Globalisation Report: Ghemawat, Giddens, and Poverty Mitigation

This report delves into the multifaceted concept of globalisation, examining its impact on trade borders and the global economy. It analyzes the 'shrinking world' and 'flat world' narratives, investigating whether trade borders are truly collapsing or experiencing a resurgence, particularly in the post-GFC era. The report explores the demonstrations against globalisation at the G7 and WTC conferences, providing insights into the underlying causes and perspectives. It also presents the ideas of Pankaj Ghemawat, questioning the extent of global integration and proposing strategies for more effective globalisation. Furthermore, it incorporates Anthony Giddens' perspectives on globalisation and discusses the 'End of Poverty' movement, examining the assertion that 'Trade NOT aid' is a more effective approach to poverty mitigation. The report concludes with a comprehensive overview of the discussed concepts, providing a well-rounded understanding of the complexities and implications of globalisation.

Running head: GLOBALISATION
Globalisation
Name of the student
Name of the University
Author note

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Executive Summary
The primary purpose of this report is to discuss about “flat world” of the globalisation and it
elucidates on whether the trade borders are collapsing in the present age. This report have
elaborated on the demonstrations against the globalisation and Ghemawat’s ideas pertaining
to globalisation. The report elaborates on ideas of Giddens pertaining to globalization and the
strategies that can be implemented for the mitigation of poverty in the world.

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Table of Contents
Introduction................................................................................................................................2
“Shrinking World” of the Globalisation....................................................................................2
Effect of Global Financial Crisis on Globalisation....................................................................4
Demonstrations against the globalisation at the G7 and the WTC conference..........................5
Perspective of Ghemawat about globalisation...........................................................................7
Gidden’s ideas about Globalisation...........................................................................................8
End of Poverty movement..........................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
Globalisation is indicative of integration of the markets within global economy that
have paved the path for increased interconnectedness among the national economies. It helps
in describing spread of the communication production along with the connected technologies
across world. Globalization have helped in spreading the ideas and the practices that have
created the way for the internationalization and the universalization (Krugman 2017). The
countries used to build the economic partnerships so that it can facilitate the movement of the
people and the investment. The term have gained the popularity after onslaught of Cold War
in early half of the 1990. Globalization have helped in benefitting the society and at the same
time it have harmed certain groups of the people. The process have been driven by the
international trade and the development of the information technology. It have been driven by
the policies which have helped the economies in opening in the domestic along with the
international arena. The governments have adopted the free-market system of the economy
that have helped in the creation of the myriad opportunities for the international trade (Rupert
and Smith 2016). This report discusses about “shrinking world” which have been created on
account of globalization and the effect of the Global Financial Crisis (GFC) on the aspect of
the globalization. This report elucidates on the talks against the phenomena of globalization
at the G7 and the WTC conferences. The report talks about Ghemawat’s and Gidden’s ideas
regarding globalisation. The report elaborates on the movement of the “End of Poverty” and
how the trade can help in the mitigation of poverty in the world.
“Flat World” of the Globalisation
Economic globalization refers to increasing interdependence of the national
economies in the world with the increase of the cross-border movement of the goods and the
services. It is centered on diminution of the international trade regulations which suppresses

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the global trade. It can pave the way for the creation of a global marketplace or the single
world market. The developed economies in the present time integrate with the lesser
developed ones with the help of the foreign direct investment. The international standards
have made the trade in the goods and the services to become more efficient. The trade
facilitation helps in governing movement of the goods that have reduced the cost burdens and
maximised the efficiency of the various activities (Hopper, Lassou and Soobaroyen 2017).
Technology have been instrumental in the creation of the global culture and the internet and
the satellites have swept away the cultural boundaries. The human societies in the various
countries have been instrumental in establishing the closer contacts owing to the incidence of
the globalisation.
Borderless world of the globalisation
Pace of the global integration have increased at a dramatic pace in the present age.
The unprecedented changes taking place in the communications and the transportation have
provided the process with the new impetus which have made the world interdependent. The
advancements made in the communication along with the transportation technology have
provided the goods and the services with the unprecedented mobility. The cultural
globalisation have helped the people in discovering the other culture that have helped the
people in making the choices (Hanson, Hitt and Hoskisson 2016). It have created the way for
the homogenization in various countries and it have helped the people in gaining insight
regarding the other cultures present in the world. It have brought the people together and
gathered them around the common belief and the feeling. The cultural products which are
found in the mass media have helped in the diffusion of the cultural awareness that have
helped in bringing the unity in the world. The consumer goods have become homogenous
owing to advent of the globalisation and the homogenisation is imposed on the people with
the help of the forces in the market. The fiscal policies have helped in the creation of the free

