Globalisation as a phenomenon represent a measure for global economic, political and cultural integration. It is a process for connectivity between the states and nations across the world, thus transforming the world economies into a single entity or a small village by which all the economies of the world are interdependent and interrelated. The origin of globalisation can be backdated to the twentieth century with the inception of advanced communication and transportation facilities. Globalisation occupy a very significant role most especially in emerging economies as proposed by Stiglitz (2003) and its relevance and impacts have been argued by several scholars in relation to its impacts on economic, social, scientific and cultural factors (this will be discussed further in the essay) (Stiglitz, 2002; Hamdi, 2013; Azkunaga et al., 2013). The inception of globalisation has stimulated the business environment, mostly especially in advanced economies. These comprise of the transfer of technological advancements as well as creating opportunities to enable the emerging economies to participate in the advanced markets, which will subsequently result to sustainable economic growth, increase in productivity level and raise the standard of living. Additionally, increase in globalisation in a society yields to adoption of the culture of other nations on excessive interactions with that nation. The globalisation is changing the world in both negative and positive perspectives as the globalisation is bringing the job opportunities and job insecurities and threats at the same time in a country (Goryakin et al., 2015). The essay will explore the significance of globalisation and its impacts on the world in different perspectives. Its economic, social, scientific, and cultural effects are both positive and adverse in various period and circumstances; these however, will be fully explored and analysed in the current essay.
Despite the stated advantages of globalisation and its significant contribution to economic growth and poverty alleviation, globalisation nevertheless has its limitations and misgivings which are unsuitable, unprofitable and pose threats to some economies. That is, any significant increase in the level of globalisation can improve the standard of living of mainly higher-class group or on few occasions the middle-class income earners, will be to the detriment of the lower class and/or some middle-class earners. Other demerits of globalisation include; environmental degradation, uncertainty in financial sector, and inequality among others (Hamdi, 2013).
Globalisation was further strengthened in UK and US by the addressing of the debt crises, development of the neo – liberalism (which serves as an economic framework, thus, presently identified as the Washington Consensus. Also, the proposition of the Structural Adjustment Programs (SAP’s) in less developed nations proposed by the International Monetary Fund (IMF) also stimulated and paved way for the rapid globalisation of the world economies. The IMF was formed in 1944 after World War 2 to curb fixed exchange rate challenges faced by economies, and as well grant interest-free short-term loans, especially to the Least Developed nations (Stiglitz, 2002).
Globalisation can be either a positive factor or a negative factor to economies. From an economic perspective, globalisation can lead to investment in the host country, that is, the attract Foreign Direct Investments (FDI) it can lure investors to invest in the country which will lead to generation of jobs, improve economic growth and lower the poverty level of that economy. Therefore, the less privilege economies due to globalisation are able to receive funds and support from the advanced nations through bilateral or multilateral agreement or partnerships, or just as a mere foreign aid. Furthermore, due to globalisation least developed economies will experience transfer of capital from developed ones, whilst if there are top companies operating in a least developed nation due to some hindrances they may re-locate to an advanced economy where they will have a less cost of production to earn more profit and get access to the advanced market in that advanced nation.
Also, due to improved growth and jobs creation globalisation can attribute to much savings/deposits in the financial sector which can be further reinvested in the economy to gain more yields. Nonetheless, in terms of the labour market, the globalisation will provide job opportunities in the underdeveloped countries, while on the other hand, the offshoring of the companies is reducing the employment opportunities for the local citizens. Thus, the rising trend of globalisation can destroy the jobs of the local labor. Therefore, the rising unemployment rate can affect the overall economy of the less developed nation (Tverberg, 2013; Djordjević and Stoiljković, 2009; and Beck, Sznaider, & Winter, 2003).
