WHAT IS GLOBALIZATION

Globalization (or globalisationsee spelling differences) is the process of international integration arising from the [2][3] interchange of world views, products, ideas, and other aspects of culture. Globalization describes the interplay across cultures of macro-social forces. These forces include religion, politics, and economics. Globalization can erode [4] and universalize the characteristics of a local group. Advances in transportation and telecommunications infrastructure, including the rise of the Internet, are major factors in [5] globalization, generating further interdependence of economic and cultural activities. Though several scholars place the origins of globalization in modern times, others trace its history long before the European age of discovery and voyages to the New World. Some even trace the origins to the third millennium [6][7] [8] BCE. Since the beginning of the 20th century, the pace of globalization has proceeded at a rapid rate. The term globalization has been in increasing use since the mid 1980s and especially since the mid 1990s. In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and [10] investment movements, migration and movement of people and the dissemination of knowledge. Further, environmental challenges such as climate change, cross-boundary water and air pollution, and over-fishing of the [11] ocean are linked with globalization. Globalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, and the natural environment.
[9]

From www.eveoftheapoc.com.au

What Is Globalisation And Is It Good?

By Michael Bond WHAT IS GLOBALISATION? Globalisation refers to a variety of events that are rapidly changing the world. The machine that powers globalisation, however, is the global economy. At the heart of the global economy are the twin policies of privatisation and deregulation, which national governments have adopted worldwide since the 1980s. Terms like free market economy, level playing field, monetarism, market economy, and neo-liberalism embrace processes such as privatisation and deregulation. Privatisation is about putting governments out of business. The economic theory behind privatisation is that, Business knows best. In this age of globalisation, our governments cheerfully tell us that they are too incompetent to manage our economy, so as a service to the public they will instead let the free market run it. Then our governments sell off publicly owned businesses and assets, which usually end up controlled by multinationals and financed by public shareholders. Competition within the marketplace rather than government management, we are told, will allegedly produce lower prices and better services for consumers. This is called a better standard of living, which implies that the public are better off for having a privatised economy so they should be happy about it. The strange part is that governments streamline their businesses, making them efficient and profitable, before they offer them for sale. If governments can do that before they privatise, why were they not doing it all along? Also, if governments are competent to get their businesses profitable and efficient, why not keep running them that way in the future rather than sell them? If governments genuinely are that incompetent, how can the public trust their competence to manage anything? Why also do governments sell businesses that were always running profitably and were never losing money? All these actions contradict the stated reason why privatisation is allegedly necessary. They also imply a lazy, if not negligent attitude from government towards citizens, whose assets they are selling off, often at undervalued prices. Deregulation takes several forms. Within a country, the lifting of trade restrictions and easing of government regulation in business is meant to allow business to run more efficiently. The best businesses will survive the competition to give consumers a better standard of living, that is, more material goods for lower prices. Deregulation also applies to national currencies. Currency is no longer pegged at a certain value by government decree or gold reserves, but its value is floated in the global market place, where it will find its own natural level in the ocean of other global currencies. Deregulation does not just apply within a country though. Deregulation also involves opening a country up to foreign competition. Foreign businesses can operate in our country, on the basis that our countrys businesses can trade in other foreign countries. What is the benefit from all this? A better standard of living through a wider range of cheap goods is what globalisation is all about. This is what the media, politicians and multinationals keep telling the public. HOW DID GLOBALISATION ARISE? Why are democratic governments now putting themselves out of business by selling their companies and assets, and giving control of national infrastructures and economies over to multinationals? The present phase of the process began in the latter 20 th century.

After World War II most countries were in an economic mess. Governments were the only entities large enough to get economies repaired and moving again. The governments took control of the commanding heights of their national economies. Government directed economies were based upon the idea that Government knows best . For three decades after WW2 the government led economies worked reasonably well. However, the US monetary system had a problem left over from a 1930's quick fix, and this problem began to catch up by the 1970s. [1] In 1971 the US economy was technically as good as bankrupt. President Nixon took an easy way out by severing the link between the US dollar and gold. This allowed the US to have adequate money supply, where previously gold had stifled it. While this fixed the short-term problem for the US, it created several long-term problems globally. Now US dollars had become freed from the restraint of a gold standard and the US banks could create as much money as they chose to, virtually without effective regulation. The ensuing flood of money aggravated economic malfunctions within many other countries that were still on the US dollar standard. As nations floundered economically, they contaminated other trading partner economies. Stagflation, stagnant economies with rampant inflation, became like an epidemic sweeping around the world. Let us look at how inflation works. When money is in short supply (credit squeeze, recession), interest rates go down to stimulate more lending, which puts more money into circulation. However, when there is an over supply of money (inflation) interest rates go up to curb lending, which removes money from circulation. After global currencies lost the regulation of gold, the raising of interest rates no longer curbed borrowing like it did under the gold standard. During the earlier 1980's so much money continued pouring into circulation that many people could afford the higher interest rates and they kept on borrowing, which took inflation even higher. The global banking fraternity could have regulated the inflation chaos that occurred after the US severed its link to gold, but they did not. All the banks had to do was cut back on the number of loans they granted, but instead banks kept on lending to the unwary world. Why? Because the banks knew that the day of reckoning would come, when the interest burden of the loans inevitably caught up with and stalled the free flow of money. It is similar to a pyramid sale scheme, but instead of the patsies ending up with a garage full of soap, they end up with a life or business full of debt. Why did the banks encourage an economic situation that they knew would stall itself? Because the banks knew that when it stalled, they would be in a position to take control of vast amounts of property and businesses, when the people that built them inevitably defaulted their loans. It was good business. As nations became debt burdened, privatisation and deregulation did effectively deliver public property and businesses into multinational control to pay off national debts. The 1980s and 1990s were the decades of crippling inflation and stagnant economies. In Africa and South America the 1980s are referred to as the lost decade. Great Britain was brought to its knees, and the Mexico currency crisis nearly destroyed the global economy. The 1990s were when Japan, SE Asia and the USSR crashed economically. The real cause of the economic instability was the willingness of the global banking fraternity to oversupply a faulty money system. This was quietly ignored. The blame for the world's economic woes was instead cast upon government interference and ineptitude in economics. The global crashes of the 1980s and 1990s were caused by deregulation of the global financial system and business decisions made by banks, not government ineptitude. No government could have survived what the banks were doing (and continue to do). Banks reaped an economic harvest across the Earth while the cause of the problem was deflected in the direction of national government incompetence. The governments had run up huge debts, therefore they must be inept at running business. Its logical. Through privatisation and deregulation, banks and other multinationals could now begin to purchase and control infrastructures and businesses that had previously been run by national

governments for reasons of national security. Much of the essential business of running countries was now being put on the market for sale through privatisation. The banks and their multinational affiliates began to purchase the infrastructures of countries, while governments signed away national rights of control through international laws in the World Trade Organization (WTO). In the early 1980s, England under Thatcher was the first country to embrace the principles of privatisation and deregulation, which the Chicago School of US economists had been promoting since the 70's. [2] The USA under Ronald Reagan quickly joined in. As other countries around the world fell into economic chaos, the US economists were close at hand to sell them the benefits of government privatisation and deregulation. The magic fix of the market led deregulated economy seemed to work in the failing economies, and the economies began to stabilize. But as countries bit the bullet through loss of national assets and jobs, all that really happened was that their economies were being painfully reset to an even ledger again after selling the farm to pay off crippling debts. New debt would continue to accumulate as it had before. Getting out of debt made governments look impressive to voters and gave the voters false hope that perhaps now the economy might be fixed. The illusion was that the globalisation mantra of Business knows best was an axiom of economic reality, a fundamental truth. This was because government privatisation and deregulation seemed to stabilise economies. However, the quick fix of privatisation and deregulation was not a long-term solution for the global economy because the debt fault still remained. This meant that nations would eventually fall victim to uncontrollable, escalating debt again. WHO IS RUNNING GLOBALISATION? The excessive lending by banks in the 1980s had been the bait, and their catch was t he gains they made through bankruptcies and sales of national assets. As these profitable bankruptcies cleared away the immediate economic chaos, the banks resumed more moderate policies of lending. While governments had no choice but to float their currencies, doing so was just a short-term fix rather than a long-term solution. In the new economy if countries did not join in and deregulate their currencies (and economies) they became sitting ducks for global money speculators, foremost among which are multinational banks. The floating of national currencies was an inevitable result of the US severance from regulated currency. It was an offer to weaker economies that could not be refused - either join the club of globalised currency or be clubbed by globalised currency. The floating of currencies partly addressed the threat from global money speculators, but it did not fix the fault in the global monetary system, which continues to hamstring national economies through debt. [3] Foreign debt is largely a misnomer. The debt is foreign in the sense that it is not owed within the same country and its economy. The word foreign implies that the debt is owed to another country. These days that is not entirely the case either, because most countries on Earth have excessive foreign debts. Foreign debt is mostly owed to multinational banks, which have no loyalties to any nations and are in the business of creating debt. Privatisation and deregulation also ignore the fact that debt growth outpaces economic growth in the post-1970's global money system. Just as private debts had bankrupted citizens and companies through the 1980s and 1990s, debts are now preparing to bankrupt whole countries in one go. Australia has about the same growth averages as the entire global economy. Both have economic growth of about 4% and debt growth of about 10%. At that rate, by about 2030 Australias annual growth in debt will be larger than Australias annual gross income. Australia will be in economic ruins well before 2030. Yet Australia is classed as one of the best performing economies in the developed world. [4] In the new global economy, all the banks need to do is keep running steady as she goes, and within a few years they will theoretically be able to foreclose upon entire nations. Society is

induced into thinking that the global economy is resilient enough, and is the best alternative possible. Privatised and deregulated national economies have allowed multinationals to take control over the business, infrastructures and economies that run countries and shape their futures. In reality, the world is really run by an oligarchy of global corporations. After deregulation, national governments just take care of lesser, more trivial tasks that still need doing, like building roads and taxing the nation. A country's economic destiny is dictated to it and life for everyday citizens falls into line accordingly. Meanwhile, nobody is meant to notice that their nation is steadily marching towards a precipice of debt. Top of Page WHAT IS GOOD ABOUT GLOBALISATION? We have wide-screen TV's. We have cheap Chinese goods. The greatest benefit from globalisation is that it gives some countries a greater range of cheap overseas goods to buy. The cheaper prices are not a lasting result of globalisation though, but rather a reflection of the non-level playing field that currently exists within the global economy. Government subsidies, import tariffs and lower paid workforces are what make the playing field of the global economy non-level. If the global economy ever reaches its proclaimed goal of a level playing field, then the cheap goods will become more expensive again. There would not be cheap labour or protective subsidies anymore. Cheap foreign goods are bait to encourage citizens to accept and assist the process of globalisation. As wealthier nations buy those foreign goods they raise the wages of foreign workers and reduce the wages of workers in our own countries by ultimately putting them out of work. Prolonged high unemployment eventually leads to effective reduction in real wages. So in effect, cheaper goods, which are an evident benefit from globalisation, are precisely what globalisation is aiming to remove through its level playing field policy. Achieving a level playing field is a stated goal of the WTO. WHAT IS BAD ABOUT GLOBALISATION? The bad aspects of globalisation involve human wellbeing, the environment and economic realities.

