IMPLICATIONS FOR NATIONALISM OF GLOBALISATION

Implications for Nationalism of Globalisation

Implications for Nationalism of Globalisation

Introduction

There are a lot of literatures on the meaning of globalisation, but generally speaking the globalisation typically refers to the process by which different economies and societies become more closely integrated, and concurrent with increasing worldwide globalisation, there has been much research into its consequences. The growth of international trade is a straightforward indication of economic globalisation. When UK residents, for example, read labels on their clothes showing they are made in China, Malaysia or Mexico, or decide to purchase a car made in South Korea, their sense of global connectedness is immediate. Globalisation is an act of widening and expanding the borders of a country to open the doors of the country to other countries to import and export goods i.e. a good trading.

Consequences of Globalisation

In addition to the debates over the causes of globalisation, there is much debate about its consequences. There are at least three distinct views in the literature: (1) Whereas some see its consequences as negative in all aspects, (2) others see its effects as positive on the whole, and (3) still others stand firmly in the middle and see it as having both costs and benefits. Globalisation is said to have many different effects. The approach here is to look at a number of those effects and sketch out the different opinions scholars hold on each. At this stage, there is little consensus on its effects. Substantial literatures exist on whether (and how) globalisation has affected economic growth rates, poverty, inequality, democracy, conflict, state capacity, policy and institutional convergence, cultural diversity, volatility and the diffusion of crises, and balance of power between capital and labour. Assessing the impact of globalisation implies that one must hold other factors constant, which is a difficult task. Since globalisation is an ongoing process, definitive answers to these questions cannot be given. What is striking, however, is the wide range of views and evidence that exists for each of these outcomes (Bhagwati 2004, 90).

Economic Growth

Globalisation is alleged to have had a variety of effects on economic growth. Growing integration of national economics into a wider global one has usually been achieved through trade liberalisation and the pursuit of foreign investment, and sometimes through capital market liberalisation. The consequences of these policies for economic growth are still debated. Some research supports the idea that all of the policies increase growth; there is probably more evidence that trade and foreign investment support growth than capital market liberalisation. Research also shows evidence that countries that globalised in the past 30 years grew faster than those that did not. Many expected that the integration of developing countries into the world economy would promote economic convergence—that is, it would make the poorest countries grow faster and hence catch up over time with the richest.

There is some evidence that this has occurred in parts of the world—mainly Asia—but not much support for it ...