Effects of Globalisation

Effects of Globalisation
Globalisation is when companies and organisations, ideas and lifestyles spread more and more easily around the world. [image]Examples of globalisation are big brand names like Nike, Adidas and Reebok. All these brand names are famous around the world, and are all their products are sold in nearly every country. Though these products are not made in MEDC?s where they originate from, they are made in LEDC?s, which lets them exploit their employees because they can give them low pay. Fortunately for the workers, people have stood up for them and realised the injustice of this, so now the workers get paid more, but not much. Adidas has become so wealthy that they can afford to use football megastar David Beckham as fundamental part of their marketing scheme. Adidas has recently created a logo designed to catch the angle of David Beckham?s body upon impact as he steps into the free kick, familiar to many football fans, this logo will be on a specially designed collection of Adidas products.
The contract with Beckham cost Adidas £300,000,000. [image]He announced he has extended his contract with the German shoe company until 2008. Beckham unveiling his new logo with Adidas Some people say that Globalisation is a good thing because the age of globalisation has seen important economic advances for some poorer countries; if a company wants a computer program written for them, it is a lot cheaper to get it written in India, than in Britain, this is beneficial for the company, and for India because Indians can get jobs, and the company doesn?t have to pay so much. TNC?s(trans national companies) like the ones I mentioned above, are also in favour of globalisation because it gives them more customers, and therefore more business. Where before they were only selling products to Britain and America, they can now sell all over the world, and get them made for cheap labour as well. MEDC?s like globalisation because the companies, which it develops, can now have wider markets and bring more money into them. LEDC?s like globalisation because it gives them more connections to the richer countries, it brings them jobs therefore it strengthens their economy. Workers all over the world think that globalisation is a good thing because it gives them more job opportunities, and means that the whole world is coming together rather than the poorer countries just having separate clothes manufacturers and altogether separated from the rich countries. Economists think that globalisation is a good thing because it enables most countries to develop a stronger economy, and generally become richer, so poor countries can fund necessities like water, and rich countries can improve on their public transport. The wto (World Trade Organisation) supports globalisation because most exports also use some imports. For example, a country might export packaged sugar, but import the packets. Lowering import barriers makes export industries even more efficient and competitive in world markets. Countries that lower trade barriers concentrate their national energies in industries they are good at, where they have an international advantage. Import barriers encourage countries to focus efforts in industries where they do not have any advantage. It leads to wasteful and lazy investment. There is evidence that developing countries that put up barriers to imports have slower growth in incomes than those that are open to trade. The countries that are getting poorer are those that are not open to world trade, notably many nations in Africa. China?s opening to world trade has brought it growth in income from $1460 a head in 1980 to $4120 by 1999. In 1980, American?s earned 12.5 times as much as the Chinese, per capita. By 1999, they were only earning 7.4 times as much. The gap between rich and poor is also shrinking with most nations in Asia and Latin America. So there is clear evidence that globalisation increases the wealth of not just poorer countries, but poorer people as well. Unfortunately, just like most other things in life, it is not wholly good. Globalisation destroys local culture, and makes people buy things, which they wouldn?t normally buy because of the fashion. The control of the culture is in a different country. People lose skills, for example, people in England don?t know how to make shoes because they?re all made in place. Some politicians say that they don?t like globalisation so they can get more votes just by announcing that they don?t agree with globalisation, even if they don?t believe it, they could still gain votes by saying it. Workers in LEDC?s may not like globalisation because they don?t get a very high wage and the employer is in control of them. Workers in MEDC?s may not like globalisation either because it prevents them from having jobs, because the companies prefer LEDC?s since they only require cheap pay. Many environmentalists are against Globalisation because since global companies do not have an affiliation with a particular area, they feel they don?t have any responsibility for the local environment. Some economists don?t like globalisation because they think that global companies don?t put much of their profit into LEDC?s and only to themselves. [image] Has Thailand become a victim to Globalisation? I feel that although globalisation may be bad for some, it is overall a good thing. It has abolished some trade barriers, and allowed countries to become richer. It benefits most people. Whatever my thoughts on this subject, globalisation is here, and will continue to affect the world.

Effects of Globalisation 7.4 of 10 on the basis of 2941 Review.