Analysis of the Negative Reaction Provided to Globalization
As discussed by Ghatak (2016), globalization can be defined as the free movement of the services, goods and people in different parts of the world in an integrated and seamless way. This is also considered to be the result of opening up of global economy. The import and export based protocols that are developed by the global organizations are able to influence the foreign investments that are made by them (Holm 2019). Globalization is thereby grounded within the theory of the comparative advantage that mainly states that countries which are able to produce a particular good can export them to the other countries or markets. The process of globalization is considered to be a movement towards the financial, trade, communications and economic integration on a global level (Baylis, Owens and Smith 2017).
The essay will be mainly based on the negative impact of globalization on the different countries. The unequal distribution of the benefits of globalization in various sections of the countries will be discussed in the essay in detail. The examples will be provided based on the negative impact of globalization on the economy of various countries.
The different studies and researches that have been made on the topic of globalization has depicted everybody wins in the process and the major benefits are provided to the industrialized countries. The uneven distribution of benefits is between the various countries in which the organizations have their operations. The welfare based gains of globalization are mainly related to the increase in gross domestic product or GDP per capita in around 42 emerging and industrialized countries between the years 1990 to 2016 (Huang, Ge and Hu 2019). The growth of real GDP per capita is considered to be quite positive in different countries that have been surveyed by the researchers. The highly industrialized and small nations like Belgium and Switzerland that have the highest index based values have outperformed the emerging countries like China and Argentina (Jorda and Sarabia 2015).
The countries that have gained low index values receive less amounts of benefits from globalization in comparison to those which have the high index values. However, this is not able to depict that the emerging countries are not able to gain from the increase in globalization. The gains based on real income per capita are distributed in an uneven manner on a global basis. The index value is provided to various countries with respect to the implementation of Bertelsmann’s methodology (Kobrin 2017). The levels of interdependence among the countries which have higher index values are considered to be quite high. The increase in the index based on globalization by one point leads to the rate of growth of real GDP per capita by 0.3% points. The major indicators of globalization mainly include foreign direct investment, exports and imports and the various trade barriers as well (Nayyar 2015).
Examples of Uneven Distribution of Benefits of Globalization
Various aspects of social globalization include tourism and the number of people who have a migration based background. The major reason related to the low rates of growth in emerging countries is considered to be the low starting of the GDP per capita of the countries. During the 1990s the emerging countries like India and China were placed at the beginning of their growth curve. This had led to the lowest growth rates based on the absolute gains in comparison to the industrialized countries that were already connected globally (Pastor and Veronesi 2018). A ten percent rate of growth had been experienced by China the between the years 1990 and 2016 and China also leads the countries in terms of the exports and globalization per-capita based gains. However, the growth rates of China have become quite high in the last few years. China has gained the topmost position based on the globalization based GDP gains over the last few years (Petras 2016).
China thereby boasts a five-fold based increase and Germany has depicted a 1.5-fold gains. The gains of increase in globalization have been quite high for China in comparison to the gains that have been received by Germany. The purchasing power parity is considered to be a major that has an impact on the benefits that have been gained from globalization by the emerging and industrialized countries. The industrialized countries depict a higher economic performance based on the per capita based income (Rao 2018). The absolute levels of globalization gains are also considered to be higher and also difficult for emerging countries to reach the proper growth levels. The lack of equal distribution of benefits of globalization is not expected to change in the next few years (Rizvi 2019).
The unequal distribution of the benefits has led to huge levels of criticism that in turns leads to the implementation of protectionism. The protectionism measures that have been implemented by the US led to the imposing of higher tariffs and economic sanctions on the various European allies and the economic rivals that include Russia and China
(Rodrik 2018). Some of the industries are able to gain on a short term basis from the various measures that have been implemented, however, the economy is harmed in a huge manner. The major measures that have been implemented by the US are based on the proper protection higher costs of production and domestic steel industry based prices as well. A process that has been suggested for maintaining even distribution of globalization benefits is related to the revival of the WTO based trade rounds (Un.org 2019).
