Tuesday, November 27, 2012

Globalization a new playing field with new rules

Globalization has been slowly moving along since the creation of the silk trade route from China to Europe that was around 200BC. After that communications between countries and continents did develop, but at a very slow rate. It wasn't until the 20th century when telephones were invented that people could communicate with other people in other parts of the world without having to travel or wait for mail. Though globalization rapidly started to evolve in the past couple of decades.
In the book The World is Flat by Thomas Friedman, he talks about the ten "flatteners" of the world that allowed everyone to play on the same playing field and to communicate with one another. One of the first flatteners was the ability to upload a file on the internet. People of my generation cannot fully comprehend how amazing this was to the world. For the first time someone was able to download a document or a thesis online and gain from it. It was a way that everyone in the whole world became connected. The flattener that caught most of my attention was UPS. I never realized it but not only does UPS connect the world, but it also allows everyone to be playing on the same field. For example, a small business would only be able to sell its products to the local community. It would be impossible for a small town flour shop to sell its products to people in China. Only a large company would have the resources to do something like that. This is where UPS comes in. With the help of UPS the small business is actually able to sell its product on a global scale. For the first time the distance boundary between people has been broken and it opens up many new opportunities to businesses. Advancements in Globalization is the reason why people are able to do something like this.

The counter argument  though of why globalization is bad is because it is destroying the culture of the nation. Which is true. When the western world started to trade with Asia in the 19th century, Asians started to wear more western clothes and use Western products. This changed the way of life for those who communicated with the Westerners and the argument is that the culture was lost due to the increase of communication and trade with the western world. The issue with that argument is that in most cases of globalization no one is forcing anyone to buy anything.
For example say that there is a  family that has worked on a farm for the past 100 years. Everyone in the family has their own roles and they have been using a hoe and plow to do all the farming. then because of the improvement in globalization it is possible for a salesmen to come to the farm and sell them a tractor. The family buys the tractor but it changes their way traditions and their way of life.
Is this a bad thing?
That is basically one of the outcomes from globalization, but one can easily trade that story about fashion or the diet of the people. Either way it all comes down to what the people choose. the reason why the culture on the farm changed is because the family on the farm wanted it to change. They were not forced into buying the tractor and kept their culture. If one is so committed to their own culture they don't have to change it. All I would have to do is drive from my house for a couple of hours and find an Amish town where they chose to keep their culture, so its not an impossible task. Globalization is an option that many choose to take.

Another helpful thing about globalization is that it provides relief for 3rd world countries. Now we have things like KIVA which allows investors like me invest money into someone or a business from a 3rd world country.
 Why is this different for pre- globalization?
The reason why it's different is because it allows people to be connected to who they are helping. If I came up to you and said "hey can you send $50 to someone in Africa for something" the reply would most likely be "no" but if I came up to you and said "hey Champoo is a 27 year old girl from Mali who needs a stand to run her business and you would get to see how she and her business is doing" the answer would be more likely to be "yes" than the previous statement. Globalization isn't just about changing culture, it is also about adding the ability to help others with greater ease. Especially with the support of resources like UPS.
For the good and the bad, globalization also opens up business opportunities. For example it became easier for a company to outsource its jobs to other countries where labor is cheaper. This fact creates a lot of controversy about Globalization though. On one had the producer is able to invest in cheaper labor and then be able to turn around and sell their product at a cheaper price, which benefits the consumer. The issue that some people have with that is that the outsourcing of jobs affects the original holders of the jobs. For example, Pennsylvania was well known for its coal production and it had many towns that were economically founded by coal mining. As globalization grew and it became easier and cheaper to outsource many coal miners lost their jobs and many coal mining towns are now ghost towns. So it is now easier to buy a product, but some people lose their job. Globalization has been that way for centuries, and it is nothing new to complain about.

In conclusion Globalization has opened up thousands of new doors to us. Whether we are a small business looking to expand our network of consumers, or someone in Mali that needs a loan. There are countless different things that are possible for people all over the world. It is almost impossible how greatly the world has changed for the better because of globalization. Because of communication with each other and learning about each other we have all greatly expanded our network of possibilities.

1 comment:

  1. Great post. Technology presents options. It's the. Up to people to choose what to do, or not to do, with it. Friedman is an interesting example. I liked his book, The Lexus and the Olive Tree. But then he seemed to lean anti-globalization, rather than just report on the changes.

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