A Critical Analysis of Globalization's Impact on Key Global Factors

This essay provides a comprehensive analysis of globalization, examining its constructive and unconstructive impacts on economic, political, environmental, and societal factors. It highlights globalization's role in increasing trade, liberalization, and technological transfer, while also addressing its influence on employment, income distribution, and human behavior. The essay explores how globalization, facilitated by policies such as liberalizing trade and eliminating capital regulations, affects various communities and generates both positive associations and new forms of competition. It further discusses the impact of foreign direct investment (FDI) on employment and the role of political and economic governance in shaping globalization's effects. The analysis considers environmental pollution as a consequence of increased production and concludes by emphasizing the need for effective financial and environmental policies to mitigate the negative outcomes of globalization.

Running head: GLOBALIZATION
GLOBALIZATION
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The term “Globalization” in recent times has the developed as a popular and controversial
issue, though often remaining an undefined concept. However in a comprehensive manner, the
term is implemented in order to encompass the increase rate in trade and liberalization policies
along with the reduction in transportation expenditure, technological transfer, economic changes
and societal transitions (Azzimonti, De Francisco and Quadrini 2014). To the extent, the impact
of globalization is concerned; the discourse related to globalization tends to consider
simultaneously its influence on economic development, employment, income distribution.
Globalization process, as a procedure of qualitatively elevated level of the economic life
internalization, constitutes several dimensions namely political, social, and cultural as well as
informative (Ezcurra and Rodríguez-Pose 2013). These dimensions of globalization process tend
to influence human behaviour in several approaches and apart of positive impacts, they further
differentiated impact on the environment. As the theme of “Globalization” has become
widespread in contemporary times, thus it has been developing into one of the vital aspect which
penetrates across communities (Meyfroidt et al. 2013). However, it has been argued that the wide
spread global values of human life in relation to economic, industrial, political, cultural, social
and technological along with several other areas have been effective. The thesis statement of the
essay is “Analysis of constructive and unconstructive impact of globalization on economic,
political, environmental, societal factors.”
Globalization is often regarded as an elite discourse, which constructs as well as
interprets the phenomenon in particular ways (Epstein 2018). However, it has been claimed that
the notion of globalization is identified as an inexorable and inevitable external force which
purposes to create distinct areas of avenues as well as threats for societies and communities and
thus further been proved particularly influential (Azzimonti, De Francisco and Quadrini 2014).

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These understandings of globalization constitute a self-actualizing quality which has further been
dynamically fostering integration through reforms such as privatization and deregulation (Sassen
2016). Furthermore, the role of Nation State in this regard has been noted particularly in the
process of facilitating the process of globalization through policies such as liberalising trade,
eliminating capital regulations and generating flexible labour markets (Aguado, Alvarez and
Domingo 2013). However, this explanation highlights the differentiated characteristic of
globalization, whereby some individuals, groups and communities have developed more globally
associated as an outcome of globalization while others have been encountering recent forms of
disconnection and exclusion. It has been claimed by Cohn that the impacts of the globalization
processes are often complex whereby some may constitute both positive and negative
dimensions and enable new and more frequent and abundant forms of associations (Cohn 2016).
However, such processes of globalization can also generate new forms of competition into the
industrial sector which tend to develop certain sense of insecurity regarding the occupational
factors.
According to the theoretical aspects of the relative comparative beneficial factors, both
economical factors and foreign direct investment (FDI) must take into consideration the surplus
rate of labour in developing nations. These approaches however are claimed to stimulate the
development of specialization in areas concerning labour-intensive activities and further involve
an expansion in domains of local employment (Epstein 2018). However, on the contrary, the
analysis of certain recent studies has underlined the conclusion that the degree of employment
impact of the elevating trade does not necessarily pose constructive impacts for the developing
nation. Furthermore, it has been noted that when the aggregated factor of productivity elevates in
emerging countries as a significant outcome of globalization, the rate of employment or service