Human Wellbeing and Quality of Life

Quality of life is at risk from globalisation in a number of different areas. THE END OF DEMOCRACY AND NATIONAL CONTROL While democratic-styled governments are being installed around the world in the name of freedom, the essential structure of democracy itself is being undermined by globalisation.

Many fundamental areas of society that were traditionally administered by democratically elected governments are now becoming administered by unelected and unapproachable multinational boards.

* Where governments were open to public scrutiny, corporations operate in secrecy within their boardrooms in faraway countries. * Where governments could be voted out if society disapproved, corporations are not subject to elections. * Where governments made decisions in the interest of the nation, corporations now make decisions in the interest of profits. * Where governments were the highest authority in a land, now international laws overrule national laws that conflict with them. Even in matters like environmental care and public health, international law protects multinational profits over national wellbeing. PERSONAL STRESS Globalisation has create new kinds of stress into everyday life. Even proponents of globalisation admit this, on the basis that "markets are relentless". Corporations rationalise jobs whenever possible. This can be done by laying off workers or importing cheap workers from other countries. Job insecurity and the escalating workloads of

existing jobs are eroding quality of life. At any time fuel prices or interest rates may rise so much it hurts. What if there's a recession? What if the stock market crashes? What if the real estate market spikes up high - or down low? A new culture of "fear of the future" is entering society, caused by multiple long-term insecurities stemming from the new economy. [5]

Environmental Survival

How big must the global economy grow in order to be big enough? How much is enough? Globalisations answer is that there can never be any such thing as big enough. In 100 years

when, at current growth rates the global economy would have grown 50 times it present size, it would still not be large enough. Continual growth is necessary for this present economy to

survive because of the way it is designed. The growth rate is deceptive. 4% annual growth does not sound like much but the global economy grows exponentially, not mathematically. Mathematical Growth 1 + 1 + 1 + 1 + 1 + 1 + 1 = 7 Exponential Growth 1 + 2 + 4 + 8 + 16 + 32 + 64 = 127 The destruction of natural resources like clean water, forests, arable land, ocean fish stocks, coral reefs and so on are already causing extreme concern even in the traditionally conservative ranks of society. The current rate of extinctions from the planet is comparable to the rate of the extinction event that destroyed countless millions of species along with the dinosaurs from Earth 65 million years ago. Earth is clearly not coping with the demand for resources in the present sized global economy. At present rates of growth in 30 years the global economy would be about 4 times larger than today, and in 60 years it would be 10 to 20 times larger than today. The global economy, which must grow exponentially in order to survive, does not recognize the realities of the natural world. The logic behind the present global money supply system is like sustaining your life by eating your own body from the feet up. The global economy is presently on a course to destroy itself through the planets lack of ability to sustain it. Like a cancerous growth, the global economy is growing so vast that it will soon kill it host.

Economic Realities

Their still remains a fundamental flaw built into the post-1970's global monetary system, and economic trouble is arising from it again. The flaw in global money supply ensures that debt will always grow at a much faster rate than economies. View the mathematics yourself in the articleWhy Economic Growth Is Unsustainable [6] On its present course, unless there are fundamental changes made quickly to the global money supply system, the global economy has no option but to collapse well before 2030. It will be curious to see which inevitable reality the global economy succumbs to over the next two decades, crippling debt or nature's inability to cope. IS GLOBALISATION GOOD? It would be possible to have a different kind of global economy that works in the real world to sustainably serve humanity. The pain and destruction caused by the global economy are not inevitable, but simply the result of the way this particular global economy is designed. Is there not more to life than cheap consumer goods? Environmental degradation, social breakdown and high personal stress levels do not factor into mathematical profit margins. The people of a nation care about the well being of their environment and society. Multinational corporations have no such national sentiments. They would give the world for a dominant market share, and presently they appear to be doing just that. Top of Page

Click the bracketed endnote numbers to return to text

[1] This flaw in the money system is outlined in The Fatal Trap In The Global Economy, available from www.eveoftheapoc.com.au [2] Thatcherism used the model of Milton Friedman, an economist from the University of Chicago. The Chicago School version of economics was embraced by Reagan and later by most of the world. [3] See footnote 1 [4] OECD rating in 2003. [5] For example, see The Commanding Heights The Battle For The World Economy, D Yergin & J Stanislaw, A Touchstone book, pub. Simon & Schuster Inc, USA, 2002, p 404. [6] Available from www.eveoftheapoc.com.au
Top of Page

A copy of this document is available from www.eveoftheapoc.com.au Michael Bond is a promoter of social and environmental reform. His book Eve of the Apocalypse sheds light on the present global situation and its affect on individual people.

Liberalisation privatisation globlisation and its impact on Indian industrial sector?

Answer: Privatization - is the incidence or process of transferring ownership of business from the public sector (government) to the private sector (business). The private sector is more efficient than the public sector. The benefits of privatization include: -better quality products -lower priced products -more efficient firms which have lower costs -makes costs lower for other firms who use the product the privatized firm produces -this increases employment and incomes across the economy

-Government no longer needs to subsidize product -Government makes revenue from asset sale to spend on health, education etc -Promotes technological advancement, again creating jobs and growing incomes

Globalization- Globalization is often used to refer to economic globalization, that is, integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology Globalization: -Allows specialization, so countries can produce more goods more efficiently, increasing incomes and lowering prices/costs -Countries can produce what they are best at and trade it for goods other countries can produce well, allowing both countries to benefit -Countries which have a low savings level can borrow money from overseas to invest, thus increasing their incomes and jobs -Countries which have a high savings level and don't know what to do with it can invest it in other countries and earn a return -It makes technology improvements flow between countries, so all countries can reep the benefits of improved technology, by increasing incomes and jobs -It allows people to migrate between countries, increasing labour force mobility. This leads to higher efficiency as people can move to the jobs they do best. This means higher incomes for all and increased jobs. -Globalisation increases competition, making firms more efficient -Globalisation allows outsourcing, which is beneficial as people can do the same job for less money elsewhere, and the people who did the job originally can get a job they are actually good at -Globalisation puts downward pressure on inflation -Promotes technological advancement, again creating jobs and growing incomes

Liberalisation- a relaxation of previous government restrictions, usually in areas of social or economic policy Benefits: -Promotes competition, which leads to lower costs and prices for consumers -Competition promotes efficiency, so resources are wasted much much less -Liberalization allows financial markets to provide loans to people who previously may not have been able to access loans that they can pay off, and it allows more financial instruments to be developed so people can choose the one that suits them -Liberalization removes government regulations on the economy, which promotes jobs, lower prices, higher incomes and lowers inflation -Promotes technological advancement, again creating jobs and growing incomes

Globalization - When did Globalization Begin?

Christopher Columbus

Globalization - When did Globalization Begin?

There are as many beginning points of globalization as there are definitions of it, in part due to the fact that different definitions have different starting points. Nayan Chanda from the Yale Center of the Study of Globalization estimates globalization began 8000 years ago, because at that time all the forces that would push globalization forward was already in place. Chanda wrote the following in his 2007 book Bound Together: "Essentially, the basic motivations that propelled humans to connect with others - the urge to profit by trading, the drive to spread religious belief, the desire to exploit new lands, and the ambition to dominate other by armed might - all had been assembled by 6000 BCE to start the process we now callglobalization". Other possible starting dates are when Christopher Columbus discovered the New World in 1942, the first time someone circumnavigated the world in 1522, theIndustrial Revolution which began in the late 18th century, and the fall of the Berlin wall in 1989. The World Bank states that there have been three 'waves' of globalization. The first began in 1870 and ended at the beginning of World War I in 1914. It was characterized by a reduction in trade barriers and and improvement in transportation technologies, which resulted in major migration of about 10% of the world's population. The next wave occurred from 1950 to 1980 during which multiple trade agreements occurred between developed nations which left out the developing world. The final(and current) wave of globalization(beginning 1980) in contrast has been characterized by the willingness of developed nations to remove trade barriers in order to attract foreign capital. In a 2002 article in European Review of Economic History , Kevin H. O'Rourke and Jeffrey G. Williamson calculated a starting date for globalization by analyzing four centuries of data. Their theory was that globalization would be characterized by the fact that the prices of goods and services are determined by global supply and

demand. Therefor price levels in different countries should be similar as globalization progressed. O'Rourke and Williamson used data from 1565 to 1936, and found that price convergence started around 1820. The starting point of 1820 is as acceptable as any. It also fits the current consensus that globalization, defined as world economic integration, began somewhere between 1820-1870. To sum up - The beginning of globalization depends on the definition of the term, but general academic consensus is that it began between 1820 and 1870.

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Globalization, I take Two!

Status: This page is considered finished. However changes/reviews might happen. Last changed: Monday 2013-02-11 22:01 UTC Abstract:

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Globalization means increasing the interdependence, connectivity and integration on a global level with respect to the social, cultural, political, technological, economic and ecological levels of societies around the world. Unfortunately "Globalization" has become a somewhat negative term when it should not be at all. Why? Well, probably because of all the greed in the economic domain, that is nothing new however plus globalization should not be mistaken with capitalism. This page does not focus on the economic angle that goes along with globalization, but rather looks at the big picture of what globalization really is i.e. its technological, ecological, sociocultural and political opportunities next to pure economic ones.
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Introduction

Our world is shrinking every day, thanks to more faster and easier travel. The smaller the world gets, t of globalization seem to be. So, is this a good or a ba
I am a cosmopolitan, I like science, fiction is fun to me and entertains

movies. What do they have in common with globalization? Well, if we tak is presented there is the strong notion of unity and believe in one anoth teamspirit ;-]

It does not matter whether you are young or old, male or female, human skinny or fat or all the shades in between... I think those are the oppor peace and prosperity. It might not happen during the next three or s everybody, but in general, I think that is what we will see for the majority o something that just is not the case right now and thus needs to improve.

Effects and Changes

If we talk about globalization we are also interested in effects and a something this subsection takes a closer look at.

Migration

Only a few decades ago, traveling abroad from the Indian subcontin traveler's entire family would accompany him to the airport along with m occasionally a brass band, to bid him farewell.

Today, people think nothing of having breakfast on one continent and d abroad to work, either permanently or temporarily. The money they sen their home country's economy.

On the other hand, greater international labor mobility increases risk economies are attracting their educated citizens back by creating good b their entrepreneurship.

Trade
Trade drives globalization. Modern transportation and

telecommunications have made it easier to export to and import from fa regulations, and practices can still make it difficult fordeveloping co countries.

For example, there is the problem of Dumping. For instance, som countries at prices lower than the goods can be manufactured, under occurs when farmers who receive subsidies export surplus crops and driv

Then there is the problem with Market Access and Regional Trade Agr their industries by imposing taxes on goods from other countries. These i more and make it harder for poor countries to compete in richer markets.

RTAs (Regional Trade Agreements) are transnational trade deals, and ar regional free trade agreement removes all barriers to trade. Unfortuna between developed and developing nations, they often do not benefit the

Poorer countries can not develop their own industries with cheap impo markets. To ultimately reduce poverty, international trade negotiations ne economies.

We also see issues with Labor Rights. Globalization has brought mill raised living standards in developing countries. But some believe it developed countries/regions like for example Europe and the USA, and in or for less money.

