Through the global interconnectedness among people, globalization has been appeared. Globalization refers the integration of global economies, societies and cultures through the communication, transportation and trade. During this period of this process, one question has been raised whether is globalization bad or good? And according to this question, it is proved that globalization is playing a fundamental role to make progress to many sections including economies, culture and religion, public services and living standard, and technology.
In economics, Globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies. It shows the market expansion and integration, and it is an unchangeable tendency for international economic development. In economy, globalization is playing a significant role to make advancement to this sector over the world.
Globalization has created widely the international economy, integration of markets and the flow or movement in the world, all of which make escalations in global movement. There are many importance of globalization on economy for many years. Improvement in technology has a essential effect in decreasing the costs of transportation, communication and commodity also lowering the price of data processing and information storage. There is a sign of the modern technology like electric mail, the internet, and World Wide Web. And with technological development, laptop computer in contemporary time is more powerful than the very large powerful computer in twenty five years ago and the price level in 1990 was only about 1/125 compared to that in 1960. Later on in 1998, the computer price wars reduced about 80% more. Furthermore, because of the advancement of technological innovation, we see that the price of ocean transportation is only a half compared to that in 1930, recent aircraft transportation 1/6, and cost only 1% in telecommunication today. At the same time, the price of international trade and investment are decreased by the effect of improvement of technological creativity. Thus, global production is available to manage and coordinate. For instance, Ford’s Lyman car is designed in Germany, its gearing system made in Korea, pump in USA and machine in Australia. It is undeniable that the development of technology make available of these global commodity. Moreover, a large number of enterprises are grown rapidly with the progressing of networking-based economy, making unimportant of the principle of national boundaries and distance of economic action (Michael, 2003).
Globalization makes trade liberalization or economic liberalization available and this has reduced the trade protection and become liberal world economic system. In World War II and the Great Depression this process has been delayed severely. And later on, after the end of World War II through the tendency to trade liberalization and the participation of General Agreement on Tariffs and Trade(GATT) that has developed into the World Trade Organization (WTO), this trade liberalization happened again. With this reemergence, the tax and many barriers were decreased to make ease to the goods transportation and services. Furthermore, liberalization has a active role to increase the capital flow and production movement. It has been recommended by some economists and historians that world economy in this contemporary time is not better than that in late nineteenth century and early twentieth century. During that period of time, many economic countries relied on the international trade and business as part of colonial system. As a result, with the openness of the border, there was a great migration of people and large international capital movements. This is an opinion of British scholars during the British occupation as a colonial power over world economy. However, in this late nineteenth century did not prove the advancement of technology that makes the world economy globalized like today (Michael, 2003).
Globalization has made important effects on national economies. First is the development of foreign direct investment (FDI) at the incredible rate that is more significant than the growing of international trade. In fact, the technological movement, industrial organizing and the creation of world enterprises which have a marvelous effect on national economies have been stimulated by the foreign direct investment. Second is the effect of globalization on the advancement of technology. As indicated before, technological progress acts in an active role in globalization, but technology has become more progressive and widespread rapidly because of globalization and encouragement of marketing competition in foreign direct investment. Third is the acceleration of services, concluding financial, legal, managerial and information services. And this has become the most important section of the international business. In 1970, the service exportation in foreign direct investment was less than compared to that today and it is anticipated to increase further in the future. During the growth of services in national and international market, some people called this period “the age of competence” that underline the educational significance and human capital business in economic sector of every countries.
However, globalization also makes some problems on international economies. Globalization creates regional or world economic fragility and vulnerability because of mutual interconnectedness of economies on the world. For instance, downturn in finances and exchange rate that started from Thailand 1997 had a bad impact on Southeast Asian economies and even Southeast Korea. But this problem above can be solved effectively by the improvement of new institution, many organization and international cooperation. Many institutions especially the International Monetary Fund (IMF) could mitigate even address efficiently on this problem through the promotion to the countries that have faced or discovered the national economic fragility and instability. For example, in the period of peso crisis in Mexico, IMF played a critical role to help as well as promote on this nation. Furthermore, during financial recession in East Asia, IMF made an accord to support South Korea. Thus IMF increased substantially its resources to ensure that these problems could be addressed in transparency. International cooperation also plays a valuable role to the practice of Tobin Tax that is a small tax on foreign exchange business. Tobin Tax has an effect on the limitation on the trading of weak currency. Meanwhile, Tobin Tax also allocates the fund to the international organization.
