Since 19th century, the world is facing globalization. It is considered by many as the main factor that contributes to economic and political revolution. The benefits and costs of the emerging global economy are being fiercely debated among business people, economists, and even politicians. This essay focuses on the positive and negative impact of globalisation on jobs, wages, the environment, working conditions and national sovereignty.
What is Globalisation?
The shift toward a more integrated and interdependent global economy can be referred as globalization (Hill, 2009). It affects both developed countries and developing countries. From a book written by Ulrich Beck, globalization means that borders become less relevant in various dimensions of economic, information, ecology, technology, cross-cultural conflict and civil society.
Financial scholars such as Walker and Fox (1999) define globalisation in international finance point of view by saying that global integration of the financial markets can be seen as an example globalization. It is possible to gain insight into the general process of globalisation by studying the process of financial globalisation.
Economists see globalisation as the integration of world economy (Neuland and Hough, 1999). Gill (2000) defines globalisation as the reduction of transaction cost of transborder movements of capital and goods thus of factors of production and goods.
A demographics expert such as O’ Brien (1992) links the definition of globalisation to geographical borders. O’Brien distinguishes between national, international, offshore and global. Global combines elements of international and multinational as a more advanced stage of integration between countries. A truly global activity does not know any internal borders. It also gives limited recognition because of the fact that the country is irrelevant when it comes to global activities.
From general point of view, Redding (1999) defines...