Chapter 2: | The Challenge of Globalization |
is more than international or transnational. It might be said that globalization dates from ancient times, or perhaps, from the beginning of modernity, the end of the 15th century. For the purposes of this essay, it should be considered a post-1945 occurrence whose driving force is technology, particularly telecommunications and computers. The recent trend is toward increasing the flow of goods, labor, materials, technology and funds between nations. It implies looking at the world as borderless, and perhaps, even without national identities. Goods, capital and personnel move freely, either in reality or by the use of technology. Information and communication travel quickly among the peoples of the world. For this to be done successfully, cultural diversity must be recognized, and appreciated. The true meaning of global is holistic, not international (Kanter, 1994, p. 230).
According to Anderson (2003), globalization has been called a “villain,” and is causing most of the world’s troubles. Those who are in agreement have noted the present unemployment rates in many countries including the U.S.A. Much is due to shifts in import / export trade. The U. S. exports less while companies overseas export more. Also, because technology plays an important role in globalization, it might be said that the wealthier countries “have the edge,” and have created greater disparities of wealth among nations.
In discussing the economic, political and social effects, George&Welding (2002) noted that globalization requires low labor costs, gives multinational corporations (MNCs) control over the national economy, the society, and thus weakens the political system. On the other hand, centralized economies become decentralized when decisions are made by the MNC. Proponents claim that this can result in increased productivity, economic growth, and raises the standards of living.
DeMartino (2000) noted that in a global economy, an individual is free to improve or acquire new skills because in place of government allocations, MNCs reward employees for productivity. This can be disturbing because of the existential “I am what I do” attitude. It aids and abets the growth of a society which is moving rapidly to a dehumanized society. However, in answering the question whether this is just, DeMartino (2000) further stated that it is by rewarding