Impact of Globalization on London: A Comprehensive Analysis

This essay delves into the multifaceted impact of globalization on London, examining its advantages and disadvantages, positive and negative effects on the city's economy, society, and workforce. It explores how globalization has influenced London's role as a global hub, its technological advancements, and the challenges it faces in managing inequality and adapting to changing work patterns. The essay provides a comprehensive analysis of globalization's impact on London, highlighting its complexities and offering insights into its future trajectory.

Impact of Globalisation

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Globalization means incorporation of various markets over the economy globally that lead to
improving the connection of national economies. In general, globalisation refers to movement of
free trade of resources like goods, capital, services, people, information and technology. The
markets that are familiar with globalization are basically financial markets, including capital
markets, insurance markets, money-credit markets, commodity markets (coffee, oil, gold, tin)
and product markets ( including electronics products and motor vehicles). With the advancement
of transport and telecommunication sector due to globalization both social and economical
conditions of a country has become interdependent.
The globalisation impact the whole economy, by eliminating any kind of restrains that can be
caused by geographical structure of a place by creating foreign exchanges, job opportunities,
education, media, medical services, electronic and consumer goods globally.
In this present assignment, the following essay focuses on the importance of globalisation,
advantages and disadvantages of globalisation, it’s positive and negative impacts in London and
lastly the ways globalisation affect the work of people. Here, prime location taken into
consideration is London as it capable of generating resources and various opportunities
worldwide.

MAIN BODY
Advantages of globalisation
Globalisation is effective to bring various benefits to the national economy and to international
producers (Beck, 2015). Due to the globalisation organisation can now access various resources
like cheap raw material globally that leads to increase in cost competition in local as well as
international market. Globalisation also increases the inward investment flow along with sharing
of new technology and knowledge among countries. Globalisation also encourages more and
more employment around the globe by creating more job opportunities. One the most significant
advantage of globalisation is dropping of standard production cost due to high product demand
and profit attended through economical scale.
Disadvantages of globalisation
Along with various advantages, globalisation has several impending disadvantages. It includes
over standardisation of products and services due to branding. In case of big multinational
companies, diseconomies of scale can arise it means complexity regarding managing auxiliary
activities over different countries can come into existence (Broner and Ventura, 2016).
Globalization can lead to cause of deindustrialization that will minimize the manufacturing base
of a countries economy. Structural changes are increasing due to globalization that increases in
the loss of job and structural unemployment. Globalization is considered to be one of the most
significant reasons for raising the pollution and global warming together with enhancing the
exhaustion of non-renewable resources.
The Impact of globalisation over London
London is considered as the capital of globalisation. Economy of the city is highly influenced
both positively and negatively mostly through telecommunication and tourism sector
(Rotherham, 2017). Some of the impacts of globalisation have been studied below:
Positive Impact

Impact of globalisation over labour and employment, London has various opportunities
regarding employment in present as many of multinational organisations have shifted their
activities of operational and production activities. The city encourages and supports export of
diverse products such as waxes, vegetable oils and fats creating job opportunities in a big scale
so that the productions of the goods are managed accordingly.
London is a beautiful city and is a place of tourist destination; different employment services and
product growth is offered by organisation in service sector. Globalisation encourages migration
of workers from different countries to London for filling the available job vacancies. For an
instance, TUI UK earlier known to be as Thomson Holiday is a travel operator based in UK
which is capable of providing jobs opportunities through proper advertisements so that skilled
labour force by providing good incentives and salary packages.
Globalisation also impacts greatly on technology transfer which basically refers to availability of
resources to different multinational organisation for technological advancement to sustain in the
competitive market internationally (Potrafke,2015). Industry of telecommunication is immerging
successfully in London therefore many of the MNCs are very much interested in establishing
new plants for achieving advantages. It is so because developing countries are incapable of doing
researches and developmental activities hence they prefer implementing technological plant in
London. Conventional form of transferring technology is the most frequently used method that
supports owing subsidiaries. This method is known as FDI that lowers the operational cost of big
MNCs along with that knowledge about latest technology can be gained.
Globalization’s positive impact of the countries' economy denotes economical growth. The
globalisation impacts economy of various nations which can be identified by applying variables
such as flow of capital, trade, GDP and FDI. Through cross sectional data and time series
different components of globalisation like trade, portfolio and FDI investment can be checked.
Moreover, London has good connective along with good flow of capital flows together with
growth of economy (Fiorini and Lebrand, 2016.). When a city opts for high revenue from taxes
then it may lowers the degree of globalisation. Moreover, it can be stated that effect of growth
leads to optimistic relationship among different nations.

