first draft of globalisation

1. Introduction
2. Media
3. Culture
4. Politics
5. Business
6. Economic
7. Conclusion

From the late 1980s to early 1990s, the financial and investment market was operated largely and started to across the border of a nation. It was not a simple problem in a country for government to control in front of the gradually growing scope of capital investment and financial market. In consequence, the original appearance of what so-called ‘globalisation’ became a new business method as well as a practical solution to run the financial market. According to the definition of Wikipedia, ‘“Globalisation – whatever that means” (economics editor Evan Davies) is a combination of economic, technological, socio-cultural and political force’ through ‘trade, direct investment, capital flows and migration’. This combination rose the volume of international trade in total output from 32.3 to 37.9 percent among rich countries; from 33.8 to 48.9 percent for developing countries between 1990 and 2001 (the World Bank’s World Development Indicators 2003). That explains why many people believe on its contributed benefits in each nation, its effective remedy to improve the life quality and to reduce poverty. What was happened in poor countries? Contrary to popular beliefs, some people argued that its negative effects are widening the gaps between rich and poor worldwide. This essay will cautiously examine two sides of its main effects on some certain areas, particular in business and economics.

International trade activities are taking place between company and other company from different countries rather than the scope of the same country. That requires a continuous development of technology to communicate everyone all over the world. The global massive media system was formed and has been improving in recent years.

Diversified culture has been happening and progressively replacing the mere culture in one country. A European people can eat the tropical fruits such as durian, blue dragon, litchis in their countries where they cannot be grown or difficult to grow. Moreover, one people can go abroad easily or even immigrate in another country that never happens without multinational agreement signed among countries.

Some international organisations have been established to link each country’s politics closer. G7, EU (European Nations) and WTO (World Trade Organisation) are the pattern examples. The unstable politics of one country will be intervened or supported dramatically by other countries if this country was a member of these organisations.

Political instability is one of many leading reasons to decide how much the volume of capital investment is in a country. The investors usually estimate when they receive profit back, the level of risk of the capital they invest in countries in which its politics is safe as their speculation. Thanks to international integration and such a calculation, world trade including export, import, domestic manufacture has significantly increased more than 100 times (from $95 billion to $12 trillion) since 1955 (BBC News 2007). International business as the engine of globalisation has been brought higher benefits and lower labour-cost for multinational firms.

The important aspects of each country‘s economy has been changing manifestly as a result of trade liberalisation. In recent research of Dollar and Kraay 2001b, annual economic growth rate has remarkably increased among trade liberalizers and better than the non-globalising developing countries. However, there is a steady decline in growth in rich countries.