globalization improves quality of life essay

Globalisation improves quality of life

University of Cantabria

Globalisation

New research shows globalisation is improving quality of life and equality for more people compared with three decades ago.

The University of Cantabria study used the UN Human Development Index, which covers almost 90% of the global population, as an indicator of quality of life.

While globalisation has brought higher levels of development to more countries than 30 years ago, the world is now split into two clusters of the least developed countries and the highly developed countries.

The greatest decrease in disparity is in education with a reduction of up to 64%, largely due to efforts to improve education in developing countries.

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The Impact of Globalization on a Country's Quality of Life: Toward an Integrated Model

• Published: September 2004
• Volume 68 , pages 251–298, ( 2004 )

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• M. Joseph Sirgy 1 ,
• Dong-Jin Lee 1 ,
• Chad Miller 1 &
• James E. Littlefield 1  

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The purpose of the paper is to develop a set of theoretical propositions to explain the impact of globalization on a country's quality of life (QOL). In this paper, we describe how globalization impacts the quality of life of residents of a country by first articulating the globalization construct (in terms of inflows and outflows of goods, services, capital, technology, and workers), second, articulating the country's QOL construct (in terms of economic, consumer, social, and health well being), and showing the relationships between globalization and a country's QOL. We develop a set of theoretical propositions to capture these relationships. Finally, we discuss the public policy and research implications of this study.

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Sirgy, M.J., Lee, DJ., Miller, C. et al. The Impact of Globalization on a Country's Quality of Life: Toward an Integrated Model. Social Indicators Research 68 , 251–298 (2004). https://doi.org/10.1023/B:SOCI.0000033577.34180.4b

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Impacts of globalization on quality of life: evidence from developing countries

This paper evaluates the impacts of globalization on quality of life, particularly on human development, gender development and human poverty in developing countries. Applying the fixed effect model to the annual panel data of 124 developing countries covering nine years from 1997, it shows that globalization (in terms of its comprehensive indexes and key elements) not only promotes human and gender development, but also significantly reduces human poverty. Not surprisingly, all the three aspects of globalization (economic, social and political) contribute to the overall effect of globalization. In general, the results from the key elements of globalization are consistent with the results from the comprehensive indexes. However, it is also observed that political and social globalization, FDI, and international migration were insignificant to gender-related development. Thus, further research is suggested for appropriate policy recommendations to make these variables significant on ...

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20 Ways How Globalization Affects Daily Life: An Insider’s Guide

By: Author Valerie Forgeard

Posted on September 14, 2023

Categories Society

Globalization is often considered an abstract concept, discussed in the realms of academia, business conferences, or geopolitical summits. Yet, its implications permeate the fabric of our daily lives in ways so integrated that they often go unnoticed.

From the morning cup of coffee from beans grown in a distant country to the smartphone in your hand assembled from parts sourced globally, the tendrils of globalization impact nearly every facet of our existence.

But what exactly is globalization, and how does it influence not just the macro but also the micro aspects of our lives? Is it merely the flow of goods across borders, or does it also encapsulate the exchange of cultures, ideas, and values? Most importantly, how do these global connections affect our choices, opportunities, and even challenges?

In this article, we’ll explore the multifaceted impact of globalization on our everyday experiences. We’ll delve into its effects on what we eat, how we work, the way we socialize, and even how we perceive the world.

Whether you view globalization as a force for good or a complex web of challenges, understanding its influence is crucial for navigating our interconnected world.

Key Takeaways

• Globalization has led to increased interaction and integration among people, companies, and governments worldwide, facilitated by international trade and investment aided by information technology.
• Globalization has had a significant impact on the economy and trade, making products from around the world readily available, but also subject to trade regulations and currency exchange rates.
• Cultural homogenization and the dominance of global brands are consequences of globalization, shaping perceptions about beauty, success, and lifestyle through international media and Hollywood movies.
• Technological advancements accelerated by globalization have both brought opportunities and created inequality in access to technology, emphasizing the need for tech equity and equal access for everyone.

20 Ways Globalization Influences Our Everyday Life

Globalization isn’t just a buzzword; it’s a complex, multifaceted phenomenon that has a direct impact on our daily lives.

Whether you’re sipping on Colombian coffee or chatting with a friend halfway across the globe via social media, you’re experiencing the ripple effects of a world more interconnected than ever.

But what are the subtle and not-so-subtle ways this grand integration of economies, cultures, and technologies affects us?

Here are 20 impactful examples:

• Food Choices : Gone are the days when local cuisine was all you could enjoy. Globalization lets you savor dishes from around the world without leaving your hometown.
• Clothing Trends : The clothes you wear may be designed in one country, manufactured in another, and sold worldwide, illustrating globalization’s role in shaping fashion.
• Job Opportunities : Access to global job markets offers diverse career opportunities, allowing talent and skill to move more freely across borders.
• Cultural Exchange : Festivals, art, and literature from various parts of the world are now more accessible, enriching local cultures.
• Healthcare : Medical advancements and techniques are shared rapidly between countries, improving healthcare globally.
• Entertainment : From Hollywood movies to K-pop, entertainment is one of the most widely shared cultural exports.
• Technology : Innovations and gadgets are universally available, making tech one of globalization’s most tangible impacts on daily life.
• Internet Access : The global reach of the internet allows for immediate communication and information sharing, impacting everything from social relations to education.
• Travel : Globalization has made international travel more common, opening up the world for exploration and intercultural experiences.
• Economic Fluctuations : Events in one part of the world can influence your local economy, impacting everything from job stability to prices at the supermarket.
• Consumer Goods : The wide array of products available in supermarkets and stores showcases how global supply chains bring diverse goods to your doorstep.
• Education : Globalization impacts curricula, diversifying the topics studied and providing a more comprehensive worldview.
• Social Issues : Awareness and activism have become global, with campaigns and movements reaching beyond borders to effect change.
• Financial Markets : Your investment portfolio is likely influenced by global events, adding both opportunities and risks.
• Immigration : An interconnected world means more diverse communities, enriching local culture but also sparking debates about immigration policy.
• Language : English has become the global lingua franca, influencing local languages and making English proficiency a useful global skill.
• Climate Change : Environmental issues are now global concerns, requiring international cooperation for solutions.
• Political Influence : Global organizations like the UN and WHO have significant sway over local policies and public health.
• Resource Distribution : Globalization affects how natural resources are allocated and consumed, impacting sustainability.
• Online Shopping : From global giants like Amazon to small businesses with international shipping, you can buy almost anything from anywhere.

Understanding these influences will make you more aware of how you are a part of this intricate global web and help you navigate the opportunities and challenges that come with it.

The Concept and Evolution of Globalization

Let’s delve into the concept and evolution of globalization. It’s not as complex as you’d think. Essentially, it is a process that involves the interaction and integration among people, companies, and governments worldwide. It’s fostered by international trade and investment aided by information technology.

However, there are political implications. As countries become more interconnected, national sovereignty can be compromised, leading to a globalization backlash.

This isn’t always negative, though. Economic data shows that globalization has played an integral part in poverty reduction in many parts of the world. But let’s remember: freedom is paramount – we must ensure our global ties don’t infringe upon this right while striving for prosperity.

