GLOBALISATION

Globalisation

Table of Contents

Globalisation2

1.Introduction2

2. Discussion4

2.1. History4

2.2. Globalisation and Trade6

2.3. Role of Business8

2.3.1 Relationship between Business and Poverty8

2.3.2 Global Markeplace9

2.3.3 Global Workplace10

3. Conclusion11

Globalisation

Introduction

Globalisation refers to the increasing interconnectedness of the world. In stark contrast with prior times, when countries frequently found themselves in competition with one another (and often at war), globalisation reflects their coming together to pursue common goals. This phenomenon is manifest most prominently, though not exclusively, through business. At the same time, however, the development of a world economy and global workplace has been accompanied by a general shift in thinking about social, economic, cultural, and political issues as well (Hartman, 2003).

Globalisation will diffuse product standards, capital, and technologies from nations with high environmental regulations to those with low regulations. NAFTA, and other free trade agreements, will lead to “upward harmonisation” or the rise of environmental standards to the highest common denominator.

Advocates of free trade point to Mexico's ability to formulate substantive environmental laws and effective implementing regulations, standards, and institutional infrastructure since the inception of NAFTA. Supporters also refer to the 2001 Sustainability Index released at the World Economic Forum to show how the top-ranking countries such as the United States, European Union (EU) nations, and Canada contain liberalised trade policies. According to this index, nations like Libya and Saudi Arabia that rank near the bottom of the sustainability index tended to be those who isolated themselves economically through trade restrictions. (McIntosh, 2004).

2. Discussion

2.1. History

Scholars and historians tend to differ with regard to how they categorise the various eras of globalisation. Some distinguish merely between the pre- and post- World War I periods, while others draw additional distinctions (McKenzie, 2001).

Globalisation in begins with curiosity—the desire to know, understand, and interact with others. It actually dates back at least to the discovery that navigation and travel could connect various peoples around the world. This curiosity led Marco Polo to head east in 1295 and prompted Christopher Columbus to set sail for the West in 1492. At this point in time, what today is called globalisation translated into exploration and the quest for new trade opportunities.

It can be argued that the period of time until the 17th century represented the first era of globalisation in Saudi Arabia: mercantilism. Mercantilism involves trading goods for profit. It was during this time that European countries set out in search of new resources and new trading partners and thereby established new trade routes and trading companies. Entities such as the East India companies were established to champion international trade and to mitigate its inherent riskiness—for instance, through the issuance of stock (Stiglitz, 2002).

Exploration quickly turned from exploitation of trade opportunities to pursuit of ownership (of resources) as Europe spent centuries methodically colonising land around the world. In a sense, this unified the globe in joining distant lands under common ownership. This can be called the second era of globalisation—colonialism—as empires were created, maintained, and eventually torn apart. This was not the only period of time during which empires existed, but it was during ...