The garment industry in Bangladesh makes clothes that are then shipped out across the world. It employs as many as four million people, but the average worker earns less in a month than a U. This lists the logos of programs or partners of NG Education which have provided or contributed the content on this page. Leveled by. Monday, December 23, Put simply, globalization is the connection of different parts of the world.
In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture. In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers.
A Historical View Globalization is not new. Since the start of civilization, people have traded goods with their neighbors. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere.
For more than 1, years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away.
Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures and ideas became known as the Columbian Exchange. The Triangular Trade network in which ships carried manufactured goods from Europe to Africa, enslaved Africans to the Americas, and sent raw materials back to Europe is another example of globalization. The resulting spread of slavery demonstrates that globalization can hurt people just as easily as it can connect people.
The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. Advances in communication enable businesses to identify opportunities for investment. At the same time, innovations in information technology enable immediate communication and the rapid transfer of financial assets across national borders.
Improved fiscal policies within countries and international trade agreements between them also facilitate globalization. Political and economic stability facilitate globalization as well. The relative instability of many African nations is cited by experts as one of the reasons why Africa has not benefited from globalization as much as countries in Asia and Latin America.
Benefits of Globalization Globalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Diversification strengthens institutions by lowering organizational risk factors, spreading interests in different areas, taking advantage of market opportunities, and acquiring companies both horizontal and vertical in nature.
The GDP is the market value of all finished goods and services produced within a country's borders in a year and serves as a measure of a country's overall economic output. Industrialization is a process that, driven by technological innovation, effectuates social change and economic development by transforming a country into a modernized industrial, or developed nation.
The Human Development Index comprises three components: a country's population's life expectancy , knowledge and education measured by the adult literacy, and income. The degree to which an organization is globalized and diversified has bearing on the strategies that it uses to pursue greater development and investment opportunities.
Globalization compels businesses to adapt to different strategies based on new ideological trends that try to balance the rights and interests of both the individual and the community as a whole. This change enables businesses to compete worldwide and also signifies a dramatic change for business leaders, labor, and management by legitimately accepting the participation of workers and the government in developing and implementing company policies and strategies.
Risk reduction via diversification can be accomplished through company involvement with international financial institutions and partnering with both local and multinational businesses.
Globalization brings reorganization at the international, national, and sub-national levels. Specifically, it brings the reorganization of production, international trade , and the integration of financial markets. This affects capitalist economic and social relations, via multilateralism and microeconomic phenomena, such as business competitiveness, at the global level. The transformation of production systems affects the class structure, the labor process, the application of technology, and the structure and organization of capital.
Globalization is now seen as marginalizing the less educated and low-skilled workers. Business expansion will no longer automatically imply increased employment. Additionally, it can cause a high remuneration of capital, due to its higher mobility compared to labor. The phenomenon seems to be driven by three major forces: the globalization of all product and financial markets, technology, and deregulation.
Globalization of product and financial markets refers to an increased economic integration in specialization and economies of scale , which will result in greater trade in financial services through both capital flows and cross-border entry activity.
The technology factor, specifically telecommunication and information availability, has facilitated remote delivery and provided new access and distribution channels , while revamping industrial structures for financial services by allowing entry of non-bank entities, such as telecoms and utilities.
Deregulation pertains to the liberalization of capital account and financial services in products, markets, and geographic locations. It integrates banks by offering a broad array of services, allows entry of new providers, and increases multinational presence in many markets and more cross-border activities. In a global economy, power is the ability of a company to command both tangible and intangible assets that create customer loyalty, regardless of location.
Independent of size or geographic location, a company can meet global standards and tap into global networks, thrive and act as a world-class thinker, maker, and trader , by using its greatest assets: its concepts, competence, and connections.
Some economists have a positive outlook regarding the net effects of globalization on economic growth. These effects have been analyzed over the years by several studies attempting to measure the impact of globalization on various nations' economies using variables such as trade, capital flows , and their openness, GDP per capita , foreign direct investment FDI , and more.
These studies examined the effects of several components of globalization on growth using time-series cross-sectional data on trade, FDI, and portfolio investment. Although they provide an analysis of individual components of globalization on economic growth, some of the results are inconclusive or even contradictory.