Now that we’ve understood its basic premise, let’s explore further how this phenomenon impacts the economy and trade.

Impact of Globalization on Economy and Trade

In our exploration of the impact of globalization on economy and trade, we’ll delve into the nuances of global trade expansion and how it’s driving economic growth.

We’re set to dissect the symbiotic relationship between these two critical aspects, analyzing hard data to reveal patterns and trends that may not be immediately apparent.

Our discussion will combine a clear, concise writing style with an analytical interpretation of economic data, offering in-depth insights into this complex facet of global affairs.

Global Trade Expansion

Global trade expansion has drastically changed our daily lives, making products from around the world readily available. We’ve benefitted from an array of goods and services previously unimaginable. Our choices aren’t limited by geographical boundaries anymore. Yet, it’s not without its strings attached.

Trade regulations play a crucial role in this process, often acting as double-edged swords. They can protect us from substandard imports but may also restrict market freedom.

Currency exchange rates too have a significant impact on global trade dynamics. A fluctuating currency can affect purchasing power significantly, dictating what we can afford and when.

Understanding these complexities is vital for maintaining economic stability and personal financial health amidst the ever-evolving global marketplace.

Economic Growth Influence

Economic growth’s influence on society can’t be overstated, as it directly impacts job creation, increases the standard of living, and aids in poverty reduction. We’re all integrated into this global system where economic affairs influence our daily lives.

• Job Creation: With economic growth, businesses thrive and expand leading to more employment opportunities.
• Standard of Living: As economies grow, incomes generally increase which enhances our living standards.
• Poverty Reduction: Economic growth fuels poverty reduction initiatives through wealth redistribution mechanisms.

Inflation control is crucial for stable economic progression; unchecked inflation can erode purchasing power and destabilize economies. On the other hand, poverty reduction remains a key goal for any economy because we believe in freedom from want. Understanding these factors helps us appreciate how closely our lives are linked with global economics.

Globalization and Its Influence on Culture

In the vortex of globalization, we’re witnessing an increasing trend towards cultural homogenization. This phenomenon is largely influenced by the omnipotent reach of global media. This sweeping wave isn’t just reshaping our existing identities, but it’s also leading to an alarming loss of tradition. Local customs and practices are being overshadowed or replaced altogether.

Analyzing this from an economic perspective, there’s a palpable shift in consumer behavior patterns globally. This shift is reinforcing the homogenization process further. It is something we need to delve into with urgency.

Cultural Homogenization

You’re likely noticing a trend towards cultural homogenization in your daily life, aren’t you? This is the reality of our globalized world.

We’re witnessing an intensification of cultural assimilation and a worrying diversity erosion.

• Global Brands Domination : Multinational corporations are spreading their influence worldwide, resulting in identical lifestyles from New York to Nairobi.
• Media Influence : International media and Hollywood movies are shaping our notions about beauty, success, and lifestyle.
• Language Uniformity : English has emerged as the de facto global language, threatening linguistic diversity.

While this simplifies communication and synchronization, it also jeopardizes local cultures’ uniqueness.

Hence we must strive for balance – cherishing globalization’s convenience without surrendering our distinct cultural identities entirely to its march.

Global Media Influence

Hollywood’s influence can’t be denied, shaping perceptions of success and beauty across the globe. We’ve seen this power magnified by the digital divide, where access to global media is skewed in favor of developed nations. This disparity is a stark reminder that while we’re more connected than ever, not all connections are equal.

Media censorship adds another layer of complexity. We face a struggle between freedom of expression and safeguarding cultural norms. As our world becomes more interconnected through global media, it’s crucial for us to strike a balance between embracing new ideas and maintaining our unique cultural identities.

Yet, with each passing day, we witness how global media influence potentially leads to the loss of tradition.

Loss of Tradition

Traditions aren’t as revered as they once were, with global media often prioritizing modern trends over preserving cultural heritage. This shift has profound impacts on our societies, particularly in relation to traditional crafts preservation and the local folklore significance.

We’re witnessing a decline in age-old craft techniques due to lack of commercial appeal; artisans are forced to adopt mass production methods to survive.

Local customs and lore lose their relevance when overshadowed by popular global narratives.

The undermining of unique traditions can lead to cultural homogenization, a loss that’s irreversible.

We must promote the importance of preserving tradition while embracing progress. Let’s champion for economic policies that support local artisans, encourage folklore education, and resist the erasure of our diverse cultures.

The Role of Globalization in Technology Advancements

In today’s world, it’s hard to ignore how globalization has sped up technological advancements, dramatically changing our daily life. We’re seeing a growing digital divide; the gap between those who have easy access to technology and those who don’t.

This technological dependency is both a blessing and a curse. It brings unprecedented access to information and opportunities, yet it also fosters inequality among nations and individuals. For instance, citizens of developed countries enjoy high-speed internet and advanced devices, while many in developing nations lack basic digital resources.

We must strive for tech equity, ensuring that everyone benefits from these innovations regardless of their geographical location or socio-economic status. Only then can we truly harness the power of globalization without compromising freedom or equality.

Effects of Globalization on Environment and Sustainability

You’re probably aware that the rapid pace of development can sometimes come at a cost to our environment and sustainability efforts. Globalization, while offering numerous benefits, has also led to significant challenges for our planet.

• Climate change – We’re seeing an increase in greenhouse gas emissions as industries expand globally, leading to rising temperatures.
• Biodiversity loss – The rampant exploitation of natural resources is resulting in the extinction of numerous species.
• Resource depletion – Our high-consumption lifestyle is depleting finite resources at an alarming rate.

We must understand these effects and act responsibly. As advocates for freedom, we should strive for a balance between progress and preservation; economic growth shouldn’t compromise our home’s longevity.

Globalization and Its Implications on Health and Lifestyle

It’s crucial to note that the spread of ideas and practices through globalization can also significantly impact health and lifestyle choices worldwide. We’ve seen a global diet emerge, leading to health disparities among populations.

As we analyze this economic data, we’re reminded of our freedom to make individual choices, but also the need for collective responsibility in addressing these disparities. This interplay between personal liberty and public health is a complex issue shaped by globalization. As we venture into future prospects: globalization in the coming decades, let’s consider its potential impacts on our global society.

Future Prospects: Globalization in the Coming Decades

Looking ahead, we’ll likely see even more dramatic shifts in health and lifestyle as a result of continued worldwide connectivity. This change will greatly impact our global workforce and immigration policies.

• Global Workforce: As virtual workspaces become commonplace, we’re looking at a future where geographical boundaries won’t limit job opportunities. This could mean greater freedom to choose where we live and work.
• Immigration Policies: We anticipate these changes will trigger re-evaluation of immigration policies worldwide. The focus may shift from physical migration to digital competence.
• Health & Lifestyle: With globalization promoting widespread access to diverse food and lifestyle choices, we could see significant shifts in global health trends.

In this interconnected era, it’s essential that we adapt swiftly while preserving our values of freedom and individuality.

