Continuous Internal Assessment - 1
UNDERSTANDING GLOBALIZATION AND ITS IMPACT
Submitted to
Prof. Pintu Majhi
Submitted by
INIKA TYAGI
Roll No.-65, Section B, Semester I
Submitted on
28th August 2024
HIDAYATULLAH NATIONAL LAW UNIVERSITY
UPARWARA POST, ABHANPUR, ATAL NAGAR, RAIPUR (C.G.), 492002
INTRODUCTION
Definition:-
The process of Globalization leads to the speeding up movement and
exchanges of human beings, goods or services all around the world. The most
important thing in this matter is the way globalization encourages and
promotes various connections between different regions or even populations
around the world.
WHO defines globalization as “The process by which businesses or other
organizations develop international influence the interaction of countries
developing in similar areas. Globalization is usually recognized to include
both two related processes: the growing openness and negotiability of
international borders to flows of goods, services, finance, people, and ideas; as
well been changes in domestic institutions that facilitate or promote such
movements.
The term globalization is also used in an economic context to describe
integrated economies marked by free trade, the free flow of capital among
countries and easy access to foreign resources, including labour markets, to
maximize returns and benefits for the common good.
Brief history of globalization:-
In ancient times, globalisation started as soon as people and communities
began to interact with each other in the ways of exchanging goods and sharing
knowledge among themselves internationally. In the Hellenistic Age ( 323 to
100 B. C), Greeks formed wide-ranging trade and commercial relationships,
Hence, Greek culture and philosophical ideas propagated from Greece to
Europe (mainland of the western channel), Middle East including West Asia,
Northern Africa.
In 100 BCE, the Silk Road created a trade network from the Far East all over
and into Europe. The Silk Road was the first huge-scale inundation that
spanned two thousand years, and gave rise to mutual trading goods,
intermingling cultures away from their homes becoming travellers among
them; as well worshipped religions were criss-crossed between West and East
shores via this road.
The Islamic empire in the Middle Ages opened trade routes along both sides of
the Mediterranean and Indian Oceans. They later got to well into Indonesia,
and from the west up to Muslim Spain. These and the Silk Road connected
many of what was then called 'the known world' to each other, also bringing
about globalization.
IMPORTANCE OF UNDERSTANDING GLOBALIZATION IN
TODAY’S WORLD
This is based on a rising international inflow estimate as the COVID 19 crisis
continues. At a time when more than half of all global trade indices have hit
rock bottom for the year, CEOs discuss what lies ahead with respect to
globalization and its potential implications on their businesses, as they hone in
on a select few key drivers. These are some of them:-
Growth in global patterns:- With major economic cycles, international flows
often change wildly. Once the covid-19 pandemic got under control, real
growth resumed again.
Supply chain policies:- Changes in supply chain policies could reshape trade,
but the current focus is on job losses rather than shortages.
Conflict of power and weakness:- The driver stopped the international trade
before the virus. On the other hand, COVID-19 has introduced several layers
of complexity. Government power has increased so much, competition for
ideas is necessary. This can lead to partial divisions, but no equal parts.
Technological advancements:- COVID-19 is greatly influenced by
technological changes such as e-commerce, video conferencing and the use of
artificial intelligence. Many leaders suggested how technology could help
reduce global warming before the pandemic. Organizations assess the impact
of technological change on their position vis-à-vis competitors, customers,
suppliers and other stakeholders.
Popular public opinion:- The pandemic, which reverses the high level of
support for trade and immigration, may have a negative impact on public
opinion on globalization. International travel greatly accelerates the spread of
infectious diseases, and economic pressure can exacerbate trade security
concerns.
The potential for developing global strategy is now huge, albeit complex, in a
world of interconnected economies. Now is the perfect time for global
enterprises to demonstrate their value to the world by utilizing the world's best
forces to accelerate recovery.
ECONOMIC IMPACT OF GLOBALIZATION
Furthermore, what did India get in return for this a flood of foreign direct
investment that also led to transfer technology and broadened the market
choices available to Indian consumers; new jobs which brought down our high
unemployment rates. Therefore, we can say, Globalisation affected the Indian
economy in both positive and a negative manner.
The process of globalisation started in India from the liberalization,
privatization and globalization (LPG) reforms initiated in 1991 and over these
decades it culminated into wider impact affecting almost every stratum today.
The Government free hand to LPG reforms — Liberalization, Privatization ad
Globalisation. The economy has opened to foreign players.
