Globalisation outcomes - overview

Globalisation can be defined as a set of processes leading to the integration of economic, cultural, political and social systems across geographical boundaries. It refers to increasing economic integration of countries especially in terms of trade and the movement of capital. TNCs are the driving force behind globalisation, as they invest huge amounts of FDI into the countries they work in. For example, Nike manufactures loads of its products in China, the outcome of this is good for china. This China is payed money by Nike for allowing the business to operate there whilst also creating jobs and improving general wellbeing for people in the area.

The outcomes of globalisation are both positive and negative. For example, it leads to global development, when development occurs the demographic structure changes. Equal distribution of wealth, education, healthcare, and opportunity occurs. There is also a less corrupt government for example if you compare the UK’s stable democratic government to Somali with a highly corrupt system in place. This also means that there is a higher standard of living as education is improved, which also leads to greater levels of literacy and therefore in many cases equal rights for women. Again if you compare the UK to Somalia, In the UK women and men are equal whereas in Somalia women have no rights.

However, the main outcome of globalisation would be global economic growth. Positives of this would be the increase of trade between countries as more countries are creating more goods. Also outsourcing which has led to a high increase of jobs in LICs/NICs for example China has manufacturing factories and, India has call centres. The global economic growth has also drastically improved quality of life and standard of living for many people in poorer regions of the world particularly Asia as that is where most of the manufacturing has taken place. It has also made it possible for entrepreneurs to come out of poorer countries for example Infosys is from India. It has taken the knowledge and experience gained through outsourcing to create it’s on TNCs. Although there are many negatives to this global economic growth for example the environmental impacts of globalisation. This is because TNCs take huge advantage of the relaxed environmental laws and the fact that are not adhered to. Also there is a huge problem with labour exploitation for example Coca Cola employs 30,000 children in the sugar cane fields in El Salvador, where they miss school and put themselves in danger using machetes. It was found that the workers were victims to 139 human rights violations. Also the loss of cultural diversity as TNCs overtake smaller local companies that cannot compete with larger companies with much lower prices such as Wal-Mart who can offer everything you could find in 10 small local highstreet shops in one supermarket

In conclusion the outcomes of globalisation are both positive and negative, there are many factors that contribute to create one issue. The main negative issues seem to exploit either the environment or the poor and the positive issues are involved in economic gain