In sum, we’ve seen globalization’s significant impact on our lives. It’s shaped our economies, cultures, tech advancements, and even health.

While it brings opportunities for growth, it also presents challenges like environmental sustainability.

As we move forward, understanding these complexities is crucial to navigate the global arena effectively.

Let’s continue to analyze and adapt to ensure a balanced and sustainable future in this interconnected world.

Frequently Asked Questions

How has globalization affected the education system worldwide.

We’ve seen globalization greatly impact education through cultural exchange and increased technological accessibility. It’s broadened our perspectives, offered new learning tools, and connected us globally despite geographical boundaries.

What Is the Impact of Globalization on Local Businesses and Industries?

We’ve observed that globalization intensifies market competition, often challenging local businesses. It also shifts consumer preferences, making us adapt to global trends. Yet, it offers opportunities for growth if we can navigate these changes wisely.

How Does Globalization Influence Immigration Policies Across Different Countries?

We’ve observed that globalization influences policy evolution, altering immigration laws globally. It promotes cultural integration, and these changes directly reflect in our societies, impacting who we welcome and how we interact together.

How Has Globalization Affected Income Disparity and Wealth Distribution?

We’ve seen how trade liberalization, a result of globalization, has impacted income disparity. It’s led to global inequality, with wealth concentrated among the few while many others struggle. We must analyze this further.

Can Globalization Have an Impact on Political Systems and Governance?

Absolutely, we’re seeing globalization’s influence on nationalism and international diplomacy dynamics. It’s reshaping political systems and governance worldwide, impacting how nations interact and manage themselves in this interconnected world.

Effects of Economic Globalization

Globalization has led to increases in standards of living around the world, but not all of its effects are positive for everyone.

Social Studies, Economics, World History

Bangladesh Garment Workers

The garment industry in Bangladesh makes clothes that are then shipped out across the world. It employs as many as four million people, but the average worker earns less in a month than a U.S. worker earns in a day.

Photograph by Mushfiqul Alam

Put simply, globalization is the connection of different parts of the world. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture. In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers. A Historical View Globalization is not new. Since the start of civilization, people have traded goods with their neighbors. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. For more than 1,500 years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away. Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. The Triangular Trade network in which ships carried manufactured goods from Europe to Africa, enslaved Africans to the Americas, and raw materials back to Europe is another example of globalization. The resulting spread of slavery demonstrates that globalization can hurt people just as easily as it can connect people. The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. Advances in communication enable businesses to identify opportunities for investment. At the same time, innovations in information technology enable immediate communication and the rapid transfer of financial assets across national borders. Improved fiscal policies within countries and international trade agreements between them also facilitate globalization. Political and economic stability facilitate globalization as well. The relative instability of many African nations is cited by experts as one of the reasons why Africa has not benefited from globalization as much as countries in Asia and Latin America. Benefits of Globalization Globalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies. With globalization, different parts of a product may be made in different regions of the world. Globalization has long been used by the automotive industry , for instance, where different parts of a car may be manufactured in different countries. Businesses in several different countries may be involved in producing even seemingly simple products such as cotton T-shirts. Globalization affects services, too. Many businesses located in the United States have outsourced their call centers or information technology services to companies in India. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. China is a prime example of a country that has benefited immensely from globalization. Another example is Vietnam, where globalization has contributed to an increase in the prices for rice, lifting many poor rice farmers out of poverty. As the standard of living increased, more children of poor families left work and attended school. Consumers benefit also. In general, globalization decreases the cost of manufacturing . This means that companies can offer goods at a lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the standard of living. Consumers also have access to a wider variety of goods. In some cases, this may contribute to improved health by enabling a more varied and healthier diet; in others, it is blamed for increases in unhealthy food consumption and diabetes. Downsides Not everything about globalization is beneficial. Any change has winners and losers, and the people living in communities that had been dependent on jobs outsourced elsewhere often suffer. Effectively, this means that workers in the developed world must compete with lower-cost markets for jobs; unions and workers may be unable to defend against the threat of corporations that offer the alternative between lower pay or losing jobs to a supplier in a less expensive labor market. The situation is more complex in the developing world, where economies are undergoing rapid change. Indeed, the working conditions of people at some points in the supply chain are deplorable. The garment industry in Bangladesh, for instance, employs an estimated four million people, but the average worker earns less in a month than a U.S. worker earns in a day. In 2013, a textile factory building collapsed, killing more than 1,100 workers. Critics also suggest that employment opportunities for children in poor countries may increase negative impacts of child labor and lure children of poor families away from school. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections. Studies also suggest that globalization may contribute to income disparity and inequality between the more educated and less educated members of a society. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization. Into the Future Regardless of the downsides, globalization is here to stay. The result is a smaller, more connected world. Socially, globalization has facilitated the exchange of ideas and cultures, contributing to a world view in which people are more open and tolerant of one another.

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Related Resources

Is globalization an engine of economic development?

All people living in today's world have experienced some of the benefits of globalization: the expansion of foreign trade has meant that vaccines and antibiotics produced in a handful of countries have been widely used all over the world to eradicate diseases and treat deadly infections. Since 1900, life expectancy has increased in every country in the world , and global average life expectancy has more than doubled .

Globalization has also been a key driver of unprecedented economic growth and as a result, we now live in a world with much less poverty .

Yet these achievements are the product of multiple forces, and globalization is only one of them. The increasing potential of governments to collect revenues and redistribute resources through social transfers has been another important factor contributing to improved standards of living around the world. Neither free market capitalism nor social democracy alone has been responsible for economic development. On the contrary, they often work together.

In this blog post, we discuss in more detail the evidence behind these claims.

The rise of globalization

International trade has been part of the world economy for thousands of years . Despite this long history, the importance of foreign trade was modest until the beginning of the 19th century—the sum of worldwide exports and imports never exceeded 10% of global output before 1800 .

Then around 1820 things started to change quickly. Around that time, technological advances and political liberalism triggered what we know today as the 'first wave of globalization'.

This first wave of globalization came to an end with the beginning of the First World War, when the decline of liberalism and the rise of nationalism led to a collapse in international trade. But this was temporary and after the Second World War, trade started growing again. This second wave of globalization, which continues today, has seen international trade grow faster than ever before. Today, around 60% of all goods and services produced in the world are shipped across country borders. (In our entry on International Trade you find more details regarding the particular features that characterize the first and second waves of globalization.)

The chart here shows the remarkable growth of foreign trade since 1800. The series shows the value of world exports in constant prices—world exports have been indexed, so that values are relative to the value of exports in the year 1913.

The broad trend in this chart is striking: Trade followed an exponential path. Other metrics of trade, such as the share of imports and exports in global output , tell the same story.

In just a few generations, globalization completely changed the world economy.

The correlation between globalization, economic growth and poverty reductions

In the period in which international trade expanded, the average world income increased substantially and the share of the population living in extreme poverty went down continuously.