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economic system that have created the way for the reduction of the tariffs (Gauthier 2019). It
have been instrumental in increasing the industrialization and the financial opportunities in
the various countries of the world. It have helped the developing countries in increasing the
manufacturing and the diversification that have helped in improving the standard of the living
of the people.
Effect of Global Financial Crisis on Globalisation
Global financial crisis started in 2008 and it made the countries impose the trade-
restrictive measures. The government of United States instituted Recovery and Reinvestment
Act of the year 2009 that encouraged purchasing of the domestic products. There were
various European countries like the Germany and the France that have announced the bail-out
measures in relation to the automotive industries. There were on the other hand countries like
the Argentina and the Indonesia that have introduced the licensing systems. Ecuador along
with Ukraine have been instrumental in raising the tariffs on various range of the imported
products that is inclusive of the automobiles and the electrical goods. There are various
countries in the world which have increased tariffs after the incidence of the financial crisis.
Ecuador and the Russia increased the tariffs on a great deal of the products and Brazil,
Turkey and the Vietnam increased the tariffs on the specific items (Flew 2018). India
increased the tariff on the iron and the steel products from the zero to the 5 % in the
November of the year 2008. In the month of January in the year 2009, Turkey increased the
tariff on the flat-rolled steel from the 5 percent to that of 13 percent. Brazil have increased the
tariffs on the iron along with the steel products which includes the hot and the cold rolled
steel sheets (Cerny and Prichard 2017). There were many countries that increased the tariffs
on the primary products which includes the agrifood products. It had been reduced in the
previous times so that it could combat the high prices of the commodity. It can be said that

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the increase in the tariff is not illegal under multilateral trading rules of WHO in the event of
the new tariff rate staying within limit which has been set by bound rate (Mulder 2016).
There has been the tightening of the regulations pertaining to the standards along with
the certification after the event of the financial crisis in the world. Indonesia, Ecuador and the
India have been instrumental in introducing the new compulsory standards before financial
crisis. There are countries like the Argentina and the Indonesia which have introduced the
import licensing system pertaining to the specific products (Morshed 2019). The import
licensing system are made use of for serving various kinds of purposes like the import control
along with the safety production.
United States Recovery and Reinvestment Act had been enacted in middle of worst
recession since the year 1930. The domestic economy of the place hoped that it can help in
the revival of the economy and in boosting the consumption. Act helps in the inclusion of the
“buy American” clause that stipulates that the iron products which are made in the United
States can be used within framework of the public construction along with the repair projects.
It came about on account of strong lobbying campaign of domestic iron along with the steel
industry. There are other countries which have started to implement the measures which is
similar to “buy American” clause. Indonesian Minister of the Public Works issued the
regulations which stipulated the preferential treatment of the locally made goods in the
government procurement at the various levels (Perraton 2019). The regulations mandated that
relevant company would receive the price advantage with the help of a bid in the event of the
predetermined local procurement rate in relation to the goods and the services being met.
Demonstrations against the globalisation at the G7 and the WTC conference
There are underlying reasons that have made the countries of the G7 protest against
the phenomena of the globalisation. It was found that level of the global interconnectedness

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was decreased in the six out of the G7 countries in between the years 2000 and the 2014. The
decline was manifested mainly within United Kingdom owing to increase in the trade barriers
along with the deterioration of the British foreign trade activities. Japan can be said to be the
only country that have improved the global interconnectedness in between the years 2000 and
the 2014. The developed industrial countries are losing the market share owing to the
influence of China. The G7 countries have emerged to become less competitive and they
have lost out to the China. USA is being greatly affected by this as it is being displaced by the
China in area of the broadcast and the communications technology (Asongu and De Moor
2017). The industrial countries that are highly developed recorded the weaker GDP gain
owing to slowdown in the globalization that was experienced by them. The member countries
have talked about how the countries have been unable to share benefits of the globalisation in
an effective manner. Convergence of the technical trends can be said to be beyond control of
the politicians (Georgiadis and Mehl 2016). The danger exists on account of the fact that
world is becoming fixed on the path of the hyper globalisation as the various aspects of the
globalisation are moving in the various directions which have paved the path for the bad
outcome.
The activists in the present age opposes the evil of the globalization as it have paved
the path for the creation of the gap in between the rich and the poor countries. The free trade
in between the various nations would increase power of the industrialized nations and it
would prove to be adverse for the future of the weaker nations (Roudometof 2017). There
exist inequities in relation to the global trading system and the unequal balance of the power
are being created in between the member states. There have been heavy subsidization
pertaining to the agriculture of the developed nations that have brought about the decline in
agricultural sectors in many developing nations. The advocates of anti-globalization have
talked about the fact how the preservation of natural environment along with the human

