Impacts of Globalization, Neo- Liberalism and Internationalization

2021-05-10 15:04:45
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Globalization, Neoliberalism, and Internationalization have been significant in the global sustainable global development. Since the inception of the neo-liberalism, its concepts have since been adopted in the economic world as depicted by its various implications (Scholte 2005). Some economic theorists usually claim that the policies of globalization led to the birth of neo- liberalism. Globalization and neo- liberalism draw their concepts from the classical liberalism that contends that market forces are push factors towards the realization of the prosperity, liberty, peace and democracy to the entire humanity. These concepts advocate the demeaning of the bottlenecks and controls installed by the different states when it comes to the global market. According to globalization or neo-liberalism, the government is expected to limit its involvement or control of the state (government) when it comes to production factors such as prices, wages or even foreign exchange rates. This implies that the concepts of globalization, neo- liberalism and internationalization have shaped the global socio-economic and political cultures through their respective implications and impacts.

Impacts of the Globalization on the sustainable global development

Globalization has enhanced international trade as well as encouraging the flow of the capital which has been vital in the long-term economic growth and development. This enables the global community to be in a pole position to provide a firm foundation for various economic activities that in return can stimulate the sustainable global growth and development CITATION Jok02 \l 1033 (Waller-Hunter & Jones, 2002). In the recent decades, there has been a significant growth in the international trade which is mainly attributed to the wave of globalization. For instance, the volume of the international trade increased 27 fold by escalating from $296 billion to 8 trillion (from 1950 to 2005). The enhancement of the international trade has been vital to various nations. Through international, consumers in the global market have an easy access to various goods and services. This would not have been the case if the there was only a domestic form of trade. The enhancement of the international trade has also compelled the global community to set up different institutions and bodies that are meant to govern and control international trade.

Globalization has also stimulated global economic growth. Globalization has ensured that there is an increase in the mobility of various factors of production. In return, it has escalated the levels of production in various economies, subsequently leading to the growth of the global economy. Globalization advocates for the division of labor as well as an emphasis on the competencies of every individual across all levels CITATION Pet07 \l 1033 (Dicken, 2007). This implies that international firms will constrain their activities of goods and services to those areas they are competent and comfortable with. In some instances, some international firms can embark on merging with other firms as a way of realizing synergies that can help them in the provision of goods and services at exemplary low prices. The insistence on the division of labor has enabled workers to choose those multi-international enterprises that match their competencies, professions, and skills CITATION Llo00 \l 1033 (Gruber, 2000). This implies that globalization has been useful utilization and exploitation of the resources, which in return have been crucial in the stimulation of the global economic growth. This is essential when it comes to maintaining a sustainable global development.

Increasing the wealth accumulation as well as prosperity for individuals and the different nation is also another impact of globalization CITATION Jos02 \l 1033 (Stiglitz, 2002). There is a global exchange of particular goods and services in the global market. In addition, the interactions among the global investors and entrepreneurs have led to the development and exchange of new ideas in the production process (Stiglitz, 2007). This has ensured that there is an increased efficiency in various enterprises, enabling them to have lower costs of production as well as goods and services that are of high quality. In the end, firms are experiencing high volumes of sales, leading to their prosperity and general wealth accumulation. For instance, from 1995 to 2005, the global production of goods and services recorded a 45% increase CITATION Urs07 \l 1033 (Urs Zollinger, 2007). The reports also indicate that countries with low income have also benefited from the globalization as depicted by an increase in their overall income.

Globalization has led to the reduction in global poverty. According to the reports released by the World Bank, it is indicated that the global number of people living below the poverty line reduced from 1.25 billion to 0.9 billion people during the period between 1990 and 2004 CITATION Urs07 \l 1033 (Urs Zollinger, 2007). This was as the result of globalization since it has stimulated the creation of jobs for the locals as well as encouraging the production of quality goods and services at comparatively low prices. The reduction in poverty has been essential to millennium development goals set by World Bank which were to effectively reduce the number of the people living below the poverty line, by the year 2015. This has been notable in the Asian states such as China and Saudi Arabia. However, the Sub-Saharan countries have experienced mixed results as far as reduction in the poverty levels is concerned. For instance, it is reported that the number of people living below the poverty line in sub-Saharan countries increased by 60 million people: this corresponds to percentage reduction from 47% to 41% (from 1990 to 2004). However, there has been a general reduction in the poverty levels across the global community which is mainly attributed to the positives of the globalization.

