Has Globalisation Affected Employment Commerce Essay


Further we will discuss the effects of globalisation on the education system, employment and culture of India.


Globalization is the most popular word nowadays. It has different meaning depending on the context and the situation. Globalization has been defined differently by different people. Guy Brain bant: says that the process of globalisation not only includes opening up of world trade, development of advanced means of communication, internationalisation of financial markets, growing importance of MNC's, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution.

Globalization can be defined as the process which involves exchange of political, economical and social system through technological advancement. It has undoubtedly converted the whole world into one solitary marketplace which in turn has resulted in global interconnectedness. Globalisation has increased the business across different countries. Geographical distance is no longer a barrier for the international trading with the existence of World Wide Web (WWW - in simple words Internet). People have benefited a lot from these agreements. The international business agreements not only makes the various resources available internationally but also have improved the social relationships between the countries. This has also given an exposure of across culture to the whole world, which is today a very important aspect in international business. Globalization is the key factor of any developing country which will help increasing the growth in economy and income per capita resulting in better standard of living.

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As mentioned above globalisation has affected the whole world in nearly every aspect of life. India is no exception; it has been incredibly affected by Globalization in different ways. Globalisation introduced the whole world to the new era of computers and advancement in technologies. It has affected the cultural phase of people diversely. Many of the countries have welcomed the new broadminded thoughts of culture influenced by globalisation. It has led to an increase in exchange of ideas such as music, religion, food and traditions of every culture. Even the younger generation have been affected by the new educational system. It has amplified the spread of the trendy culture from the developed nations throughout the world. Many of the developing countries have been overflowing with the goods from Northern developed countries. For example, we can find huge banners of cold drink advertisements in the areas where there is hard to find drinking water. As a result people had to manipulate their life style according to the new era.

This essay further will explore the concept of globalization and its effects on education, employment and culture with specific reference to India.

History of Globalization

During the Pre-World War I period of 1870 to 1914, the chronological process of globalization with outgoing tide and surge has rapid incorporation of import and export flow, movement of capital and relocation of people. The two forces of hi-tech: transportation and communication are the main reasons for the growth of globalization as there is less restriction to flow of trade and across the geological borders. No passports and visa were required and also there were very few taxes on import and export and limits to fund flows.

The speed of globalization has also lost its pace between the first and second world war. The formation of different wall to limit the free movement of trade was observed during the inter-war period and most of the countries considered that they could boom with this protective wall. All the countries determine after the World War II, that not to do again the mistakes by going for remoteness.

The drive to increase the incorporation was increased after 1945, however it took long t reach the same level as Pre-World War I. US was able to reach the same level of Pre-World War only Even though after 1945, there was a force to increased incorporation, and it took a long time to reach the Pre-World War I level.

Only around 1970, percentage of import and export to the total output of US reached the level of Pre-World War I. Import surrogate Industrialization system was practises by most of the Independent developing countries in the Post World War II and also the Soviet countries were protected from practice of international economic incorporation. Conversely times have changed, with the dynamic progress in the globalization practices; the soviet bloc countries are also getting built-in with the international market. To a greater extent nations are heading towards becoming conversant with policy of growth. However, according to studies, trade and capital markets were more globalize in 19th century than today, yet, compare to 19th century there are more apprehensions because of the nature and pace of revolution. In this current scenario it's not only the rapid pace that is remarkable but also the various effects of IT on market assimilation, efficacy and industrialisation.

Effects of globalization

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Globalisation has affected a variety of aspects of the world economy both in encouraging and discouraging manner. As rightly said, "Every coins has two sides", Globalization also has Positive and negative effects.

Globalization has offered higher standards of living to the people all around the world as compared to the pre-globalization period. It has affected almost every aspect of human life. This evolution was not only bringing people together but also it brought vast range of cultures and foreign ideas worldwide. This whole world is now become a huge market with freedom of exchange of goods and capital. This also resulted in increasing level of competition which is one of the most widespread positive effects. International trading and business have given huge amount of opportunities to the people to move around the world getting an exposure of the corporate and traditional cultures worldwide. A lot of multinational companies established their business in developing countries like India which turned out to a boon for these developing countries giving a prospect to the emerging talent of these countries which would have been wasted due to lack of exposure to these opportunities. This has initiated implementation of foreign ideas and new technologies from all around the world. Without globalization, it would not have been possible for the whole world to get acquainted with the innovative creations taking place in every part of this huge world. These new inventions would have stayed unknown giving no benefits to any other country except where it was invented. A good illustration is the benefits of Ayurveda and Yoga from India which is today enormously benefiting the people across the world. International travel and tourism has also been improved to a greater extend as compared in the last few decades. Individuals migrating from one country to other as students or skilled workers is also increased to a higher extend, which has in turn increased the demand of international import and export of products and services for the use of local consumers. Due to increasing international trade free trade zones were formed with less or no tariffs. A lot of other associations have been introduced to look after the issues like international trade, crime and justice, access to international finance and banking facilities, etc. Many of the non- government organisations have also been introduced to resolve the cross-boundary global environmental concerns like pollution and other climatic changes. Sports is not an exception, there has been an increase in demand for international sports events such as the Olympic Games, FIFA World Cup, etc. Thus, Globalization has resulted in a very compact world wherein it's just a matter of few clicks to exchange the information or make any kind of transactions irrespective of the geographical distance between the countries and remote locations.