However, overall, the findings of those studies seem to be supportive of the economists' positive position, instead of the one held by the public and non-economist view.
The Benefits of Globalization Globalization has benefits that cover many different areas. The Engine of Globalization — An Economic Example The most visible impacts of globalization are definitely the ones affecting the economic world.
Globalization — A Cultural Example Together with economic and financial globalization, there has obviously also been cultural globalization. Why Is Globalization Bad? The Negative Effects of Globalization Globalization is a complex phenomenon.
The Economic Negative Effects of Globalization Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. Globalization, Sustainable Development, and CSR Globalization affects all sectors of activity to a greater or lesser extent. Globalization Quotes by World Influencers Many world leaders, decision-makers and influential people have spoken about globalization.
Politic Globalization Quotes Globalization quote by the former U. Image credits to map on Shutterstock , environment pollution on Shutterstock , cultural interaction on Shutterstock , economic globalization on Shutterstock , globalization on Shutterstock and connected world on Shutterstock.
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Performance Performance. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. Unmanaged exploitation Hardin , of water, timber, wildlife, tourism, and forest products can influence the capacity of these local commons to sustain these services.
These commons face increasing stress from rapidly changing environments and there is a need to minimize unintended consequences negative externalities of globalization. Without effective governance and regulatory mechanism, globalization may intensify environmental harm Nordstrom and Vaughan Identification of strategies that enhance ecological and institutional resilience of local and regional social and ecological systems can increase the adaptive capacity of local commons to withstand potential stressors and unsustainable exploitation.
Additional stress to these systems include growth in population demand on commons Burger and Gochfeld and, increased and frequent impacts from climatic stressors IPCC National policies that focus on short-term economic gains, often place low priority to resilience building and enhancement of coping mechanisms of local commons at multiple scales.
This study aims to review these impacts and develops an ecosystems-based, multi-scale framework to manage local commons exposed to globalization. Aquatic commons are a focus to demonstrate the use of this framework.
Countries adopt globalization, the process of growing integration of economies and societies around the world Sheehan , to improve their economic status through gains from trade Bhagwati It brings in increased flow of information Held et al. This increased trade and market openness has the potential to impact local commons Ehrenfield and could spur environmental investments.
There is a high likelihood that rapid extraction under globalization can deplete commons for short-term gains. For example, the depletion of Atlantic Cod is a result of over exploitation and unmanaged extraction Finlayson and McCay in a global market.
Externalities, influences that reach outside of an activity domain, can traverse between global, regional, and local scales and influence local commons. Ecological footprint Wackernagel and Rees analysis can characterize impacts of human activities. Another relevant concept in evaluating impacts of globalization is the trade in embodied water of trading commodities referred to as virtual water Hoekstra and Chapagain Development of adaptation strategies to handle these complex, often negative externalities becomes essential to sustain commons.
An approach is to use ecosystem theory to guide adaptation strategies that could impart commons to adapt to new environments created by globalization. This study proposes a multi-scale Ostrom systems approach Randhir and Hawes to improve adaptive capacities of many local commons threatened by globalization.
Globalization can increase resource exploitation in exporting countries, with rapid geographic and temporal spread in extraction rates. For example, exploitation of sea urchins spread to several countries with increased globalization Berkes et al. Impacts of globalization include rapid exploitation of specific energy sources, exploitation of virtual water Hoekstra and Chapagain , increase in pollution, loss of biodiversity, depletion of fish stocks, and biological invasions Ehrenfield Globalization has resulted in an alarming loss of plant and animal biodiversity in moist tropical forests, wetlands, and Mediterranean plant biodiversity Given ; Medail and Quezel and Antarctica Frenot et al.
Other impacts include simplification of food webs, homogenized landscapes, and high energy and nutrient inputs Western , that diminish ecosystem services and increase economic losses in countries without a coping mechanism in place. In general, the diminished ecosystem functionality of commons can inflict economic and ecological losses at a local scale Randhir and Hawes Developing countries rely heavily on local commons for sustaining crop and livestock production, fishing, hunting, fuel wood, and minor forest product collection Dasgupta and their disruption could have substantial effect on local livelihoods Randhir and Hawes Globalization increases the number of interconnections and invokes new variables in socio-ecological systems that influence resilience processes Armitage and Johnson Social and ecological resilience thus depends on making cross-scale institutional connections that characterize globalization process Armitage and Johnson In conditions of missing or weak institutions to govern, the globalization process can result in long-term cost losses in ecosystem services that can far outweigh their benefits.