Overall, global trade has grown dramatically over the past three decade become important players in the global marketplace. Their share of wor past 30 years. For example, China's share of the global marketplace has as much as it was in the mid-1980s. India and several Latin American jumps in global trade.

Health

Globalization has had dramatic effects on health. Treatments for diseas available, and their prices have fallen thanks to international agreements measure and treat known and emerging diseases is being used all over th

The Internet with its many tools and applications, the WWW (Wold Wid widely used and popular, spread knowledge of health issues, while g international bodies, and civil society is helping to increase awarene solutions to health problems.

On the other hand, cross border travel more easily spreads AIDS, SAR could hasten a pandemic. The movement of meat and poultry product disease and avian influenza, especially in countries where regulations a enforced. Globalization also means that harmful products, such as cigare

consequences worldwide.

The movement of qualified health professionals from developing to de health systems of some developing countries, which now face shortages o

Environment

It is said that the movement of a butterfly's wings can create atmospheric at the other end of the world. Sure, this is all mathematical and/or philo brown tree snakes from Australia are causing power outages in Guam on

International travel, trade and transport have become leading causes of the species that reach new lands do not survive in their new environme can transform entire ecosystems and even threaten other species to estimated costs of invasive alien species are in the area of $350 billion U that, but who knows. That is for another story.

Globalization is linked to the environment in many other ways as well. S countries lead corporations to move their operations to countries with le been common in the financial sector for a very long time already and h Centres).

In other cases, free trade agreements prevent governments from adoptin Destroying forests to produce timber and crops for consumers in other change, of course, is a big issue associated with globalization, as it affec interest to combat the threat it poses.

Culture

Thanks to globalization, we know much more about other cultures tod opened our minds to other ideas and traditions, and has made this a ve those to come.

However, many argue that today globalization merely equals weste bysinicization this might take generations though... Some fear losing influences and are threatened by the influence of other cultures on their o

Miscellaneous

Other effects and changes caused by globalization are

o o o o o o o o o o o o o o o o o o o o o o o o

enhancement in the information flow between geographically remote loc

the global common market has a freedom of exchange of goods and cap

there is a broad access to a range of goods for consumers and compan worldwide production markets emerge free circulation of people of different nations leads to social benefits discussions

global environmental problems like cross-boundary pollution, overfishin

more transborder data flow using communication satellites, the Internet,

international criminal courts and international justice movements are lau

the standards applied globally like patents, copyright laws and world trad

corporate, national and subnational borrowers have better access to ext worldwide financial markets emerge decreases due to hybridization or assimilation international travel and tourism increases

multiculturalism spreads as there is individual access to cultural div

worldwide sporting events like the Olympic Games and the FIFA World C enhancement in worldwide fads and pop culture local consumer products are exported to other countries immigration between countries increases cross-cultural contacts grow and cultural diffusion takes place part of world culture free trade zones are formed having less or no tariffs

there is an increase in the desire to use foreign ideas and products, ado

due to development of containerization for ocean shipping, the transport subsidies for local businesses decrease capital controls reduce or vanquish there is supranational recognition of intellectual property restrictions recognized in another

What is Globalization?

If we open a newspaper today, connect to the Internet, etc.... whate

globalization. It is funny though, if we ask ten people, it might be so that answer when asked: What is globalization? preferably with one sente through elementary school would understand. Read on and you will have

I just read an article about Russian orphans growing up American. Yes Ford Motor Company and its CEO. When asked what he thinks about the is good for America he did not hesitate and cut right to the point saying, T not agree?

The point is, globalization is everywhere... and by everywhere I am not ta but what I am talking about and referring to is: Globalization is everywher on our shopping list when we head out to run an errand. Do not fig ownadvantage.

However, that still does not answer the question about what globalizat online or making the cumbersome hike from our desks to the bookshelve how would you describe globalization? For me it is:

Globalization can the world are combination of political Markus Gattol

be described unified into economic,

as a process a single socie ecological, techno

Or in short: Globalization is the growing integration of economies an is, our one sentence answer anybody can understand.

Globalization is an inevitable phenomenon in human history which is brin the exchange of goods and products, information, knowledge and culture. this global integration has become much faster and dramatic becaus technology, communications, science, transport and industry.

While globalization is a catalyst for and a consequence of human pr requires adjustment and creates significant challenges and problems

unsettling and most societies want to control or manage it, somethi all,globalization can only be managed and controlled by the inter possible to not just face the challenges involved with globalization but also

Why Should I Care?

Globalization has sparked one of the most highly charged debates of the effects of globalization, they generally refer to economic integration. Econ lower barriers such as import tariffs and open their economies up to inv world. These critics complain that inequalities in the current global tradi the benefit of developed countries.

On the other side are the supporters of globalization who say that co Vietnam, all of which have opened up itself to the world economy, have si

Money can't Leo Rosten (1908 - )

buy

happiness,

but

Critics argue that the process has exploited people in developing coun produced few benefits. But for all countries to be able to reap the ben community must continue working to reduce distortions in international t and lifting trade barriers) that favor developed countries and to create system.

The Cicero

people's

good

is

th

Countries who have benefited from Globa

o o o

China: Reform led to the largest poverty reduction in history. The numb to 34 million in 1999. India: Cut its poverty rate in half in the past two decades.

Uganda: Poverty fell 40% during the 1990s and school enrollments doub

Vietnam: Surveys of the country's poorest households show 98% of p

1990s. The government conducted a household survey at the beginnin attending secondary school. Trade liberalization was one factor among

the same households and found impressive reductions in poverty. Peo

The country cut poverty in half in a decade. Economic integration raised lot more than existing opportunities in Vietnam.

(e.g. rice, fish, cashews) and also created large numbers of factory jobs

Countries who have NOT benefited from

o o o

Many countries in Africa have failed to share in the gains of globalization narrow range of primary commodities. some countries.

Some experts suggest poor policies and infrastructure, weak institutions

Other experts believe that geographical and climatic disadvantage have

For example, land-locked countries may find it hard to compete in globa

Over the last few years, there have been protests about the effects of glo in a lot of developing countries there is very strong support for different and direct investment, according to a recent survey conducted by The Pe Africa, 75% of households said they thought it was a good thing that mul their countries.

Iceberg Theory

Philosophical allures aside, we can probably agree that right now (2010) the walls and matchboxes that every country had, between themselves b ambition. We were, in fact we still are for the most part, different co therefore could never manage to deal with natural disbelieve, genuine dis and again challenged us.

Globalization has strengthened the nexus and has helped us to know e helped to demolish those walls that separated us and curbed our natura As I mentioned above, unfortunately globalization has primarily become a to the economy of the countries only, the term globalization actually r cultural, social, psychological and of course, political ones.

It is true that the impact of globalization is visible and affects largely the but its effect on the mindset and the culture is noticeable gradually in th theIceberg theory wherein what we do and say are at the tip and w base.The base is not visible but manifestations at the top are consp people do not change abruptly but may be after a decade, that the change

When it Started

You, like everybody else, thinks globalization started 20 years ago?! Boy,

Globalization is not a new phenomena, the base was laid long back wh theBritish East India Company started trading with India. In history there countries like Arab and Egypt and now in modern times that has translate

It is true that ultimately all the free trade resulted in the white man t globalization leads to more employment and higher standard of livi countries. Theories suggest that globalization leads to efficient use o involved it is probably fair to question that, but from what I have seen, i

According to libertarians, globalization will help the whole world to de poverty again, it is probably also fair to question that... currently, even in the long-run I can imagine that is true and it will be a win-win.

It will help us to raise the global economy only when the involved power b each others opinion. Globalization and democracy should go hand in han colonialist designs as it were back then with the Dutch East India Compan

The way we have developed in the last 15 years, globalization se Globalization has made the life of the third world citizen completely a dif companies that have made way to Orient and have made India a brand na

Globalization is a bumpy road, a what they call African massage, but u exciting, that is for sure... we just need to be attentive and act with foresi honesty and fairness to not run our vehicle off the road... something th financial meltdown hit.

Poverty wants Publilius Syrus

much,

but

International Community

What is the international community doing with regards to globalization a advantage? The answer is, in part, with the World Bank.

One of its employees (David Dollar) describes globalization as a fast train platform to get on. This platform is really about creating a foundation to includes property rights and rule of law, basic education and health for the ports, roads, telecommunications, and customs administration), etc.

International organizations, such as the World Bank, bilateral aid agen countries to establish this foundation to help them prepare for global integ

When governments do not provide this foundation and basic services, p opportunities that globalization offers and are left behind.

It is equally important that the government governs well and is transpare incompetent and/or totalitarian/authoritarian, outside agencies really will n

It

is dangerous Voltaire (1694 - 1778)

to

be

right

when

the

What Can I Do?

o o

Learn about the world and current events. encourage sustainable development.

Volunteer. Search the UN (United Nations) websites to find out a

If you live in a Developed Country:

o o o o o

If you have power (either trough money or fame), put it to good use. Find your national volunteer service or search through the UN Volunteer or Idealist websites for other options.

Check out additional sites like the Take Action resources page for exam government to give more. View ODA (Official Development Assistance)

Learn how much money your government gives through bilateral a

If you live in a Developing Country:

o o o o

Learn how much money your government receives in developme government funds are properly spent. Volunteer to help those in need.

Encourage other kids and adolescents to stay in school and to volunteer Stay in school at all costs, study and learn.

Knowledge Sir Francis Bacon (1561 - 1626)

is

Impacts of Globalization

Globalization has made way for free trade and business and has es between various parts of the globe. It has potential to make this world a dynamics of politics, thus deep-seated problems like unemployment p the picture. The marginal are getting a chance to exhibit in the world mark Asian countries.

It, however, is not only modernizing but also westernizing and to an ext power play is leading to the linguicide or linguistic, cultural and traditiona need to keep a check and not let diffusion go wild. There has been individuals to be more tolerant since face-to-face interaction is no more th

For example, these days one European is trying to sort out billing issue of mostly not even a direct employee of the service provider where the Eu Now, that sounds complicated and all but none the less, has to be dealt w

Globalization can be something great if we just take a little care and be p it, in the end, it is all about personal attitude...

Earth provides but not Mahatma Gandhi

enough

to every

satisfy

Pros and Cons

Globalization can be win-win for developing and developed countrie developed countries, but it is there where they have a lot of capital and large and young populations and need to create massive numbers of jobs

Globalization can benefit both, developed and developing countr capital and technology to developing countries and the movement will not be easy, of course, but the key to successful integration will lie w policies.

On the whole, we live in a much more integrated world as a result of te and communications such as the Internet. For example, a natural disast known all around the world and people from far away send help. So, in community that did not exist in the past, we are about to become one pe

So, are there significant downsides to globalization or is it just a matte when they say things like that? Is globalization going to improve a lot of t opposite? And what about nature and everything aside humans?

As mostly, it depends on who you ask but one thing remains true... whoe provide a biased statement, his very personal point of view on the matter,

Downside of Globalization

it is true that Europeans/Americans are losing jobs right now and th considerably higher if they do.

companies are outsourcing work to the Asian countries since the cost o
o o

there is immense pressure on the employed Europeans/Americans who being outsourced.

businesses are building up units in other countries equally well equipp

thus transferring the quality to other countries.

o o o o o

there are some experts who think that globalization, along with the posi of negatives like communicable diseases and social degeneration. to globalization. again lead to some sophisticated form of colonization. increased pollution and hurtful behavior towards nature and wildlife.

