Regional Effects of Globalization

Globalization Does world trade make the world smaller by bringing people closer together? Or does it divide the globe by creating winners and losers through greater inequality? Globalization is a complex phenomenon that is often misunderstood. Part of this trend deals with a movement toward more integrated economic and political systems. Yet, today's societies face both an internal and external political environment and socio-economic factors that are marked by unprecedented levels of bipolarization and inequality that have arguably reached new heights relative to any time in human history.

Is important to note that globalization is not exactly a new phenomenon, but new developments in technology, more specifically relative to information technology (IT), have allowed citizens of the world to communicate in real time and engage with virtually anyone else in the world. International organizations have leveraged these new developments and much of globalization is driven by companies that operate internationally and have supply chains that have become sophisticated, complex, and can span the entire globe.

While these developments have introduced many people to other cultures that they have not otherwise ever known, it has also created many negative consequences for certain populations that could be considered the "losers" of globalization. Therefore, while globalization has brought many people around the world closer together, it has also simultaneously led to situations that disadvantage certain groups. This analysis will look at the globalization trend from both of these perspectives.

Globalization Overview International trade is not a new development and as soon as ships were able to begin to traverse the oceans, the Dutch developed the first international organizations. The Dutch East India Company use their knowledge of the seas and shipping to establishing trading routes with countries such as Egypt, Middle Eastern countries, Africa and Asia and many consumers benefited because they gain access to different types of products that they never were able to purchase before (Crump, 2006).

Different players are at the helm in today's international market however and the trend is far more comprehensive. For example, it is not uncommon to purchase a good produced with raw materials from Africa, components of the logistical capabilities being driven by technological companies based in India, the fuel for transportation being sourced in the Middle East, and the final assembly done in China, all before the good is finally warehoused and enters various distribution channels in the United States or other developed countries.

In the same way that the Dutch pioneered trade, companies are innovating production processes that fully utilize the advantages that globalization offers. Each country in the process typically offers the international market some specialized contribution. Countries like India have become hubs for highly skilled software and computer work and countries like China high become centers for high tech manufacturing (Sarma, 2005).

As a result of popularity of globalization, cultures have meshed naturally as well as the fact that many organizations have tried to proactively create a level of homogenization and standardization internationally of markets, resources, and labor. For example, when a corporation into a foreign market it brings with it investments and creates new jobs as well as helps to develop infrastructure, which can represent a major achievement to some when one quarter of the world's population still lack the availability of electricity (Gronewold, 2009).

Therefore, contributions to developing countries that do not have electricity can change many lives for the better and help them to modernize their lifestyles. Furthermore, since those currently without electricity currently use wood and charcoal to perform basic task such as cooking and for heat, providing these individuals electricity could actually reduce greenhouse gas emissions among a host of other benefits (Gronewold, 2009).

Yet the benefits can exceed these basic contributions and in many cases, when foreign investment enters new parts of the world then this can often stimulate the local economy and provide more opportunities for the people within the developing country. The company's that enter these markets also have access to much cheaper labor options when compared to the labor rates that are found in developed nations and for many remedial tasks, this can represent a win-win relationship.

International development can help the local economies in such regions by providing jobs to individuals who were unlikely to find employment before the local region became globalized. Problems Associated with Globalization Despite all the potential benefits of international trade, in reality the actual practices and the results of these types of relationships are commonly associated with a host of different problems.

For example, the injection of foreign investments and the introduction of foreign companies does not improve the quality of life for the local residents as their labor can be easily exploited by powerful, profit focused international companies. One example can be provided by The Democratic Republic of Congo which is rich with various natural resources, such as diamonds, gold, copper, cobalt, zinc, and coltan; which are all vital components in many of today's electronic devices (Bekoe & Parajon, 2007).

Yet, despite the wealth in the form of natural resources that the country possesses, these resources have only represented conflict and have rarely benefited the population in the Congo, if at all. "Instead the natural riches have attracted rapacious adventurers, unscrupulous corporations, vicious warlords and corrupt governments, and divided the population between competing ethnic groups (Bekoe & Parajon, 2007)." There is a plethora of other case studies that also support the concept that globalization can devastate vulnerable populations.

For instance, despite the progress appearing in certain economic indicators that typically improve with the introduction of globalized policies in developing nations, there are other aspects to the economy, such as social and political issues, that are skewed in favor of the foreign investors. Another example can be provided by the IMF's involvement in many African nations under their structural adjustment program (SAP) that many developing countries have fell victim to.

The last round of SAP experiments in Nigeria led to horrific social consequences and was accompanied by enormous financial and economic hardship which affected access to education for the majority of poor Nigerians and for girls in particular, in which many NGO organizations such as the United Nations Children's Fund and United Nations Educational, Scientific and Cultural Organizations who strive for equal education in Africa, for both genders, by the year 2020 (Obasi, 1997).

Other women have been effectively forced to become migrants who leave a developing country to pursue labor options in developing nations as domestic workers (Parrenas, 2008). Therefore, globalization.