There is a need for resilient biophysical capacity and adaptive socioeconomic institutions to deal with new and rapidly expanding, and open market conditions. Decrease in the environmental quality Baek et al. Indirect impacts of globalization include increased pollution, loss of habitat and biodiversity, and diminished quality of air, soil and water resources Vig and Axelrod There is a critical need for evaluating the impacts on local commons in an ecosystem framework in order to identify opportunities to increase resilience and to increase adaptive capacity of social and ecological systems to cope with new stressors.
The need for such ecosystems-based approach is evident from the case of rapid depletion of fish stock, especially the Atlantic Cod Finlayson and McCay and can guide extraction of fisheries and marine ecosystems Botsford et al.
Ecosystem resilience is the capacity of an ecosystem to withstand shocks and rebuild itself Resilience Alliance , while the resilience of social systems is the added capacity of humans to anticipate and plan for such changes.
Resilience frameworks like Megacity Resilience Framework Butsch et al. Such integrated approaches enable identification, restoration, and enhancement of structure and functional components of ecosystems and in the development of appropriate institutions to govern them. These approaches can also encourage stakeholder participation, use information on multiple attributes Randhir and Shriver a , mitigate impacts at multiple scales, and improve resilience.
Ecosystem-based framework like nested, watershed systems Randhir and Shriver a is useful to assess and identify opportunities to increase adaptability and resilience at multiple scales. Assessment of impacts as a hierarchy of systems and components can diagnose system-wide impacts, and in identifying and mapping impact pathways Randhir and Genge Ostrom proposed a diagnostic method for SES using a nested, multitier framework involving resource system, resources units, users, and governance system.
Ostrom proposed a general SES framework for sustainability and self-organization to evaluate worldwide loss of fisheries, forests, and water resources.
This paper reviews the impacts of globalization on terrestrial local commons and proposes a multiscale, ecosystems framework MEF to manage the effects of globalization. The MEF adds to the SES framework through explicit treatment of ecosystems, nested multi scales, and dynamics across scales and across common pools in dealing with impacts of globalization. Potential impacts of globalization on aquatic commons are discussed in detail to identify opportunities to mitigate impacts.
Given the high value attributed to ecosystem services throughout the world Costanza et al. Increasing the resilience of the local commons to withstand and to recover from major disturbances resilience at multiple scales can lead to long-term sustainability of these fragile systems.
For example, changes in the trade and environmental agreements between countries at global or regional levels can have varying and multiple effects at regional and local scales that need to be part of the strategy. A localized strategy at a watershed or other ecosystem scales can be used as an integrating framework to integrate information on physical, biological and human components within and among scales of social-ecological systems SES McGinnis and Ostrom Such integrated framework can link assessment, management of impacts from lower to higher scales.
They are also natural landscape units helpful in evaluating interactions, identifying sensitive components of an ecosystem, and for developing participatory outcomes involving stakeholders Randhir and Shriver b. There is a vital need that institutions and technologies coevolve with changing ecosystem conditions Dietz et al.
Thus, ecosystem approaches to manage globalization can be dynamic strategies that also co-evolve with changing institutions.
A site-specific and scale dependent information on ecosystem components, economic processes, and their interactions within systems and multiple scales is possible though such a framework. This is possible by using ecosystem theory in evaluating complex economic and ecologic interactions that are dynamic in nature system dynamics and involve feedbacks cybernetics.
For example, enhancing resilience of forest and agricultural commons can minimize runoff, soil loss, and allow infiltration that improves resilience of aquatic commons through changes in water quality that improves resiliency of fisheries.
Such mutual influences across commons in regional systems can result from using an ecosystem as a framework of assessment. This framework is also consistent with Millennium Assessment Goals that link ecosystem services to human wellbeing at multiple scales MEA ; Reid et al. Such framework also enables local participation, facilitates adaptive institutions, and can act as a common platform for multidisciplinary information.
