The negative drivers of globalization included culture which is a major hold back of
globalization. An example of how culture can negatively affect globalization can be seen
in the French film industry. The French are very protective of this part of their culture
and provide huge grants to help its development. As well as government barriers market
barriers and cultural barriers still exist.
A negative aspect to a countries development is war e.g. tourism in Israel fell by 40% due
to the latest violence. Corporate strategy can also be a negative driver of
globalization as corporation may try to locate in one particular area.
Another negative driver of globalization is “local focus” or “localization” as it is termed
in Richard Douthwaite’s book “Short Circuit”. Douthwaite (1996) believes that
globalization can and should be reversed.
He also believes that localization is the way to do this. He defines localization as “not
meaning everything being produced locally but it means a better a balance between local,
regional, national and international markets and thus brings less control to multinational
corporations”.
Another step to reverse globalization would be for governments to club together to curb
the power of multinational by negotiating new trade and treaties that would remove the
subsidies powering globalization and give local production a chance.
Douthwaite also states that the global economy is itself nothing less than a system of
structural exploitation that creates hidden slaves on the other side of the world and also
that the North should allow the South to produce for it and not just for us (North). So it
can be seen that Douthwaite is very opposed to globalization especially that
part of it exploited by multinational corporations.
Further arguments put forward against globalization by Mr. Lawton include that it
actually destroys jobs in wealthy advanced countries. This is due to the lower costs of
wages in developing countries. Multinationals will move to areas of lower wage levels at
the drop of a hat e.g. Fruit of the Loom. Also this ability to relocate has meant that wage
levels of unskilled workers in developed countries have actually fallen relatively
speaking. This is down to the fact that one now needs skill and knowledge in developed
economies to survive.
Causes the flow of ideas, services, and capital around the world
Offers consumers new choices and greater variety
Allows the mobility of labor, capital and technology
Provides employment opportunities
Reallocates resources and shifts activities to a global level
0 comments:
Post a Comment