GDP per capita is a common metric used for measuring national average incomes. By this measure, average incomes followed a similar growth pattern to international trade. For thousands of years, global GDP per capita had a negligible growth rate: technological progress in the preindustrial world produced people rather than prosperity . Over the course of the 19th century, however, alongside the first wave of globalization, this changed substantially. In this period, economic growth started accelerating and global GDP per capita has been growing constantly over the last two centuries—with the exception of lower growth rates during the years between the two world wars. (You can read more about these trends in our entry on Economic Growth .)

Regarding extreme poverty, the available evidence shows that up until 1800, the vast majority of people around the world lived in extreme deprivation , with only a tiny elite enjoying higher standards of living. In the 19th century we began making progress and the share of people living in extreme poverty started to slowly decline. This trend is shown in the chart here. As we can see, today, two hundred years later, the share of people living in extreme poverty is less than 10%. This is an achievement that would have been unthinkable to our ancestors. 1

The stark trend in the incidence of poverty is particularly remarkable if we consider that the world population increased 7-fold over the same period. In a world without economic growth, such an increase in the population would have resulted in less and less consumption for everyone. And yet, as the chart shows if you switch to the 'absolute' view, the exact opposite happened: in a time of unprecedented population growth, we managed to lift more and more people out of poverty.

Living with less than 1.90 dollars per day is difficult by any standard—the term 'extreme poverty' is appropriate. However, recent estimates show that no matter what global poverty line you choose, the share of people below that poverty line has declined . (In our entry on Global Extreme Poverty you can find more evidence supporting this important historical achievement.)

The link between globalization and absolute poverty

The fact that trade and average incomes followed similar upward trajectories in a period of unprecedented poverty reduction is of course not proof of a causal relationship. However, both evidence and theory suggest that what we observe is more than an accidental correlation.

Trade facilitates efficiency gains that are materialized in aggregate economic growth. From a conceptual point of view, international trade contributes to economic growth by allowing nations to specialize, in order to produce goods that they are relatively efficient at producing, while importing other goods. There is substantial empirical evidence backing this causal mechanism .

If trade leads to growth in average incomes, what does this mean for poverty? In a much-cited 2002 academic article, David Dollar and Aart Kraay empirically showed that on average, the income of the poorest grew one-for-one with average national incomes over the last four decades of the 20th century. 2 This means that trade has helped raise the incomes of the poor as much as it has helped raise average incomes. More recent articles have confirmed the original findings from Dollar and Kraay. 3

When taken together, the evidence thus tells us that globalization has contributed to reducing poverty around the world.

The link between globalization and inequality

That globalization is good for the poor is a statement that is true on average . In some countries and in some periods the poor did better than average, and sometimes they did worse.

Looking at the long-run average effect is very helpful to form an opinion regarding broad trends. However, these broad trends are not necessarily informative about how trade has affected the distribution of incomes generally; nor about how trade has affected specific groups of people in specific periods.

The same economic principles that suggest we should lend serious consideration to the efficiency gains from trade, suggest that we should do likewise for the distributional consequences from trade. If globalization generates growth by allowing countries to specialize in the production of goods that intensively use locally abundant resources, it is natural to expect that differences in the way resources are endowed will translate into differences in the way benefits are reaped.

If we take a look at the data, we observe that the process of globalization and growth that led to historical achievements in poverty reductions went along with a substantial increase in global income inequality .

The chart shows this by comparing the global income distribution at three points in time: 1800, 1975, and 2015. We can see that the world today is both much richer and more unequal than it was in 1800.

There are two forces that can drive global income inequality : within-country differences in incomes, and between-country differences in incomes. Which of the two is driving the trend we observe in this chart? The evidence suggests that it is the latter—global inequality increased in the period 1800-1975 because the countries that industrialized earlier grew faster.

In 1800, only a few countries had achieved economic growth while the majority of the world still lived in poverty. In the following century, more and more countries achieved sustained economic growth, and the global income distribution became much more unequal: there was a clear divergence between early-industrialized countries (where extreme forms of poverty were virtually eradicated) and the rest of the world. In the following decades and up until today, early-industrialized countries have continued growing, but the biggest changes have taken place at the bottom of the distribution. Today, global income inequality is lower than it was in 1975. But still, despite the ‘catch-up growth’ in recent decades, our world today is both much richer and more unequal than it was in 1800.

So, what does the data tell us about globalization? Over the last century, the gains from international trade were substantial and generally equally distributed within countries, but global inequality increased because for a long period early-industrialized countries had larger gains to distribute among their citizens.

The distribution of the gains from trade

The above conclusion that globalization has not had substantial effects on global inequality may seem paradoxical to some people—there is substantial evidence of growing inequality in many countries, including countries that have vehemently pursued trade liberalization. A notable case in point is the US, where income inequality has been on the rise in the last four decades, with incomes for the bottom 10% growing much more slowly than incomes for the top 10% . (You can read more about these within-country trends in our entry on Income Inequality .)

How can we reconcile these two empirical facts? In a recent article, Elhanan Helpman provides an answer informed by a meta-analysis of the available evidence: factors such as automation, technological changes, and market frictions, have contributed to the rise of inequality more than growth in international trade has. 4

If this is the case, then why has the view that globalization is bad for the working class captured the political debate in rich countries? Part of the answer has to do with the fact that people are misinformed about the evidence. But another important reason is that, while globalization may not have been the prime cause of growing inequality within many rich countries, it remains true that there are specific groups of people who have not reaped many of the benefits from globalization in recent years.

Daniel Trefler published a paper in 2004 showing that the 1989 free trade agreement between the US and Canada temporarily increased (for about three years) the level of unemployment in Canada. 5 And David Autor and colleagues published another much cited article in 2013 showing that imports from China had diverging effects on employment across various geographical zones in the US, with employment declining more in zones where industries were more exposed to import competition from China. 6

These effects on specific groups are real and need to be taken into account, even if they do not imply that ‘globalization is bad for the poor’. Public policies should protect and compensate workers whose earnings are adversely affected by globalization. And as a matter of fact, public policies in rich countries have done this to some degree in the past. As painful as job losses are for the affected workers, it is thanks to unemployment benefits and other safety-net policies that we do not observe unemployment leading to widespread extreme poverty in rich countries.

Which way forward?

Has globalization been an engine of economic development? The answer is yes. Globalization has had a positive effect on economic growth, contributing to rising living standards and the reduction of extreme poverty across the world.

Can we conclude from this that we should strive for a ‘hyper-globalized’ world economy in which there is completely free trade with no room for public policy and regulation? The answer is no.

The point is that the worldwide historical achievements that we can attribute to globalization are not independent of other factors, including the potential of governments to redistribute resources. Indeed, as the last chart here shows, the process of globalization that we have experienced in the last couple of centuries took place at the same time as governments increased their potential for taxing and redirecting resources through public policies, particularly social transfers.

How much integration in global markets would be optimal? I would be skeptical of anyone who offers a definitive answer. But it seems unlikely that the optimal degree of integration is either of the two extremes—neither ‘hyper-protectionism’ nor ‘hyper-globalization’ is likely to be the answer.

Policies aimed at liberalizing trade, and policies aimed at providing social safety nets, are often advocated by different groups, and it is common for these groups to argue that they are in conflict. But both economic theory and the empirical evidence from the successful fight against extreme poverty suggests this is a mistake: globalization and social policy should be treated as complements rather than substitutes.

