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Debating the Merits of Globalisation

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Case Study 1 – Debating the Merits of Globalisation

Q1.) After studying the case study, it is clear that there are a number of drawbacks to globalisation. Hill (2014), describes globalisation as the merging of historically distinct and separate national markets into one huge ‘global marketplace’. Firstly, the case study argues that globalisation has had detrimental effects on the natural environment. An increase in transport between countries due to international trade has resulted in increased CO2 emissions. Huwart et al (2013) argues that the aeroplane has been the main mode of transport to characterise globalisation, seeing an increase in greenhouse gas emissions by 86% between 1990 and 2004 due to aviation. However, globalisation is not only effecting the natural environment, it’s also using up it’s finite resources more quickly. For example, China joined the world trade organisation in December 2001. By 2008, it’s coal use had doubled (Tverberg, 2013).

The next drawbacks according to the case study are: local job losses (leading to devastation in local economies), exploited workers in LEDC’s and child labour. Globalisation transfers jobs from developed countries to less developed countries – known as offshoring. Cavusgil et al (2013:76) defines offshoring as “the relocation of manufacturing and other value-chain activities to cost effective locations abroad.” E.g. In the US, the % of US citizens with jobs began to drop around roughly the same time China joined the WTO in 2001. One of the main arguments against child labour is that it prevents children from attending school. It is thought that by 2012, 215 million children were working throughout the world, instead of going into education (Cavusgil et al. 2013).

The case also illustrates how globalisation can interfere with national sovereignty. This is a problem as the activities of MNE’s can often harm

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