Impact of globalisation in Society means that individuals living below poverty line can afford to
work in different MNCs. It can improve the standard of living and family existence.
Negative Impact
Globalisation has negative impact on various areas including labour and employment. In which
government of the developing countries competes with developed country through policy
deregulating that manipulate and controls MNCs and FDI (Hirst et al 2015). Implication of taxes
and low wages risks investor for making any kind of investment over London. From studies is
has been seen that whenever government of a country trends to elevate the rate of income along
with labour standards, it a common practice of MNC to restructure and relocate the place of
resources to other country so that cheap labour and legal protection can be found.
Globalisation leads to migration that has a negative impact on housing and public service in
London as extreme migration may lead to increase of crime rates and less job opportunities for
locals. Technology of a country is also affected by globalisation including employee’s health
problem (Vivek and Ghate, 2016).
Globalisation also impacts the society including career, standard of living, families along with
community as a whole (London and Schneider, 2012). Management of living involves
communication, assimilation, government and other organisation. Hence social impact of
globalisation is an approach that can be formed through various investment and trade with IT
support. The following issue is directly proportional to scarcity, unemployment, environment and
disparity effecting London city as a whole.
Globalisation also has harmful impact on the economic growth of a place. In generally it states
that the benefit from the globalisation is compensated by public of London and the non
economist (Martens et al 2015). Globalisation encourages free trade that enhances the chances of
trading in international level. However the same will also increases risk of failure for small scale
organisation and to sustain internationally. Cost of operation and proving high wages rises due to
free trading system. But it will lead to risk the local industries present in London due to rising
competing and facilities provided by MNCs. One of the most new and hazardous impact of
globalisation is increase in overutilization of non-renewable natural resources for meeting the
demand of market.

Globalization and its affect on peoples work
Standard of living and working of a person living in London can be affected by various different
factors. But one of the most imperative factors that have both negative and positive impact is
inequality. Inequality refers to difference in living standard and margin between both the classes
of people has increased (Moiseenko, et al 2016). The problem of inequality can be eliminated by
providing proper and equal opportunities of job to every individual living across London. They
can also have the chance to choose their preferred job according to individual skills and interest.
Globalization has encourages working of female in organization along with facilities like online
job and work from work culture. Globalisation encourages right to equality to do job irrespective
of customs, caste, sex, beliefs or religion.
Equality in workplace is helpful in balancing a person’s personal and professional life
(Mukherjee, 2016). Discrimination among people can lead to negative consequence on people
of London as worker are from different place works together according to their skills and interest
that can and this can result in de-motivating the local worker.
Globalisation can also result in changing various rules and regulation, policies and practices of
London. It leads to attaining new knowledge mainly by investigating the current scenario for
proper work efficiency in an organisation. Yet it is quite impossible to be ensured that all the
workers are capable enough to acquire and defy any kind of changes and to overcome the present
working pattern due any kind of organisational policies changes which may be a reason of
professional and personal stress of an employee (Najam et al 2016). Employees are afraid of job
turnover and recession that can be caused by organisational adoption of new technology and
policies as a result of globalisation. Standard of living of people in London has risen with the
growth of globalisation along with high income. London is also known for its fashion trends;
therefore MNCs have found new techniques for marketing their product as services among the
people so that new fashion can be followed by setting up outlets available for all and by creation
of new and more job opportunity for the people.
Globalisation support introduction of new products or services in the market which can be a
alternative for all the old products available in the market (Perez, 2017). Invention of new
technology and ideas lead to more production, less use of resource, conventional and are easy to