Globalization has also been detrimental global economy since it has led to an increase in the disparities of incomes worldwide CITATION Pet07 \l 1033 (Dicken, 2007). Once the reduction of tariffs on the imports has been imposed, there will be a reduction in the prices of the imported goods as well as a reduction on the skill-intensive goods. This will, in turn, lead to a reduction in the compensation of the high-skilled workers. On another hand, the price of the exports of low skill-intensive goods will increase leading to an increase in the compensation of the low-skilled workers. This implies that a given economy whose high-skill factors are plenty in supply will experience low rates of inequality as compared to the economy whose high-skill factors are less abundant combining with an increased openness which in turn lead to an increase in the levels of inequality. Market integration is at the heart of globalization, which has spearheaded the emergence of high levels of inequalities, especially in the developing countries

The increasing global markets have depicted disparities in the market shares by different nations. The escalating economic gains have been linked to the deeper and effective global markets: these markets are not shared equally among the key players in the integrated global market CITATION Llo00 \l 1033 (Gruber, 2000). According to the nature of the global market, only those global economic players with the rightful and adequate assets are rewarded with a comparatively huge global market. This makes those who are well equipped in terms of assets (financial capital, human capital and entrepreneurial skills) to have an upper hand in the global market as compared to those with fewer assets, which leads to inequalities. Due to the integrated market, there is a higher demand for skills worldwide than its supply, leading to an increase in inequalities within various countries. China and India are good examples of the countries whose economies have been hampered by inequalities emanating from the wave of globalization. Some countries, especially from sub-Saharan countries entered the global market with wrong assets making them be vulnerable as far as economy inequalities are concerned.

Globalization has also led to the climate change. Many industries have been set up globally as the way of trying to meet the demands of increasing number of products on the global market CITATION Glo11 \l 1033 (Anon., 2011). This has encouraged the clearing of the fields to set up industries as well as settlement. This has in return encouraged the release and accumulation of the Carbon-dioxide gas in the atmosphere. Globalization has also encouraged high rates of deforestation, increasing the amount of dust in the atmosphere. The increase in the amount of dust, as well as an increase in amounts of carbon dioxide released into the atmosphere, has led to the destruction of the ozone layer. The end result has been an overall increase in the temperatures leading to global warming CITATION Jos02 \l 1033 (Stiglitz, 2002). Industrialization activities have also led to an increase in the release of the various chemical in the atmosphere, enhancing the air pollution. The acidic contents pollutants in the atmosphere through industrial activities have been detrimental to the habitat since they lead to the formation of acidic rainfall which changes physiological and physical conditions of living organisms.

Destruction of the biodiversity is also another negative impact of globalization. Since the inception of globalization, there have been myriad changes in the climate, land use, and biota movement CITATION Jos02 \l 1033 (Stiglitz, 2002). Apparently, industries have embarked on a large-scale production due to a large global market. This can be linked to an increased consumption of products due to their higher demand resulting from the lower prices. The increased consumption has only precipitated escalating rates of production. With human encroachment into natural habitats, such as indigenous forests and marine habitats, leading to alteration of the ecosystem. Industries need raw materials to enhance the process of production. The raw materials need means of transportation to move them to the required destination. It follows that transportation requires the use of fuel which is also an agent of pollution as well as playing apart in the depletion of natural resources. All these aspects indicate how globalization has played a major role in the changing and destruction of the biodiversity (Lloyd 2001).

Globalization has also led to increased cases of dumping especially in the developing countries. CITATION Saj02 \l 1033 (Lahiri & VanDeVeer, 2002). It is common for traders from developed countries to embark on selling products that are obsolete or of low quality to the third world countries, at a comparatively lower price. Dumping is detrimental to the local investors since it encourages unfavorable competition in the local markets. This was as the result of liberalizing international trade. In order to combat dumping, some international agencies have been established with the sole duty of initiating and implementing and antidumping and countervailing duties CITATION Pet07 \l 1033 (Dicken, 2007). The main approach of antidumping policy is through the policy of the price undertaking. Under this approach, exporters are voluntarily expected to revise the pricing of their products to match the local prices of the countries to which the goods are sold to.

Impacts of the Neo- liberalism on the sustainable global development

Neo- liberalism has influenced the way the state is...

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