Aim
The chosen article to demonstrate critical views on the globalization is “On Why Developing Countries May Not Benefit from Globalization”. The article was presented as critique to the fact that globalization is the solution to all the human problems. World famous Noble winner Economist Professor Eric Maskin did argue the fact that globalization is a solution to all the business across all the countries. This is because of the fact that globalization brings economic betterment to some countries; however, it also disturbs their environmental benefits. Nevertheless, an unequal distribution of development combined with the loss of environmental values is not at all the wisest solution to all the human problems (Maskin, 2017). The above-mentioned article can be understood with the help of some theoretical concepts such as Utilitarianism and Kant. The utilitarianism theory is in the favor of the personal preference over any moral values, which means that human benefits are more important than any moral values. On contrary to this, Kant believes that the moral values are the utter requirement for the betterment of society, which can never be compromised with the betterment of personal desire. In the given article, globalization is not highly encouraged because it is not beneficial equally for irrespective of the societies. It is worth for some; however, it is curse to others (Crane and Matten 2016).
Mr. Maskin argued that globalization brings inequality in developing countries in wages distribution. The partnership relation with big companies in foreign countries is a good source to attract professional graduates for the jobs. Moreover, it enhances the number of graduate employees; however, it also reduces the profit margin as these workers demand high wages. For example, if an employee were working for some big companies such as Walmart in China, it would get a good amount of package mainly because of the reputation, which the Walmart has in the world market (Crane and Matten 2016). On a same note, if someone were working in some small local companies, the employees would have no option than going for a lesser wages. The employee power is lesser in such companies because of the demand for the low skilled employees. On contrary to this, it has huge demand in big companies, as attrition of professional graduates would create a gap that is hard to be filled up (Dunning 2014).
The effect of globalization on unequal payment of wages is contradicting with two of the most important theories of business such as Environmental ethics & Justice (Hill, Cronk and Wickramasekera 2013). Environmental Ethics guides the behavior of common people towards the wellbeing to the earth. Environmental Justice guides the human being towards a common behavior for all kinds of people of different colors, origin, income etc. The effect of globalization is producing contradicting results in some of the cases as that in the case of unequal payment of wages. This does not mean that globalization has no benefits; however, it means that globalization has not produced solution to all the problems as expected by numerous economists (Ghillyer 2012).
Objective
Those who are poor and underdeveloped country such as the present Afghanistan, Iraq, Taliban etc., they cannot afford to have high skilled labors in their foreign manufacturing branches because of the lesser financial supports. On contrary to this, globalization has benefitted most of the big companies such as Walmart America, Tesco UK, Asda UK etc. (Stanwick and Stanwick 2013). Walmart in China is a successful foreign company despite of the fact that an anti-American feeling is high in air. Walmart with its superior strategies turned all the odds in its favor. Nevertheless, the costs of labor in China are very high, which makes it difficult for the small size companies in having a healthy profit margin. However, small companies are also dreaming of taking benefits from the Chinese market but a high labor costs is a big threat for such companies. It then becomes imperative for such companies to have less skilled workers for their manufacturing sites to reduce the bargaining power of labors. Environmental Ethics & Justice have supported the equal behavior with all kinds of people; however, globalization is not allowing the practice of the same in the developing countries (Dierksmeier et al. 2016).
According to Maskin, matching skilled employees with low skilled employees can produce solution to the problem, which the globalization is producing in developing countries. It supports the fact that high skilled employees can very well provide a supportive environment to the low skilled labors (Boylan 2013). It certainly provides efficient time for the learning to the less skilled labors. This move is good for the entry into a potential market such as China as it allows big companies for its full exploration. Big companies such as Walmart America, Tesco UK etc. can have participation of the low skilled employees in China, which would give them higher bargaining power on the labors as it already has ample of professional graduate. On contrary to this, small companies might not experience the same luxury, as it is tough for such companies to have partnership relation with local small companies. The lesser financial capabilities of the parent Company might not allow them for a partnership relation with the local companies. Export is the one option that is feasible with the financial capabilities of such companies. However, assurance for the quality product is lesser in such kinds of business. Setting up own manufacturing centre by acquiring & merging with some local companies is perhaps the best possible solutions for the quality production in offshore business (Feldman 2013).
Environmental Ethics & Justice has perhaps provided the solution to all the humanity but it is not finding the calculated support from the adverse effect of globalization especially in the developed countries. These theories are up against inequalities based on color, religion, economic capacity; however, globalization is more susceptive to the unequal behaviors. Globalization is now bringing the cultural beliefs of multiple countries to a single point by means of business. Moreover, it is creating challenge for the offshore business for maintaining a relationship of harmony because of the added burden in the form of multi-cultural people (Bowie 2013). On a same note, lesser capable companies in terms of financial strength are more susceptive towards unequal payment of wages to the employees. Globalization is for the betterment of business, which was believed to provide an exploration to the business. Indeed, it is proving its worth for most of the companies; however, it has also created problems to small sized companies in the developed countries. Globalization has lessened the distances in between the countries; however, it has also challenged the maintenance of multi-cultural relationship among labors. The adherence of the ethics can guarantee the betterment of common people. Nevertheless, it is very difficult to abide by these theories at its fullest level (Ghillyer 2012).