The economic impact of globalization is profound, affecting the way
economies operate on a macro and micro scale. Below are some of the major
economic effects of globalization:-
Increased trade and market access:- Countries can broaden their markets
outside of the borders of a nation when globalization is utilized, which allows
businesses to reach many different types of customers. Companies, in turn, are
rewarded with higher sales and growth opportunities.
They allow for countries to do what they are best at in producing goods and
services with a creative advantage which allows higher resource utilization
thus greater productivity. The specialization can boost economic utility output
as well and also be a main driver behind international trade.
Foreign Direct Investment (FDI):- Globalization is a process in which the
FDI and foreign capital, technology, management skill moves from one
country to another. It spurs economic growth, generates jobs and enhances
infrastructure.
It can help developing countries to get capital which is possibly not available
thus it helps in economic development and industrialization. Yet it can also
result in reliance upon foreign capital and influence.
Job creation and labour market shifts:- In manufacturing, services and
technology making new job openings due to globalization. Especially new
industries in emerging countries.
However, on the other hand globalization may result in job displacement
where industries or economics cannot compete with others and even weaker
due to too low-cost imports. Structural Unemployment occurs when workers
in high-cost regions are laid off due to the combination of outsourcing and
automation.
Income inequality:- Although globalization will contribute to the growth of
an entire economy, it shall lead severe income disparity through both within
and across countries. The biggest winners are typically high-skilled workers
and capital owners, with low-skilled workers often experiencing stagnant or
declining wages.
However, globalisation may also contribute to uneven economic development;
some regions or cities become "boomtowns", while others are left behind. The
difference in potential outcomes could be a greater one between areas that fare
well today and those that do not.
Economic volatility and dependency:- The global economy continues to be
marked by high levels of economic interdependence and as a consequence,
increasingly exposed to the vagaries associated with fluctuations in world
markets precipitated by financial crises, commodity price shocks or changes in
demand globally.
Export dependent countries are ones where an imbalance of payments problem
is likely to be present since a high proportion of domestic demand has been
stimulated by growth in exports and/or the extent to which economic
development show not enough flexibility.
Impact on local industries and small businesses:- Local businesses,
particularly small business cannot possibly compete with larger multinational
corporations that are up and running for decades. In turn, this could see
businesses close and bring the loss of locally available jobs.
On the other hand, Globalization can give a small business an opportunity of
international market integration and their ability to find their products or
services niche.
CULTURAL IMPACT OF GLOBALIZATION
The cultural impact of globalization is everywhere. India, the land of diversity
throughout history has welcomed every cultural influence merrily which
added value to it. But a number of cultural changes over the last few decades
raised anxiety about potential local culture domination. Thus, arguments were
put forward about not just the political and economic but for also new
fashions, music styles, movies, languages, etc.
Cultural exchange and hybridization:- Globalization paves the way for
cultural practices, ideas and traditions to be exchanged easily. Through media,
travel and technology the world has become smaller (in a good way) and most
people know that there is more out in other cultures to strike up conversation.
From knowing this, curiosity develops leading many time zones away being
curious about what another server had available.
Cultures mix and come together in the globalized world, copying new cultural
forms from multiple sources. Take, for example, the US-originating music
genres like hip-hop which have blended with local traditions around the world
to manifest in unique instances of K-pop and reggaeton.
Westernization and cultural homogenization:- Through globalization, the
world is catching up to western culture with American influence all over the
globe — media and entertainment including film, television music; fashion
even food language. Westernization or Occidentalism, a conversion to model
on things and people originating in the western world is what this process can
be called which will make it one culture that also dominates outside its abode.
Globalization is sometimes said to lead to cultural homogenisation, wherein
local culture can be diluted or erased entirely by global influence. On the other
hand, this prototypical script can lead to cultural erosion in terms of traditional
customs, languages and identities.
Impact on arts and media:- Media and entertainment have been globalized,
often with many films or music coming from overseas; likewise, literature,
and art. This in turn has made access to different cultures features easier than
before as well as being a major hub for cultural exchange between people.
On the other hand, global media conglomerates at times dominate local
newspapers and such traditional art forms can lose its subjective appeal
leading to cultural monopolization of expressions as well as undermining
content production locally.
Cultural imperialism and resistance:- Critics of this view, however, also
point out that globalization can promote cultural imperialism: the
homogenisation and standardisation of culture imposed by powerful countries
(often through their media conglomerates) on less powerful societies. This
tendency can be harmful to local cultures and lead to cultural imperialism.