use (von, 2017). Therefore organisation chose to use latest product and service like transfer of
technology transfer from a developing country to London as a case of subsidiary. These methods
are very helpful in improving the efficiency and performance of all the appointed employees.
Technology also plays an important role in one’s personal life as introduction to the latest
technology an organisation will reduce the efforts an individual need to put while completion of
a work hence he or she is now capable of spending more time with their near and dear person. It
will lead to growth in mental health and tension free work environment (Pieterse, 2015).
Moreover, globalisation has brought changes in various fields and areas including a person’s
perspectives, opinions, thinking, and thoughts while living and working along with satisfaction
of work.

CONCLUSION
In this above assignment, the following essay has clearly stated the about globalisation and it’s
importance in present competitive world so that an organisation can easily sustain in the market
for long term. Here in this report a particular location has been taken into consideration for
highlighting the basic points of globalisation. These essay studies about various advantages and
disadvantages of globalisation. it also illustrates about different impacts of globalisation both
negative and positive faced by London in its, social growth, economic growth, employment
workforce and technology transfer and proper examples were taken under consideration when
felt necessary. Impact of globalisation on the life of people working and living in London has
been studied. Globalisation has also effects inequality, alteration of various policies and
practices, it also lead to substituting old manufactured goods with the goods produces using
latest technology that has also being examined in this report. Additionally, globalisation do has
various positive influences over the economy of London with increasing of employment
opportunities, living standards, free and independent flow of trade along with generation of
foreign exchange.

REFERENCES
Books and Journals
Beck, U., 2015. What is globalization?. John Wiley & Sons.
Broner, F. and Ventura, J., 2016. Rethinking the effects of financial globalization. The Quarterly
Journal of Economics, 131(3), pp.1497-1542.
Fiorini, M. and Lebrand, M., 2016. The political economy of services trade agreements.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.
London, L. and Schneider, H., 2012. Globalisation and health inequalities: Can a human rights
paradigm create space for civil society action?. Social Science & Medicine, 74(1), pp.6-
13.
Martens, P., Caselli, M., De Lombaerde, P., Figge, L. and Scholte, J.A., 2015. New directions in
globalization indices. Globalizations, 12(2), pp.217-228.
Moiseenko, D., Leonidova, A. and Whitfield, A.M., 2016. THE CONTRADICTIONS OF
GLOBALIZATION AS A STAGE OF DEVELOPMENT OF THE WORLD
COMMUNITY. Молодежь. Общество. Современная наука, техника и инновации,
(15), pp.116-117.
Mukherjee, A., 2016. Culture, tradition and globalisation: Some philosophical questions. Social
Alternatives, 35(1), p.53.
Najam, A., Runnalls, D. and Halle, M., 2016. Environment and Globalization: Five Propositions
(2010). The Globalization and Environment Reader, p.94.
Perez, J.R., 2017. Global Leadership and the Impact of Globalization. Journal of Leadership,
Accountability and Ethics, 14(3), pp.48-52.
Pieterse, J.N., 2015. Globalization and culture: Global mélange. Rowman & Littlefield.
Potrafke, N., 2015. The evidence on globalisation. The World Economy, 38(3), pp.509-552.

Rotherham, I.D., 2017. The Impacts of Globalisation and Cultural Severance. In Recombinant
Ecology-A Hybrid Future? (pp. 55-62). Springer, Cham.
Vivek, A. and Ghate, J., 2016. Impact of Globalisation on the Competitiveness of
Nations. Journal of Commerce and Management Thought, 7(2), p.327.
von Furstenberg, G.M., 2017. New directions in global economic governance: managing
globalisation in the twenty-first century. Routledge.