2013).

It is also vital for companies and corporate managers to embrace global corporate code of conduct and standards that are developed by independent international bodies and groups. Global stakeholders can also benefit at all levels by establishing sustainable ethical guidelines that promote corporate social responsibility in accordance with Utilitarianism theory. Therefore, corporations should use social corporate responsibility in order to allow business stakeholders consolidate power and authority in bigger corporations. Again, corporations should aim at overcoming social and environmental issues by behaving in ethical manner, thus involving high level of integrity and transparency in their operations (Banerjee, 2008).

Conclusion

This paper has discussed both the bad and the good effects of globalization. From the paper, it is clear that bad effects of globalization include global warming, corruption and other social inequalities, especially to less developed countries. Again, various ethical standards exist that corporations should follow in order to solve globalization problems. The importance of corporate social responsibilities in global corporations cannot be overemphasized, and it is the role of these corporations to promote integrity and transparency in global businesses.

Besides, corporate social responsibility helps in promoting stakeholders and corporations sustainability. Furthermore, it is worth noting that environmental ethics such as utilitarian theories and human rights theories can help to promote universally valid moral standards in all cultures. Finally, globalization is one of the factors that have integrated into various cultures, promoting open markets and leading to more capital flow across the globe.

Reference List

Arnold, D, & Valentin, A 2013, Corporate social responsibility at the base of the pyramid, Journal of Business Research, vol. 66, no. 10, pp. 1904-1914. Web.

Banerjee, S 2008, Corporate Social Responsibility: The Good, the Bad and the Ugly, Critical Sociology, vol. 34, no. 1, pp. 51-79. Web.

Bondy, K, & Starkey, K 2014, the Dilemmas of Internationalization: Corporate Social Responsibility in the Multinational Corporation, British Journal of Management, vol. 25, no. 1, pp. 4-22. Web.

Carroll, A 2004, Managing ethically with global stakeholders: A present and future challenge, Academy of Management Executive, vol. 18, no. 2, pp. 114-120. Web.

Carroll, A, and Shabana, K 2010, The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice, International Journal of Management Reviews, vol. 12, no. 1, pp. 85-105. Web.

Jones, M, & Millar, C 2010, About Global Leadership and Global Ethics, and a Possible Moral Compass: an Introduction to the Special Issue, Journal of Business Ethics, vol. 93, pp. 1-8. Web.

Ke, J, & Wang, G 2014, Chinas Ethical Dilemmas under Globalization and Uncertainty: Implications for HRD, Advances in Developing Human Resources, vol. 16, no. 1, pp. 74-91. Web.

Merino, M, & Vargas, D 2013, How consumers perceive globalization: A multilevel approach, Journal of Business Research, vol. 66, no. 3, pp. 431-438. Web.

Muskat, B, Muskat, M, & Richardson, A 2014, How do Europeans travel in Australia? Examining cultural convergence in travel behavior, Journal of Vacation Marketing, vol. 20, no. 1, pp. 55-64. Web.

Parker, M, and Pearson, G 2005, Capitalism and its Regulation: A Dialogue on Business and Ethics, Journal of Business Ethics, vol. 60, no. 1, pp. 91101. Web.

Van Cranenburgh, K, Liket, K, & Roome, N 2013, Management Responses to Social Activism in an Era of Corporate Responsibility: A Case Study, Journal of Business Ethics, vol. 118, no. 3, pp. 497-513. Web.

Velasquez, M 2000, Globalization and the Failure of Ethics, Business Ethics Quarterly, Vol. 10, no. 1, pp. 343-352. Web.

Definition

Globalization refers to a process where different parts of the world use almost similar methods of social, political, and economic interactions. This term is very ambiguous but can be classified into the above three broad categories. Socially it involves the systems of human interactions that consist of the transfer of cultures and development of subcultures. In this case, social media and networking sites play a very important role in fostering this concept in various communities. Politically it refers to the exchange of policies and rules that govern national borders and the way they relate with each other in terms of sovereignty and diplomacy. Economically it refers to the smooth flow of imports and exports among countries with minimal trade barriers and restrictions (Lechner 2009).

