Globalisation

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Globalisation

• or is it globalization?

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What is Globalisation?

• The rapid increase in cross-border economic,
  social and technological exchange under the
  conditions of capitalism
• To make global or worldwide in scope or
  application.

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Pros

• Leads to higher employment, therefore greater
  prosperity
• Globalisation can help spread international
  awareness of health, business skills and human
  rights
• The gap between the richer and poorer countries
  is narrowing - e.g. America/China - in 1980
  Americans earned 12.5 times as much as the
  Chinese. By 1999 it had lowered to 7.4 times.
• Small firms employing less than 200 people
  account for between 10 and 25 of exports

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Pros

• Increases job opportunities in developing
  countries
• Forms of globalisation such as the internet can
  help promote traditional cultures
• W.T.O rules do not allow items to be blocked
  (such as films, lifestyle products) to be banned
  because on cultural grounds, creating equality
  between races and lifestyles
• W.T.O rules expressly permit countries to take
  actions to protect human, animal or plant life or
  health, and to conserve exhaustible natural
  resources

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Cons

• The profits would still go to the same people at
  the top of the big firms, thus widening the gap
  between extremities in the rich and poor.
• If one part of the worlds economy, e.g. the US,
  was to slow down, there would be a decrease in
  output from other companies abroad because of a
  decrease in demand.
• Individual countries can risk isolation if they
  do not allow global companies into the country.
• The inter-linking of national economies has
  brought global instability
• America is seen as leading the globalisation
  campaign we eat American foods, drink American
  drinks, watch American TV, and speak English -
  thus leading to a decline separate countrys
  cultural identity.

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Cons

• Transnational companies want to place
  environmentally degrading industries in countries
  that do not have adequate environmental controls.
• industries such as forestry, mining and fisheries
  exploit the resources of poor countries with
  little regard to the long term cost to the
  country in terms of the loss of a national
  resource, or to the environment.
• Processes of industrialisation are leading to
  global warming and a deterioration of atmospheric
  quality. Developing countries have been excluded
  from the Kyoto Protocol, providing a loophole for
  transnational companies - they can go there
  instead of their own company

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CASE STUDY - NESTLE

• Nestle are one of the largest global companies on
  the planet with a global market which stretches
  to nearly every country in the world.

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Good Food, Good Life
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This mother was told she would not be able to
breastfeed both her children. The twin on the
right was fed with Nestle Infant Formula. The
child died.
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The future is possible for humans and other
species only if the principals of competition,
organised greed commodification of all life,
monocultures, monopolies and centralised global
corporate control of our daily lives enshrined in
the WTO are replaced by principles of protection
of people and nature, the obligation of giving
and sharing diversity, decentralisation and self
organisation enshrined in our diverse cultures
and national constitutions. Vandana Shiva,
Indian Scholar and Activist