This from various academic sources, a thorough look

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This essay will be looking at
what is globalisation and the effects of it and the three competing
perspectives of globalisation. Globalisation is shaping the way we live our
everyday lives and has impacted the world massively in the last few centuries
due to the increase in trade between countries, new communication channels and
the increase in foreign direct investment all of which were helped by the
advancements in technology over the years. These three competing perspectives
of globalisation are neo-classical, socialist and structuralist. These
different perspectives all have different views on the advantages and
disadvantages of globalisation and the effects it can have on the world from both
an economical viewpoint looking at the how it affects the national economy and
the household income and also from an ethical viewpoint looking at the quality
of life and human rights. The aim of this essay is to evaluate each perspective
and discuss the strengths and limitations of each using examples from the businesses
world to put them into context. The structure of the essay will include detailed
definitions of globalisation from various academic sources, a thorough look at
the three different perspectives of globalisation, the ethics of globalisation and
a conclusion to summarise the findings.

The definition of globalisation
is hard to pinpoint as there are so many different definitions of globalisation
out there. (Wetherly & Otter, 2014) describe globalization as not only an
increase in economical flows of trade and investment but also the mixing of
culture influences and migration. Another definition is ‘globalization refers
to the interconnectedness and interdependencies between countries on a global
scale’ (Perrons, 2004:1). Alternatively, a definition of globalization could be
‘A set of global processes that are changing the nature of human interaction
across a wide range of social spheres including the economic, political,
cultural and environmental’ (Kelley, Collin, 2005:3). Although these
definitions of globalization vary all of them agree that it is breaking down
the barriers between countries allowing businesses to trade more freely and mix

The first phase of globalisation
was said to have started in the sixteenth century because of improvements in
maritime technology, which lead to an age of exploration, discovery and trading
however this was mainly for the elite who traded luxury items. The next phase
of globalisation was said to be in the eighteenth century, with the industrial
revolution came improvements to technology, this lead to the mass production
off goods, long distance trading and foreign investment flows (Sheel, 2008). Since
then the creation of the internet, vast improvements in transport technology and
the liberalization of trade policies has meant that globalization is at an
all-time high.

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The neo-classical perspective of
globalization is that globalization is a good thing and that all countries can
benefit of it. Neo-classical theorists believe that businesses can do best in
the free market without any government interference as consumers can behave how
they want (Wetherly & Otter, 2014). This perspective of globalization is
based on the theories of absolute and comparative advantage. Adam smith’s
theory of absolute advantage was that the narrowness of products produced in
one country should not affect their division of labour as they can produce that
product to the highest perfection (Smith, 1776, Cited in Schumacher, 2012). This
means that countries should specialise in creating what their best at making
and not try make things that other countries are better at or have better
resources to create, as they can trade for the products with other countries if
they produce something cheaper. Whereas David Ricardo’s theory of comparative advantage
says that if there are two countries producing two goods and one country is
better at producing both goods than the other the countries can still benefit
from specialising in one product each. If there was a fair terms of trade
established Ricardo’s theory says that both countries would have more of both
goods than before the trade (Ricardo, 1817, Cited in Author unknown, 2012). 

Categories: Globalization


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