There is also a threat of businesses ruling the world because there is a

countries which are at the receiver's end are also giving up the reins in

before we see improvements with regards to impacts on nature, we are

the elderly and uneducated may never benefit from globalization s above) but maybe bad for the individual.

competitive which is good from the point of view of a species (reme

o o

changes are happening more quickly and if they do, they are more radic

will naturally create more changes more quickly compared to a society w

some say linguistic, cultural and traditional genocide is going to happen sinicizing native cultures.

just one language/culture left. Globalization is not only modernizing b

Positive Aspects about Globalizati

o o o o o o o o o o o o o o

goods and people are transported with more easiness and speed the possibility of war between the developed countries decreases free trade between countries increases global mass media connects all the people in the world

as the cultural barriers reduce, the global village dream becomes more r there is a propagation of democratic ideals the interdependence of the nation-states increases

as the liquidity of capital increases, developed countries can invest in de the flexibility of businesses to operate across borders increases

the communication between individuals and businesses in the world incr environmental protection in developed countries increases a product) there is more access to products of different countries, more choice

more opportunities now that there is a global market for businesses and

there is a steady cash flow into the developing world, which graduall countries

strengthens purchasing power in the developing world which also tran

o o o o

due to the presence of a worldwide market, there is an increase in the p for businesses now

gradually there is a world power that is being created instead of co

merging and decisions that are being taken, are actually beneficial for in

there is more influx of information between two countries, which do not h

there is cultural intermingling and everybody is now trying to know abou

process of doing so, we are actually coming across things that we like a
o

we like, we do not destroy/harm. So, this mere fact is somewhat assurin

since we share financial interests, businesses and governments are try backfires politically and economically.

other for the same reasons, aggression, maybe even war, does not c
o

socially we have become more open and tolerant towards each other an

are not aliens as we always thought. There are examples, like now India series, Fear factor, the Indian version Big Brother.
o

which was a taboo even two years ago. We are celebrating Valentine'

there is a lot of technological development that we have undergone o their country.

since Asians are working in their own country though for a foreign com

o o

traveling has become a lot easier and cheaper, a trend that is going to c

working abroad has become more common and easier, I would even

drawback for employees. Nowadays what companies expect is not jus abroad.
o

education and social skills but also cultural skills and understanding

working habits changed a lot during the last decade now teams are working habits is a benefit (at least to my lifestyle) since I can make anyway but now every body else seems to have caught up, love it!

use appropriate tools (MUC (Multi User Chat), mailing lists, etc.) to coor

life is more colorful in general, like what and where do you eat next we anything everywhere. I like that!

are you going to see? Two or so decades ago one might have had a pre

Taking Advantage of Globalizatio

This subject has three angles really, the individual, countries and of cours

The Individual

We can not escape globalization so we should understand it and try to supermarket, we can buy grapes from Chile or tomatoes from Mexico or S

If we call the help desk for the computer we just bought, the person we ta will bear a tag from China, Indonesia or El Salvador. If we go through surely encounter people who have immigrated to the USA/Europe and cultures we know little about.

All these are examples of globalization. John Todd Stewart of the Institu this trend as the increased cross-border flow of goods, services, people a

In Europe and USA alike, this trend has meant bad news for some w unskilled ones, have moved to other countries. Fast-paced technolog distance phone rates in the 1990s led to the outsourcing of white-c particularly call centers and software programming.

However, according to Ben S. Bernanke, former chairman of the econom

and a governor of the Federal Reserve, outsourcing is not likely to affect m

The only good is Socrates (469 BC - 399 BC)

knowledge

and

the

Some jobs outside Europe and the USA are well paid. Other positions perhaps free housing, medical insurance and a travel allowance, but personal growth and later career opportunities.

The real payoff comes in the non-tangibles: the chance to serve, to learn get to know other cultures.

A large number of non-profit, educational and religious organizations o environmental and development projects. These positions can be an experience that may ultimately lead to a better-paid position back home, i

The way the individual can take advantage of globalization is by inc right, market value! As I mentioned above, nowadays a persons knowled A product for which in fact there now is a global market.

So how do we increase our market value? Easy, we do it by acquiring knowledge and skills. This however might just not be good enough w skills and knowledge in areas and domains with future demand. Even education can only get you so far... those who mimic others or their care game, those who go their own way probably will be.

Formal education you Jim Rohn

will

make

you a

living;

Countries

There are mixed views about globalization, but if harnessed in the r beneficial to both, developed as well as developing countries. Developing

o o o o o o o o o o

work toward macroeconomic stability that would create the right conditio provide free market conditions and not interfere provide financial political and legal transparency all businesses and individuals must be equal by law create structural reform to encourage domestic competition

create strong institutions and an effective and corruption-free governme

promote education, training, research and development to promote prod engage civil society in all these processes provide, ensure and enforce equal rights to all of its citizens take care of nature

If those basic guidelines are followed, chances are good to become a later.

The benefit of being a developing country these days certainly is that countries can be avoided like, for example, building more efficient tran to fight crime and corruption, etc.

So, now that we looked at developing countries, what is in for develop children, the more the better! Especially Europe, as it has a q tickingdemographic time bomb at its hands. The same is true for the USA
o o o

developed countries must open themselves to immigration in order to m note: Is that why Japan is building robots? ;-])

they must become a lot more efficient to cut costs in all areas of public s

they must find a way to deal with globalization of human capital, especia adjust their economic policies to take advantage of the efficiency gains

which creates anxiety in wages, job security and social welfare polici

any), cope with greater competition from growing markets like China, I equity and fairness.
o

the same time ensure that any gains are distributed among their pop

developed countries will have to transform themselves from manufact produced in developed countries.

based economies/societies e.g. instead of building cars, they are de

o

developed countries have to massively invest in R&D (Research and De

Businesses

It is disputable how the gains of economic growth are capitalism andfree market. Those who can adapt b reality will succeed.

Even if that sounds like what is the case for individuals, it is also true Globalization has produced unprecedented opportunities, threats, an businesses amidst increasing access to a global human capital, as well many market segments, becomes the lifeline, no longer only benefits, to s

In free market economy, professionals and businesses alike must find va business into a new value-profit chain. National prosperity will be dete citizens (including its workforce), and the governmental policies (an inte economic policies) and institutions that organize and manage the econom

So how does a businesses benefit from globalization? I am not a pundit in However, I think that in many cases the simplest answer is the best one. six things:
1. 2. 3. 4. 5. 6. time talent/knowledge/skills determination and tenacity money networks social skills, common sense, social/ethical competence

This is true for any business, any individual as well as any country. So, changed with this everlasting equation except that now, we need to think about the how and where we get those components.

Any business that manages to get the most quantity and best quality manages to give the least of its own resources in return, that business successful.

For the most part this is true competition is getting more fierce and calledsurvival of the fittest more often and in more dramatic ways in today that, more often than not, success also comes with sharing and when te

businesses into a single one. As my father always used to say: I prefer ow good rather than owning 100% of something tiny which basically is crap a

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Challenges & opportunities of globalization for third world country essay

The forces of globalization have produced rapid social change, often marked by more inter- and intra-regional disparity, environmental and ecological crisis, social disintegration, violence and conflict. In other words, for many poor countries the forces of globalization have produced enormous social suffering. Other local factors, such as, population increase, further aggravate the magnitude of social suffering. In the case of Bangladesh, the problems of landlessness, impoverishment and consequent rural out-migration are compounded by environmental hazards as well as environmental degradation caused by economic and other development activities. Natural hazard induced population displacement is endemic in Bangladesh. One specific and central impact of globalization is the massive turn to a wage-labour economy. From 1910 to 1950, a series of political and economic upheavals dramatically reduced the volume and importance of international trade. After World War II, international trade dramatically expanded, fostered by international economic institutions and rebuilding programs. From the 1970s, the effects of this trade became increasingly visible in terms of benefits and disruptive effects. The key aspect of globalization is changes in technology, particularly in transport and communications, which it is claimed are creating a village. Since the adoption of market liberalization policy in the late 1970s, a totally export oriented garment industry has engaged more than 500,000 women workers in Bangladesh. Cheap labour seems to be the driving force and the issue of equity and environmental sustainability are posited as mutually exclusive values. However defined, globalization is about international trade. All forms of international flows (money or technology from private or ODA sources) are now meant to facilitate cross border trade.

Globalization:The term globalization is often defined in terms of multilateral trade liberalization - or freer trade across borders. Globalization means a shift from Fordism (a mass production model on assembly line introduced by Henry Ford) to what economists now call "Flexible Accumulation Model" aided by computers, telecommunication and shipping innovations. Now, nuts can be made in one country, bolts in another, microchips in one, casing in another. And all of these can be assembled in a global "maquiladoras" in any of the countries of the South. Globalization is the tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby, increasing the interconnectedness of different markets. Globalization refers to the worldwide phenomenon of technological, economic, and cultural change, as brought about by expanding facilities for intercommunication and interdependency between traditionally isolate cultures.

Dramatically increased international trade and finance have established a medium wherein deeper cultural exchanges have taken place greatly increasing the impact of global issues at the local scale.

Challenges of globalization for Bangladesh:

Bangladesh pursued a number of stabilization and structural reform programs between 1987 and 1993, and made considerable progress in achieving macroeconomic stability that has been since broadly maintained. Recent global experience supports the view that macroeconomic stabilization and limited economic liberalization achieved in the 1980s the early 1990s were difficult to implement. However, it is harder and more important to establish adequate institutions, organizations and governance to meet the challenges of globalization effectively. Bangladesh has to face some challenges to fight as well as cope with globalization. Challenges are as follows:

Challenges of Globalization:Within a country, there is the challenge of forgoing liberalization policies that promote greater integration of the domestic economy into the global economy. There are pressures from trade unions, lobby groups and local businesses over the effect of these policies on jobs and the closure of local industries. These can make it politically and socially difficult to implement reforms that could benefit a country in the medium to long term. The responsibility for achieving the right balance and pace of adjustment lie with individual Governments, but in practice this is not simple as it appears. Bangladesh pursued a number a number of stabilization and structural reform programs between 1987 and 1993, and made considerable progress in achieving macroeconomic stability.

The various challenges of globalization that Bangladesh faces are as follows:1. Challenges for national economy:During the period of rapid integration with the global economy, the incidence of poverty appeared to have increased and so have inequalities in the country. Economic reforms in the country produced disappointing results in the absence of a system to induce entrepreneurs to invest in industries. Lack of institutions to make the economy efficient and reduce transaction costs was also a reason behind the country's poor performance. Inequalities increased in the country during the period of rapid globalization. Inequality in income distribution increased quite substantially both in rural and urban Bangladesh.

2. Challenges for our culture and social life:Globalization makes worldwide boundaries fade away and enlarging contest in the market place. For globalization we are facing a huge impact on our culture and social life in the modern world. For example, McDonalds introduced American fast food to other parts of the world. The American fast food of McDonalds, Pizza Hut, etc. are introducing to our country, which is a challenge for our Bengali fast food. Also the Indian culture becomes a major challenge for our own Bengali culture now-a-days.

