We now communicate and share each other's cultures through travel and trade, transporting products around the world in hours or days. We are in a huge global economy where something that happens in one area can have knock on effects worldwide. This process is called globalisation. Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. It’s the way goods, companies, information, jobs and fashion are flowing more easily around the world, which has increased the production of goods and services. Globalisation happens because it has influenced us to improve out transportation – the larger the company shipping a vast amount of goods transporting between countries meaning the cost will decrease, so the cost per item can reduce when operating on a larger scale. Freedom of trade – Organisations such as TNC and WTO has been promoting free trade to help remove barriers between countries. An improvement of communication – the internet and mobile technology has allowed us to have a greater communication around the world. Labour availability and skills – countries such as India have lower labour costs and also high skill levels. Labour intensive industries such as clothing can take advantage of cheaper labour coast and reduce legal restrictions on LEDCs.
Globalisation is generally force to be seen as good and has positive impacts. Throughout many years there has been a dramatic rise in living standards for many countries around the world. TNCs bring wealth and foreign currency to local economies when they buy local resources, products and services the extra money created by this investment can be spent on education, health and infrastructure. It is true that in general living standards for poor countries are not catching up with the rich ones. However reducing such extreme poverty must be a priority. For example, those who are catching up with the rich .i.e. South Korea, 30 years ago it was a very poor country; now it is as rich as Portugal or considers China, where 100 million people have escaped from poverty of the past decade. It is important to people who are in between poor and rich who have the medicine, food, clothes, electronics and technology made and known all over the world. People also have the opportunity to have shared ideas, experiences and lifestyles of people and cultures. People can experience food and other products not previously available in their countries. TNCs help countries by providing new jobs and skills for unemployed and local people. Globalisation can help make people realise the awareness of global warming and deforestation – and alert them to a need for sustainable development.
On the other hand globalisation could be seen as a bad impact to the world. It’s operated by mostly in the interests of the richest countries, which continue to dominate world trade at the expense of developing countries. The LEDCs in the world market mostly provide the North and West cheap labour and raw materials. There are no guarantees that the wealth from inward investment will benefit the local community. Often, most profits are sent back to the MEDC where the TNC is based. Companies with their massive economies of scale may drive local companies out of business. If it becomes cheaper to operate in another country therefore the TNC might close down the factory and leave workers redundant. Globalisation pollutes the environment due to factories in LEDCs and the transports. They’ll run risks with safety or impose poor working conditions and low wages on local workers. Also it is viewed by many as a threat to the world’s cultural diversity, and is feared that it might drown out local economies, traditions, languages and simply recasting the whole world in of the capitalist of North and West. For example Hollywood films far more likely to be successful worldwide than one made in India or China, which also have growing film industries.
Overall I think globalisation is seen as quite bad although we need the knowledge all over the world. It is a matter of fact of life and that people will suffer, therefore there is no doubt that globalisation has both good and bad effects towards people and the world. But the disadvantages of globalisation could be reduced the responsible authorities provide the best solution to curb this problem.