Globalisation is the process by which the world is becoming gradually interdependent on each other as a consequence of increased trade and cultural exchange as countries interconnect together the increase of trade rises. Companies have expanded and become transnational cooperation’s with divisions in many countries to their factories.
The reasons for globalisation interlinks with the benefits and problems caused with in the industry, for example Improvements in transportation have supported globalisation larger cargo ships mean that the cost of transporting goods between countries has decreased, therefore this decreases the item price when buying it. However an example of a manufacture is one located in china cheap labour and long working hours is one of the problems caused by the growth of globalisation. There is no minimum wage to support the living cost of an individual in different areas the minimum wage changes, in Shenzhen the minimum wage is £90 per month and in Beijing it is about £70 per month, labour in china is much more cheaper compared to other countries in comparison to the UK minimum wage is about £990 per month. Which suggest there are no regulations to help those who work in factories as a result of this Chinese workers are having to work more than 80 hours of overtime per month to maximise the production of good.
Although this may be the result of working in a factory it does provide local jobs in deprived areas by inward investment for example Nike investing into a factory in India, individuals are able to succeed into developing new skills which could take them further. In contrast TNCs are able to bring fortune and foreign currency to local economies when they buy local resources, products and services. Therefore any extra money made can be used to invest into the local community; education health and infrastructure. Which could contribute to bringing more tourist in the area if the infrastructure is improved and captivating.
In addition an absence of strictly enforced international laws means that TNCs may operate in LEDCs in a way that would not be allowed in an MEDC. Some damage the environment by polluting the atmosphere with carbon dioxide which effects the rising sea level, more than 200 million people are made to work in hazardous toxic factories in China and for the past decade factory workers have been treated for mercury poisoning with the lack of freedom by all-china federation of trade unions by law to get people back to work if they strike to produce maximum productivity and it’s illegal to join any other union than the ACFTU suggesting they are not allowed to take a day of work to stand up for their rights.
On the other hand Globalisation has increased the awareness of events in far-away parts of the world. For example, the UK was quickly made aware of the 2004 tsunami tidal wave and sent help rapidly in response and so did other countries. Globalisation has also made aware of global issues such as deforestation and global warming when manufactures produce products it encourages people to stand up to companies in providing countries sustainable development in the factories they have invested in.
Overall there will always be benefits and problems caused by globalisation I believe the problems can be reduced if companies weren’t being greedy for money and followed regulations.
Zeinab Al Ahmar
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