Critique of Globalization Theories on Trade, Development, and Growth

This essay critically evaluates the range of theories explaining globalization's impact on the development and growth of less developed countries. It begins by defining globalization and its multifaceted nature, highlighting its influence on various aspects of modern life. The essay then explores classical, neoclassical, structurist, and radical/dependency theories, analyzing their perspectives on globalization. It examines how globalization affects the growth and development of less developed countries, including access to technology, regional integration, and trade agreements. The essay also assesses the main challenges in achieving inclusive globalization, such as cultural differences, environmental concerns, varying laws and policies, social barriers, and international recruiting. The conclusion summarizes the key findings and implications of globalization on less developed countries.

Trade, Development
and Growth
Assessment 2

Table of Contents
Essay 3.............................................................................................................................................1
Critically evaluate the range of theories that seek to explain the impact of globalization on the
development and growth of less developed countries and assess the main challenges in trying
to achieve “inclusive” globalization............................................................................................1
INTRODUCTION...........................................................................................................................1
RANGE OF THEORIES.................................................................................................................1
1. Classical v/s Neoclassical Theory...........................................................................................1
2. Structurist view.......................................................................................................................2
3. Radical / dependency view......................................................................................................2
IMPACT OF GLOBALISATION ON GROWTH AND DEVELOPMENT OF LESS
DEVELOPED COUNTRIES...........................................................................................................2
ASSESSMENT OF MAIN CHALLENGES WHILE TRYING TO ACHIEVE INCLUSIVE
GLOBALISATION.........................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

Essay 3
Critically evaluate the range of theories that seek to explain the impact of globalization on the
development and growth of less developed countries and assess the main challenges in
trying to achieve “inclusive” globalization.
INTRODUCTION
Globalisation can be referred to as the integration of people, nations, economies,
governments, businesses and financial institutions exceeding the national territories. It is
acknowledged to be a multi faceted procedure which tends to manifest itself within social,
political, economic and cultural lives (Yan, 2019). In other words, it can be defined as a context
whereby the various kinds of cultures and politics come together for the attainment of mutual
benefit for all. Hereby, the increasing interconnectedness as well as interdependence of the
modern world results into streamlined exchange of commodities along with the services between
the countries across the globe. Globalisation has led to the emergence of revolutions within the
domains of technology pertinent to transport, travel, science, logistics and communication. This
has consequently infused dynamism within the process of the development of national
economies. The increasing investments being made to facilitate globalisation tend to imply
acceleration of growth and development of less developed countries (Mikalauskiene,
Streimikiene and Mulagalejeva, 2016). This eventually generates the development of human and
physical capital.
The purpose of the current essay is to explore the concept of globalisation in a well
versed manner. Further, it seeks to gain an insight into the way in which globalisation facilitates
the growth and development of less developed nations. Lastly, the essay will throw light upon
the main challenges linked with achieving inclusive globalisation.
RANGE OF THEORIES
1. Classical v/s Neoclassical Theory
Classical theory majorly focuses on meeting the needs of supply and demand in market.
In order to meet these requirements major focus is paid upon consumption of good, pricing,
production so on. The employees just have to work to their maximum capacity as the major aim
of company is to increase profits and they are thought to be machines in organisation. In such
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cases applying inclusive globalisation is difficult as there is no focus on needs and demand of
employees (Inoua and Smith, 2020). On the other hand Neoclassical theory, people are given
importance in organisation they are thought to be important assets for company and this may
help in setting up an inclusive globalisation, leading to the development and growth of less
developed countries.
2. Structurist view
As per the structuralist view, it has been analysed that globalisation is taken for granted
and thus seen in the form of manifestation of a deterministic logic. It is either economic or
technological determinism or both leveraged collaboratively (Friedkin, 2006). Apart from these
2, there are some other kinds of determinism as portrayed in researches like the cultural ones. A
fundamental approach by structuralism has been its conceptualisation of the international system
as being constituted by asymmetric center-periphery relations.
3. Radical / dependency view
Radical globalisation implies transcending the conceptual thinking to talk about the
exploitative reality simultaneously as markets, mergers, financial crisis, drone strikes, displaced
slums, occupied Palestine, trafficked bodies, deposed migrants, and stigmatised Muslims.
