An inclass essay on Globalization

Globalization has been around the world for centuries. Some said , the Silk Road was the first form of globalization, some said the Romans started it, and of course there are more assumptions. Many historians, economist and scientists have been arguing about the start of globalization, but they never have reached a consensus. However, what we know today, in the 21st century are the effects of globalization. So, for the purpose of this essay, I am going to set the beginning of globalization in the 1980s, the beginning of multinational corporation’s dissemination. Of cause, there are more forms of globalization, but this (corporation) is definitely the major one. So in this essay, I am going to discuss some of the effects of globalization.

Globalization has many effects and forms. As stated earlier, this essay focuses only on multinational corporations. So, what are some positive effects? One of the greatest contributions globalization has brought is the spread of information. With the help of globalization, especially corporations, more knowledge is being shared. There are better satellite systems and information, more available telephony and even internet. Languages are also more globalized. After the spreading of globalization, English has become one of the most common languages. 75% of the world’s mail telexes are in English. 60% of the world’s radio program are in English. 90% of the internet traffic uses English. Also, more people have global views. Westerners are more familiar with eastern culture while the East is also getting used to western traditions. In many ways, we are forming a global village. And because of this, more interaction between countries have started. There are more world games like Olympic, Soccer World Cup (FIFA), and Rugby World Cup (RWC). Most importantly, international agreements are being formed. The copy right laws for example are regulated because of globalization.

Globalization also helps reshape the economy of many countries. Because corporations are starting to build their factories abroad, they give those countries, especially third world countries more job opportunities. As a result, the standard life style in third world countries increase. They have better health care because of the technologies brought in by other countries, more money because they are employed and therefore, a better life style. Mr. Joseph Stiglitz said in his speech, "China has brought several hundred millions of people out of poverty". Chinese managed globalization exceptionally well. Also with the spreading of the companies, more goods are being spread across the globe. Now, we can have a wide range of choice when we go shopping. And this, according to statistics, makes more consumers want to shop.

Another great contribution from globalization is the competition it creates among the corporations. Because of the forming of this “global market” more companies are forced to compete with each other. In today’s world, out of all the 100 biggest companies, 51 of them are multinational corporations. The founder of Microsoft, Bill Gates said, “This is a very exciting time in the world of information. It’s not just that the personal computer has come along as a great tool. The whole pace of business is moving faster. Globalization is forcing companies to do things in new ways.” Globalization has brought an end to many monopolies in the world. Now, even diaper companies have to compete with each other. As a result, more cheaper products with better quality are being produced.

Enough said about the good things brought by globalization, now for its downside. With the spreading of corporation, their business’s size increased dramatically. These corporations have become so rich, they have forgotten the purpose of their companies. Instead of concentrating on their products, they focus solely on profits. These high power CEOs started thinking of more ways to make money, so they started exploiting their workers. In China, McDonald's workers are getting less then 50 cents per hour. They have limited health care, and a lot of them cannot join the unions. For pharmaceutical companies, they only make drugs that treat illness found in modernized wealthier communities. Because they are pharmaceutical companies’ primary consumers. From 1975~1997, 1233 drugs were created, only 13 of them are for tropical diseases. The reason why there are only 13 of them is because pharmaceutical companies know those third world country people won't be able to afford the drugs, and the companies won't be able to make money from them. They even test drugs on people of the third world. The pharmaceutical company, Pfizer was accused of treating their third world country clients with untested drugs. And they got away by that saying their “clients” are illiterate, so they cannot sign a contract. Instead, these clients gave verbal permission, which could never be proven to be true or false in a court of law.

An example of how powerful these corporations become can be seen in the power they have to change regulations. In Papua New Guinea, mining companies forced the governments to stop performing health tests on its citizens that live around the mining site. In Peru, the mining companies forced the government to make a new law, that is “No one is allowed to sue international mining companies.” Sometime, even governments themselves are guilty. In New York, all of the manholes are made in India. They hired Shakti Industry in Haora to make their manholes with a very low price. Most of the workers were working with nearly no protection, in extreme heat and low pay. They received less then one dollar an hour when they could make over 25 dollars per hour in the US.

Lastly, if the government could not handle globalization well, their economy will actually decline, or even crash. Mexico for example is having trouble handling globalization. They have been working for American companies for many years, but the gap between the two countries is still constantly increasing. This is because these workers are being badly exploited. They get low pay, and are forced to work overtime. Since the country does not have many job opportunities, those workers have to stay in the factories. Governments are also forced to borrow money from banks. And of cause, if they borrow, they need to pay the interest. Some countries are even losing money constantly. Jimmy Carter said “Globalization, as defined by rich people like us, is a very nice thing…you are talking about the internet, you are talking about cell phones, you are talking about computers. This doesn’t affect two-third of the people of the world.” Globalization is too focused on rich companies. Actually, some of the international trade rules are made to favor companies. Especially first world companies.

So, in conclusion, Globalization has many effects. Kofi Annan, the Nobel peace prize winner and former head of the United Nations said “It has been said that arguing against globalization is like arguing against the laws of gravity.” There will always be globalization. It is impossible to prevent. The problem is to make it fair for all. Corporations cannot be as powerful as they are today. Globalization needs more regulations and we need to keep an eye on them. Globalization could work, and it could bring balance to the world. The problem is how to make it work.