Globalisation: Economic and Cultural Impacts Analysis Report

This report examines the multifaceted impacts of globalisation, focusing on both economic and cultural dimensions. It begins with a network-based empirical analysis of economic globalisation, emphasizing the importance of international trade, trade intensity, and the integration of economies within global trade networks. The report then delves into the effects of globalisation on labor mobility, capital, and ideas, exploring both the opportunities and challenges associated with increased labor mobility, including the rise of flexible labor markets and the impact on labor standards and social contracts. The report also discusses the effects of globalisation on national sovereignty. The second part of the report analyzes globalisation as a cultural process, examining the impact of increased trade and technology on organizational and national cultures, including the spread of cultural products, the homogenization of cultures, and the erosion of national identities. The report also explores the positive aspects of globalisation, such as increased cultural understanding and the formation of human connections. It concludes by summarizing the positive and negative impacts of globalisation on mobility, labor, sovereignty, and culture.

GLOBALISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Question 1 Network based empirical analysis of economic globalisation..................................1
Question 2 Globalisation as a cultural process...........................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
It is very important to understand the impact of globalisation as interdependency of
countries is increasing worldwide and different products and services are transacted within cross
broader. There are many business all over the world that are developing to have international
influence on the international scale(Globalisation, 2019). As flow of goods and services have
increased over the years it has resulted in interdependency and interconnections of many
organisations all over the world. Report will include empirical analysis that is network based
with respect to economic globalisation. Further report will analyse different elements of
globalisation and its impact on the mobility, labor and sovereignty of different nation,
organisations and also people. Report will include the concept of globalisation as cultural process
and also will identify the cultural components of globalisation and its impact on culture of
different organisations and countries(Wright, 2016).
Question 1 Network based empirical analysis of economic globalisation
Globalisation is a process where different people, government or companies interact
together worldwide. It is basically integration of market in the global economy and helps the
organisations to gain benefit from economies of scale. It is shaping the economic outcomes of
developing and also developed countries. For empirical growth of the companies and nation
there is requirement of worldwide trading as it leads to economic growth(Parente, Geleilate and
Rong, 2018).
There is an arguement that trade intensity is important for the organisations but it is also
important to have high degree of integration of economy with respect to global trade network in
order to have effective growth of economy. International trade have grown very fastly and that is
leading to financial flow from one country to another. It is very important for the organisations to
participate in worldwide trade in order to have economic growth and all that is possible with the
help of trade intensity. Basically trade intensity helps the organisation and nation to understand
the import and export activities taking place with respect to overall production(Dunford and
et.al., 2016) .
The position of a country in global market is based on positive correlation between the
integration and economic growth. Over the years, many political and technological changes have
been there and that have resulted in enhancement of both economic integration and trade
openness. With the time period it is been seen that trading of goods and services is having an
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upward rise and over the years, exports are growing faster with respect to economic outputs. In
over to have growth in market, organisations are required to have more participation in
worldwide trading as it the most important source for there economic growth. It is been seen that
degree of integration and openness with respect to economy in global trade network is having
different dimensions of economic globalisation(Perraton, 2019).
Social network theory is useful for economic integration as it helps the organisations and
countries to have connection with international market by developing effective relationship with
them. This is all possible by sharing of information with the help of different mediums and
building social relationship with other countries for international trading. Trade networks have to
be very diversified in order to ensure that if any of the trade partner get collapsed than risk can
be overcome. It is very important for the organisations to have Network-based measures of
international economic integration as it is very important for having trade connection with other
countries(Iosifidis, 2016).
Mobility, labor and globalisation:-
It is been seen that with globalisation, rise in mobility of labor, capital and ideas are
increasing. Labor mobility is rising as air travel is getting cheaper and Labor are getting more
wages in other countries. But problem arise when labor are immobile across border to due to
some international trade models. The restriction of movement of capital from one country to
another affects the economy of nations. The basic advantage of mobility in globalisation is that it
helps the Labor that are having right talent to have opportunity in hand. Global mobility helps
various companies that struggle as it provide broader range of opportunities for them. A greater
diversity is seen in the workplace and helps the business to meet there respective needs. As there
are different people from different places, a diverse workforce is there that brings advantages for
the organisations as they all see a problem in their own perspective and have different solutions
in hand(Hall, 2015). However, it is been noticed that cultural diversity may affect the business as
labours may see themselves as superior and gap may be there between freshers and those having
experience. International experience of employees may helps them to see new cultures and that
creates loyalty of employees with respect to the organisation. Globalisation have resulted in
flexible labor market and with the help of communication it has increased the opportunities in
the labor market. With relative ease one can work in any global market and staff for an
organisation can be brought from all over the world. It is been analysed that the global market is
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becoming more flexible than the pre-globalisation time. The positive impact of Globalisation on
labor is that, job opportunities get increased for the labours and they get new things to learn with
the help of training. On the other hand there are various negative impact of globalisation, as labor
standard get reduced and decrease in labor power is seen global market. Social contracts are also
been reduced and it is directly impacting the growth of the nation and its economy(Tupou, 2019).
Sovereignty and globalisation:-
Globalisation have motivated the nations to have socio-economic cultural relations and
with the help of fast means of transportation facilities and communication it gets more enhanced.
It is seen that people of different global platforms have come together although people are loyal
towards their own states.
However, it also been analysed that due to globalisation, sovereignty of nations and state
are getting threatened due to different global events. As globalisation is leading to reduction in
trade barriers and creating market for all nations it is leading to integration of different markets,
states and technologies(Coeuré, 2018). There are some factors that diminish sovereignty that is
increased number of trade with rise in global financial markets. It also has resulted in influence
of international organisations and have produced fundamental shifts in various international
laws.