While localized and dynamic effects of globalization are often difficult to account in cost-benefit estimation, an assessment of cumulative and long-term impacts in this framework could result in development of adaptation policies that vary with scale and local requirements.
Such policies can consider and inform decisions at the national, state and local levels. Ostrom proposed a strong interdisciplinary science of complex, multilevel systems to match specific problems. By extending this approach to identify opportunities that increase resilience to multiple dimensions, a multiscale, ecosystem framework — MEF Figure 1 is proposed to systematically develop ecosystem-based strategies that address sustainability of commons across scales spatial and temporal and across commons types.
This framework also allows linking across commons types through a higher ecosystem scale for enabling interaction within specific common and between commons. The MEF framework uses a hierarchical depiction of each scale — local, regional, national, and global. One can define additional intermediate scales within this framework to reflect characteristics of a particular system.
The MEF framework extends the nested, polycentric concept developed by Ostrom to allow system-wide changes, inter and intra common interactions, and polycentric governance interactions using hierarchical systems of economic, ecological, and social systems of multiple commons. Each scale connects to the scale above and below in social, economic and ecological flows.
The robustness of ecological and economic processes at each scale is vital to the sustainability and resilience of the complete multi-scale system. A nested and hierarchical pathway can evaluate inter-scale effects using this framework.
For example, globalization impacts on economic and ecological conditions at a local scale can include implications at national, regional, and local effects as they pass through intermediate scales.
This framework can facilitate study in pathways of virtual water Hoekstra and Chapagain and changes in embodied energy Costanza across and within scales. Governance and policies designed for each scale effects other scales at varying degree under this framework. Information of these multiple effects of various governance and policy options is useful in development of comprehensive and optimal design of systems at multiple scales.
Using a systems approach, MEF approach accommodates interaction between local commons. This is because of using a system boundary rather than a boundary of a particular common. Thus, this accounts for biophysical and socioeconomic impacts of changes in one common and its impact on another common within the ecosystem and is useful in planning for multiple commons. Examples of such interaction include wetland protection that improves aquatic commons downstream.
In using the MEF for developing resilience strategies, it is possible to enhance capability of biotic, abiotic, and socioeconomic components to handle increased pressure from globalization. The resilience capacity and thresholds are useful as limits or constraints for extraction of goods and services. For example, limiting withdrawal of surface waters to rate of hydrologic inflows of the watershed.
This requires a mix of strategies that increase or maintain the resilience of biotic and abiotic components through management of the structure and function of an ecosystem. Socioeconomic and institutional characteristics at local scale also reflect the nature of constraints and incentives that drive the usage and conservation of a local common. Resilience of socioeconomic systems at a particular scale depend on the nature of cooperation, trust among users, extraction rules, coping mechanisms, adaptive rule making, social capital, incentives, enforcement of rules, resource condition, and other institutional factors.
These factors are dependent on the nature of these factors at other higher and lower scales, thus forming a multi-level, interconnected system. This paper uses the MEF approach to review the impacts of globalization on watershed and coastal local commons.
To develop deeper insights into the MEF approach and methods, aquatic commons is a focus for detailed treatment. Nevertheless, the MEF approach is applicable to studying forest commons, wetlands, marine systems, urban systems, and earth systems. We use the MEF approach to develop a simple method to test impacts of globalization on specific local commons.
Given the complex nature of globalization and common pool systems, use of indices that represent selected systems is a first step toward analysis for resilience strategies. A preliminary global assessment evaluates current states of selected commons under changing globalization levels. This assessment is useful in providing a framework to implement MEF and to study the impacts at global to local scales.
This assessment guides a general discussion related to the commons discussed in this study. A metric of globalization is related to selected indicators of the state of local commons. The comprehensive index of globalization COG developed by Dreher et al.
Economic globalization in COG uses data on trade flows, foreign direct investments, portfolio investments, income payments to foreign nationals, hidden import barriers, mean tariff rate, taxes in international trade, and capital account restrictions. Social globalization in COG is assessed using telephone traffic, transfers, international tourism, foreign population, international letters, internet users, television access, trade in newspapers, and data on cultural proximity to international firms.
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