This means that most of the rules that govern this trade are used by all states to ensure there is a similarity in all the trade activities. Over the past thirty years, the world has undergone great change in all the aspects that touch on human interactions with their environment. Change is one of the main reasons why the process of globalization has become a continuous process since the beginning of life on earth. The modern society has seen great stages of globalization in trade, communication, technology, social trends, and politics. The economy has seen a great expansion of trade from just across a countrys boundary to other countries in the world due to the standardization of international trade rules and regulations.

Initially, trade was bilateral, but due to globalization, it has been expanded to multinational trade that involves more than two countries. The volume of imports and exports has also increased remarkably, and each day millions of tones of goods are exchanged among nations of the world (Robertson 2000). There is a great transfer of human labor and technology from one country to another. Many international trading blocks have been formed to necessitate the easy flow of goods among countries through the standardization of trade rules that reduce the restrictions witnessed earlier.

The growth of imports and exports over the years has led to countries specializing in the production and supply of specific commodities. Most western countries deal with commodities that involve high technology, while the developing countries participate greatly in the supply of raw materials and agricultural products. This international trade has led to the establishment of modern seaports and airports that handle imports and exports and, in the process, help in developing infrastructure (Eriksen 2007). Due to the need to have goods delivered quickly, specialized aircraft have been built to ease the delivery of perishable and urgent goods like flowers and drugs, respectively. Most transactions are done online, and the use of paper documentation is disappearing.

Due to globalization, many toy manufacturers in the United States have incorporated the use of modern technology in their products to ensure that their products tally with the development and changes in technology (Lechner 2009). This has forced many of them to carry out research to establish and predict the trends that technology is likely to follow and use them in their manufacturing processes. This helps in ensuring that they stay in the market as far as attracting clients who are fashion conscious is concerned.

Globalization has had a great impact on market competition that has remained constant and unchanging as compared to the trends and fashions that clients prefer having. Companies have struggled to be at the same level with new technology in order to meet the demands of the consumers (Gopinath 2008). Those companies that embrace modern technology faster benefit more than late embracers due to the fact that people are driven by the desire to own or operate gadgets and equipment that involve the use of modern technology. Those companies that are not able to embrace the use of modern technology in their production and manufacturing processes are edged out of the market due to a lack of sufficient sales to cater to their costs of operations. On the other hand, those companies that are quick to incorporate the use of modern technology in their production processes attract a huge percentage of customers hence realize huge sales and profits.

Conclusion

This is a progressive state, and firms need to have a keen interest in monitoring the market trends in order to be up to date with the tastes and fashions of consumers. Innovations and inventions are vital to the various stages of globalization in society.

References

Eriksen, T. H. (2007). Globalization: The Key Concepts. New York: Berg Publishers.

Gopinath, C. (2008). Globalization: A Multidimensional System. California: Sage Publications.

Lechner, F. J. (2009). Globalization: The Making of World Society. Oxford: Wiley-Blackwell Publishers.

Robertson, R. (2000). Globalization: Social Theory and Global Culture. California: Sage Publications.

Introduction

Globalization and its impacts on the financial market have drawn a lot of attention over the past few years. Apparently, investing in the global market brings with it both rewards and challenges. It is faced with the issues, such as the need for developed market diversification and the exploration of the emerging markets. In order to effectively address these challenges, it is necessary to take preventive measures, such as the covariance and correlations for different investing styles and venture sectors (Evanoff, Hoelscher, & Kaufman, 2009, p. 72).

