COURSE CODE: GEME 521
COURSE NAME: ENGINEERING, BUSINESS & SOCIETY
NAME: THAPELO K.ZIBANI
STUDENT ID: 20000582
Question 1
Globalization is the process of movement and exchanges of people, goods, and services across national
and international borders. It has enabled the movement of various forms of capital across borders,
including financial, human, and cultural capital. To support this, here are some of the ways in which
globalization enables the movement of different forms of capital across the world.
I. Human capital. Globalization has enabled people to roam freely across borders, leading
to skilled migration and negative effects such as, brain drain due to the loss of the best
and brightest from underdeveloped countries to developed ones. According to the
filing, McDonald's had 39,198 quick service outlets spread over 119 nations and
territories, employing more than 2.2 million employees. Globalization benefits
everyone by enhancing efficiency, creating more employment, and bringing about
income equality across nations.
II. Financial globalisation. Financial capital is the free movement of capital across
international borders, allowing businesses and investors to access funds from anywhere
in the world. For instance, stock markets are an example of how people throughout the
world are financially interconnected, as when one stock market declines, it has a
negative impact on other markets and the economy. For example, global financial
centers like New York, London, and Hong Kong have expanded due to financial
deregulation and market liberalization, but the unrestricted flow of capital can lead to
financial instability.
III. Cultural globalisation. This is the interpenetration of cultures, which has caused nations
to embrace the values, customs, and attire of other nations while losing their own
distinctive culture. Examples of globalization include the spread of cultural products
such as music, movies, and fashion across borders, as well as the trading of
commodities such as coffee and avocados. Additionally, traditions such as black Friday
in the United States are now known by the world and are practiced. A global culture
has emerged because of this, but it also risks homogenizing cultures and losing regional
customs and languages.
IV. Technology capital. Millions of people are connected to each other through the power
of the internet and websites such as, Facebook, Youtube and Skype. Globalization has
facilitated the movement of technology across borders, enabling companies to access
the latest technologies from anywhere in the world. For example, global technological
centres like Silicon Valley in the US and Shenzhen in China have expanded because of
this. However, as global firms look to maximize profits, technology transfer can also
result in the exploitation of poor nations.
V. Economic globalisation. Globalization provides less developed nations with access to
finance and technology, but multinationals can destroy local businesses, exploit cheap
labour, and threaten Indigenous cultures. Foreign investment can raise the living
standards of such countries, but their loyalty is to their investors and bottom lines.
Between 1950 and 2010, world exports increased 33-fold, leading to increased
interactions between different regions of the world.