Globalization has promoted to the escalation of the marketing competition on the international economies. We see that the marketing competition brings many advantageous purposes in resulted in the augmentation of quantity and quality of production. On the market system, Adam Smith and many classical economists stated that the specialization and the division of labor were formed by the marketing expansion the rivalry. With specialization and the division of labor, production is augmented not only in a country, but also in the international basis. Other importance of specialization and division of labor is the decrease of the costs of commodities and services, and this condition allows the continual advancement in economic sector. With the advantage of globalization, both parties such as individuals, firms other organization, nation, trading bloc, continents or other entities can get benefits in the economic exchange. For many years, globalization has promoted the augmentation of productivity through the rationalization of production on a world scale, the technological expansion and creativity-needed competition on the international basis.
In general, globalization has formed the marketing competition that has significant influence in enhancing all groups’ position, with the scope of increased yield or better salaries and higher living standard. Thus, with these benefits, the potential of human welfare has been improved worldwide.
On the other hand, globalization has been proved as unpleasant impact on the sovereign government. It has been stated that the globalization forces are jeopardizing the sovereign nation because the management of the national economic sector has been changed from national government to other institutions, including multinational or international companies and international institution or organization. This transformation can make a sovereign state lose its capacity to determine on policies of its economies. However, the globalization requires not making loss to the national sovereignty. In fact, sovereignty of a country or state and the proper duty of the political leaders remain stable because of the international cooperation. It is like the side being divided separately into two sides. One side for the governmental leaders and other side for international organization, multinational or international company. Moreover, the presence of these institution in addressing the problems or risks stemming by the globalization forces has supported the government leaders especially in politics to keep and even to determine its position in the world economic society. Furthermore, cooperation between the sovereign state and international institution can lead to the progressing through cooperative action. In general, there are many methods of cooperation in addressing with the problems of globalization. First is the keep the existing organization and institution stable and strong. Second is the formation of new institution, as in the case of the World Trade Organization (WTO), to settle the disagreement especially stemming from the globalization. Third is the foundation of larger institution such as the European Union (EU), G-8 or the Asian Pacific Economic Cooperation (APEC). Thus, according to the proof of globalization benefits mentioned above, we can conclude that the process of globalization is really fundamental in promoting the economic advancement not only in a nation but also in the whole world.
Globalization also has a lot of impacts on culture and religion around the world. It spreads from countries to another through Medias and import of production. The media, of course, owned by developed countries that tried to introduce their culture into the other countries around the world. This spread of cultural treads is the most effective way than the others. Ex, people amazed, interested, and inspired by the foreign culture through TV, radio, and especially internet; people, especially teenager, around the world quickly adopted the foreign cultures. Globalization also introduced the “Modernization” into developing countries which made them consume more luxury production. Those demands of production required the import of other production into their countries. This trade of production also helped to spread foreign culture into other countries too. Ex, the uses of other production differed from their culture would made them try to adapt to the natural culture of the production, such as the way they eat in luxury restaurant, the use of mobile phone, etc. Moreover, Globalization also suggested “Democracy” to other countries too. Democracy promotes human rights, equality among men and women, freedom of press and expression, and the rights to vote to choose their leaders. Because of these prosperities and freedom of Democracy, it attracted millions of people to realize and demand for justice, freedom, and changes in policy of autocratic states. Ex, In Burma, people hate the autocratic system of government and they love democracy, so they protest against the government to change the system or resign from the position. This spread of foreign cultures also affected the indigenous religions that had been rooted thousands of years ago in most Asian countries. Most people can’t stand the cruel treat of some religion that have done to them, so they wanted to let go of their religion and adopt foreign culture or religion. Ex, In Islamic states, women have to wear mask to hide their face when they go out in public. And other example is that men can marry as many wives as they want too. Most Islamic people in Iraq and Afghanistan believed that become the suicide bomber for the sake of their country will bring them to heaven to live with god. All of these treatment to people is cruel and unfair for them that why people want to change and get away from it. All in all of the effects of globalization in culture helped to promote peace, cooperation and unity among people around them by understanding each other through the same culture. However, some people believed that the spread of globalization gradually made them lost their cultural identities. Of course, the spread of globalization changed some of their culture and belief but globalization didn’t force them to do so. It is all up to people choices to choose their way to live their life. People adapted only the culture that they believed to suit them well and they forbad the inappropriate culture. Some other people continued to argue that globalization made Asian people disrespect the elder and tended to commit more crimes. But these activities got nothing to do with globalization, in fact, controlling the behavior of people and children are the duty of their parents and government.
