Globalisation is the communication between businessesinternationally to make trades or exchanges. It greatly improves businessesability to save money as they may communicate with a business’s abroad, and buymaterials for cheaper out of their country. However, globalisation brings lotsof positives, but it can be argued that it can do a lot of harm to workers, andlocal communities helping multinational corporations achieve their goals. Thereare three perspectives of globalisation and these include a neoclassical,institutionalist and socialist view point. I will cover all parts of globalisationduring this investigation and I will also look into whether globalisation ismore beneficial or not for the world. This is a definition of globalisationproduced by the Economist, who are a renowned English newspaper company whoproduce businesses and politics related news stories. “Globalisation is themore or less simultaneous marketing and sale of identical goods and servicesaround the world. So widespread has the phenomenon become over the past twodecades that no one is surprised any more to find Coca-Cola in rural Vietnam,Accenture in Tashkent and Nike shoes in Nigeria.
“1(TheEconomist – online.) My next definition of globalisation is from lexicon.ft.coma financial times website who cover similar stories and topics like theEconomist, but they are much smaller sized business. “Globalisation describes aprocess by which national and regional economies, societies, and cultures havebecome integrated through the global network of trade, communication,immigration and transportation.”2 (Lexiconfinancial times – online) Finally my last definition of globalisation is byDavid Held. He said that “globalisation can be thought of as a process whichembodies a transformation of the spatial organisation of social relations andtransactions.
” David Held produced this definition in 1999, and it is nowfeatured on the united nations educational, scientific and culturalorganization information page on globalisation. 3 Neoclassical perspective looks at therejection of the Marxian notion of exploitation and the promotion of the ideathat the distribution of social resources produced by market exchanges isinnately fair. Economists use the neoclassical paradigm for analysing how theeconomy works and understanding how it works according to the world. Accordingto the paradigm, workers, consumers and organisations make calculated decisionsthat are in their best interests. Neoclassicism is a basic principle, likematters of supply and demand, output and growth. Economics covers all areas oflife, and it would be hard to find an aspect of life where economics does notcover. Globalisation in recent years has caused a huge global financial crash,and this has highlighted a range of issues like the fact economic forecastinghas been proven to be ineffective at predicting current crisis’s.
Globalisationhas caused widespread unemployment throughout western countries and gradually enteringinequalities into the third world. There is a clear trend from resources thatthe neoclassical theory has not worked well when tested against the data, andthis means that businesses should be careful when using it for trading anddistributional concerns. Institutionalist perspective theory is muchdeeper and more resilient at social aspects of social structure. It considersthe structures, including schemes, rules, norms and routines become establishedas authoritative guidelines for social behaviour. 4(Institutional theory on globalisation – Wikipedia – William Richard Scott) Structuralismhas been a leading perspective in researching globalization. The perspectivestates that people take globalization for granted and is seen as something thathas always been available for everyone. A systematic perspective is widelyknown for its view to reflect the features of reality that are controllable.More extreme cases of structuralism have no uncertainty, and the determinism ismade by social institutions.
Socialism is an economic system whereeveryone in the society equally owns the factors of product. The ownership isusually through a democratically elected government. The main four factors ofproduction are labour, entrepreneurship, capital goods and natural resources. 5Globalisation only produces capital easier, and it only makes money, machines,and factories get the best return for a country. Globalisation from a socialistperspective can be seen as a form of imperialism as it is just another way of acountries power and influence through colonization. Countries like the Unitedstates of America, use foreign factories for cheaper labour, but workers areforced to work in extreme conditions which often leads to suicides.
An exampleof this would-be apple factories in China, where workers are paid £1.12 perhour to produce iPhones and iPad’s for western countries. One of the ‘sweatshops’ in Shenzhen has had over 18 people kill themselves, and as a resultsuicide nets have been installed to factories to prevent workers killingthemselves. Many believe that western countries have economic and politicalcontrol over other nations, and they are not globalising the world for theculture of poorer countries, but rather for the exploitation of other nationsresources for the benefit of western countries.
This may be an extremeviewpoint to directly put globalisation and imperialism in the same basket, asglobalization refers to the interaction economically, politically betweendifferent nations, organisations, citizens, and governments. On the other hand,it is believed that Imperialism refers to a nation which occupies multipleforeign nations and regions, like Japan during World War 2. I think thatglobalisation is just expansion of things like business on a global scale. Theglobal economy has become globalised, but due to this there has been anincrease in exploitation of workers as more poorer communities are beingreached by globalisation and this has meant they have been forced to adapt tothe global change and work under multinational corporation’s work regulationswhich may not be the best conditions as countries like China have far moredifferent health and safety regulations to a country like the United kingdom. 1 http://www.economist.com/node/14031230July 20th 2009 – Online extract – The Economist 2 http://lexicon.ft.com/term?term=globalisationLexicon financial times 3 http://www.unesco.org/new/en/social-and-human-sciences/themes/international-migration/glossary/globalisation/David Held – September 2000 – International social science 4 https://en.wikipedia.org/wiki/Institutional_theory5 https://www.thebalance.com/socialism-types-pros-cons-examples-3305592- the balance by Kimberly Amadeo – November 30th, 2017