On the other hand, dependency theory looks upon globalisation in terms of outspread of
market capitalism along with the utilisation of resources as well as cheap labour force in return
for obsolete technology of developed part of the globe (Tausch, 2010). This reflects that there is
a dominant world capitalist system which is dependent upon division of labour amidst poor
'peripheral' nations and rich 'core' nations. With the passage of time, the core nations would be
exploiting their dominance and superiority over the peripheral society.
IMPACT OF GLOBALISATION ON GROWTH AND DEVELOPMENT OF
LESS DEVELOPED COUNTRIES
Globalisation can be seen as one of the most significant forces which has resulted into
severe influence upon the economy of a country. In this relation, it has been identified that the
global economy has become much more integrated with the procedure referred to as
globalisation (Leal, Marques and Shahbaz, 2020). Many authors in the literature have put forth
the point of view that globalisation is nothing but the increasing integration of markets for the
streamlined exchange of goods, capital, facilities and other things beyond the boundaries of the
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domestic territories. In a broad sense, it implies that globalisation is the strong integration of
societies as well as economies across the global periphery via the flow of trade, technologies and
capital (Radović-Marković and Tomaš, 2019). The consolidation of production, accelerated cross
border investment and increase in extent of trade are acknowledged to be the likely and logical
results of the process of globalisation. Many authors have carried out research over the subject of
globalisation and its associated impact. This study has led them to the inference that
globalisation is the constantly enhancing intensity, velocity, extent and impact of world wide
interconnectedness. In the context of world whereby politics, culture, migration and economics
are the dominant facets, the phenomenon of globalisation can be seen as a dimension which
results into opening up of several opportunities (Asongu, 2014).
The concept of globalisation has been viewed by some authors as a procedure or set of
procedures that epitomize an alteration of the spatial organisation of social relation as well as
transaction examined in the form of their extensiveness, intensity, impact and velocity, resulting
in to the generation of an inter regional or trans continental flow of communication and activity
along with the use of power (Garuba, 2019). Globalisation is a distinct concept and is quite
different from internationalisation which is acknowledged to be a term that has a certain focus
upon the dismantlement of domestic barrier to facilitate the exchange of important data, capital,
technologies, cultures, products, values, services, and so on (Huh and Park, 2019). In addition to
this, globalisation is the trend which creates a reduction in the barriers or restrictions that are
placed upon trade or in simple terms, the international movement of capital, goods, technologies,
infrastructure and services (Pavcnik, 2017).
Globalisation has opened new opportunities, through increased trade liberalization and
advancement in technology, for the growth of the world economy and development. Some
countries have successfully adapted to the changes and benefited from globalization (Zeibote,
Volkova and Todorov, 2019). Apart from them, there are less developed countries which have
tapped the trend of globalisation to attain growth and give a boost to the overall economy of the
nation. The phenomenon of globalisation has allowed the less developed countries to gain access
to new and advanced technologies. This has been possible mainly because of the flexibility
which this concept has provided them with. It has allowed these nations to tap the advantage of
hi-tech processes in order to facilitate faster exchange of goods, services and human capital
among the countries (Zajda, 2015). Globalisation has also given rise to the concept of regional
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integration and trade agreements. Hereby, the less developed countries get the chance to
collaborate with developed and developing countries to share the resources, capital, human
resources, capabilities and funds in a manner such that it can imply mutual benefits for all the
members (Perraton, 2019). Some of the examples of these collaborations are ascertained to be
North American Free Trade Agreement (NAFTA), Central American-Dominican Republic Free
Trade Agreement (CAFTA-DR), the European Union (EU), Asia-Pacific Economic Cooperation
(APEC), Comprehensive and Progressive Agreement for a Trans-Pacific Partnership (CPTPP),
the European Union–Mercosur trade agreement, Association of Southeast Asian Nations
(ASEAN), and the Continental Free Trade Area (CFTA) and many more (Zaidi and et. al., 2019).
This has provided due assistance to the businesses within these countries to benefit multifold. In
this relation, these companies get the advantage of having access to the pool of talented and
skilled employees which can take the business to another level.
Almost every person in the present era has somewhere experienced the benefits as well as
opportunities linked to the concept of globalisation. The less developed nations have specifically
attained growth and development as this concept has resulted in to the increment in foreign trade.