3. Challenges for business:As in the case of industries, globalization impinges heavily on the business in Bangladesh with destabilizing forces debilitating balance of trade and balance of payments. Bangladeshi products are increasingly losing competitiveness in the global market due to growing cost of business exacting high prices. The cost of business is increasing primarily due to port problems, bureaucratic tangles in customs department and no improvement in lead-time. In contrast, an increasing number of countries are offering low-cost products.

4. Challenges of Globalization on Industry:In Bangladesh many industrial units in jute, cotton, RMG, and paper and several other sectors are closed down by a number of reasons of which globalization is one crucial factor. These industrial units have difficulties to compete both domestically and internationally. Even in the domestic market, it is difficult for them to keep up the competitive advantages compared to imported goods. Notably, in all these sectors there is considerable inflow of FDI and presence of MNCs (multinational companies) and there is no SOE.

5. Challenges faced by ICT and Bio-technology:Such challenges faced by Bangladesh for the ICT and Bio-technology and their Impact on Employment and Intellectual Property Rights are: Makes some of the traditional farming role of people redundant leading to unemployment particularly among older and rural people. It's not a desires and traditions of our communities to imported biotechnologies always. Needs to make easy to codify and move some of the un-codified knowledge of local citizens to the worldwide market. However if uncompensated, the move deprives people the economic gains and royalty they should be entitled to.

20. Challenges for Power Sector:Government has opened up foreign investment in power generation as independent power producer (IPP), and has also privatized transmission and distribution to the private sector (DESA, DESCO). Significant private foreign capital invested in the sector. As a result Bangladesh Power Development Board gradually has been losing its control over the power sector. Companies appointed employees under new terms and conditions. Job security of the employees also was ensured by the agreement

21. Challenges for Telecommunication:Telecommunication service was exclusively under Bangladesh Telephone and Telegraph Board (BTTB). This sector has been opened up for private investment. Different private telephone companies, TV channels, marine and rural telecommunication, radio trucking service and revering telecommunication have already been opened up for private sector. These private phone companies or TV channels are capturing a large number of customers. As a result govt. owned companies losing their customers. Government has been making different efforts to privatize this sector like PDB under company management. There is strong opposition from employees against privatization of BTTB.

Challenges for Labour Market:In Bangladesh many industrial units jute, cotton, paper and RMG, and several other sectors were closed down by a number of reasons of which globalization is one of crucial factor. It is estimated that near about 7 thousand big and medium size industries closed down as an impact of globalization. In Bangladesh near about 2 million people lost their employment due to closure of industries. Most of the privatization and closure of industries resulted in huge retrenchment. Fall in the aggregate demand for labour has accelerated declination of wage. Real wage declined due inflation and currency market deregulation. Also there is a decreased in number of working people under permanent contracts of employment. Non-traditional forms of employment including part time, casual and contract labour, home work and migratory work increased. Casualization of workers in the private sector resulted

in deprivation of provident fund, gratuity, normal working days and hours, group insurance, leave, pension and above all job security. Numerical functional flexibility in labour market increased, increased of out sourcing of work, and increased irregular payment. In the name of competition workers are forced to work overtime. Minimum wages of the workers in the private sector are not protected.

25. Challenges for Employment:Challenges for employment are as follows:Trade liberalization and privatization created social insecurity and aggravating, unemployment, underemployment. Social security of the workers decreased. Reduced job security, workers are terminated without benefits. Working environment degraded, especially in the private and informal sector. Labour laws are not implemented in most of the privately owned industries.

5. Mutual dependence:Globalization has increased mutual dependence between macroeconomic stability and good institutions and organizations, and made stability vulnerable to volatility in financial markets. Financial and currency crises around the world have occurred with an acceleration pace and with relatively more devastating impacts since the globalization process accelerated from 1989.

29. Some other Challenges:Bangladesh has to face some challenges to fight as well as cope with globalization. Challenges are as follows: Build up strong resistance against privation Reopening of closed industries Unite trade union movement to achieve greater collective bargaining power Capacitate trade union with new bargaining approach. To fight against the fast changing rules of the game of rapid transformation workers need to develop knowledge based skill in manufacturing through continuous updating of skill to face the challenges of globalization. Build up global shared goal and action. Enhance global unionism to face the global challenges. Initiatives to influence International Financial Institution to ensure workers rights. Build up pact between trade union and global consumers. Make global consumers responsible to ensure labor rights at national level. Organize informal sector as well non-unionized workers to strengthen trade union movement. Globalization not only affected workers but also affected different sections of the people, so it is important to organize voice from all sections. Workers alone would not be able to fight globalization. Influence political parties to incorporate the agenda. However, globalization can also- (a) Erode national sovereignty and culture and exclude those who are ill prepared to participate in it; and (b) Limit the ability of a country to adopt policies independent of, or uninfluenced by, events elsewhere. The first problem related to globalization is the inherent instability of markets, which Bangladesh without experience in managing a market economy, finds difficult to address. Two distinct types of risk are created by unrestricted capital flows: One is that undercapitalized banks operating without proper accountancy standards, bank regulation and supervision, often tend to over-borrow and use funds for unproductive purposes. The second risk is panic created by the first hint of instability, leading short-term lenders to withdraw their capital, creating a herd instinct among them, even if there is no justifiable basis for such panic. A

second difficulty is the absence of consensus about how to address some of the problems, especially the volatility of international financial markets and the lack of institutions at the international level to address these problems. A third problem relates to the overcapacity in many industries as a result of the increase in capital mobility and investment opportunities. A fourth problem relates to the claim that the benefits of globalization have so far been unevenly spread. A fifth issue is one raised in developed countries that free trade with developing countries accounts for the low wages of unskilled and ill-educated workers in the developed world, as well as job losses among such workers. A sixth issue relates to the impact of globalization on social benefits. A seventh issue relates to the connection, if any, between globalization and the new economy and the service sector.

Opportunities of Globalization:Bangladesh has a low human capital stock and is relatively closed to the global economy even by standard of the other low-income countries. Therefore, Bangladesh has not yet fully become part of the global economy. This is as truer in trade as in technology achievements. Globalize offers the potential to free Bangladesh and other developing countries from the restrictions imposed by a relatively small domestic market, low saving and limited access to world technology and credit.

1. Opportunity to break the vicious circle:It offers an opportunity to break the vicious circle of savings and investments, a long-standing important challenge for all developing countries. Better education, training, technology, equipment and infrastructure in general raise living standard. Due to globalization, foreign investment in our country will increase. If we can properly utilize it then employment will increased which will raise the income of people of Bangladesh. So, if there is a high rate of income then savings of people will increased which will enable us to break the vicious circle.

2. Alternative source of domestic investment finance:Globalization offers an alternative source of domestic investment finance. Such financing is channeled through direct investment and frequently come with attached benefits, such as technology transfer, training, marketing networks and managerial and technical expertise. Foreign investment is especially attractive when it brings its own physical capital and the means to enhance human capital of domestic citizens.

10. Increasing the living standards of poor people and employment opportunities:Globalization is increasing the living standards of poor people in Bangladesh. Industries from foreign investments create employment opportunities for a large number of people including young women who, for the first time, can visibly enter the male dominated public space. Because of the traditional cultural norms of behavior for young women, they were not allowed to show their faces in pre-modernized Bangladesh. Foreign investment creates 10,000 new jobs every year in Bangladesh. Foreign and export oriented industries are changing the economic and social scenario of Bangladesh which, results in an increase of living standards.

11. Motivating the people and increasing the modernity of our society:Increasing globalization is motivating the Bangladeshi people and increasing the modernity in our society. A person can forces by inspiration refers what effect his direction, intensity, and persistence of voluntary behavior. Foreign investments create high paying jobs, which require more knowledge and skill, therefore motivating people to work for a higher education. Bangladeshi students are performing better than before. Advertisements for foreign products also motivate people. Globalization allows foreign companies to advertise their products in our

country. When people watch advertisements for expensive foreign products, they want to buy them even if they don't have the ability.

12. The transfer of technology:Bangladesh has largely benefited from the transfer of technology. One nation cannot produce everything, because it has limited resources. Globalization gave us the opportunity to use modern technology. We got worldclass telecommunication technology, which was not possible without foreign investment.

13. Modern telecommunication technology:Modern telecommunication technology connected us to the rest of the world. Bangladesh are getting technological advantages like computers and the Internet, transportation and online banking with evaluation in the modern world. We are earning foreign currency and creating many new jobs by exporting computer software. Globalization has made a big social and economic change in Bangladesh.

14. Increased competitiveness and raise export potentials:Product market competition induced by government policy of economic liberalization can bring about increased competitiveness and raise export potentials. The competition can be enhanced by reductions in transport and communication costs of conducting international trade, by removal of external tariff barriers, and by more vigorous application of pro-competitive policies in those domestic industries not exposed to international competition. Competition is healthy for the economy in the long run. It not only influences the relative bargaining power of firms and workers but it is also a force for renewal and change.

15. Actions of Employers to reap the opportunities of Globalization:Volatility in the labour market has prompted employers in Bangladesh to become more organized and to move towards greater unity. There is a tendency among the employers to shift certain risks and responsibilities away from the enterprise or society to the workers. Employers have tended to introduce new labour-saving technologies to reduce cost of production and to avoid the risk of labour unrest. Unlike in the public sector, employers in the private sector have resorted to growing casualisation of workers resulting in the deprivation of workers of provident fund, gratuity, normal working days and hours, group insurance, leave encashment, leave with pay and pension benefits and, above all, job security

16. Actions of Trade Unions to reap the opportunities of Globalization:Economic integration and increasing competition erode the bargaining power of trade unions. However, the increasing mobility of goods and capital allows such obstacles to be readily circumvented, thereby prompting the trade union movement to adopt a global approach. Globalization has also created opportunities for trade unions by offering organized labour the alternative of collaborating with employers to enhance productivity, adaptability and product or service quality, in exchange for job security and higher wages.