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rights would become difficult in the era of the globalization (Georgiadis and Mehl 2016). The
resistance to the globalization is taking place on account of the right political movements
which is defending the ideas like the national isolationism along with the fundamentalist
culture. There have been rise of the highly conservative along with the reactionary forms of
the religious fundamentalism which is opposing the forces of the globalisation in the present
age. The emergence of the Islamic fundamentalism acts an important opponent of the
globalization that has acted as the underlying framework which have made the members of
the WTC conference demonstrate against the event of the globalisation (Yusuf and Warr
2018).
Perspective of Ghemawat about globalisation
Pankaj Ghemawat in the book World 3.0: Global Prosperity and How to Achieve it
have argued that the world can be said to be semi-globalised and he has argued for the third
view in the book. He have talked about the fact that the regulation and the integration can co-
exist with each other and it can have a positive influence in the present day world. Ghemawat
is of the opinion that the people regard themselves to be the expert on the agenda of the
globalisation and they disregard the facts pertaining to globalization (Ghemawat 2017). There
exists a perception among the common people that technology can be instrumental in the
obliteration of the cultural along with the political differences. Ghemawat thinks that there
exists the exaggerated discussion pertaining to the transformative effects of the technology
that sells the idea that the borders does not exist in the present age. He has argued the fact that
the world have become more integrated however there still exists the barrier in between the
countries which has repercussion on the unfolding of the events in the present age. He has
laid emphasis on the concept of “ Law of Distance” that have brought out the fact that the
cross border interactions takes place in between the countries which are closer to each other
geographically, politically and culturally (Hbr.org 2020). Ghemawat have pointed out to the

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fact that the cross border interactions of United States takes place with that of the direct
northern neighbour which is Canada. Canada have been found to be the largest trading
partner of America which is the primary source of the imported oil. The facts regarding
globalisation have great effect on the business and affects the profitability of the business in
the present age.
Ghemawat have put forth the strategies that can help in the globalisation of the world
in a more effective manner. The business should be able to understand that the borders does
matter that can be an effective step in the path of the globalization. He has stated that the
companies in the event of expanding to the foreign land should think about from where they
are coming that can help in the agenda of the globalisation (Burgoon 2017). The companies
should make the expansion in the countries which have similar kind of the cultural along with
the political values. The future of the business can be assured in the event of the regional
interaction taking place in between the various places of the world. The business ventures
have to recognize the differences and they have to think in a creative manner regarding the
strategies that can help them in dealing with the differences (Bende-Nabende 2017).
Gidden’s ideas about Globalisation
Giddens have defined the globalisation as being intensification of the worldwide
social relations that helps in linking the distant localities. The centre of the power within
world economy can be said to be the capitalist states where the capitalist economic enterprise
acts as the chief form of the production. The nation-states can be said to be the principle
actors in global political order and the corporations can be said to be dominant agents in
world economy. Influence of the particular state in global political order can be said to be
conditioned by the level of the wealth of a country. Nation-state system can be said to be
second dimension of the globalisation and it have taken the part within reflexivity
characteristics of the modernity as the whole (Ferrera, Matsaganis and Tortola 2017). The

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existence of the sovereignty can be understood to be reflexively monitored and the autonomy
within a territory can be sanctioned by recognition of the borders by the other states. Third
dimension of the globalisation can be said to be world military order and the destructive
power of the weaponry have necessitated the fact that states should possess the military
strength that can help them in the art of the survival. The industrial development can be
stated to be the fourth dimension pertaining to the globalization (Langsæther and Stubager
2019). The modern industry is on the basis of the division of the labour on level of the job
tasks along with the regional specialisation. An important feature of globalising implication
of the industrialism can be said to be worldwide diffusion of the technologies. The
industrialism have been responsible for the conditioning of the sense of the living of the
people within “one world”.
End of Poverty movement
The income inequality have widened over the course of time within the framework of
the developing countries. Private sector can play an important role in ending the poverty
prevailing in the world by the end of the year 2030. The poverty reduction have been brought
about with the help of the creation of large number of the jobs and the private sector should
be able to meet the demand of the emerging economies pertaining to the infrastructure
investment (Hopper, Lassou and Soobaroyen 2017). The leveraging of the aid dollars can
help in spurring the private investment within the framework of developing world. The trade
liberalisation can act as a powerful engine that can help in the economic development of the
countries of the world. It can help in bringing the people out of the state of the poverty within
Asia and the Latin America. The global trade of China is growing at a rapid pace when
compared to the other developing countries and Latin America is undergoing a strong
economic expansion. The countries and the regions lack the capacities that can help them in
competing effectively within the framework of the international markets. The uneven

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capacity of being able to profit from the globalisation is paving the path for the creation of
the unbalanced world in which 3 billion people have to live on less than that of 2 dollars
within a day (Pascali 2017). Trade can prove to be crucial that can help in ending the global
poverty within the world. The countries which are open to the international trade have been
found to grow faster and it can improve the productivity of the people. The open trade can
help in benefitting the lower-income households that can offer the consumers with the
affordable goods along with the services. The integration with world economy can help in
driving the economic growth and it can assist in the reduction of the poverty within the local
and the global arena.
Conclusion
The changes have taken place in the world in the realm of communication and
transportation in present age and it have made world interdependent in present age.
Advancements made in the field of the communication have provided goods along with
services with greater mobility in the modern age. Global interconnectedness level had been
decreased within six out of that of G7 countries from the years 2000-2014. Ghemawat have
stated that there exists exaggerated discussion about transformative effects of technology that
have conveyed the idea that borders are not existing within present age. There has been
integration in the world however there are the barriers in between the countries that have
effect on the events of the world. Giddens have stated that globalisation is intensification of
the social relations that can bring together distant localities. The power centre rests on the
capitalist states and the capitalist economic enterprises can be said to be the main agents of
the production.