This has enabled the vaccines as well as antibiotics made in the strong and developed nations to
even reach the less developed countries (Koengkan, Poveda and Fuinhas, 2019). It has thus led to
ensuring that the lifestyles of individuals in these countries is healthy and safe. Thus,
globalisation has provided due assistance to the less developed countries to lessen the impact of
diseases within their residents as well as increase the life expectancy rates simultaneously. It has
also empowered the less developed countries to encounter unprecedented growth and
development. With the help of the concept of globalisation, nations have been become able to
exercise control over the extent of poverty prevailing in the nation. This has happened because
several employment opportunities have emerged owing the the concept. Globalisation has even
increased the potential of governments in relation to collection of revenues as well as distribution
of resources via social transfers (Oramah and Dzene, 2019). This has led to a significant raise in
the standards of living of people prevailing within the bounds of less developed countries of the
globe.
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ASSESSMENT OF MAIN CHALLENGES WHILE TRYING TO ACHIEVE
INCLUSIVE GLOBALISATION
Globalisation offer incredible opportunities to the companies to gain higher growth and
success at marketplace. Along with this, it assist company to strengthen their market position and
earn higher profits as well. With all this benefits, there are also various challenges associated
with the inclusive globalisation. One of the main challenge is culture as in now many
organisation have diverse workforce who belong from different background, values and culture
as well (Singh and Chhetri, 2016). To develop strategy by considering culture of all employees is
difficult and is consider as challenge also. If the workforce is not satisfied with the culture of
their workplace then it might decline the performance and productivity level of organisations.
Culture plays an important role in developing relationship with the staff members that has direct
impact on the performance of a company. Another challenge that is consider is Environmental
challenge as it is determined that people nowadays are more concerned of towards protecting the
environment. It sometimes develop an issue for companies at the time of expansion. One of the
challenge is different laws and policies.
Every country has different set of policies and regulations that is not easy to follow by
companies in a proper manner. It is determined that following all the laws and rules consumes a
high time of managers and also occur cost to the company that impact directly on the revenue
level of an organisation in a negative manner. In countries such as UK, it is analysed that its
government posses high penalties on organisation who does not follow all the rules and policies
as well. It sometimes my decline the brand image and market reputation of an organisation.
Social barrier is also consider as a challenge that take place at the time of globalisation (Henama
and Sifolo, 2020). It is analysed that there are different types of people living in societies whose
needs are different. To fulfil the needs of all people is a challenge for many companies and
dissatisfaction with product in societies direct leads to good and service failure at marketplace. It
is important for organisations to first conduct research and gain understanding about the
requirements and needs of people. It help in increasing the sustainability and also raise the
chance of acceptance within the market.
International recruiting is another challenge of globalisation. It is analysed that
expanding the business require new employees and candidates who perform operations and
implement activities in a proper manner (Wang, 2018). Sometimes companies are not able to
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find out the people according to their job position and to transfer their employees from one
location to another is not a feasible option. Hiring across the borders develop unknown for
human resource teams. The companies make plan about how they interview and select people
who are miles away from the headquarters. In order to get an appropriate candidate for the
organisation and make successful hiring, human resource team face challenges like managing
time zones, language barriers, cultural difference, different opinions and many more.
Acceptance and respect is another challenge in inclusive workforce. It is often seen that
fundamental values of people are contributing towards acceptance of an inclusive workforce and
to bring that acceptance amongst the employees in an organisation is a huge task for most of the
managers. Due to employees not accepting each other at workplace often there arises conflicts
and grievances amongst employees (Lugalla and Ngwaru, 2019). Once whatever the difference is
between employees and their behaviour is effectively solved it can also raise various innovations
and ideas in the organisation. It becomes essential to turn conflicts into mutual respectable
situation so that people can collaborate and work towards objectives of organisation effectively.
Another challenge that has to be faced by managers while they look at inclusive
globalisation is Gender Equality. There are a number of countries who do not provide equal
opportunities to both the genders and this might effect inclusive globalisation in organisation
(Abdus, 2017). It becomes essential for managers to make sure that no employee in organisation
feel that they are being judged and pushed down due to their gender. It is often seen that a
number of organisations are having huge gaps in pay scale of male and female in organisation.
Other than this there are a number of circumstances where women have to face criticism and also
their performance is not appreciated as others. The promotion of men to managerial position is
also higher than the chances of women to be promoted to that stage (Delanty, 2020). All this also
result in a challenge for a manager to effectively apply inclusive globalisation in their
organisation. It is necessary that there is no discrimination or inequality in hiring, promotions,
appraisals, opportunities provided to different genders in an organisation.
