Positive and negative effects of globalisation

Positive and Negative Effects of Globalization

The unique process of globalization is transforming the world in a phenomenal way. The world has never seen the movement of people from one place to another on such a scale as at present (Nevin, 2006, p. 43). Another major facet of current economic globalization is increasing libertarian concept of free trade across the world. Obviously, it goes against the proponents of protectionism and socialism. The concept of free trade is flourishing since the early nineteenth century when Adam Smith and David Ricardo emphasized about the principles and advantages of free trade (Went, 2002, p. 16).

Adam Smith successfully defended the profits of social distribution and free trade across the national borders. The theory of comparative cost and comparative advantages was further supported by David Ricardo. He suggested the advantages of globalization by taking the example of England and Portugal as: "England may be so circumstanced, that to produce the cloth may require the labor of 100 men for one year; and if she attempted to make the wine, it might require the labor of 120 men for the same time. England would therefore find it her interest to import wine, and to purchase it by the exportation of cloth. To produce the wine in Portugal, might require only the labor of 80 men for one year, and to produce the cloth in the same country, might require the labor of 90 men for the same time. It would therefore be advantageous for her to export wine in exchange for cloth. This exchange might even take place, notwithstanding that the commodity imported by Portugal could be produced there with less labor than in England. Though she could make the cloth with the labor of 90 men, she would import it from a country where it required the labor of 100 men to produce it, because it would be advantageous to her rather to employ her capital in the production of wine, for which she would obtain more cloth from England, than she could produce by diverting a portion of her capital from the cultivation of vines to the manufacture of cloth" (Ricardo, 1821, pp: 140-141).

Although globalization certainly helps in the exact manner as Adam Smith and David Ricardo explained, yet they missed out certain drawbacks related with the enigmatic phenomenon of globalization. The basic argument against the advantages of globalization is the assumptions made by the free-trade supporters which are far stretched away from reality. "Free trade supporters assumes that all income in a country is expended to buy goods; that there is never any reduction of demand because money is saved; that full use is being made of productive capacity and of the factors of production, which adapt instantly to changes in demand; that countries always have or are headed rapidly towards a balance of trade; and that markets adapt quickly and are therefore perfectly flexible." (Went, 2002, p. 73). Many economists, including Frey and Weck-Hannemann expressed the inflexibility and imperfection of globalization and free market theory that has been underlined by the assumptions made by free-market theory proponents is the main cause of why people support protectionism and calls against globalization (Went, 2002, p. 73).

Globalization does not only hold its importance in economical circles. Globalization has its own cultural effects too. Cross cultural contacts grows at rapid rate due to globalization that promotes advent of new ideologies and levels of consciousness. Globalism includes cultural diffusion and transformation of culture. People in different parts of the world can easily fulfill their desire to enjoy and consume the exotic products and services along with ideas of lifestyles. Globalization provides a media to spread new technologies and practices throughout the world. All these diffusion lead to a world culture, announcing whole world as a single nation, a unique abode for human beings of all races and ethnicity. Globalization reduces the issues of racism and similar discriminations. "It brings human beings together." Yet there are some negative effects of cultural globalization too (Pieterse, 2003, p. 11).

Because of globalization and the need to adopt a single means of conversation, different parts of the world suffer the loss or reduction of importance of native languages and that leads to loss of ideas too. Furthermore, many scholars believe that the consequences of globalization may not really be a homogenization of culture. They suggest that negative effects of globalization may reach towards cultural crumbling, the conception of hybridized cultures, the recrudescence of formerly declining cultures, and even cultural resistance (Pieterse, 2003, 15). All this may lead to instigate cultural disharmony within the nations (Knight, 2006, p. 2). On economic front too, often globalization is attacked as a view that it supports excruciating imperialism and colonization.

It is undeniable fact that globalization has improved the world to a greater degree, yet the negative effects of some consequences cannot be denied. It has led to wide increase of socio-economic disparities within societies, nations and between different regions of the world. The phenomenon has also empowered the relatively poor people across the world to migrate away with the means of moving from one country or continent to another. Migration has its positive effects that can be easily seen in the nations that are suffering from slowing birth-rates. Many European countries are running out of people. Migration helps these countries to maintain the workforce. On the other hand, migration leads to difficulties caused due to brain drain and protectionists movements too (Tom, 2006, p. 44).

Brain drain poses a threat of the native country of the migrants to lose out the developing human resource to other countries as the better skilled and intelligent workers often leaves one country for the better opportunities in other countries (Tom, 2006, p. 44). This also leads an opposing feeling in the people of the country where the migrants enter. The current issues of violence in Australia against Asian and Indian migrants in particular are a burning example of this trend. As the native people realizes that although they are not as skilled and deserving as the migrants are, they might have grabbed some better job opportunities in absence of migrants that have entered the local markets as a consequence of globalization, they starts opposing globalization. (Lene-Bomann, 2004, p. 61).

One of the major concerns against globalization is the inability of local governments to provide proper protection for the citizens against some of the disastrous industrial accidents. The Bhopal Gas Tragedy case in India signifies this negative effect of globalization. Also, millions of Indian people have been dragged out of the socio-ecological networks that were the basis of their existence since thousands of years. The developing infrastructure in form of dams, canals, mines, industries, defense establishments etc. that gains their importance because of globalization has caused these millions of Indians to lose their abode (Lene-Bomann, 2004, p. 66).