18. Benefit from return migrants:Because of globalization also Bangladesh can benefit from return migrants. Migrants make-up a pool of potential investors and managers who have benefited from foreign training, not merely from academic or vocational training but in the wider sense of learning on the job and assimilating more of the global business culture .Migrants are likely to return for changing lifestyle for example they wish to return home to set up a business (however small) or to take advantage of early retirement. Due to globalization these migrants are interested to invest in Bangladesh

19. Opportunities for national economy:Opportunities for national economy are:(a) The demand for a country's product is no longer constrained by its own markets; (b) A country's investment is no longer constrained by what it can save itself; (c) A country's manufacturers are able to comprise entre (at a price) to the most superior technology. Since the beginning of its programme in Bangladesh in 1973, the foundation of UNDP's work has been to ensure that progress is based on people -- their needs, their aspirations, and their rights. Drawing upon its global network, UNDP helps the people and Government of Bangladesh to develop their capacities to meet development challenges through initiatives that link advocacy, policy advice, and projects. UNDP promotes human rights, equal opportunities for women and men, and the prevention of HIV/AIDS. Working with partners to support the Government of Bangladesh, UNDP focuses primarily on the following areas: i) Democratic Governance ii) Disaster Management and Crisis Prevention iii) Environment iv) Human Development v) ICT for Development vi) Poverty Alleviation

i) Fostering Democratic Governance in Bangladesh:Bangladesh is a relatively new democracy and many democratic institutions are still evolving. Through services such as: training, advice and resource mobilization, UNDP assists key institutions of Bangladesh. These include: The Parliament, the Election Commission, ministries, civil service training centers, and civil society organizations. UNDP works with these institutions to help develop processes that are more accountable and responsive to the needs of ordinary citizens, especially the poor. UNDP also seeks to promote dialogue on crucial issues of democratic governance in Bangladesh through the production of policy papers. Meanwhile, as chair of the LCG Sub-group on Governance, UNDP plays an important role in coordinating donor efforts in this area.

ii) Enabling people to recover from and reduce the impact of natural disasters:Since independence, UNDP has actively supported the Government of Bangladesh's efforts to reduce the adverse impacts of natural and man-made hazards. In January 2004, UNDP increased its efforts to help reduce the vulnerability of Bangladeshi people to hazards by establishing the Disaster Management and Crisis Prevention Team. Crucial to UNDP's support in this area are initiatives aimed at reducing the social and economic vulnerability of the poorest people in Bangladesh.

iii) Energy and Environment in Bangladesh:The vast majority of people living in Bangladesh are dependent on natural resources for their income, food, fuel and building materials. Additionally, the nation's biggest industries are mostly contained within the agricultural

sector. Therefore, conserving the environment is crucial for achieving sustainable development in Bangladesh. Progress towards sustainable development continues to be hindered by the lack of institutional and technical capacity to design and enforce policies that could foster sound environmental management. UNDP helps in this regard. UNDP works in the areas of Environmental governance, Natural resource management, Food security, etc. which is a great opportunity for Bangladesh. Their core services are: Policy advice and technical support Capacity development Support of pilot initiatives Advocacy

iv)Human Development in Bangladesh:Human development is about improving the quality of people's lives when it comes to basic human rights such as education or health, and thereby enabling them to lead fulfilling and productive lives. UNDP supports Bangladesh in its efforts to find solutions to the challenges human development present by working with people from all branches of society to tackle major constraints in the following crucial areas:HIV/AIDS Livelihoods Empowerment of women Protection of vulnerable groups

v) ICT for Development in Bangladesh:According to the UNDP in Bangladesh, if ICTs can be applied to daily life, millions of people stand to benefit through life-long learning opportunities, local entrepreneurship development, and increased commerce. In collaboration with Government and the Private Sector, UNDP seeks to assist national and private institutions to harness the benefits of ICTs through the following activities:ICT for Development awareness raising and advocacy, Building Government capacities to adopt ICT, Promoting ICT policies and dialogue, Promoting equitable access to tools and technologies, Knowledge sharing and networking

vi) Poverty Reduction in Bangladesh:Bangladesh has made great effort over the past three decades to reducing poverty but it is still at least 40 percent of the country's 140 million people remain in poverty (Mujibur Rahman Bhuiyan, 2004). In addition, the readymade garments industry, which accounts for most of the country's exports and provides a vital source of employment for women and the poor, entered an uncertain phase in 2005 with the expiration of the multifibre agreement, which had guaranteed its access to western markets. UNDP takes such program for Bangladesh to reduced poverty. UNDP-Bangladesh supports poverty reduction initiatives are both the local and national levels and in a balanced way across urban and rural population.

25. Some other Opportunities of Globalization:Globalization has also created some new scope and opportunity for the development. Following may be considered as opportunities:

Bangladesh is being integrated with global economy and business. Expanded private sector employment opportunity with poor labour rights. Increasing competitiveness and efficiency Emergence of new sectors of production and employment according to the global need, such as ternary, footwear, pharmaceuticals, RMG, etc. Competitiveness of Bangladesh is increasingly being based not on low wages or natural resources but on knowledge /innovation, skills and productivity. Labour export to external market increased. As more countries are participating in trade, finance and production, Bangladesh is being integrated globally to a greater extent than before. In Bangladesh, where labour rights have been restricted, democratization and pressure for improved labour rights are taking place (e.g. in the EPZs). Greater liberalization and deregulation, for example, of trade (e.g. increasing customs duty concessions or exemptions), finance (e.g. increasing number of private banks) and labour markets (e.g. declining public sector employment). Competition for investment and markets (e.g. attracting more FDI and exploring new markets). Privatization of SOEs, especially jute and cotton textiles, the largest industries in Bangladesh, involving job losses and the pressing need for social safety nets. Increased economic interdependence compared to other developing nations. Bangladesh is being linked to both developed and developing countries more closely through economic institutions, international agreements or treaties. Increase in foreign capital, information and technology flows. Bangladesh is facing competition from increased internationalization of foreign enterprises, mergers and alliances. Bangladesh is experiencing customer-driven (rather than product-driven) global and local markets, though at the same time segmented markets. Competitiveness of Bangladesh is increasingly being based not on low wages or natural resources but on knowledge/innovation, skills and productivity. Potential to boost productivity and living standards across the globe, because a globally integrated economy can lead to a better division of labour between countries, allowing low-wage countries like Bangladesh to specialize in labour-intensive tasks while high-wage countries use workers in more productive ways thus allowing global firms to exploit bigger economies of scale. Merit of compelling inefficient economies to institute reforms as a precondition to effective participation in the world economy. Openness to trade that brings benefits to consumers in all parts of the world allowing for wide choice of goods and services not available hitherto, at much cheaper prices than in a closed economy. Capacity to compel transparency not only on the part of Government, but also in the management of private sector institutions. Advantage to create enormous opportunities for enhancing economic growth, diffusing technology and improving living standards Provision of an impetus for the diffusion of ideas and values (such as democracy, and human rights) through (ICT).

Conclusion and Recommendation

The impact of globalization on the economy of Bangladesh is mixed with marginal positive outcome overshadowed by vast negative results. Globalization provides many opportunities for development for Bangladesh and its people, including the potential to improve wages and living standards. It has challenged many economic strategies of the past as the way towards development. It provides an impetus and incentive to develop human resources and to improve productivity as key factors of competitiveness and improved living standards. Globalization has made Bangladesh conscious of the need to improve productivity. Even unions in Bangladesh have come to acknowledge the importance of productivity enhancement to the standards of living of their own members. Trade liberalization and privatization has created social insecurity in terms of loss of jobs and aggravating unemployment and underemployment in the country pointing to the need for social protection to contain insecurity of the workers. Voice of the common workers, collective awareness and participatory management of trade unions at various levels are the three main processes for the improvement of trade union governance. The existing practice of centralized governance of trade unions has largely contributed to the major failures in the labour processes in Bangladesh. Competitive labour market is expected to link wages with productivity. In the case of SOEs, real wage growth outpacing productivity growth is a factor raising unit labour costs and reducing international competitiveness calling for adjustment of real wages in line with productivity growth. The state thus has a critical role to play, both in handling such shocks and in helping people and firms seize the opportunities of the global market place. Globalization also sharpens the need for international co-operation in at least five areas, such as: Managing Regional Crisis, Promoting global economic stability, Protecting the Environment, Fostering Basic Research and the dissemination of know-how and Making International Development Assistance more effective. It is the developed countries, which took the lead in integrating the developing countries in the world economy. Ironically, it is the vested interests in these countries which are now trying to limit such integration and put barriers to free trade by raising one issue after another, which have no direct links with trade. Analysts say by having different components of trade in manufacturing, agriculture, services, investments and intellectual property protection under one roof, the WTO will have enormous powers particularly over the third world countries. The key words of globalization are efficiency and competitiveness entailing improved productivity and quality standards, technological improvement, HRD (human resource development), improved working conditions and the like. It means that the response to globalization has to start at the enterprise level implying the need for improved industrial relations at the enterprise level. A vital challenge to the social partners and the Government

today is to encourage and promote the conditions for social dialogue at the enterprise level as an increasingly more important part of a dynamic industrial relations system.

Definition: Globalised World - What does it mean? Does it mean the fast movement of people which results in greater interaction? Does it mean that because of IT revolution people can be in touch with each other in any part of the world? Does it mean trade and economy of each country is open in Non-Intrusive way so that all varieties are available to consumer of his choice? Does it mean that mankind has achieved emancipation to a level of where we can say it means a social, economic and political globalisation? Though the precise definition of globalisation is still unavailable a few definitions worth viewing, Stephen Gill: defines globalisation as the reduction of transaction cost of transborder movements of capital and goods thus of factors of production and goods.Guy Brainbant: says that the process of globalisation not only includes opening up of world trade, development of advanced means of communication, internationalisation of financial markets, growing importance of MNC's, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution
Impact on India: India opened up the economy in the early nineties following a major crisis that led by a foreign exchange crunch that dragged the economy close to defaulting on loans. The response was a slew of Domestic and external sector policy measures partly prompted by the immediate needs and partly by the demand of the multilateral organisations. The new policy regime radically pushed forward in favour of amore open and market oriented economy. Major measures initiated as a part of the liberalisation and globalisation strategy in the early nineties included scrapping of the industrial licensing regime, reduction in the number of areas reserved for the public sector, amendment of the monopolies and the restrictive trade practices act, start of the privatisation programme, reduction in tariff rates and change over to market determined exchange rates. Over the years there has been a steady liberalisation of the current account transactions, more and more sectors opened up for foreign direct investments and portfolio investments facilitating entry of foreign investors in telecom, roads, ports, airports, insurance and other major sectors. The Indian tariff rates reduced sharply over the decade from a weighted average of 72.5% in 1991-92 to 24.6 in 1996-97.Though tariff rates went up slowly in the late nineties it touched 35.1% in 2001-02. India is committed to reduced tariff rates. Peak tariff rates are to be reduced to be reduced to the minimum with a peak rate of 20%, in another 2 years most non-tariff barriers have been dismantled by march 2002, including almost all quantitative restrictions. India is Global: The liberalisation of the domestic economy and the increasing integration of India with the global economy have helped step up GDP growth rates, which picked up from 5.6% in 1990-91 to a peak level of 77.8% in 1996-97. Growth rates have slowed down since the country has still bee