Discussion

Despite the likely risks involved, globalization has proved to have various potential benefits, as seen in many countries across the world. In this respect, it also brings several fresh challenges for policymakers. These difficulties occur in terms of management of financial globalization, so as to fully benefit from the generated opportunities while ensuring the reduction of the implied risks. This is an important factor for consideration, given the fact that the ever-increasing potential benefits of financial globalization are likely to grow over time. Increased level of globalization has also ensured deeper integration of nations leaving governments with limited policy instruments. Therefore, this calls for the need to establish first-class international financial cooperation (Evanoff, Hoelscher, & Kaufman, 2009, p. 183).

Diversification is a financial practice through which organizations participate in a wide variety of asset investments with the aim of reducing risks. It depends on the absence of a tight positive relationship between the returns of the asset. It works smoothly if the correlations are close to zero or slightly positive. Due to globalization, several multinational companies have engaged themselves in the diversification of their businesses. In this regard, they have established a number of ways to protect themselves against risks in their host countries. Some of these threats include political turmoil, inflation, and low stock exchanges (Evanoff, Hoelscher, & Kaufman, 2009, p. 241).

Diversification has ensured the expansion of remote areas by companies and multinational organizations, which, as a result, helps a lot in spreading the risks further. However, diversification is controlled by market forces and its needs, while its dissatisfaction and inability to meet the trade requirements are associated with the business and greatly affect the last. Most of the multinational companies have a huge asset base, and in order to protect themselves against the risks, they normally insure themselves. Some of them are too huge, actually bigger than most insurance companies (Evanoff, Hoelscher, & Kaufman, 2009, p. 279).

Navigating political risks requires a multinational company to assess the information according to which the host country rates its sovereign debt. This is an assumption that is based on the pretext that a threat in a given sphere of business operation cannot make the whole business collapse. The use of financial markets is another method of protection against risks, which can be used by multinational companies to guard themselves. A good example of this point is the use of derivatives. This involves basing the security contracts on any of the eventualities that are likely to occur, together with seizing the profits or assets (Evanoff, Hoelscher, & Kaufman, 2009, p. 311).

Conclusion

Financial globalization should work for good because of the benefits associated with it. Besides reducing the financial volatility, it brings about financial liberation, which affects the financial systems are extremely positive. It is evidently reported that countries like South Korea and Indonesia, which have the opened economies, recorded considerable financial growth as compared to those states which borders are closed to the outside world. Therefore, all countries are encouraged to embrace financial globalization in order to benefit from the advantages that come with it and avoid economic slowdowns.

Reference

Evanoff, D. D., Hoelscher, D. S., & Kaufman, G. G. (2009). Globalization and systemic risk. Newcastle: World Scientific.

Introduction

The general economic argument for free trade and globalization centers on the increased material growth brought about by trade to almost every state. In spite of the strength and numerous experimental studies that support this argument, many people are still opposed to free trade and globalization.

Opponents of free trade and globalization posit that economists support it since it helps in price reduction and products diversification while life entails more than these do (Bhagwati 84). This paper will focus on some of these benefits and costs. In addition, it will give recommendations on strategies that can help in enhancing free trade and globalization.

Benefits of free trade and globalization

One of the benefits of free trade and globalization to participating countries is that it helps producers have access to international market. In most cases, domestic companies produce goods in small quantities due to constraints in the local market. Free trade and globalization gives these companies an opportunity to diversify their markets thus reaching a wider customer base.

Hence, it helps in increasing their production and profitability. Furthermore, free trade and globalization promotes specialization (Bhagwati 91-97). Companies focus on areas that they are best conversant with thus manufacturing quality products. This not only helps in increasing their sales volume, but also enhances production efficiency, in an organization.

On the other hand, specialization has led to production of quality goods and services, which meets consumer needs effectively. Therefore, free trade and globalization has not only benefited business organizations but has also been of significant benefit to consumers. In the US for instance, consumers benefit from lower prices and wide varieties of products in the marketplace (Bhagwati 98).

Nations participating in free trade benefit from shared technological expertise. Developing countries are the ones that substantially benefit from this. Free trade and globalization helps developing countries import sophisticated production machineries from developed nations. Besides, they acquire experts from these countries who train them on how to use the equipments (Bhagwati 101-112).

