The recent term globalization
World War 2, approximately 100 times more over the last 50 years- $95 billion (1955) to $12 trillion (2005). As I have highlighted globalization is a very important In the first section of this essay I will talk about the negative and positive effects of globalization on our environment and how environmental policies have failed to control globalization in order to save the climate.
In the second half of this essay I will talk about how globalization has strengthen industries in developing countries and the effect of this on the developing and developed countries. We don’t tend to relate globalization with environmental factors such as global warming, globalization is more of a trade thing, wrong, globalization is not Just about trade it’s about transporting the goods, producing the goods and having people in place with the appropriate skills to create the product in as much quantity needed.
All of which require resources, after 1 50 years of industrialisation, climate change global warming) is understandably inevitable however the problem occurs when we accelerate human activities than necessary, that’s where global warming plays its part. About 95% of the world’s traded goods are moved by maritime transport, which in turn causes about 5% of the globe’s sulphur oxides and 14% of the world’s nitrogen oxide emissions. According to the Office of National Statistics ‘Greenhouse gas emissions from transport have risen by 47% since 1990’.
The Department of Climate Change in 2008 discovered that Australian greenhouse gas emissions from cars account for 54% of Australia’s total transport emissions. Global warming also known as climate change refers to the increase temperature of the planet, naturally the earth is tend to warm up but activities such as burning fossil fuels and deforestation leads to greenhouse gases such as carbon dioxide being produced which leads to the “greenhouse effect”. The greenhouse effect is the process in which the planet warms up and causes the sea levels to rise due to the earth’s natural ice melting away.
In order to stop the issue of global warming there have been several policies introduced by the government in order to control been set in place does not mean that they worked for example, The I-JK based upermarket chain Tesco decided to ban rose importation from Kenya in order to reduce emission however later research revealed that the Dutch rose which the supermarket now relied on generated 6 times more emission due to the way they were grown in greenhouses (2007).
However to some extent globalization does have a positive impact too but there are some important negative impacts and unfortunately the negative impacts of globalization on the environment outweigh the positive impacts. The main positive impact that globalization has on the environment are that there is mprovements in the use of resources and awareness and that due to globalization research is being conducted that creates greener technology.
Globalization has assisted in improving the use of resources and saving the environment by promoting growth through development, improving education and incomes. The World Bank is an example of this as it has successfully helped Mexico City in the 1990s to reduce the carbon dioxide levels. Due to globalization, corporations have been conducting researching and creating technology to reduce the impact of humans on the environment often referred to as green technology. Some examples of greener technology are hybrid cars and the new ‘green’ Apple Mac.
Hybrid cars are a green option for cars and they typically achieved greater fuel economy and lower emissions than normal cars which results in fewer emission being generation. Apple has stated that MacBook has been built “using materials that are highly recyclable and free of many of the harmful substances present in other computers. ” The software and hardware have also been designed to work together to make the computer more energy efficient and to “minimise the carbon footprint of the MacBook.
Unfortunately the negative impacts of globalization on the environment outweigh the positives by a huge margin. The main negative impact of globalization on the environment is the impact of unnecessary destruction. The overuse of natural resources due to increased demand and also the removal of ecosystems due to population growth have had a large negative impact on the environment. Extensive deforestation has occurred world- wide with the logging industry being fuelled by the need for disposable products. 1 million acres a year are cut for commercial and property industries. Deforestation hether it is for an increase in demand or for expansion is causing a loss of biological diversity on the planet. In Australia 90% of native forest wood are exported, destroying Australia’s natural heritage. About one half of the forests that covered the Earth are gone. Each year, another 16 million hectares disappear. Deforestation is expanding and accelerating into the remaining areas of undisturbed forest.
In Indonesia, powerful families allied with the government rulers control large and highly valuable timber concessions. These forests are being rapidly logged, at enormous profit. Over-fishing occurs when fishing activities reduce fish stocks below an acceptable level and this leads to resource depletion. Over-fishing has also occurred around the globe with 9 of the world’s 17 major fishing grounds in decline Agriculture Organisation of the UN in 2005 found that global stocks of most fish are stretched to their limits.