able to achieve 5-6% growth rate in three of the last six years. Though growth rates has slumped to the lowest level 4.3% in 2002-03 mainly because of the worst droughts in two decades the growth rates are expected to go up close to 70% in 2003-04. A Global comparison shows that India is now the fastest growing just after China. This is major improvement given that India is growth rate in the 1970's was very low at 3% and GDP growth in countries like Brazil, Indonesia, Korea, and Mexico was more than twice that of India. Though India's average annual growth rate almost doubled in the eighties to 5.9% it was still lower than the growth rate in China, Korea and Indonesia. The pick up in GDP growth has helped improve India's global position. Consequently India's position in the global economy has improved from the 8th position in 1991 to 4th place in 2001. When GDP is calculated on a purchasing power parity basis. Globalisation and Poverty: Globalisation in the form of increased integration though trade and investment is an important reason why much progress has been made in reducing poverty and global inequality over recent decades. But it is not the only reason for this often unrecognised progress, good national polices , sound institutions and domestic political stability also matter. Despite this progress, poverty remains one of the most serious international challenges we face up to 1.2 billion of the developing world 4.8 billion people still live in extreme poverty. But the proportion of the world population living in poverty has been steadily declining and since 1980 the absolute number of poor people has stopped rising and appears to have fallen in recent years despite strong population growth in poor countries. If the proportion living in poverty had not fallen since 1987 alone a further 215million people would be living in extreme poverty today. India has to concentrate on five important areas or things to follow to achieve this goal. The areas like technological entrepreneurship, new business openings for small and medium enterprises, importance of quality management, new prospects in rural areas and privatisation of financial institutions. The manufacturing of technology and management of technology are two different significant areas in the country. There will be new prospects in rural India. The growth of Indian economy very much depends upon rural participation in the global race. After implementing the new economic policy the role of villages got its own significance because of its unique outlook and branding methods. For example food processing and packaging are the one of the area where new entrepreneurs can enter into a big way. It may be organised in a collective way with the help of co-operatives to meet the global demand. Understanding the current status of globalisation is necessary for setting course for future. For all nations to reap the full benefits of globalisation it is essential to create a level playing field. President Bush's recent proposal to eliminate all tariffs on all manufactured goods by 2015 will do it. In fact it may exacerbate the prevalent inequalities. According to this proposal, tariffs of 5% or less on all manufactured goods will be eliminated by 2005 and higher than 5% will be lowered to 8%. Starting 2010 the 8% tariffs will be lowered each year until they are eliminated by 2015. GDP Growth rate: The Indian economy is passing through a difficult phase caused by several unfavourable domestic and external developments; Domestic output and Demand conditions were adversely affected by poor performance in agriculture in the past two years. The global economy experienced an overall deceleration and recorded an output growth of 2.4% during the past year growth in real GDP in 2001-02 was 5.4% as per the Economic Survey in 2000-01. The performance in the first quarter of the financial year is5.8% and second quarter is 6.1%. Export and Import: India's Export and Import in the year 2001-02 was to the extent of 32,572 and 38,362 million respectively. Many Indian companies have started becoming respectable players in the International scene. Agriculture exports account for about 13 to 18% of total annual of annual export of the country. In 2000-01 Agricultural products valued at more than US $ 6million were exported from the country 23% of which was contributed by the marine products alone. Marine products in recent years have emerged as the single largest contributor to the total agricultural

export from the country accounting for over one fifth of the total agricultural exports. Cereals (mostly basmati rice and non-basmati rice), oil seeds, tea and coffee are the other prominent products each of which accounts fro nearly 5 to 10% of the countries total agricultural exports. Where does Indian stand in terms of Global Integration? India clearly lags in globalisation. Number of countries have a clear lead among them China, large part of east and far east Asia and eastern Europe. Lets look at a few indicators how much we lag. Over the past decade FDI flows into India have averaged around 0.5% of GDP against 5% for China 5.5% for Brazil. Whereas FDI inflows into China now exceeds US $ 50 billion annually. It is only US $ 4billion in the case of India Consider global trade - India's share of world merchandise exports increased from .05% to .07% over the pat 20 years. Over the same period China's share has tripled to almost 4%. India's share of global trade is similar to that of the Philippines an economy 6 times smaller according to IMF estimates. India under trades by 70-80% given its size, proximity to markets and labour cost advantages. It is interesting to note the remark made last year by Mr. Bimal Jalan, Governor of RBI. Despite all the talk, we are now where ever close being globalised in terms of any commonly used indicator of globalisation. In fact we are one of the least globalised among the major countries - however we look at it. As Amartya Sen and many other have pointed out that India, as a geographical, politico-cultural entity has been interacting with the outside world throughout history and still continues to do so. It has to adapt, assimilate and contribute. This goes without saying even as we move into what is called a globalised world which is distinguished from previous eras from by faster travel and communication, greater trade linkages, denting of political and economic sovereignty and greater acceptance of democracy as a way of life. Consequences: The implications of globalisation for a national economy are many. Globalisation has intensified interdependence and competition between economies in the world market. This is reflected in Interdependence in regard to trading in goods and services and in movement of capital. As a result domestic economic developments are not determined entirely by domestic policies and market conditions. Rather, they are influenced by both domestic and international policies and economic conditions. It is thus clear that a globalising economy, while formulating and evaluating its domestic policy cannot afford to ignore the possible actions and reactions of policies and developments in the rest of the world. This constrained the policy option available to the government which implies loss of policy autonomy to some extent, in decision-making at the national level.

Here is a real example of the effects of globalization, which in this case means the movement of money, capital, labor, or natural resources. Chicken of the Sea cans tuna. The company had a plant in American Samoa, which employed 2000 workers. The company moved the canning plant to Lyons, Georgia where they employ 200 workers. The workers in Georgia earn higher wages, but that is offset by the investment in capital which requires fewer workers. A change in minimum wage laws prompted the move. Samoa had been exempt, but that recently changed. Aside from being an example of the effects of globalization, this is also an example of how minimum wage laws cause unemployment.

Example of Globalisation Today Iphone

Economic Geography, GeoBusiness, Global, Urban Geography by Jacky Tse

Now, after doing my AS Level in Geography on the board AQA, Ive come o find ha glo alisa ion isn a ig opic fo he AS half of the AQA Geography A-Level. However, it does play a huge role in geography as a whole and especially in the A2 half of the AQA Geography qualification. I read this interesting article f om The Economis ha goes o show how glo alisa ion oday is used in one of odays mos used devices, he Iphone. The below graphic shows the different components that make up the Iphone and their relative costs and origin (what country they came from).

What I found really interesting about this diagram and its values was that Apple, having the largest market share in the global smartphone industry, gets a fair portion of its components from their close rival Samsung. Furthermore, this mutual trading relationship continues despite Apple suing Samsung back in April over the design of the Galaxy S handset and the Galaxy Tab tablet computer, claiming that they copied hardware and design features from Apple products.

Globalization and the Wal-Mart Effect

Written by Kerby Anderson

Introduction
In this article, we revisit the issue of global trade and the process of globalization. In an earlier article I asked, Is the world flat?{1} I talked about the various things that have made our world flat and used Wal-Mart as one of the examples. I would like to further develop our discussion by using Wal-Mart as an example of what is happening in our world. Thomas Friedman, in his book The World is Flat, says that if Wal-Mart were an individual economy, it would rank as China's eighth-biggest trading partner, ahead of Russia, Australia, and Canada.{2} Often I will be referring to many of the facts and figures from Charles Fishman's book The Wal-Mart Effect.{3} For example, he points out that more than half of all Americans live within five miles of a Wal-Mart store. For most people, that's about a ten- to fifteen-minute drive. Ninety percent of Americans live within fifteen miles of a WalMart. In fact, when you drive down the interstate, it is rare for you to go more than a few minutes without seeing a Wal-Mart truck. Wal-Mart has over 3800 stores in the United States. That is more than one Wal-Mart store for every single county in the country.{4} And they don't exactly fade into the landscape. They sit on vast aprons of asphalt parking and stand out because of their sheer size. Wal-Mart has also become the national commons. Every seven days more than one hundred million Americans shop at Wal-Mart (that's one third of the country). Each year, ninety-three percent of American households shop at least once at Wal-Mart. Wal-Mart's sales in the United States are a bit more than $2000 per household. And Wal-Mart's profit on that amount was just $75.00.{5} The size of this company is hard to grasp. Wal-Mart isn't just the largest retailer in the nation and the world. For most of this decade, it has been both the largest company in the world as well as the largest company in the history of the world.

In 2006, Wal-Mart will be bumped from the number-one spot on the Fortune 500 list of the largest companies by ExxonMobil, whose sales will surge past Wal-Mart's because the world price of oil rose so much in the last year. But if you consider payrolls, there is no comparison. ExxonMobil employs about 90,000 people worldwide. Wal-Mart employs 1.6 million.{6} And there's another difference. ExxonMobil is growing by raising prices. Wal-Mart is growing despite lowering prices. Put another way, Wal-Mart is as big as Home Depot, Kroger, Target, Costco, Sears, and Kmart combined. Target might be considered Wal-Mart's biggest rival and closest competitor, but it is small in comparison. Wal-Mart sells more by St. Patrick's Day (March 17) than Target sells all year.{7}

The Wal-Mart Effect

Ask people to give you their opinion about Wal-Mart and you are likely to get lots of different responses. They may talk with enthusiasm about the "always low prices." Or they might talk about the impact Wal-Mart had on small businesses in their community when the first store arrived. They may even talk about the loss of American jobs overseas. Believe me, most will have an opinion about Wal-Mart. Wal-Mart had its creation in the mind of Sam Walton who promoted a single idea: sell merchandise at the lowest price possible. It began with Wal-Mart working hard to keep the costs of their company as low as possible. This idea moved from their company to their suppliers as they asked them to be as frugal as possible. As the company grew in size, they began looking for every way to wring out the last penny of savings from materials, packaging, labor, transportation, and display. The result was "the Wal-Mart effect." Consumers have embraced "the Wal-Mart effect." As a store moves into a community bringing lower prices, it drives down prices in other stores. And either they compete or close their doors. And it also reshapes the shopping habits of those in the community. But with "the Wal-Mart effect" comes fears of "the Wal-Mart economy." This is the nagging feeling that there are social and economic costs to be paid for "always low prices." Critics talk about low wages, minimal benefits, and little chance for career advancement. The company has found itself under attack from many quarters. There is a lawsuit on behalf of 1.6 million women who have worked at Wal-Mart that alleges systematic sex discrimination. Add to this the allegations that managers have required employees to work off the clock and even have locked employees in stores overnight.

There is also the constant complaint that Wal-Mart does not provide adequate health care benefits. Last year, for example, the Maryland legislature passed a bill that forces companies with more than 10,000 employees to spend at least eight percent of their payroll on health care or pay the state the difference. Since Wal-Mart is the only employer with over 10,000 employees in the state, it is easy to see that the legislation was only targeting WalMart. Wal-Mart recently settled a federal investigation of its use of illegal aliens to clean its stores. The company made a record-setting payment to the federal government. Sam Walton's goal from the beginning was an unrelenting focus on controlling costs in order to provide "always low prices." He instilled in his employees core values like hard work, frugality, discipline, and loyalty. {8} In his book The Wal-Mart Effect, Charles Fishman says these values have become inverted. He points out how the company has changed. When Sam Walton died in 1992, Wal-Mart was a $44 billion-a-year company with 370,000 employees. The number of employees has now grown by 1.2 million, and sales have grown by $240 billion. "WalMart is not only not the company Sam Walton founded, it is no longer the company he left behind." {9}

Out of the Box

You probably never thought about the packaging around deodorant, but Wal-Mart did. Until the early 1990s, nearly every brand of deodorant came in a paperboard box. Most consumers opened the box, pulled out the deodorant container, and tossed the box into the garbage. Some of us recycled them, but we were a very small minority. In the early 1990s, Wal-Mart (along with a few other retailers) decided the paperboard box was a waste. The product came in a can or plastic container. These were at least as tough as the box. The box took up wasted space, and it wasted cardboard. Shipping the weight of the cardboard added weight to trucks and wasted fuel. And the box itself cost money to design and produce. It even cost money to put the deodorant into the box. Wal-Mart began to apply pressure on the suppliers to eliminate the box. Deodorant manufacturers calculated that the box cost about a nickel for every consumer. Wal-Mart split the savings. Deodorant makers keep a few pennies, and Wal-Mart passed a couple of pennies savings on to the consumers. Walk into Wal-Mart today and look at the deodorant aisle. You will probably find eight shelves of deodorant, sixty containers across. In this sea of nearly five hundred containers of deodorant, not one box. Consider the impact of this one decision. First, there is the environmental impact. Whole forests were not cut down

to provide a box that consumers did not use. A few recycled them, but the vast majority threw them away seconds after they removed their deodorant. Was Wal-Mart's pressure to unbox deodorant a good thing? It certainly was, if you are concerned about environmental issues. And Christians should be concerned about our stewardship of the environment. The economic impact was also considerable. A savings of one nickel might seem trivial until you multiply it by the two hundred million adults in the United States. If you just account for the container of deodorant in every American bathroom, you have a savings of $10 million, of which consumers got to keep half. But don't forget that the savings is recurrent. Americans are saving $5 million in nickels about five to six times a year. But there is also a third impact. The impact this decision had on jobs. So far the decision looks like a win-win. But you might not feel so excited about the decision if you work in the forestry industry or are in the paperboard box business. This story illustrates only so well the problem with providing a clear, unambiguous analysis of consumer behavior in American markets and, even more so, the ethics of corporations in a global market. And this story is probably easier to analyze if your first priority is the environment. But the ethics of other situations that arise from globalization aren't quite so easy to evaluate. Wal-Mart illustrates the world in which corporate entities significantly influence our decisions and even transform an economy. While we might like the outcome of saving paperboard boxes, we certainly don't like other aspects of "the Wal-Mart effect." The company has grown so large and evolved in unexpected ways that it is difficult to predict what the future holds. And when we begin to ask moral questions, it isn't so easy to always determine whether the outcomes are good for us or the country.