The data in the chart here measures ‘extreme poverty’ as defined by the World Bank; people are considered to live in extreme poverty if they have to get by with less than 1.90 ‘international dollars’ per day. International dollars are a hypothetical currency that corrects incomes for differences in price levels in different countries as well as for inflation (explained by us here ).

Dollar, David, and Aart Kraay. "Growth is Good for the Poor." Journal of economic growth 7.3 (2002): 195-225.

See, for example, Dollar and Kraay (2004), "Trade, growth, and poverty." The Economic Journal 114.493 (2004) ; and Dollar, Kleineberg and Kraay (2014), "Growth, inequality, and social welfare : cross-country evidence." Policy Research Working Paper.

Helpman, Elhanan. Globalization and Wage Inequality. No. w22944. National Bureau of Economic Research, 2016.

Trefler, Daniel. "The long and short of the Canada-US free trade agreement." The American Economic Review 94.4 (2004): 870-895.

David, H., David Dorn, and Gordon H. Hanson. "The China syndrome: Local labor market effects of import competition in the United States." The American Economic Review 103.6 (2013): 2121-2168.

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• DOI: 10.30884/jogs/2019.01.07
• Corpus ID: 211399861

The Impact of Globalization on Quality of Life: An Empirical Investigation for Asian Countries

• Fatima Shafeeq , S. Raza , Shahid Ramzan
• Published in Journal of Globalization… 2019

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4 Effects of Globalization on the Environment

• 15 Apr 2021

Globalization —defined in the online course Global Business as the increased flow of goods, services, capital, people, and ideas across international boundaries—has brought many changes in its wake.

While globalization can positively and negatively impact society, its effect on the environment is primarily negative. Here’s a breakdown of how globalization impacts society and the environment and what business leaders can do to reduce these negative consequences.

How Does Globalization Affect Society?

The world has become more connected than ever before through the increase in technological advancements and economic integrations. Advanced economies are formed as domestic businesses transform into international ones and further contribute to the spread of technology around the world.

There are several benefits of globalization , such as increased international trade and cooperation and less international aggression. Social globalization —the sharing of ideas and information between countries—has led to innovation in the medical, technological, and environmental preservation industries.

Additionally, globalization has improved the quality of life in several developing nations. This includes implementing efficient transportation systems and ensuring accessibility to services such as education and healthcare.

However, globalization can also have negative effects on society, such as increased income inequality and substandard working conditions in developing countries that produce goods for wealthier nations. Income inequality is directly related to globalization as it further increases the gap between more advanced and developing areas of a nation. As a result, it can also increase the risk of societal violence.

Along with its societal effects, globalization has a lasting impact on the environment—and typically not a positive one.

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What Are the Effects of Globalization on the Environment?

1. Increased Transport of Goods

One of the primary results of globalization is that it opens businesses up to new markets in which they can sell goods and source labor, raw materials, and components.

Both of these realities mean finished products travel farther now than ever before—potentially halfway around the globe. In the past, products were more likely to be produced, sold, and consumed locally. This increased transport of goods can impact the environment in several ways, including:

• Increased emissions: The farther a product travels, the more fuel is consumed, and a greater level of greenhouse gas emissions is produced. According to a report by the International Transport Forum , CO2 emissions from transport will increase 16 percent by 2050. These emissions contribute to pollution, climate change , and ocean acidification around the world and have been shown to significantly impact biodiversity.
• Habitat destruction: Transportation—especially when land-based—requires infrastructure like roads and bridges. The development of such infrastructure can lead to issues including habitat loss and pollution. The more ships that travel by sea, the greater the chances for major oil spills or leaks that damage the delicate marine environment.
• Invasive species: Every shipping container and vessel presents an opportunity for a living organism—from plants to animals to fungus—to hitch a ride to a new location where it can become invasive and grow without checks and balances that might be present in its natural environment.

2. Economic Specialization

One often-overlooked side effect of globalization is that it allows nations and geographical regions to focus on their economic strengths while relying on trading partners for goods they don’t produce themselves. This economic specialization often boosts productivity and efficiency.

Unfortunately, overspecialization can threaten forest health and lead to serious environmental issues, often in the form of habitat loss, deforestation, or natural resource overuse. A few examples include:

• Illegal deforestation in Brazil due to an increase in the country’s cattle ranching operations, which requires significant land for grazing
• Overfishing in coastal areas that include Southeast Asia, which has significantly contributed to reduced fish populations and oceanic pollution
• Overdependence on cash crops, such as coffee, cacao, and various fruits, which has contributed to habitat loss, especially in tropical climates

It’s worth considering that globalization has allowed some nations to specialize in producing various energy commodities, such as oil, natural gas, and timber. Nations that depend on energy sales to fund a large portion of their national budgets, along with those that note “energy security” as a priority, are more likely to take intervening actions in the market in the form of subsidies or laws that make transitioning to renewable energy more difficult.

The main byproduct of these energy sources comes in the form of greenhouse gas emissions, which significantly contribute to global warming and climate change.

3. Decreased Biodiversity

Increased greenhouse gas emissions, ocean acidification, deforestation (and other forms of habitat loss or destruction), climate change, and the introduction of invasive species all work to reduce biodiversity around the globe.

According to the World Wildlife Fund’s recent Living Planet Report , the population sizes of all organisms—including mammals, birds, fish, amphibians, and reptiles—have decreased 68 percent since 1970. Latin America and Africa—two rapidly developing regions important to global trade—have seen disproportionate levels of biodiversity loss, especially among environmentally sensitive fish, reptiles, and amphibians.

While this decrease in biodiversity has many causes, it’s widely believed that the issues listed above have contributed in part.

4. Increased Awareness

While many of globalization’s environmental effects have been negative, its increase has heightened environmental awareness worldwide.

Greater connectivity and higher rates of international travel have made it easier than ever for individuals to see the effects of deforestation, habitat loss, and climate change on the environment. This, in turn, has contributed to new laws, regulations, and processes that limit negative effects.

Globalization as a Threat and an Opportunity

Globalization has allowed society to enjoy many benefits, including increased global cooperation, reduced risk of global conflict, and lower prices for goods and commodities. Unfortunately, it’s also led to serious negative effects on the environment.

Since it isn’t feasible for globalization to end or reverse, it’s likely the situation will worsen until nations, governing bodies, and other organizations are compelled to implement laws and regulations that limit negative effects.

Businesses and industries that operate globally have an incentive to take whatever voluntary actions they can to reduce the potential for negative consequences. Doing so can not only provide an organization greater control over its initiatives, but also a powerful marketing and communication tool .

Some ways businesses address climate change include:

• Transitioning to renewable energy sources
• Choosing greener infrastructures or equipment
• Reducing energy consumption
• Creating credible climate transition plans
• Raising awareness among employees

In addition, investing in renewable energy and packaging, embracing responsible land-use management, and shifting goods production to move closer to the end customer are all viable options that businesses can and should consider. The challenge lies in balancing a desire to embrace corporate social responsibility with the need to turn a profit and run a successful business.