In the face of cultural imperialism, many communities use some sort of
cultural resistance in order to preserve their historical culture while-n at times-
incorporating elements from foreign sources. This is where the adaptation of
local elements to global culture unravels a certain unique cultural symbol.
Language and communication:- But the real lingua franca now is English,
used internationally for everything from commerce and science to air traffic
control. While this may help global understanding, it can also work to relegate
small languages and also contribute towards their demise.
Multilingualism and language learning is accelerated because people are
communicating across new borders, as revealed in growing transnational
communities.
Identity and cultural awareness:- Globalization has an impact on the way
that people see themselves: it tends to push these two aspects of identity into
competition, because a global (or cosmopolitan) sense of self often conflicts
with the preservation and cultivation of local cultural identities. Other people
go more global, defining identities as common human values and personal
connections.
It improves cultural sensitivity through understanding other cultures and
providing an open environment to appreciate respect diversity. It has potential
to lead from social coherence and reduction in cultural prejudices.
POLITICAL IMPACT OF GLOBALIZATION
Government yields a more minimalist form; one that carries out basic
functions like law enforcement and defence against rival communities. The
market replaces the state as the supposed principal enabler of economic and
social priorities. Another sentence we hear is that globalisation leads to a
reduction in state capacity. The state still remains as the largest political
community and seems to be unchallenged in its primacy. Globalisation has
also increased the ability of states to gather information on their citizens using
new technologies, which further adds to state capacity.
Rise of supranational organisations and multilateralism:- Global
governance is the role played by organizations such as WTO, IMF and World
Bank to regulate international trade, finance and development. They affect
national policies and priorities, promoting some nation-friendly liberal
economic measures in the process.
Given the complex set of global challenges; climate change, terrorism,
pandemics or economic crises, it is clear that no country can tackle such issues
alone. These were challenging times for multilateralism as there was a broad
sense around the world that 'either you are with us or against us', undoing
years-long progress in restoring regional peace and security. The globalization
has invariably scripted the wording of alliances and international pacts for
collective actions.
Shift in sovereignty and power dynamics:- Even though globalization
benefits are obvious in history, they can only lead to a stronger national fabric
with the less sovereign way of managing countries. Policy choices available to
individual countries may also be constrained by supranational organisations or
international agreements, so that states are forced into compliance with
broader international standards.
In certain cases, their power has even rivalled that of national governments.
These are a type of selection businesses — as in they can buy government,
muscle policy and other economies around the block while focusing on what's
best for their key corporate constituencies rather than overarching national
priorities.
Security concerns and international relations:- New security threats have
emerged with globalization – especially cybercrime, terrorism and
transnational organized crime which require international responses. Security
threats You can also read how forces from different countries are now
collaborating to share intelligence and fight back against these types of
security risks.
Globalization made international politics more interconnected and creates new
alliances, etc., as well power games. Countries often have nuanced
relationships with diverse stakeholders, requiring a balancing act between
national interest and global responsibility − admins must manage their
countries to the best of their understanding.
Economic policies and global governance:- National economic policies are
also influenced by globalization, often due to open markets being encouraged
as well as deregulation and liberalization. Given this background, the
governments often take appellate economic policies as per global standards to
facilitate investment with a mode of competition and sometimes at disposal for
local industries and workers.
The demands for improved global governance have escalated in parallel with
globalization, as countries face new responsibilities to deal with
unprecedented transnational issues. But the baggage of expectations from
countries that have divergent backgrounds, constraints and priorities still
makes this problematic.
Impact on democratic governance and human rights:- More recently, in
the context of globalization, it has been argued that more democratic
international institutions may help to support the liberal peace by promoting
greater respect for human rights and protecting democracy. Globalization
enables states to be linked intricately, enhancing innovations along with free
movement as well as standardize practices. It can result in political reforms
and better governance accountability.
Nonetheless, globalization may also pose a challenge to democratic
governance in many ways; such intensification of economic inequalities and
social conflicts by the changing course will ultimately undermine political
stability. The convergence of foreign actors and interests, alongside a return to
authoritarian populism as, conservatively put, cosmopolitan globalization
disrupts democratic institutions.
