Globalization is a term which has been used to describe and explain many worldwide phenomena. It has been given positive connotations by those who advocate greater economic integration across national borders, while it has been fiercely criticized by those who perceive it as a threat to social cohesion and as the advancement of unfettered capitalism, which undermines the Welfare State.
Contemporary globalization has been in motion since the end of the Second World War (WWII). Globalization has been defined as the process of intensification of cross-area and cross-border social relations between actors from very distant locations, and of growing transnational interdependence of economic and social activities (Beck, 2000; Giddens, 1990). Brakman, Garretsen, van Marrewijk, and can Witteloostuijn (2006) also hold both the economy and society are being affected by the globalization process. However, Giddens (1990) views globalization in terms of networking and the interconnection between different social contexts or regions.
Moreover, Bauman (2000) argues that globalization is on everybody’s lips and for some people, it is the driver for happiness while for others, it is the main cause of unhappiness and miseries. Multinational and transnational companies have become very powerful and they are believed to be the ones which decide on the socio-economic policies of various nation states, more particularly the developing countries. Korten (1995) (Cited in Seeds of Fire, 2000) seems to be right when he points out that with the formation and expansion of big global corporations and the dismantling of trade and investment barriers, government and people of many countries have been disempowered.
The roles and functions of many national governments to control the behavior of foreign corporations and investors have been reduced nowadays. Developing societies rely much on the foreign direct investment for development and modernization purposes. Consequently, they...
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