Globalisation also has a social aspect which deals with the way of life and existence of individuals. The employment and retaining of skilled and qualified labour matters in the workplace, thus the management of any enterprise are expected to transparently address the challenges their employees may be confronted with, which include; their job security, social protection, social welfare package, and income among others (Koechlin, 2009). Currently, the world exists as a unified society with full integration of individuals (Koechlin, 2009; and Khondker, 2004). As the differences and distances are going to end up through the social globalisation. The globalisation is changing the life style of the citizens. According to the analysis the concept of humanity is developing in the society rapidly as the globalisation is increasing. Regardless of this, the advancement in the technologies and excessive use of social communication media can put the lives of the people in the state of insecurities. The globalisation can make the economy strong through the international trading and foreign investment. Thus, the strong economy can raise the standards of living of the people in a society (Beck, et al., 2003). The education and mass media are the factors that are contributing to a social aspect of globalisation.
As argued by Stiglitz (2002), the globalisation in the field of science can be identified as the integral aspect of the increasing globalisation (Malaspina, 2005). The human development is based upon the development and advancement in the field of science and technology (SCOTT, et al., 2003). Through the modern technologies of communication, the globalisation is increasing in the society. Through the space vehicles, the distances are going to be eliminated. As the rapid advancement is changing our life style (lerntippsammlung.de, 2017). The internet and telecommunication technologies are working actively in developing the globalisation through changing the life style and living standards.
As through the globalisation, the education and research are becoming an easy process. As through the advancement of technology and globalisation the researcher is well aware of the researchers that the researchers of other counters are doing. Thus, the knowledge of the science and scientific researchers cannot be bounded by the limits of a state. Thus, through the globalisation, anyone can get advantage from the researches of other countries to make the world a scientific and developed world (Beck, et al., 2003). As the progress in the field of science and technology can make the human life easy and comfortable (Stiglitz, 2002; Azkunaga et al., 2013; and Hamdi, 2013).
Through the globalisation of the society, the cultural variables can get affected. As the globalisation can change the cultural values and traditions of a society. Following the argument of Stiglitz (2002), the excessive interaction with the other cultures influence the minds that result in the adoption of that cultural values and customs. As the technology is increasing the cultural globalisation through the internet and media (Azkunaga et al., 2013; and Hamdi, 2013; and Malaspina, 2005). In recent age, people of different cultures are well familiar with the cultures of each other that can benefit in the field of business to understand their values for effective communication. While on the other hand, the globalisation is damaging the core cultural values of the country or the state (Beck, et al., 2003). The globalisation is developing informality in culture and cultural consumptions like the literature and movies etc.
According to the analysis, increased interaction between the different nations of the world causes to develop the globalisation (Malaspina, 2005). That can have the positive impact on the economy through the international trading. The globalisation in this perspective results in economic stability and betterment in the living standards. As through the increase in business the employment opportunities rise through which the citizens can improve their financial conditions. For the purpose to increase the globalisation and international trade the governments can play the effective role. As if the government will provide the opportunity to the foreign investors to trade in markets or investment in the country by establishing a production plant thus the situation will enhance the opportunities for the local to earn with them through business deals or by doing the job in that firms (Khondker, 2004). Thus, the employment rate of the country can be controlled. The government can reduce the tax rate or can facilitate the foreign investors to invest in their country (Malaspina, 2005). Regardless of the benefits of the globalisation and the international trade the globalisation, the foreign investors can also affect the local businesses and production sectors. The foreign labor or offshoring can reduce the employment opportunities for the local population. For this, the government should build effective strategies to regulate the process in the efficient way to make the economy stable.
In conclusion, the globalisation that can be referred to the increasing connectivity of the world through different channels. The globalisation is playing an effective role for the very part, which can pose a threat to the human existence in various ways. Due to increased globalisation, some countries acquire profit via the opportunities being created as a result of FDI. Thus, with high increase in globalisation less developed countries tend to lose their cultural phenomenon gradually, and can erode the cultural and traditional core values of the society prior to globalisation. Even the globalisation has a significant impact on the job opportunities in a country. The major cause behind the advancement of the globalisation is the advancement in technology. The governance the state can play an effective role in the regulation as through effective strategies the government can eliminate the disadvantages associated with globalisation to make it effective for society. In future, the globalisation can increase the competition in the market. As the acceptance of the globalisation in the world is indicating towards the situation when the world will become a global village with different background contexts and same cultures. There are chances that the globalisation may make the world economy stronger by providing opportunities to less developed countries from the countries that are developed and strong economically.