The chosen article has indicated towards a hard truth, which is not favoring the utter importance of globalization. According to the author, globalization is not the solution of humanity. The author further adds that globalization is attracting the exploitation of environmental values by violating some environmental ethical morality such as pollution free environment. In the verge becoming a globalized country, they are ignoring the vital part of this universe. This is why there are many CSR related activities are in practice because different companies have an understanding that their globalized processes are disturbing the environmental values. The CSR activity is representing an unclear meaning. The globalization is a good process but it is not benefitting the entire world. Kant theory does very well explain that nothing is more important than the environmental values. However, globalization is causing severe pressure on the environmental values. The globalization is good for the sake of enhancing the business but it should never happen on the verge of destroying the environmental values. Moreover, globalization can provide solution to the business to some countries but it can never provide a balanced environment as various examples of disturbing environment prove.
References
Bowie, N.E., 2013. Business ethics in the 21st century. Dordrecht: Springer. [Accessed at: https://link.springer.com/book/10.1007/978-94-007-6223-7]
Boylan, M. ed., 2013. Business ethics. John Wiley & Sons. [Accessed at: https://books.google.co.in/books?hl=en&lr=&id=RYVP0yvdrnoC&oi=fnd&pg=PT10&dq=Boylan,+M.+ed.,+2013.+Business+ethics.+John+Wiley+%26+Sons.&ots=UEIOgeSgkq&sig=Y62iNbRBWHdlNVXo-ZslNo-f–M]
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press. [Accessed at: https://books.google.co.in/books?hl=en&lr=&id=J8-SDAAAQBAJ&oi=fnd&pg=PP1&dq=Crane,+A.+and+Matten,+D.,+2016.+Business+ethics:+Managing+corporate+citizenship+and+sustainability+in+the+age+of+globalization.+Oxford+University+Press&ots=5q_h5uTmh9&sig=dhcupn2LKCKunknMwZbPhTRyAa0#v=onepage&q&f=false ]
Dierksmeier, C., Amann, W., Von Kimakowitz, E., Spitzeck, H., Pirson, M. and Von Kimakowitz, E. eds., 2016. Humanistic ethics in the age of globality. Springer. [Accessed at: https://books.google.co.in/books?hl=en&lr=&id=krtsCwAAQBAJ&oi=fnd&pg=PP1&dq=Dierksmeier,+C.,+Amann,+W.,+Von+Kimakowitz,+E.,+Spitzeck,+H.,+Pirson,+M.+and+Von+Kimakowitz,+E.+eds.,+2016.+Humanistic+ethics+in+the+age+of+globality.+Springer&ots=RmmbjKLThL&sig=sp3kPhYj-SpeJH0zUxhF9Ju5VJQ#v=onepage&q=Dierksmeier%2C%20C.%2C%20Amann%2C%20W.%2C%20Von%20Kimakowitz%2C%20E.%2C%20Spitzeck%2C%20H.%2C%20Pirson%2C%20M.%20and%20Von%20Kimakowitz%2C%20E.%20eds.%2C%202016.%20Humanistic%20ethics%20in%20the%20age%20of%20globality.%20Springer&f=false]
Dunning, J.H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge. [Accessed at: https://books.google.co.in/books?hl=en&lr=&id=8DpWBQAAQBAJ&oi=fnd&pg=PP1&dq=Dunning,+J.H.,+2014.+The+Globalization+of+Business+(Routledge+Revivals):+The+Challenge+of+the+1990s.+Routledge&ots=GMUJ1nO9hh&sig=YwhQiKonqLzUydDnNiR9TsXnybs#v=onepage&q&f=false]
Feldman, S.P., 2013. Trouble in the middle: American-Chinese business relations, culture, conflict, and ethics. Routledge. [Accessed at: https://books.google.co.in/books?hl=en&lr=&id=NNDaVRox0wUC&oi=fnd&pg=PR2&dq=Feldman,+S.P.,+2013.+Trouble+in+the+middle:+American-Chinese+business+relations,+culture,+conflict,+and+ethics.+Routledge&ots=RRYpTeTE2_&sig=2iA2WDQAo9z0qAFYYe_aAEVVsEU#v=onepage&q&f=false]
Ghillyer, A., 2012. Business ethics now. McGraw-Hill. [Accessed at: https://www.semesteratsea.org/wp-content/uploads/2013/04/Castaldi_SEMS3500506_BusinessEthics1.pdf]
Hill, C.W., Cronk, T. and Wickramasekera, R., 2013. Global business today. McGraw-Hill Education (Australia). [Accessed at: https://ltuonline.ltu.edu/syllabi/SP13_MGT6053.pdf]
Maskin, E. 2017. Nobel Laureate Economist, Maskin, On Why Developing Countries May Not Benefit From Globalization. [online] casade.org. Available at: https://www.casade.org/nobel-laureate-economist-maskin-on-why-developing-countries-may-not-benefit-from-globalization/ [Accessed 29 Mar. 2017]. [Accessed at: https://www.casade.org/nobel-laureate-economist-maskin-on-why-developing-countries-may-not-benefit-from-globalization/]
Stanwick, P. and Stanwick, S.D., 2013. Understanding business ethics. Sage. [Accessed at: https://books.google.co.in/books?hl=en&lr=&id=SpPUrOhQ7I4C&oi=fnd&pg=PR1&dq=Stanwick,+P.+and+Stanwick,+S.D.,+2013.+Understanding+business+ethics.+Sage&ots=NGS_FLZIwP&sig=-eaQTE4WpuM91nrqnkl-1y3psfo#v=onepage&q&f=false]
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