Salmon
Americans love to eat salmon. In fact, we eat more than 1.75 million pounds of salmon a day. {10} We eat it at home and when we go out to a restaurant. And Americans buy lots of cheap salmon from Wal-Mart. But they are probably unaware of the impact their purchase has on the environment. Most of the salmon served in the United States is Atlantic salmon (which is a species that is not only found wild but is also the species of choice for salmon farmers). The salmon that you buy in Wal-Mart is "a factory product." In other words, they are hatched from eggs, raised in freshwater hatcheries, and then grown to maturity in open-topped ocean cages in cold coastal waters.{11}

Wal-Mart sells more salmon than any other store in the country. Wal-Mart also buys all its salmon from Chile. In fact, they purchase about one-third of the annual harvest of salmon that Chile sells. Wal-Mart sells the salmon for $4.84 a pound. It seems incredible that they can sell it for so little, but there are hidden costs. Atlantic salmon are not native to Chile (its coastline runs along the Pacific). It's an exotic species that is literally farmed and processed by thousands of Chileans. The labor conditions are certainly a concern (long hours, low pay, processing of salmon with razor-sharp filleting instruments). Another concern is the environment. Salmon farming is already transforming the ecology of southern Chile "with tens of millions of salmon living in vast ocean corrals, their excess food and feces settling to the ocean floor beneath the pens, and dozens of salmon processing plants dumping untreated salmon entrails directly into the ocean."{12} When we buy salmon from Chile are we contributing to this environmental damage? Charles Fishman asks, "Does it matter that salmon for $4.84 a pound leaves a layer of toxic sludge on the ocean bottoms of the Pacific fjords of southern Chile?"{13} After all, these salmon are raised in pens (with as many as one million per farm). They are fed antibiotics to prevent disease. As a result, you have quite a mess. One million salmon produce about the same amount of waste as 65,000 people. And add to that additional waste from unconsumed food and antibiotic residue. In essence, the current method of salmon farming creates a toxic seabed. So how do we change this? The answer is simple: by changing consumer behavior. If shoppers won't buy salmon until Wal-Mart insists on higher standards, Wal-Mart will insist on them. The same company that created this huge market for salmon can also change it. But this will only happen if consumers voice their concerns and back it up with their behavior.

Consumer Behavior
As I said earlier, mention the name Wal-Mart and you are likely to get lots of varied reactions. While shoppers love the "always low prices," critics point to the impact that the company has had on the economy and the environment. In fact, it is a bit misleading to think of Wal-Mart as merely a company. In reality it's a global market force. Without a doubt it is one of the most efficient entities at improving its supply chain not only in this country but around the world. Most of us just shop at the store and don't think of the implications of what we buy and where we buy it. The size of Wal-Mart gives it the power to do many positive things. It recently announced fuel-savings plans for its stores and trucks. This could provide a model for the nation.

Wal-Mart also provided a model of how to deal with a disaster like Hurricane Katrina. Even though they had 171 facilities in the path of the storm, they were able to recover and reopen eighty-three percent of their facilities in the Gulf area within six days.{14} One key to Wal-Mart's success was associates who were dedicated to their communities. The local connection helped it deliver goods when the government failed. Wal-Mart sprang into action even before the hurricane hit. Whenever there is a possibility of a hurricane, its supply chain automatically adjusts and sends in plenty of nonperishable food and generators. What is Wal-Mart's effect on the local economy? One famous study found that the arrival of a Wal-Mart store had a dramatic impact. "Grocery stores lost 5 percent of their business, specialty stores lost 14 percent of their business, and clothing stores lost 18 percent of their businessall while total sales were rising 6 percent, mostly due to WalMart."{15} Critics of Wal-Mart say that it forces small businesses into bankruptcy. But if you think about it, it is the consumers who put people out of business. We vote with our wallets. Shoppers are the ones who have made it possible for Wal-Mart's phenomenal growth. And we are the ones who need to pay attention to what we buy and where we buy it. In this article, we have identified a few economic and environmental issues that result from "the Wal-Mart effect." Previously, we have produced articles discussing the Christian's responsibility towards economics{16} and the environment.{17} Our consumer behavior can have a positive impact on our world. As individuals, we have a minimal impact, but collectively we have an impact on our lives and our economy every day when we spend money. For too long, Christians have been willing to separate ethics from economics. Yet in earlier centuries theologians asked important questions about the relationship of morality to money. It is time to return to that moral reflection, especially in this age of globalization. Christians should be alert consumers in this global economy. Notes

1. Kerby Anderson, "Is the World Flat"? (Probe Ministries, 2005) http://www.probe.org//faith-and-

culture/society/is-the-world-flat.html. 2. Thomas Friedman, The World is Flat: A Brief History of the Twenty-First Century (New York: Farrar, Straus and Giroux, 2005), 137-138. 3. Charles Fishman, The Wal-Mart Effect (New York: Penquin, 2006). 4. Ibid., 6. 5. Ibid. 6. Ibid., 7. 7. Ibid. 8. Ibid., 27. 9. Ibid., 48. 10. Ibid., 169. 11. Ibid., 170. 12. Ibid., 171. 13. Ibid., 172. 14. Edwin J. Feulner, "Learning from Wal-Mart," Townhall.com, 24 Feb.

2006,www.townhall.com/opinion/columns/edwinfeulner/2006/02/24/187795.html . 15. Fishman, 156. 16. Kerby Anderson, "A Biblical View of Economics" (Probe Ministries, 2001), www.probe.org/faith-andculture/society/a-biblical-view-of-economics.html. 17. Ray Bohlin, "Christian Environmentalism" (Probe Ministries, 2005),www.probe.org/faith-and-

science/environment/christian-environmentalism.html. 2006 Probe Ministries

About the Author Kerby Anderson is president of Probe Ministries International. He holds masters degrees from Yale University (science) and from Georgetown University (government). He is the author of several books, including Christian Ethics in Plain Language, Genetic Engineering, Origin

Science, Signs of Warning, Signs of Hope and Making the Most of Your Money in Tough Times. His new series with Harvest House Publishers includes: A Biblical Point of View on Islam, A Biblical Point of View on Homosexuality, A Biblical Point of View on Intelligent Design and A Biblical Point of View on Spiritual Warfare. He is the host of "Point of View" (USA Radio Network) heard on 290 radio outlets nationwide as well as on the Internet

(www.pointofview.net) and shortwave. He is also a regular guest on "Prime Time America" (Moody Broadcasting Network) and "Fire Away" (American Family Radio). He produces a daily syndicated radio commentary and writes editorials that have appeared in papers such as the Dallas Morning News, the Miami Herald, theSan Jose Mercury, and the Houston Post.

What is Probe?
Probe Ministries is a non-profit ministry whose mission is to assist the church in renewing the minds of believers with a Christian worldview and to equip the church to engage the world for Christ. Probe fulfills this mission through our Mind Gamesconferences for youth and adults, our 3-minute daily radio program, and our extensive Web site at www.probe.org.

Obama is the key example of globalization

Nury Vittachi | Opinion | Sun, January 25 2009, 6:12 PM

A- A A+ Security guards at the airport just made me take off my belt. Huh? How could my belt be a threat? Did I really look like I could subdue 300 people on a jumbo jet using only a 30-inch strap designed to stop my trousers falling down? Instead of being irritated, I decided to interpret this as a compliment, which made me feel much better. (Yes, men are sad creatures.) It's been an odd week. I had lunch the other day in a restaurant that had previously always banned me. My earlier crime? Refusing to wear a tie. I've disliked ties ever since someone told me ties were a type of noose: same knot, same level of tension, same ability to kill. (Why are ties not banned on aircraft?) The opening up of fancy restaurants to the tie-less is due to globalization. It is no longer possible to exclude people like me on the grounds of our not wearing Western clothes. The world's ultimate example of globalization was surely an incident which took place a few days ago: the ascent of Barack Obama to the most powerful seat in the world. Get this. He is a Chicago man, born in Hawaii, with an African father, an Indonesian stepfather and a mother from English-Irish stock with Native American elements. His first name is Swahili for "blessed one", his second is Arabic for "good-looking" and his third is a town in Japan. His family members speak French, Cantonese, Bahasa Indonesia and German. His favorite possession is a BlackBerry, a Canada-assembled phone made from Chinese and Indian components. His favorite dishes are Italian (shrimp linguini) and Mexican (chilli) and the foods he misses from his childhood are bakso (Indonesian meatball soup) and rambutan (a Malaysian fruit). He and his family dress in clothes from J Crew, a firm which buys Italian cashmere, Czech glass buttons and British wool and ships them to Asia for assembly into American clothes. His not-very-secret vice is Marlboro, a British cigarette made with American tobacco and sold in boxes bearing a Latin motto. His favorite reading matter is Harry Potter (Scottish), Spi-der-Man (American) and The Bible (Middle Eastern). His inauguration takes the title of The World's Most Globalized Event from the death of Princess Diana, defined thus: An English princess with an Egyptian boyfriend crashes in a French tunnel in a German car with a Dutch engine driven by a Belgian drunk on Scottish whisky. She was followed by Italian Paparazzi on Japanese motorcycles and was treated by an American doctor using Brazilian medicines. In the meantime, you may be reading this syndicated article in a newspaper: a British publishing format using German movable type printed on paper, a Chinese invention. Or you may be reading this on a computer, a machine designed in the west and assembled in the east, using Taiwanese chips, Korean monitors and Chinese casings, assembled by

Bangladeshi and Sri Lankan workers in Singaporean plants, and transported to you on ships manned by Filipino and Indian sailors, hijacked en route by Somali pirates and rescued by US gunships. The miracle of globalization means this column will be read by people from the Caribbean to Colombo to China. Even though it is written by a man in an airport whose trousers just fell down.