Analyzing Reactions to Globalization: An Economic Essay

This essay delves into the multifaceted reactions to globalization, focusing on its negative impacts and the unequal distribution of its benefits across different countries. It examines how industrialized nations often gain more than emerging economies, leading to protectionist measures and events like Brexit. The essay analyzes the economic consequences of these imbalances, including stagnant incomes, rising nationalism, and environmental concerns. It highlights examples such as the Primark factory collapse in Bangladesh and the US's protectionist policies, illustrating the human and environmental costs of globalization. The author suggests the need for a fairer model, emphasizing the importance of compensating emerging countries for the use of their resources and addressing environmental issues to achieve a more equitable and sustainable global economy. The essay concludes by emphasizing the importance of balance to ensure benefits for both developed and emerging nations.

Running head: REACTION RELATED TO GLOBALISATION
REACTION RELATED TO GLOBALISATION
Name of the Student
Name of the University
Author Note

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Introduction
As discussed by Ghatak (2016), globalization can be defined as the free movement of
the services, goods and people in different parts of the world in an integrated and seamless
way. This is also considered to be the result of opening up of global economy. The import
and export based protocols that are developed by the global organizations are able to
influence the foreign investments that are made by them (Holm 2019). Globalization is
thereby grounded within the theory of the comparative advantage that mainly states that
countries which are able to produce a particular good can export them to the other countries
or markets. The process of globalization is considered to be a movement towards the
financial, trade, communications and economic integration on a global level (Baylis, Owens
and Smith 2017).
The essay will be mainly based on the negative impact of globalization on the
different countries. The unequal distribution of the benefits of globalization in various
sections of the countries will be discussed in the essay in detail. The examples will be
provided based on the negative impact of globalization on the economy of various countries.
Analysis of the negative reaction provided to globalization
The different studies and researches that have been made on the topic of globalization
has depicted everybody wins in the process and the major benefits are provided to the
industrialized countries. The uneven distribution of benefits is between the various countries
in which the organizations have their operations. The welfare based gains of globalization are
mainly related to the increase in gross domestic product or GDP per capita in around 42
emerging and industrialized countries between the years 1990 to 2016 (Huang, Ge and Hu
2019). The growth of real GDP per capita is considered to be quite positive in different
countries that have been surveyed by the researchers. The highly industrialized and small

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nations like Belgium and Switzerland that have the highest index based values have
outperformed the emerging countries like China and Argentina (Jorda and Sarabia 2015).
The countries that have gained low index values receive less amounts of benefits from
globalization in comparison to those which have the high index values. However, this is not
able to depict that the emerging countries are not able to gain from the increase in
globalization. The gains based on real income per capita are distributed in an uneven manner
on a global basis. The index value is provided to various countries with respect to the
implementation of Bertelsmann’s methodology (Kobrin 2017). The levels of interdependence
among the countries which have higher index values are considered to be quite high. The
increase in the index based on globalization by one point leads to the rate of growth of real
GDP per capita by 0.3% points. The major indicators of globalization mainly include foreign
direct investment, exports and imports and the various trade barriers as well (Nayyar 2015).
Various aspects of social globalization include tourism and the number of people who
have a migration based background. The major reason related to the low rates of growth in
emerging countries is considered to be the low starting of the GDP per capita of the countries.
During the 1990s the emerging countries like India and China were placed at the beginning of
their growth curve. This had led to the lowest growth rates based on the absolute gains in
comparison to the industrialized countries that were already connected globally (Pastor and
Veronesi 2018). A ten percent rate of growth had been experienced by China the between the
years 1990 and 2016 and China also leads the countries in terms of the exports and
globalization per-capita based gains. However, the growth rates of China have become quite
high in the last few years. China has gained the topmost position based on the globalization
based GDP gains over the last few years (Petras 2016).

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China thereby boasts a five-fold based increase and Germany has depicted a 1.5-fold
gains. The gains of increase in globalization have been quite high for China in comparison to
the gains that have been received by Germany. The purchasing power parity is considered to
be a major that has an impact on the benefits that have been gained from globalization by the
emerging and industrialized countries. The industrialized countries depict a higher economic
performance based on the per capita based income (Rao 2018). The absolute levels of
globalization gains are also considered to be higher and also difficult for emerging countries
to reach the proper growth levels. The lack of equal distribution of benefits of globalization is
not expected to change in the next few years (Rizvi 2019).
The unequal distribution of the benefits has led to huge levels of criticism that in turns
leads to the implementation of protectionism. The protectionism measures that have been
implemented by the US led to the imposing of higher tariffs and economic sanctions on the
various European allies and the economic rivals that include Russia and China
(Rodrik 2018). Some of the industries are able to gain on a short term basis from the various
measures that have been implemented, however, the economy is harmed in a huge manner.
The major measures that have been implemented by the US are based on the proper
protection higher costs of production and domestic steel industry based prices as well. A
process that has been suggested for maintaining even distribution of globalization benefits is
related to the revival of the WTO based trade rounds (Un.org 2019).
Examples of uneven distribution of benefits of globalization
The exit of the United Kingdom from the European Union is considered to be a major
result of the uneven distribution of the benefits of globalization. The analysis of Brexit based
activities is able to provide a clear picture of distribution of various benefits of increase in
levels of globalization from the diplomatic perspective. The aftermath of referendum depicts