Question 2 Globalisation as a cultural process
Globalisation is having great impact on the organisational culture and nations. As
Expansion of trade with respect to cultural products is increasing the foreign culture exposure
that directly impacts the cultural process of a nation. Globalisation is having both positive and
negative impact on the culture as in recent year's globalisation have opened the eyes of world
with respect to different issues in work culture. On the other hand, it has brought development in
cultural aspects of the organisation as trade opportunities have increased in global market.
However, globalisation have affected the national culture as some of them have been dominated
with respect to others. There are many homogeneous cultures that have been affected as
globalisation is taking rise in market(Ietto-Gillies, 2019).
Globalisation have resulted in great understanding in the organisations a there are many
labours and employees that are working in same firm but are having different cultures. Different
cultural products have their own identity in global market and all that was possible due to
globalisation. As modern transports are raising in market, it has resulted in identification of
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different cultural products from all over the world. Technology is affecting the globalisation and
culture of various firms as there are many companies that are adopting new technologies with the
help of different people working in the organisation and sharing there innovative ideas.
Globalisation have resulted in sharing of different culture, languages and products from one
country to another. There are many products that were unavailable in one country and with the
help of globalisation, countries are not able to attain those goods and services in there nation, all
that was possible due to cultural acceptance of the global countries.
However, there are many countries that are facing issues related to globalisation culture
as there social values and cultures are getting affected, for example all over the world western
culture is implementing there traditions and as a result, countries are loosing their own culture
and values. It is not fashion wise, education wise but also language wise. Many countries are
loosing their own language. There are countries that are saving their cultural values and not
allowing any other language to take position in there culture.
As technology is rising all over the world, it is seen that world is becoming more unified
as diverse culture are ignored. As a result globalisation is rising and big firms are creating
monoculture in global market. As a result, they remove local competition and force all the local
firms to get close. In this way it is encouraging cultural homogenization and also global
monoculture. Gradually, globalisation is eroding national identity and many cultures are
dominated all over the world(Brown, 2017).
With globalisation, free flow of information, technology and communication have raised.
As a result it directly impacts the cultural identity and expose enormous constituency to effect
cultural values. Globalisation is affecting the nations both economically and politically. As a
result inequalities is rising with respect to race, ethics and social inequalities. Cultural
globalisation have resulted in many conflicts due to cultural differences and it is generally been
termed as clash of civilizations.
However, it is been analysed that Globalisation have resulted in greater cultural
understanding and helped in building human connections to all over the world. It is becoming
easy for the people to understand each others culture and appreciate them as there are many
people who also adopt the same.
There are many changes coming to local organisations due to globalisation and these
changes are threatening locally made products and also the organisation that is producing these
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products. For example there are many organisations that are producing same products that local
companies are producing but they making strategies and producing them at cheaper rates. As a
result, it is affecting the local producers with increase in availability of foreign made products. In
this way the culture of a nation is affected and own cultural identity get lost. There are many
global markets that are taking advantage of economies of scale by attacking on the local culture
of people(Wang, 2015).
It is very important for the global organisations to understand other countries culture if
they are interested to extract there market. All this is possible with the deep study and research in
order to understand other countries culture. This research is important as there are chances that
the product that organisation wants to produce in other country may not take position in market
because there do not except that types of products and services. There are some components of
culture that are language, religion, customers etc. that global firms have to take into there
consideration so that they easily adopt that culture and comes up with products and services that
meets the expectations of other countries culture and values.
CONCLUSION
From the above study it is been analysed that globalisation is playing an important role
in shaping the economic outcomes of different countries. Report also concludes that Global
mobility helps various companies that struggle as it provide broader range of opportunities for
them. Report also concluded that due to globalisation, sovereignty of nations and state are getting
threatened. There are many homogeneous cultures that have been affected as globalisation is
taking rise in market and it is also eroding national identity. But is also been concluded that for
many companies it is brining greater cultural understandings. At the end report concludes that
Globalisation is having both positive and negative impact on mobility, labor, sovereignty and
also on cultural values of organisations and different countries all over the world.
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REFERENCES
Books and Journals
Wright, S., 2016. Language policy and language planning: From nationalism to globalisation.
Springer.
Parente, R.C., Geleilate, J.M.G. and Rong, K., 2018. The sharing economy globalization
phenomenon: A research agenda. Journal of International Management. 24(1). pp.52-64.
Dunford, M. and et.al., 2016. Globalisation, cost competitiveness and international trade: The
evolution of the Italian textile and clothing industries and the growth of trade with China.
European Urban and Regional Studies. 23(2). pp.111-135.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Iosifidis, P., 2016. Globalisation and the Re-emergence of the Regulatory State. In Global Media
and National Policies (pp. 16-31). Palgrave Macmillan, London.
Hall, C.M., 2015. On the mobility of tourism mobilities. Current Issues in Tourism. 18(1). pp.7-
10.
Tupou, T., 2019. Decolonisation and the Pacific: Indigenous Globalisation and the Ends of
Empire by Tracey Banivanua Mar. The Contemporary Pacific. 31(2). pp.580-583.
Coeuré, B., 2018. Taking back control of globalisation: Sovereignty through European
integration. Economic Review. 61(2). pp.271-309.
Ietto-Gillies, G., 2019. The role of transnational corporations in the globalisation process. In The
Handbook of Globalisation, Third Edition. Edward Elgar Publishing.
Brown, D., 2017. Globalisation, ethnicity and the nation-state: The case of Singapore. In
Singapore (pp. 45-56). Routledge.
Wang, N., 2015. Globalisation as glocalisation in China: A new perspective. Third World
Quarterly. 36(11). pp.2059-2074.
Online
Globalisation. 2019. [Online]. Available.
Through<https://www.economicsonline.co.uk/Global_economics/Globalisation_introducti
on.html>
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