Are you interested in breaking into a global market? Sharpen your knowledge of the international business world with our four-week Global Business course. In addition, explore our Business and Climate Change course to help your organization adapt to and embrace business risks and opportunities created by climate change, as well as our other online courses related to business in society .

This post was updated on February 28, 2024. It was originally published on April 15, 2021.

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GP Essay #4: ‘Diversity brought about by globalization should be celebrated, not feared.’ Discuss.

The world today is more diverse than it has ever been. The advent of globalisation, increasing ease of communication and movement has allowed many different cultures, languages, traditions and beliefs to permeate the world, no longer completely separated by geographical boundaries. This increased diversity has led to many positive effects on the world at large such as greater international cooperation, greater economic growth and improvements to the overall standards of healthcare as the exchange of information becomes more fluid. Yet, despite the positivity associated with diversity, there are those who believe that our trust and focus in creating a more diverse international community has led to countries neglecting the needs of their local people. Although these fears do have some truth in them, the benefits that increased diversity has brought to the world are undeniable and cannot be overlooked, and should therefore be more celebrated than feared.

Across the world, the pioneering of new communication technologies has allowed us to become more aware of the extent of diversity across the globe, and this should be celebrated as it has led to greater cooperation within the international community. The Internet has made it easier for individuals to learn languages on their own, and this has in particular led to greater ease of communication between regular individuals and even political leaders, allowing them to communicate with each other in a more relaxed and friendly atmosphere while also ensuring that parties can get their points across without the fear of miscommunication. This is evident through the rise of English as a universal language over the past 10 years, with a Washington Post article in 2015 marking the number of countries which English is spoken in at 101, making it the most popular language in the world. The popularity of English even in countries where the language is not the native tongue has allowed not only business and politics to be carried out with greater ease, it has also allowed the average individual to make interpersonal connections with each other from across the globe. Linguistic diversity, and the willingness to accept and adapt to this diversity, has thus allowed languages to spread all over the globe, having a positive impact on the way people around the planet communicate and brought us all closer together, benefiting our political relations, economy and general way of life. In a way, diversity begets even more diversity, enriching the daily lives and experiences of individuals. 

Diversity should also be celebrated due to the positive effect it has on the global economy. The rise of globalisation in the early 2000s allowed many industries to in fact grow and learn from their compatriots overseas, by allowing companies to venture beyond their own shores. Countries such as Singapore are gleaming examples of the benefits of diversity in the workplace as greater diversity has allowed people in the workforce to learn from one another and improve their methods of trade and production. This understanding underpinned Singapore’s immigration policies, which were concretized as Singapore sought to transit from manufacturing to high-tech and value-added activities in the 1980s. Similarly, the spread of German engineering methods and Arabian textile production methods have allowed these practises to be replicated to varying degrees across the world, improving the overall quality and efficiency in these industries. A more historical example would be the development of Europe and the United States of America during the Industrial Revolution. Researchers from Brown University have suggested that the ‘openness to other cultures’, measured in terms of geographical isolation, were key to the transfer of technological skills rooted in certain cultures, underpinning rapid economic development. The improved quality of products and the improved monetary benefits that have come as a result of cultural exchange signifies the positive benefits that diversity in the workforce has brought upon the global economy as knowledge of better and more efficient methods of work in countless different industries can be shared and collectively improved on by people with different expertise from different parts of the world in order to grow the global economy.

The benefits of diversity should also be celebrated when you consider the positive effects that diversity has had on the healthcare and wellness industry across the world. Increased diversity in the healthcare and wellness industry has led to the rapid spread of many new and unique methods of treating illnesses, and introduced a vast array of health foods to the masses which have never been heard of before. Increased diversity in the healthcare industry specifically has allowed doctors to learn and study diseases which are mostly geographically contained such as monkeypox in Africa and attempt to treat them with Western or Eastern styles of medicine and treatment in order to address the problem in the countries that it is affecting, as well as prevent it from spreading to individuals in other parts of the world. Nobel laureate Tu Youyou drew inspiration from Traditional Chinese Medicine and alternative medicine, widely decried as ‘pseudo-science’ in the West, in order to discover artemisinin, a useful chemical component in the fight against malaria. Similarly, the spread of health foods such as the Acai berry in the past few years was brought from relative obscurity to fame by those from South America, more specifically Brazil, where it has been a popular health snack for a long time. Diversity in the healthcare and wellness industry has allowed the world to become better prepared and healthier by improving not only what we eat but also the ways we tackle illnesses and diseases through the sharing of different cultures’ knowledge and resources, improving the overall quality of life around the globe. It has allowed us to celebrate a time of unprecedented advancement in our healthcare systems and practices and drastically improved our quality of life in ways which would have been simply unimaginable otherwise. 

However, despite its benefit to the global economy, greater diversity can undermine the economic wellbeing of individuals within countries. Greater diversity in the economy often leads to countries and corporations valuing specialist and cheap foreign talent more than the talent within their borders. This can be seen in places such as Hong Kong, where the expatriate population is around four percent of the entire population of Hong Kong, creating a higher level of competition in the workforce for the local population than they had previously experienced. This is also seen in Singapore, which depends predominantly on foreign workers to meet its manpower needs in the construction, retail and food and beverage industries. With countries more willing to look at a diverse array of cultures for talent, locals in these countries and cities have begun to feel increased levels of competition throughout all levels of  the workforce as only the best and brightest can compete with the foreign experts at the top of their fields for jobs, while the competition for lower income jobs rises due to the increased number of individuals flooding to more developed economies to look for job opportunities. This struggle for employment however, has a greater effect on the poorer sections of the population as they may lack the skills to adapt and improve their skills to stay competitive, leading to the eventual rise in the income gap as the inflow of cheaper foreign talent for menial jobs causes greater problems for the poor than the introduction of foreign expats to the economy as these industry professionals have the means and ability to adapt and maintain their competitiveness in the job market. These fears underpin the rise of populist governments like that led by Donald J. Trump in the United States and right-wing governments across Europe, which capitalise on the concerns of the working class that they would be displaced. Thus, the benefits associated with a more diverse workforce, such as lower cost of labour and increasing quality of work,  should not be taken at face value especially since these measures implemented without proper regulations in place may lead to the widening of the income gap and other dire consequences for the country such as social instability.

Increased diversity and ease of movement could also make it harder for countries to develop due to the brain drain phenomenon, where talent in developing nations are more willing to venture overseas due to the diverse nature of the workforce in most first world countries. Local talent in developing nations will start looking to work overseas rather than staying locally as it would give them the opportunity to work in better environments and with better benefits due to the structural foundations that have already been laid overseas as opposed to in their homes. Furthermore, the diverse nature of local workforces also encourages them to move abroad as they feel more comfortable to peruse overseas opportunities with less of a fear of falling homesick. This has been happening for years in countries such as India where most of its top scientists and engineers move to developed nations such as America in pursuit of work, draining the country of a large number of its top intellectuals who could have been working in the country to help it progress. Out of 2.96 million foreign-born scientists based in Asia, Indian nationals number about 950,000, suggesting the extent of brain drain that India has to contend with. Uganda, too, has recently plunged into a healthcare crisis as more than 2000 highly trained medical professionals have chosen to leave for greener pastures in the Middle East. The loss of these top intellectuals to foreign governments and companies sets back developing nations by taking away the people that would have been their pioneers and leaders which would lead the country to a new dawn in terms of technological and economic growth, preventing these developing nations from steadily growing and improving into first world developed nations themselves. Thus, diversity, despite its benefit to the global economy, has left many countries without the means of developing as their top talents are more willing to leave the countries for greener pastures due to the increased job security and comfort that the acceptance of diversity has created for foreigners in the global economy.