Previous centrally structured economies, which failed to reap from the numerous benefits of free trade and globalization due to their politically endorsed separation from market economies, currently desire to reap these benefits by reintegrating with the global marketing structure.

Free trade and globalization enlightens, enriches, and civilizes (Bhagwati 112). Free trade and globalization expose people to different cultures. This in return helps in enlightening artists and educators.

By interacting with others, educators and artists gain insight on how they can creatively articulate their knowledge to meet varied needs of their people. In an environment where only a small group of intellectuals has leisure and wealth, educators and artists address only the intellectuals needs.

Art forms are unpopular to the intellectuals and knowledge that does not serve their interests does not flourish. However, since free trade and globalization create a widespread wealth, it paves room for the increase in opportunities and tastes that influence and support education and art (Bhagwati 113-117).

Opposing views

The growth of free trade and globalization has triggered mixed reactions among the Americans. Data collected about trade and globalization paints a contradictory and sometimes mixed picture. Some Americans express their cynicism that free trade and globalization benefits most Americans, while others support it (Grisworld 65).

Since 1920s, Americans have expressed fears about foreign investment from countries such as Japan fueled by free trade and globalization. One of the reasons why some Americans are opposed to free trade and globalization is because it is hard to discern the benefits accrued from embracing it. However, they easily discern the costs of adopting free trade such as closure of steel factory in North Carolina.

Benefits associated with free trade and globalization, in most cases, is hidden from view in spite of them being substantial and real. For instance, Americans do not see the numerous job vacancies created by many small businesses that crop up to cater for foreign-owned companies or American exporters (Grisworld 71-77).

Moreover, they do not discern the vast amount of money they save due to reduced prices caused by free trade and globalization.

According to critics of free trade and globalization, the move leads to global cultural homogeneity. According to them, embracing free trade and globalization would lead to numerous cities adopting similar cultures. That is, due to free trade and globalization, Paris France would resemble Texas making the two cities unexciting (Grisworld 81).

This in return would discourage people from travelling since they would not be guaranteed of witnessing new things in the cities they visit. The opponents assert that to embrace cultural diversity, states ought to discourage free trade and globalization.

Costs of free trade and globalization

Just like free trade and globalization has numerous benefits, it also has numerous costs. Countries that promote free trade, subject their domestic industries to stiff competition. Normally, products obtained from foreign companies are offered at lower prices waging competition to domestic markets.

At times, domestic companies are forced out of the market since it becomes hard for them to produce and sell their products at prices lower than those of foreign products (Urata 20-27).

This in return leads to numerous people in the affected country loosing jobs, which is one of the arguments given by individuals opposed to free trade and globalization in America. Free trade and globalization discourages the survival of young industries, and to safeguard them, governments impose measures to protect young industries from competition.

In spite of the huge benefits of free trade and globalization, it leads to increased health risks. Free trade leads to an increase in number of international travels and transfer of goods such as agricultural products from one region to another. This, in return, helps in spread of viruses and pathogens.

Free trade and globalization have established a favorable platform for spread of diseases, which were once only prevalent in specific regions (Urata 29-32). For instance, spread of foot and mouth disease in European Union member states was intensified by free trade in meat among the member states. Had the member states not embraced free trade, they could be in a position to contain the disease, in a single country.

Free trade and globalization affects microeconomics negatively. Individuals transfer capital and resources from this level of the economy to other countries seeking to enjoy from lower costs imposed on raw materials and labor in such these countries (Urata 33-34). Besides, free trade affects macro economy. Markets become volatile due to increase in foreign investment.

Besides, it makes it possible for investors to inject into and withdraw capital from varied markets with ease. In case of financial market downturn, countries engaging in free trade suffer severely. Normally, countries engaging in free trade depend on each other financially.