ENVIRONMENTAL IMPACT OF GLOBALIZATION
Globalization is devastating to the planet—and that is no overstatement. Its
ecological impact is overwhelmingly negative. How globalization affects even
to nature is discussed below:-
Increased resource consumption:- Globalization has enabled the growth of
production and consumption worldwide, bringing about escalating demand for
natural resources including water, minerals, fossil fuels and timber. Such high
demand frequently leads to over-extraction and depletion of these resources,
thus adding additional burden on the environment.
Global markets, meanwhile, are encroaching on the forests through agriculture
and mining. Carbon emissions, and deforestation, that can result in loss of
biodiversity and a disrupted ecosystem means reduction of oxygen and carbon
emission to exponentially grow increasing climate issues.
Climate change:- The spawning of globalization caused rapid economic
expansion and industrialization, which contributed to intensified energy
transformation along with increased greenhouse gas emissions. This has led to
climate change and global warming, which in turn significantly affect, among
other things such as weather patterns, water levels, and ecosystems.
Globalization has increased economic resilience in some parts of the world,
but it has made other places more vulnerable to climate change. Houston,
Mumbai and Miami are all coastal cities with global trade hubs, so patently
some of the more vulnerable places to the effects rising sea levels (and other
impacts on storms) would be among the less developed countries.
Technological innovation and environmental solutions:- Globalization has
certainly enabled environmental technologies and best practices to propagate
across borders. With all the notable research on emerging environmental
technologies, including solar and wind energy collection as well waste
management methods in addition to pollution solutions.
As consumers are increasingly concerned about the environment, globalization
pressures firms to go green in order not to lose their global market coverage.
IT can facilitate more efficient, effective and sustainable production as well as
better supply chain management in terms of Corporate Social Responsibility
(CSR).
Global environmental governance:- With the advent of globalization, there
came a growing realization that some environmental issues crossed national
borders and thus could only be resolved through much broader international
cooperation; for example, air pollution has built up around the entire planet.
This has resulted in the creation of international covenants and bodies
concerned with environmental conservation.
Although international agreements exist, their enforcement is a major problem
since national interests worldwide vary as much as economic capabilities and
political will do. One big problem facing effective global environmental
governance is ensuring compliance and accountability.
Cultural and behavioural changes:- Today, we are much better informed as
a planet with access to easy information flows from around the world that can
help us identify problems earlier on. Intended to boost public support for
environmental protection and sustainable development, this can in turn shape
behavioural attitudes as well as policy stops.
Globalization also has negative facets but it can provoke consumerism and
unsustainable patterns of life, as e.g., that developing country strive to copy
Western consumption standards. This could mean greater environmental
footprints, as well as additional resource drawdown.
CONCLUSION
Without globalization, how people live and do business would be a lot
different across the world and there are vast implications of understanding it
for individuals, businesses, governments to control its impact.
In general, the substantial influence of globalization on economic policy is
multidimensional — it has both a good and a bad side. Policy makers,
businesses and people all must understand these dynamics to effectively
streamline through the trials of a globalized economy.
Generally, globalization can be largely seen as a strong cultural force that
stimulates cultures to co-create and share their knowledge. It promotes cultural
exchange and diversity, but can also result in a type of culture imperialism
known as cultural homogenization — where traditional practices erode. An
understanding of these dynamics is necessary in order to orientate our moral
compass and ethical direction within the tensions involved in cultural
globalization, as well as means within which we might all move beyond
exclusionary trade-offs between clashing values towards an inclusive global
culture.
To sum up, globalization has drastically altered so many things around us
politically — from the form of governance to international relationship even
public policy. Thirdly, the concept of regionalism has brought into focus a
contradictory reality in which it fortifies cooperation and collective action
while simultaneously poses challenges over sovereignty, identity and security.
Grasping these political realities is crucial to traverse the challenges of a
globally linked future and foster resilient, inclusive public leadership.
To sum up, it is clear to see that a lot of negative consequences resulted from
the process of globalization on environment but at same time many positive
alternatives also provided new opportunities for sustainability. It has increased
resource use, pollution and the loss of biodiversity — but it also led to a
rapidly expanding awareness for environmental protection, more efficient
technology usage – worldwide. Planting policies and practices should consider
the interconnectedness of global dynamics for achieving sustainability.
In summary, globalization has re-structured the Indian economy by expanding
it to international standards resulting in growth on one hand and modernisation
on other but along with that brought major challenges which need prudent
handling. India should invest more in education and infrastructure, sustain its
commitment to social equity and develop a model of sustainable globalisation
that fosters opportunities for all sections of society.