Overall, diversity has with it both positive and negative effects on the world as a whole. However, it is undeniable that with diversity, some will continue to fear it and the influence it has on the world. Despite this, with proper regulations to mitigate the negative effects that diversity brings with it, the benefits that diversity has on international cooperation, the global economy and healthcare and wellness alone should be enough to convince the world that it is something that should be celebrated and not feared.

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Journal of Economic Literature

Inequality and globalization: a review essay.

ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)

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Globalization: The Pros and Cons Essay

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There are multiple arguments for and against globalization, each referring to the difference in the impact it has on the economy of individual state and their societies. For example, Collins (2015) states that globalization improves access to goods and services for people. This is especially beneficial for people who live in developing states as they can access better quality products and services, as well as innovations.

However, globalization also affects the global supply chains and has substantial negative effects. Workers may lose their jobs to nations with inexpensive labor (Collins, 2015). The first objection to globalization is the one that comes up most often when NAFTA and other trade agreements are discussed in American politics. When the United States competes with less developed nations, its biggest advantage is its access to capital, while its biggest advantage is its access to inexpensive labor.

According to the cultural globalization hypothesis, a global culture causes the human experience to become more uniform. For instance, historically, various cultures had several calendars that were based on various factors, including solar, lunar, and others (Collins, 2015). Previously, different cultures had different concepts of time, but today, everyone adheres to the same calendars and time standards. Similar to how different units are now used to measure length, mass, and volume. Hence, cultural globalization benefits the development of nations and allows human experiences to be more uniform.

The article “A Mickey Mouse Approach to Globalization” allows one to see whether globalization will result in the formation of a monoculture or not. From the perspective of food, Outlook Web Desk (2022) states that when comparing BigMacs in China and America, the taste of the food is identical. However, the experience of the people is different, despite the globalization of the food culture. Thus, although globalization has made many things similar, such as foods, the native cultures of different nations still affect the experiences they have.

Collins, M. (2015). The pros and cons of globalization . Forbes . Web.

Outlook Web Desk. (2022). A Mickey Mouse approach to globalization . Web.

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IvyPanda. (2024, April 6). Globalization: The Pros and Cons. https://ivypanda.com/essays/globalization-the-pros-and-cons/

"Globalization: The Pros and Cons." IvyPanda , 6 Apr. 2024, ivypanda.com/essays/globalization-the-pros-and-cons/.

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IvyPanda . 2024. "Globalization: The Pros and Cons." April 6, 2024. https://ivypanda.com/essays/globalization-the-pros-and-cons/.

1. IvyPanda . "Globalization: The Pros and Cons." April 6, 2024. https://ivypanda.com/essays/globalization-the-pros-and-cons/.

Bibliography

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Globalization of Technology: International Perspectives (1988)

Chapter: improving the quality of life through technology, improving the quality of life through technology.

HAJIME KARATSU

I N A RECENT HARRIS POLL, AMERICAN manufacturing executives were asked which countries would pose the most serious competitive threat to American manufacturing over the next 5 years and in the year 2000 ( Business Week, January 12, 1987). Sixty-nine percent of the executives answered that emerging countries such as Brazil, South Korea, and Taiwan would be America’s chief competitors in the manufacturing sector over the next 5 years, and 76 percent responded that those countries would pose a threat to U.S. manufacturing in the year 2000. Only 29 percent of those who responded said that Japan would be a serious competitor over the next 5 years, and only 11 percent cited Japan for the year 2000.

These findings illustrate an interesting trend. In the past, a nation’s competitive power was determined by its geographical size and population. Beginning in the eighteenth century, however, the industrial revolution changed the balance of power among nations, and today even a small nation can achieve affluence and economic strength through its industrial achievement.

In Southeast Asia, there are major differences between nations even though they are located in the same geographical region and are surrounded by similar natural conditions. Singapore has a high wage rate, second only to Japan in Asia, yet it is a tiny island comparable in size to Manhattan and has a population of 2.7 million people. It is also located in a tropical zone with few natural resources.

On the other hand, the people of other nations in Asia are still living at a primitive level. When we look carefully at statistical data on the status of each nation, we see the correlation between a country’s economic standing and various indicators of the quality of life. High economic figures are indicative of the advanced state of industrialization of each nation.

COPING WITH CHANGE THROUGH TECHNOLOGY

Just before the oil crisis of 1974, The Limits to Growth, a controversial report prepared for the Club of Rome, projected a very pessimistic scenario for the future of the global economy and industrialized nations in particular (Meadows et al., 1972). Given the atmosphere at that time—which included a general economic slowdown and the antipollution and antitechnology movement—the report had an enormous impact. It supported the theory, and more importantly the prevailing mood, that the global economy was headed for a period of decline. These influences contributed to a certain pessimism in many industrialized countries.

However, nations have demonstrated that they can cope with such conditions through the creativity of human beings. Faced with the oil crisis, Japan introduced innovative energy-saving technology into the steel industry, and today not a drop of oil is used in that sector. Japan has achieved an increase in its gross national product (GNP) of 2.7 times that at the time of the first oil crisis, while oil consumption has decreased to 80 percent of that in 1974.

Almost every industrialized nation instituted similar energy-saving measures. These efforts to eliminate energy losses in factories, automobiles, and elsewhere were successful in overcoming the energy price hikes. As a result of the new technology, decreased oil consumption has even forced oil producers to cut the price of oil.

Pollution in the industrialized areas of Japan, a by-product of the push for high economic growth, was another major problem in the 1970s. However, after a radical antiindustrialization movement became active, the Japanese government issued numerous antipollution laws. The strictest automobile emission regulations in the world were instituted in Japan in 1975, and cars that did not meet the emissions control specifications could not be sold in Japan. Such regulations were applied not only to automobiles but also in every factory. Consequently, the engineers working in the regulated sectors made great efforts to develop technologies within the framework of the new constraints.

As a result of those efforts, the air and water of Japan today have become clean again. It is said that half the budget to construct new ironworks plants was spent on energy-saving and antipollution devices. The average expenditure of the energy-saving/antipollution industry, which did not exist in Japan before the 1970s, is estimated to be $15 billion per year. Recently, these energy-saving and antipollution technologies have begun to be used all over the world, especially in Western Europe to eliminate pollution caused by acid rain.