Nearly a quarter of commercial species have already been over-exploited, with a total 70% of species now being fished close to, at, or beyond their capacity. Globalization has also had a negative impact on the environment through global warming and climate change. Globalization may be bad for our environment but it has proven to strengthen industries in developing countries and it’s not difficult to see why, when a transnational company (TNC) decides to relocate in low-cost economies, many new jobs will be created. It can be in production line, technical areas and also management.
People who are once unemployed will now have an opportunity to improve their livelihood while those who already have working experience may be able to climb to a higher corporate platform, thus earn better pay. Consider China. It has the largest poverty reduction in history, from 250 million in 1978 to about 34 illion in 1999. Indian government, has successfully cut poverty rate by half despite late in opening up their economy. Also with globalization, goods can easily penetrate the borders of other countries, thanks to the prominent role played by WTO.
With its establishment (previously was GATT), global tariffs on average has been reduced from 40% to Just 4%. Low-cost Asian economies have the most to benefit from this. This is because of the comparative advantage in manufacturing sector. Unskilled labours are in abundance and yet level of productivity is comparable. Besides natural resources are easily btainable which further reduces the production costs. As such local economies can pursue export-led growth, a buzzword synonymous with China.
Such strategy allows economic diversification, rather than Just having a typical primary sector. The impact onto local economy can be magnified through multiplier effect. Perhaps this explains, why China can register double-digit growth in the past few years. (4) Cheaper price and more choice of goods. That’s simple. Say, a country produces barley. When barley is also sourced from outside that means supply of barley in the economy will increase, causing its price to fall. That’s something to be cheered by most consumers who are best categorized as low to middle income earners.
Consumer surplus will increase too since the gap between what they are willing to pay and what they are actually paying increases. On top of that, standard of living will also increase when there are more choice of goods Its not only developing nations which benefit from globalization but so the developed nations The production process is driven by the goal of cost-minimising. In many parts of Asia, labours are cheap, productivity is considerably high, raw materials are easily btainable and cost of shipping has fallen.
Goods are produced with the lowest cost possible and in most circumstance, cost saving will not be passed on to foreign reaping higher supernormal profits, while management will reward themselves with fat bonuses leaving nothing for those grass-root workers. Even if there is, the reward might be insignificant. This partly explains for the widening income inequality between the developed and developing nations. While I agree that very few people will make a huge fortune out of this, they are normally the firm owner which runs usiness that supply raw materials to foreign firms. 4) Exploitation of labour. Perhaps proponents of globalisation have exaggerated their stand. Claiming that the standard of living in developing countries has increased based on real GDP per capita may not be that accurate. While it is true that unskilled workers have received an increase in their pay check, it is nothing close to an increase in their workload. In short, an increase of wages by 10% leads to an increase of 50% in works. One does not need to be a genius to see how factory workers are exploited in China. They are paid peanuts and yet overworked.
Women suffer the most in terms of discrimination in workplace. Labour union is weak and the existing law is Just too fragile to uphold Justice for them. Also some workers may be put to work under unsafe conditions. For instance, child labour in mines. While it is true that many Jobs are created when foreign factories and firms are opened, there are even more unseen Job losses. Some claim that every one new Job created, up to three will be lost. Think about this. How many local firms that really have the competitive edge to race against giant conglomerates? Nearly none.
In short, ndustrial liberalization rewards the competitive firms and penalizes those uncompetitive ones which are made up of majority. Job creation is insufficient to offset the amount of Job losses. If globalisation brings so much benefit, then how come 80% of the global populations earn only 20% of global income? Poor countries often become the subject of biasness. The WTO although in theory is said to be an independent organization, is not more than a puppet to rich and powerful nation like US. Poor countries are often urged to open up their economy to the import of agriculture goods from 1st world.
On the other hand, it does not take any serious action when US and EIJ have such thick tariffs protecting their agriculture and dairy industry against agricultural produce from the 3rd world. Also through influential organization like IMF and World Bank, powerful countries have become the shadow that meddles with the fate of HIPCs (Highly Indebted Poor Countries). Many ill-suited policies are fed onto 3rd world which creates more harm than good. The intention is to keep them begging for more financial aid and hence being locked into more pricey agreement which they cannot commit