In today's world most of the part of workforce is made up of millennials. It is also
assumed that by 2025, 75% of total workforce will be made up by them. This creates Generation
Gap in between employees when trying to develop inclusive globalisation in an organisation. It
is also often seen that these different generations find it difficult to adapt to changes that are
taking place in organisation and cannot perform up to their optimum utility. Due to this
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difference in age and generation the social circles that are formed in organisation consists of
different people. In this process some of the people are left behind and they get isolated. In this
scenario conflicts and demotivation is formed in employees in an organisation. This also effects
the communication in an organisation (Mok, Wang and Neubauer, 2020). Effective
communication does not takes place and people belonging to different generations do not agree
upon each others advice (Henama and Sifolo, 2020). It is necessary that a manager while
applying inclusive globalisation in organisation is effectively promoting communication in
between employees of different gender in order to make sure that the gap can be bridged and
people may work in team together collaborating with each other.
When an organisation thinks of adopting inclusive workforce the barrier of Language
and Communication is to happen every time. The language barrier is however more when
companies go for globalisation. There are a number of offices in UK and US who have hired
people who have a different native language which is not English. It is also difficult for them to
communicate in English which makes it difficult to transfer the messages across. This also often
leads to miscommunications amongst the employees which then results in loss of productivity
for overall organisation. It is necessary for organisations and managers to make sure that this
problem is solved after or while hiring such employees (Pauwels, 2019). They can effectively
provide them training which will help them to communicate in English or any other language
effectively. In order to bridge this gap in organisation managers can also hire such talented
employees who have a hold on more than one language.
There are a number of other barriers and challenges that are to be looked upon by an
organisation while they are going for inclusive globalisation. Inclusive globalisation refers to a
number of things in organisation that are also be turned in to be inclusive after the introduction
of this globalisation method. The growth in the organisation needs to be inclusive growth
(Kramsch,2016). This means that the managers need to focus on both national as ell as
international growth. They cannot rely on one of them. They do not only focus on increasing
capital but major challenge is to focus upon development of region as a whole. They also need to
develop the infrastructure in the form of an inclusive infrastructure. This denotes that the
backward areas that are underdeveloped in country should be focused upon by them. It is a
challenge to meet this factor as infrastructure projects are huge and require huge investments as
well due to this every company going for globalisation cannot fulfil this requirement. Inclusive
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participation of all the countries is also necessary for inclusive globalisation (Lugalla and
Ngwaru, 2019). There are a number of powerful countries who can withdraw there participation
as well. Different rules and policies in different countries also make it difficult for countries to
bring in inclusive participation. The major barrier that stands in way of inclusive globalisation is
promoting the inclusive path. It is also required to provide extra support to those nations which
are weak and lead major power to the dominant countries (Delanty, 2020). In this way
everything in an organisation needs to run with a motive of being inclusive while practising
inclusive globalisation which is a major challenge which is needed to be met by organisations
and nations practising inclusive globalisation.
These are various challenges and barriers which are seen in internal environment of an
organisation when they want to expand their business through inclusive globalisation. It is
necessary that all the managers are effectively working towards all these challenges as if these
barriers are not overcome the employees cannot work in organisation freely and this will also
effect the goals and objectives of organisation. In order to successfully apply inclusive
globalisation globalisation in organisation it becomes essential for managers to take preventive
measures so that expansion strategy of business can be successful.
CONCLUSION
According to the information presented in the report above, it has been identified that
globalisation leads to the merger of economies and its governments as well as individuals. As per
the research conducted upon this subject, the conclusion that has been obtained is that
globalisation is the engine of economic growth and development. In the long run, it allows the
physical and human capital to evolve, thereby implying the overall growth of a national
economy. Apart from this, it has also led to reduction of trade restrictions and barriers thereby
enabling smooth flow of services as well as goods surpassing the national boundaries of the
countries. Furthermore, globalisation acts as a factor of economic development for less
developed countries. Now, “growth with social justice” is the prime aim of every national
economy across the world. This aims at ceasing the existence of vulnerability of various groups
inclusive of the disadvantaged and the marginalised groups. However, to achieve inclusive
globalisation, there are various challenges that need to be duly combatted in a timely manner in
order to ensure effective growth and development of economy along with empowerment of every
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social group prevailing within the world. This will ensure the creation of an integrated and
cohesive society.
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