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that it lacked the levels of political wisdom and various strategic goals as well (Weforum.org
2019). Brexit is considered to be the direct consequence of the lack of even distribution of
globalization based benefits. The correlation has also been observed between various regions
that opted to leave the EU and the regions of the European Union that were under-privileged
and less educated in nature (Wherry 2015).
The increase in levels of unregulated globalization had led to the stagnant income for
middle class and lower class people of the society who have been affected severely by the
global crisis and unexpected modulation economy as well. This has further led to the
disenchantment with proper establishment and anger which has been moulded into the anti-
immigration based sentiments. Other nations that are a part of the European Union thereby
have to work on the growth of economic disparities in the respective societies that have direct
implications on the policies that are being implemented (Yuan and Yu 2016).
The outcome of the referendum that has already been established would be based on
the nationalist sentiments. The growth in disenchantment among middle class and the lower
class with government had led to rise in levels of nationalism. The extreme right wing based
politicians have played a major role in fuelling the anger in particular sections of the British
society (Weforum.org 2019). This trend has also been observed in a huge manner in the
elections of Donald Trump that had taken place in the United States. The election
campaigning had also been based on the various hate rants and the anti-immigration based
laws. The issue that had taken place between the US and the allies and Iraq had led to the
overthrow of the dictator Saddam Hussain (Pastor and Veronesi 2018).
The global economic growth is considered to be an inefficient way of the achievement
of the reduction of poverty in various emerging countries. The major challenges that are
faced by the global economy are related to the eradication of poverty and the achievement of

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environmental sustainability as well. Poverty reduction is thereby a moral imperative that
leads to resolving the various issues that are faced by emerging countries. The impact that
global economic growth has on the environment is considered to be a serious concern that is
faced by the emerging countries (Jorda and Sarabia 2015).
The ecological footprints that have been developed by the increase in levels of
globalization have an impact on the countries and the population in the countries as well. The
growth of economy of emerging countries have increased their impact on the ecological
footprints. The distribution of benefits has been able to play a major role in the ways by
which ecological impact can be reduced in various emerging countries (Nayyar 2015). The
environmental problems had been caused by the rich countries and on the other hand the poor
countries have started facing major issues due to this aspect. The major benefits of economic
growth are thereby gained by the industrialized or developed nations and mostly the issues
are faced by the emerging counties due to increase in environmental impacts after
globalization (Pastor and Veronesi 2018). Environmental crisis in the emerging and
developed nations are considered to be major results of the increase in levels of globalization
in the country. The real GDP growth is also influenced in a huge manner by the lack of
response that is provided to the environmental concerns that are faced by the various
countries (Huang, Ge and Hu 2019).
The case of Primark can also be considered as a major example of the negative effects
of globalization in the emerging countries. The factories of Primark that were located in
Bangladesh were in such a terrible condition that the complex named Rana Plaza had fallen
due to extreme conditions. The workers were harmed due to this in a huge manner although
Primark had been receiving huge profits due to the low costs of production. This issue had
however influenced the image of Primark in a huge manner and the organization had to take
many steps to fulfil its responsibilities (Pastor and Veronesi 2018).

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Seeking a fairer model of globalization
The impact and benefits of globalization on the emerging and the developed nations
have been found to be quite different. In most of the cases it has been seen that the developed
and industrialized nations have gained a lot from the high rates of globalization and on the
other hand, the emerging countries have not been able to gain from the activities related to
globalization that are performed in the various countries. The reduction of negative impacts
of globalization on the emerging countries is thereby considered to be highly important in
order to maintain an effective balance and remaining fair to everyone as well (Baylis, Owens
and Smith 2017). The organizations that are a part of the emerging countries and the society
as a whole is influenced in a huge manner by the lack of even distribution of the benefits of
globalization. The process of globalization cannot be revered in order to provide benefits to
the emerging countries. However, the development of a fair model of globalization is
considered to be highly important. The usage of resources in emerging areas by the
organizations of developed countries has to be compensated by the ways by which they are
able to fulfil their duties towards the society (Rao 2018).
Conclusion
The essay can be concluded by stating that the globalization process is able to play a
major role in the ways by which various organizations in the emerging and developed nations
are able to maintain their operations. The environmental concerns have increased in the last
few years due to increased organizational activities. The industrialized nations have received
the gains and benefits of globalization and the emerging countries have faced the issues. The
proper development of a balance is thereby considered to be quite important so that the
emerging and developed countries are able to gain the benefits of globalization based process.

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