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enhances economical impact. These impacts further have to be analysed with the direct labour-
consuming effect of the imported technologies. In other words, it can witnessed by the
developing countries that the ultimate employment effect on the rate of growing trade is relied on
the process of interaction between level of productivity growth and output development in traded
goods sectors as well as in non-traded sectors.
At this juncture, it can be recognized that with the development of foreign capital in
developing countries, FDI spawns positive employment impacts both openly and indirectly
through job formations within distributors and retailers along with a vital tertiary employment
impact though the process of producing supplementary resources and further elevating the
aggregate demand of those developing countries (Luković 2015). As these factors of job
disarticulation impact can further be elevated with the inflow rate of globalization, it will further
tend to increase the rate of interest and further result to the reduction of domestic investment
rates. However, Ince et al. (2015) further claim that the generalized impact of trade and FDI has
been recognized as indecisive from the theoretical aspect. Furthermore it is immensely crucial
for modern theorists to evaluate these associations and further observe both the direct as well as
indirect impacts of globalization pertaining to the domestic employment condition of globalizing
developing countries (Meyfroidt et al. 2013). The significant impact of globalization is noted to
be significantly shaped by the mechanism of political and economic governance in operation. An
Anglo-Saxon model has been recognized to have been influential in nations like US, UK,
Australia and Canada that is based on low rates of employment regulation and employee support
(Ince et al. 2015). While on the other hand, a prominent Rhineland model of France and
Germany has been recognized to have united stringent employment protection regulations with
increasing levels of worker sustainability (Smith, Finney and Walford 2016).

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Furthermore, Luković has identified one significant area of globalization whereby
process of globalization has influenced the daily lives of individuals through the accessibility of
the labour market as well as other employment factors (Luković 2015). Labour has been noted to
be develop increasingly globalized through the emergence of global labour expenditures that are
further been based on the progress of recent labour supplies in emerging nations particularly
China and India. However, as consequential the shares of employees in the globalized market
related to the rate of national resources has witnessed a decline across a major section of the
world, further signifying a severe deterioration of the labours’ negotiation position relative to
resources and capital (Gereffi 2013). However, the vital impacts of such wide-encompassing
forces have reformed the state of UK labour markets over the past number of decades with
critical impacts pertaining to patterns of inclusion and marginalization. Furthermore, Luković
(2015) reports a distinctive positive impact of trade flexibility in the decline of business-profits
taxation rate, it has been claimed that factors related to trade openness along with resource
mobility do not significantly condense the competence level of the government to tax, nor
facilitates the areas for increasing the rate of progressivity of the taxation system. Certain studies
have revealed that trade and businesses attains several beneficiary factors from the state’s role in
economy as well as society, in particular from the domain of public investments in human and
physical capital and from redistributive rate of costs which tend to condense social tensions that
emerge from economic dislocation (Luković 2015).
However, on the other hand, political factors relating to the formation of regional trade
blocks or involvement of globalization in several international treaties may further serve a role
by acting as a precursor to greater economic integration (Cohn 2016). These political factors
further act as an indication of greater economic involvement through the opening of industrial

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markets to liberated trade along with the consequent development occurring in societal
dimensions. Furthermore, on the other hand, greater degree of political assimilation on a regional
level reveals a considerable degree of propensity to transform to integrated regional cooperation
that is pertaining to the form of trade obstructions. Cohn (2016), other hand is of the argument
that the vital impact of these materializations related to political integration of globalization on
the societal sphere of developing countries reveal high degree of complexities to predict.
However, it may be conceivable to not that political globalization can be identified
independently as a vital facilitator of critical economic forces (Smith, Finney and Walford
2016). Moreover, disparity in the impacts of political in contradiction to economic globalization
forces for instance have been identified in recent observations through the evaluation of the vital
outcomes of globalization forces on economic progress and development (Cohn 2016).
The impact of the rate of production volume has been noted to have articulated the
environment pollution level as a consequential factor of the elevated degree of resource output in
the developing nations (Aguado, Alvarez and Domingo 2013). As the impact of technology
implies to the reduction of damage towards the environment, the rate of impact tends to arise
with the emergence of advanced technologies by foreign investors which are in comparison with
technical expertise of local enterprises tend to be reveal greater degree of accountability to the
environment. For instance it can be noted that these local enterprises tend to reveal less energy
sensitive and promote mechanisms of environmental management to their purpose (Mangra,
Cotoc and Dumitru 2014).
Therefore, to conclude it can be stated that the economic, social or technological growth
are induced by the globalization process which constitutes both positive and negative impacts on
the country’s developmental state. As factors related to FDI has been recognized as a vital

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mechanism for influencing such process, unconstructive outcomes of this process may be
successfully be eradicated through effective financial and environmental state policy. Individuals
increasingly comprehend the relative rate of economic strengths and weaknesses of the
globalization as elements of particular national political understanding and not as a consequential
factor of diverse accepted advantages. Thus, the assimilation of these elements makes it evident
that the contemporary age of globalization will be recognized as one of the vital global struggles
over economy.

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