Living standard also promoted by globalization through the education and health care. Education is necessaryA for people toA sharing experiences, skills and intellectual assets. According to Sadegh and Shajar (2006), globalization is creating opportunities for sharing knowledge, technology, social values, and behavioral norms and promoting developments at different level including individual, organization, communities and societies across different countries and culture. Moreover, people can articulate human right through the education. IfA allA people can know clearly about human right, it will decrease the violation in the country. As Sadegh and Dhajar stated that, education also means that populations became aware of their right and obligation as citizens and management of life in their communities. In addition, globalization leads to have modern materials for peopleA to study. Nowadays, people can search books or any topic of assignments through the internet, it facilitates student to reduce timeA forA going to the libraries. By using LCD, it can make teachers to explain more easily and it doesn’t waste time to write on white board. As well as, globalization can increase access to education for women and poor people, unlike the history that women cannot go to school or go outside, they can do only housework. According to United Nations, to follow the role of UNDP, government ought to build up human capital through education and ensuring that the poor have access to education (2001). But Bloom said that, the need for higher education in developing countries is going largely unmet. In much of the developing world, higher education delivery is woefully unsuited to the demands of globalization (2002). Furthermore, another point that can improve living standard is health care service. Because of globalization, people can get advance technology of surgery ad innovative medical.A A When the health care increase, people can consult for their health easily, improve treatment and prevention of all kinds of illness and disease. These also lead to increase life expectancy. Moreover, through globalization,A the country open freely for all organization to set up there. Some organizations are providing health care to people like WHO. The World Health Organization aims to assist government to strengthen health service and its role is promoting health to all men kind by providingA technical support and building sustainable institutional capacity. However,A some author statedA that globalization promoted health care for people, but it’s also the one who spread diseases. Like Woodward, Drager, Beaglehole and Lipson response that globalization offers the potential both to improve the health effects of globalization itself and to provide broader benefits to health worldwide. Thus, education and health care offers vast potential for improving living standard through globalization.
As we move further and further into the 21st century, we can clearly see that technology is changing into a new dimension. Technology plays an important and significant role of globalization through its many ways. Technology promotes the development of a global telecommunications infrastructure and greater cross-border data flow by using Internet, communication satellites, fiber optic cable and wireless technology. We can see the advantages of globalization in the Internet. The integration and merging the people of the world have been emerged over the past decade and make the true global communication exist through the Internet technology. For example, someone in the United States can talk or email to someone in Cambodia. “aˆ¦the emergence of the Internet as a tool of low-cost global connectivityaˆ¦This sudden revolution in connectivity constituted a major flattening force” (Friedman, 2007). Internet allows us to take our own digital contents and send it anywhere at very low cost or sometimes for free so that people around the world could share whatever they want to share to the world. Through the Internet technology, social media such as social networking and online conference also bring a big impact on globalization. Social networking such as Facebook and Twitter has integrated people around the world and their community with many advantages for them. For instance, some people have formed new business, enhanced their existing business and sold products through marketing on social networking. Some people also received assistance from their friends or others when they are in trouble, and they also make new friends and improve the friendship through chatting, commenting, posting, calling and video calling. They could also read news and join any contests available on the social media. In addition, the impacts of technology on globalization also include modernization and business field on a global base (Zunairah, 2008). The process of electronic transaction is being improved with business integration, and broadcasting of information over the Internet makes people gain instant access to new information and communication technologies. In business, many companies are enjoying many benefits from the technological research and innovation. For example, business meeting or business production process can be communicated through the Internet and it is possible to communicate with other people and companies across the continents and oceans. The Internet turned into an important part of doing business. Instead of face to face meeting with clients, the managers or chairman could see communicate remotely to their clients via the Internet. However, if there are any mistakes on the communication process through the Internet, many people will suffer and lost benefits from their business. According to BBC News, Skype, which is the most dominant software that many companies use it to communicate with their clients, was crashed by the software bugs and server overloading. Millions of Skype users around the world cannot log in for several hours and it was very disappointing to those users because they suffered and lost some process of their business. That’s why the communication through the Internet is very important for business. Open-sourcing also integrates the people of the world. It involves self-organizing communities or groups that modify and improve open software so that it can be accessed by anyone around the world. For example, Wikipedia uses the open-sourcing principle so that anyone is able to add and edit it. Linux or Mozilla’s Firefox web browser is also open source software that is free to download. It also has the power of cooperation that everybody can work together to solve a given problem. However, globalization on technology cannot reach or benefits the less developing countries. They don’t have Internet connection or sometimes telecommunication. Therefore, these disadvantages can be reduced if the flow of the Internet and Information Technology are introduced to those less developing countries and they can develop their progress in the future. There can be a wonderful impact on globalization as communication process between individuals, institutions and states in different areas of the world and promote the political, social, economic, and cultural aspects of a state.
In conclusion, globalization has critical effects on the advancement on economies, culture and religion, public services and living standard, and technology not only in a nation but also in the whole world. Although globalization shows a manifestation of disadvantage effects, the benefits of globalization still remain as priority in the international society.