The exit of the United Kingdom from the European Union is considered to be a major result of the uneven distribution of the benefits of globalization. The analysis of Brexit based activities is able to provide a clear picture of distribution of various benefits of increase in levels of globalization from the diplomatic perspective. The aftermath of referendum depicts that it lacked the levels of political wisdom and various strategic goals as well (Weforum.org 2019). Brexit is considered to be the direct consequence of the lack of even distribution of globalization based benefits. The correlation has also been observed between various regions that opted to leave the EU and the regions of the European Union that were under-privileged and less educated in nature (Wherry 2015).
The increase in levels of unregulated globalization had led to the stagnant income for middle class and lower class people of the society who have been affected severely by the global crisis and unexpected modulation economy as well. This has further led to the disenchantment with proper establishment and anger which has been moulded into the anti-immigration based sentiments. Other nations that are a part of the European Union thereby have to work on the growth of economic disparities in the respective societies that have direct implications on the policies that are being implemented (Yuan and Yu 2016).
The outcome of the referendum that has already been established would be based on the nationalist sentiments. The growth in disenchantment among middle class and the lower class with government had led to rise in levels of nationalism. The extreme right wing based politicians have played a major role in fuelling the anger in particular sections of the British society (Weforum.org 2019). This trend has also been observed in a huge manner in the elections of Donald Trump that had taken place in the United States. The election campaigning had also been based on the various hate rants and the anti-immigration based laws. The issue that had taken place between the US and the allies and Iraq had led to the overthrow of the dictator Saddam Hussain (Pastor and Veronesi 2018).
The global economic growth is considered to be an inefficient way of the achievement of the reduction of poverty in various emerging countries. The major challenges that are faced by the global economy are related to the eradication of poverty and the achievement of environmental sustainability as well. Poverty reduction is thereby a moral imperative that leads to resolving the various issues that are faced by emerging countries. The impact that global economic growth has on the environment is considered to be a serious concern that is faced by the emerging countries (Jorda and Sarabia 2015).
The ecological footprints that have been developed by the increase in levels of globalization have an impact on the countries and the population in the countries as well. The growth of economy of emerging countries have increased their impact on the ecological footprints. The distribution of benefits has been able to play a major role in the ways by which ecological impact can be reduced in various emerging countries (Nayyar 2015). The environmental problems had been caused by the rich countries and on the other hand the poor countries have started facing major issues due to this aspect. The major benefits of economic growth are thereby gained by the industrialized or developed nations and mostly the issues are faced by the emerging counties due to increase in environmental impacts after globalization (Pastor and Veronesi 2018). Environmental crisis in the emerging and developed nations are considered to be major results of the increase in levels of globalization in the country. The real GDP growth is also influenced in a huge manner by the lack of response that is provided to the environmental concerns that are faced by the various countries (Huang, Ge and Hu 2019).
The case of Primark can also be considered as a major example of the negative effects of globalization in the emerging countries. The factories of Primark that were located in Bangladesh were in such a terrible condition that the complex named Rana Plaza had fallen due to extreme conditions. The workers were harmed due to this in a huge manner although Primark had been receiving huge profits due to the low costs of production. This issue had however influenced the image of Primark in a huge manner and the organization had to take many steps to fulfil its responsibilities (Pastor and Veronesi 2018).
The impact and benefits of globalization on the emerging and the developed nations have been found to be quite different. In most of the cases it has been seen that the developed and industrialized nations have gained a lot from the high rates of globalization and on the other hand, the emerging countries have not been able to gain from the activities related to globalization that are performed in the various countries. The reduction of negative impacts of globalization on the emerging countries is thereby considered to be highly important in order to maintain an effective balance and remaining fair to everyone as well (Baylis, Owens and Smith 2017). The organizations that are a part of the emerging countries and the society as a whole is influenced in a huge manner by the lack of even distribution of the benefits of globalization. The process of globalization cannot be revered in order to provide benefits to the emerging countries. However, the development of a fair model of globalization is considered to be highly important. The usage of resources in emerging areas by the organizations of developed countries has to be compensated by the ways by which they are able to fulfil their duties towards the society (Rao 2018).
Conclusion
The essay can be concluded by stating that the globalization process is able to play a major role in the ways by which various organizations in the emerging and developed nations are able to maintain their operations. The environmental concerns have increased in the last few years due to increased organizational activities. The industrialized nations have received the gains and benefits of globalization and the emerging countries have faced the issues. The proper development of a balance is thereby considered to be quite important so that the emerging and developed countries are able to gain the benefits of globalization based process.
References
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