Globalisation does have a lot of positives but at the same time it also has negative effects, some of them are listed below.

Today many companies from the developed nations have started outsourcing both industrialized and executive jobs to the developing nations like China and India because of cheap set up expenses and low-priced labour. As a result people in these developed countries are losing their jobs and are facing problems to earn their bread and butter due to the diminishing number job opportunities. Sometime back people had job security with a stable and permanent job, but today people are living with a continuous fear of losing their job anytime or reduction in the wages due to such cut throat competition. Even a permanent employee cannot bank on its own company for job security. These kinds of issues result in lower living standard and higher crime rate in the affected areas. Another issue is exploitation of people in prisons and youngsters, who are made to work in ruthless conditions for the production of inexpensive goods without any safety standards and absolutely no botheration about the pollution regulation.

Technical advancements like mobiles, internet etc brought a massive revolution, but at the same time it has increased the threats due to terrorism. Terrorists use these services as their mode of communication and get connected in the remotest of the areas. Also any opponent country can spread any kind of misinformation through the internet services. People are also facing health inconvenience in the remotest area of the globe due to spread of fatal diseases like HIV/AIDS that are being spread by travellers and tourists. Some other negative effects also include the introduction of foreign culture which in turn has affected the local culture of the new generations via internet and televisions. Many of the local companies are getting conquered by the overseas multinationals and losing on their business. Since these multinationals cover the major market, they have also started manipulating the local political decisions. Food industry is not any different, the international fast food chains like McDonalds and KFC are taking away the business from the local fast food providers resulting in increasing number of outlets in the developing nations. Due to wide range of fast food availability people consume more and more junk food resulting in adverse health issues.

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Globalisation benefits are not worldwide because, "the rich are getting richer and the poor are becoming poorer".

Effect of globalization on education, employment and culture of India.

Effects of globalization on Education in India

Globalisation brought a rapid growth in the education system of the whole economy worldwide. This process of globalization has affected the education and human potential. Indian education system has also made huge progress in terms of the increasing primary education and expanding the literacy to more than a half of the population. Also there has been a massive progress in the number of education institutions in India after the globalisation period. Globalisation has changed the learning system in the whole world resulting in the development of exchange of ideas, values and knowledge. One of the most influential positive effects of globalization on the young generations of India is the increasing level of higher education system. However, another major development is the increasing level of literacy rate of Indian girls especially. During the pre-globalization period the girls in the Indian culture were not allowed to study or take their career seriously but post-globalisation period is a boon to the Indian women as the literacy rate of the female population has increased tremendously. Globalisation combines economic and cultural change in today's time.

On one hand globalisation created the huge market places worldwide that trade internationally, deal with foreign exchange, foreign investments and cross border mobility of production. Whereas on the other hand it still relies on the old communication system, information, knowledge and culture. All these changes implicate the higher education. Research and education are the two essentials to form the global surroundings, being able to discover new facts, learning to maintain international relationships and complex societies. Many of the research universities today are thoroughly linked within and with the metro cities, as these cities have huge number of students enrolled for the higher education. There is sturdy positive connection between the higher education enrolment ratio and the global cut-throat performance. With the increasing economic demand for trained and highly experienced workers the demand of higher education is also on a hike in the many of the developing countries. There are three factors which are usually suggested as possible candidates. The first is openness to trade and the second is scientific progress and the related organisational change. The third is based on institutional factors such as the existence of unions. Increased openness to trade raises the requirement for expert workers leading to the rise in their wages as compared to the wages of the unskilled works.