Consequently, financial crisis emanating from one nation affects all the other countries. This was witnessed in Asia in 1998 where most Asian countries suffered financially due to the economic crisis in the region.

Opposing view

In spite of the above-mentioned costs of free trade and globalization, discouraging it may be detrimental to not only a country but also the citizens. Discouraging free trade and globalization encourages local industries to continue manufacturing less efficiently, thus making it hard for the respective country to witness increased economic growth.

A country suffers from economic stagnation (Milner and Kubota 107-114). Discouraging free trade deprives a country of the massive economic benefits associated with international specialization.

Contrary to the argument that free trade and globalization has contributed to unemployment, in the United States, it evident that, most of the Americans are currently employed in service-sector industries, which are emerging to serve either American exporters or foreign-owned companies.

These jobs pay well compared to the past manufacturing jobs (Milner and Kubota 115). Moreover, free trade has helped most of the America companies increase their production volumes. Currently, the country produces more planes, chemicals, and appliances that it produced in the past decade.

Recommendations

We are living in a world that is in the process of adapting to global free trade. It is hard to reverse this process without incurring unbelievable costs to future growth. The challenge is now to come up with a viable plan, which will help nations reap from the benefits of free trade and globalization, while at the same time cushion them from costs associated with the same.

The major hindrance to free trade and globalization among nations is fear that their local industries may suffer from completion waged by foreign products (Milner and Kubota 116-128). Hence, some countries shy away from participating in free trade to safeguard their local industries. Besides, some states impose stiff tariffs making it hard for other countries to enter into trade agreements with them.

The best way to establish free trade with other countries is to first identify the countries of interest. They have to have readily available market for the countrys products to ensure that the country benefits from the free trade (Milner and Kubota 130-135). Furthermore, the identified countries should be producing goods or services, which are required by the country wishing to engage in free trade and globalization.

Identifying the most appropriate countries, the country needs to meet them to come up with an agreement on how they will carryout trade among themselves. One of the matters that the countries ought to discuss is the types of and amount of tariffs and import quotas to impose.

The quotas and tariffs have to be put in a way that they do not discourage investors from engaging in the free trade (Milner and Kubota 137-140). For instance, the involved states ought to impose tariffs that will ensure products are sold at fair prices thus not affecting local industries.

Apart from imposing tariffs and import quotas, nations wishing to engage in free trade and globalization ought to establish fair trading rules to ensure that no country takes advantage of others.

Besides, to ensure that investors reap from the free trade, a country needs to educate its public about the benefits of participating in free trade and globalization, and help its people in identifying the available opportunities presented by the countries it intends to trade with (Milner and Kubota 141-143).

Conclusion

Free trade and globalization comes with numerous benefits and costs to trading nations. By engaging in free trade, nations reap from the increase in customer base, which allows local industries to specialize in one area, thus enhancing efficiency in production. In addition, countries benefits from technological spillovers.

Free trade and globalization exposes people to varied cultures thus enhancing civilization and enlightenment. Some of the costs associated with free trade and globalization include completion waged on local industries making it hard for them to grow.

Moreover, it exposes trading countries to health risks and may lead to financial hardships among the trading countries in case of financial recession. It is hard to discern the numerous benefits associated with free trade and globalization.

This underlines why most people are opposed to it. The best way to promote free trade and globalization is to come up with tariffs and import quotas that favor all stakeholders, as well as impose fair trading rules.

Works Cited

Bhagwati, Jagdish. In Defense of Globalization. Oxford: Oxford University Press, 2005. Print.

Grisworld, Daniel. Mad About Trade: Why Main Street America Should Embrace Globalization. New York: Cato Institute, 2009. Print.

Milner, Helen, and Keiko Kubota. Why the Move to Free Trade? Democracy and Trade Policy in the Developing Countries. International Organization 59.1 (2005): 107-143. Print.

Urata, Shujiro. Globalization and the Growth in Free Trade Agreements. Asia- Pacific Review 9.1 (2002): 20-34. Print.