INCREASING THE ECONOMIC PIE THROUGH TECHNOLOGY

The importance of a strong manufacturing base and the economic advantages of industrialization are well illustrated by Japan. Japan is one of the

world’s most crowded countries. With 2.7 percent of the world’s population yet only 0.3 percent of the land area, Japan has few natural resources and is located on the fringe of the Asian continent, which is far from the world’s main markets. Yet in 1986, Japan achieved a GNP of $2.3 trillion, 11 percent of the world’s economic activity. The locomotive force of the Japanese economy is clear. It is technology. Many attempts to understand the basis of Japan’s success, however, are marked by misconceptions. Some commentators say Japan has merely followed in the path of Western Europe and the United States or imitated ideas from developed nations and in this way moved ahead in manufacturing and other technologies. Some of these statements may be true, but my experience in the Japanese manufacturing sector since World War II has provided an insight into two key factors of Japan’s success. The first factor is the way Japanese manufacturers develop new products through innovative technology. The second factor is the way the Japanese cope with and overcome problems that occur on the manufacturing shop floor.

In October 1985, I attended a conference in Toulouse, France, on advanced technology. During the conference, I wondered whether many Western Europeans understood the real meaning of advanced technology. When new technologies appear in the world, Western Europeans tend to apply them in complicated ways such as in space technology or missiles. Since these are difficult fields they seldom apply the advanced technologies in immediately practical ways. On the other hand, the Japanese make use of new technologies in whatever form seems to be easily applicable at the time.

Consider carbon fiber, for example. It is a highly innovative new material, lighter than aluminum and stronger than steel. Japanese manufacturers first used it for the shaft of golf clubs. Next they used it for fishing rods. And because they were using these new materials for simple products, even if some minor defects occurred, serious problems were avoided. After they perfected these production techniques for carbon fiber, Japanese companies used carbon fiber in more complex applications.

A more recent example is that of shape-memory alloy. In Japan, manufacturers started using this alloy in every possible field and explored many different product areas—such as air conditioners, eyeglass frames, and coffee makers. Consequently, Japan produces more of this alloy than any other country, 90 percent of the world total.

The most important strategy for using innovative technology is discovering and developing a new, profitable market. Technology should not stay at the idea stage; it should be converted into marketable products. Japanese firms are successful at commercializing new technologies because they select technologies with ready applications and move quickly in developing and manufacturing the product. A driving force in maintaining this commercialization strategy is severe competition among Japanese firms.

Another point is the difference in assumptions between Western European and Japanese engineers. If I talk with Western European engineers, their discussions tend to be “digital.” They always think in terms of black or white and yes or no. This Cartesian way of thinking was quite effective in the natural sciences, where greater simplification is necessary to organize ambiguous data. However, production activity is not that simple.

Basically, manufacturing is a battle against thousands of different possible breakdowns and errors: mistakes in planning schedules, incorrect design, accidental mixture of materials, and so forth. Moreover, machines do not always work uniformly, and factory workers occasionally make mistakes. If these errors accumulate, the result will be a pile of defective goods. The lesson here is that it is easy to fail if you are not aware of all the “gray areas” of production.

We cannot predict where and how such errors will occur, however. Everyone in the factory must cooperate, looking for potential problems and taking care of them in order to prevent future problems. Japan’s strategy for dealing with these issues is the total quality control (TQC) system.

Every nation has the potential for achieving a more affluent society by introducing technology and developing added value in manufactured goods. India succeeded in supplying food for its population, and projections are that India will even export food in the near future. On the other hand, even today 60 percent of the world’s population subsists at a starvation level. Therefore, there should be cooperation and understanding among nations concerning the use of technology as a tool for achieving an improved standard of living for all people. Unfortunately, the fruits of technology are often treated too politically to be used to upgrade the quality of human life. Nations should strive to introduce technology for the purpose of improving tomorrow’s quality of life.

Business Week. January 12, 1987. BW/Harris executive poll: Manufacturing’s rise depends on the dollar, p. 68.

Meadows, D.H., D.L.Meadows, J.Randers, and W.W.Behrens III. 1972. The Limits to Growth. New York: Universe Books.

The technological revolution has reached around the world, with important consequences for business, government, and the labor market. Computer-aided design, telecommunications, and other developments are allowing small players to compete with traditional giants in manufacturing and other fields. In this volume, 16 engineering and industrial experts representing eight countries discuss the growth of technological advances and their impact on specific industries and regions of the world. From various perspectives, these distinguished commentators describe the practical aspects of technology's reach into business and trade.

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Globalization Higher Education Questions

Help students understand globalization through these essay and discussion questions.

To what extent has globalization led to a “more secure and prosperous world”? What are the effects of globalization, both positive and negative, on daily lives around the world? Do you agree with the statement “The wealthy and the powerful benefit the most from globalization”? Discuss using specific examples.

• To what extent is globalization a new phenomenon?
• How and why have the scope, speed, and scale of globalization changed over time?
• What are some of the major international issues related to the impacts of globalization?

In what ways has modern communication contributed to globalization? How did an increase in the speed of communication cause the world to become more interconnected? How have modern transportation methods contributed to globalization? To what extent have evolving means of communication influenced globalization? Consider the shift from high speed one-to-one communication (telegraph, telephone) to the rise of many-to-one mass media (radio, TV) and, most recently, the shift to one-to-many social media.

• Why were shipping containers such a profound technological advancement?
• To what extent does mass media influence patterns of culture and consumption? 
• In what ways has social media altered public discourse?

Why are global supply chains so important? Why are products like medicines produced across several different countries, rather than all in one place? What are some of the benefits and challenges of a decentralized process of production? How might increased demand impact unpredictable global markets? To what extent should the United States focus on “sovereign supply chains” to secure access to critical goods? 

• How did disruptions of the global supply chain during COVID-19 impact the semiconductor industry?
• Why does China play such an important role in the global supply chain?
• What impact did the North American Free Trade Agreement (NAFTA) have on the avocado market? 

What challenges do national governments and international institutions face in responding to the negative impacts of globalization?  How have changes in trade regulations contributed to globalization? To what extent can the effects of globalization be controlled or limited by international institutions, governments, and individuals?

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The impact of research globalization on the efficiency of emerging and Nobel-Prize-level topics

by University of Tsukuba

Over the last 50 years, research activities have become increasingly globalized. Although the advantages of global homogenization and standardization have been extensively discussed, their potential drawbacks, particularly in the field of scientific innovation, have received limited attention.

In a new study published in the Journal of Informetrics , researchers at University of Tsukuba explored the effects of research globalization by tracking the evolution of research topics over the last 50 years.

The study used PubMed, the most extensive repository of life sciences and medicine articles encompassing articles from 53 countries, such as the United States, China, and Japan.

Research findings reveal that although the total number of papers and research on emerging topics have increased with globalization and the improved economic strength of individual countries, the efficiency of producing Nobel Prize-level topics has declined significantly since 2000. This decline seems to be independent of a country's economic strength.

Furthermore, researchers discovered that the standardization of research topics reduces the efficiency of generating Nobel Prize-level topics, suggesting that research globalization drives this homogenization .

The insights gained from this study provide valuable knowledge that can inform research policy in Japan.

Provided by University of Tsukuba

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