Globalization has resulted in easy access to any educational facility for the students all over India as well as internationally. The internationalisation of higher education can be correlated to many internal and external changes in the International market, which has in turn increase the demand for more knowledgeable and accomplished workers. The demand is also increased for people who know more than one language and are aware of the transnational ethnicity and business methods. This gives a chance to the people to gain knowledge from one country and spread it to their home country for its betterment. Education is becoming more precious to individuals as it offers enhanced employment opportunities, which in turn leads to an improved lifestyle, power and status. With the launch of MNC's came along the era of BPO's and KPO's. In the last few years the there has been an incredible development of call centres in India leading to considerable development in the socio-economic and culture of the Indian society. Outsourcing industry have impacted the Indian youth in every aspect ranging from their lifestyle, personality, career, attitude, gender, and language to their whole identity. The younger generation becomes financially independent due to the excellent incentives and perks offered by the call centre industry. This has helped in mounting the confidence level of the youth and also helps them to take up the responsibility of their families. Some of the call centres like Wipro Spectramind have their tie- up with BITS Pilani and the Symbiosis Institute of Management to provide the distance learning programs for the employees, which is an excellent learning opportunity for the employees. Also some of the companies like ICICI OneSource promises scholarships to the call centre agents who get enrolled in this distance learning programs. With so many advantages this industry also has a few disadvantages. Since the fresh graduates get an opportunity to start working at a very early age they tend to avoid higher studies after a bachelor's degree which is the minimum criterion for the call centres positions. This is because they get paid anywhere between Rs 10,000-15,000 exclusive of the extra incentives and the perks, which is a good amount of money to start up the career. This leads to stagnant educational growth of the Indian youth. These were some of the effects of globalization on the Indian education system.

Effects of globalization on employment in India

Now we will see how globalization affects the employment opportunities in India. Globalization was experienced in India in early 1990's when the open market policy was initiated. Globalisation led to growth in various segments of the market such as Information technology, health care and so on. This led to favourable growth of the Indian economy leading to increasing demand for the good quality workforce. There was increase in the international trade between Indian and other developed nations. This resulted in improved employment opportunities in the country. Due to the effective impact on the Indian economy there has been an improvement in the living standard of the people. Globalization has developed various sectors in India leading to an increase in the employment opportunities for the people. The service industries are doing well with a share of around 54% of the yearly Gross Domestic Product (GDP), which shows that the service industries are doing very well in the market. There has been a range of advantageous effects of globalization in Indian Industry. The increase in the international trade brought in enormous amount of foreign investments which boosted the Indian economy to a very great extends. Many multinational companies set up their businesses in the Indian market especially in the industries like BPO, pharmaceutical, petroleum, and manufacturing industries resulting in the increased number of employment opportunities for many people in the country. This decreased the level of unemployment and poverty in the country. The establishment of these foreign companies introduced highly advanced technology which resulted in technically advanced Indian industry. On the other hand this highly advanced Indian market result in an aggressive competition between the domestic and the foreign companies. The domestic companies in the industries like pharmaceutical, chemical, manufacturing, and cement suffered huge losses as the consumers preferred to opt for the foreign products. Many labour class people in these industries lost their jobs due to the losses suffered by their employers.

The Indian industry has faced both positive and negative effects as a result of globalization. So the Indian government should now compose such economics polices that are beneficial to the Indian economy.

Effect of Globalization on Indian culture

Before addressing the effects of globalization on culture, it is important to mention that culture is such a wide theory that it challenges portrayal in a compressed form. Various Characteristics of a society is covered in detail to list comprehensively by culture. Even though we have reasonable knowledge about what culture is. Culture is something that forms our individuality and has a lasting impression on our perception. Different individual have defined culture in different ways. And this is because of the differences in the point of references of the people of culture. Ekhe (1998) defines culture, as construct applied in an endeavour to study and put together procedures and thoughts in broad variety of vicinity of the world.

Culture is something that forms our individuality and has a lasting impression on our perception. Every culture is different from each other and so is every human. Culture is like rainbow filled with many colours of cultural mixture. Culture is not something that one can have with birth; it is learned and not hereditary. According to Jekayinfa (2002), Culture consists of the total range of human action which is in a social context passed on from one generation to other. In other words; it is a process of inclusion through conscious teaching or from the social surroundings.

Cultural Globalization is the rapid pass through of facts, stance and morals crosswise countrywide precincts, leading interrelation and communication among peoples of different cultures and life style. Each and every kind of dimensions of the culture is taken in to account in the present aspect of imperialist/ industrialist globalization. Globalization of material exchanges implicated in trade and industry relations has been prove by the impact of rising observable fact of labour movement, financial, and product trading, the importance of buying and selling authoritarian contracts, the worldwide splitting up of labour, and bodies such as WTO, IMF and world Bank.

Globalization has made possible for the developing countries to connect into T.V Programme, videos, music, news and so forth of the highly developed nations. India being one of them has not only gained economic opportunities from globalization but also acquires new products and technologies. Despite system of government, lack of infrastructure and an uncertain policy outline that has a negatively impact the operations of MNCs in India, MNCs are looking at India with great expectations and are investing huge amount to put up their R&D hub in the country. India has gone ahead of other developing countries for Information technology, research & development investments and outsourcing. Today, with the rapid advance of globalization throughout the world, more or less impact on social and cultural values can also be observed, India begin one of them is also been effected.

The new information and communication technologies that has vastly expanded has also made possible for the poorest people to know different cultural richness. The easy access to cable television and foreign movies has helped to demolish the cultural boundaries. All these technologies have not only changed the perception of the people but also helped people to think beyond their imagination. This has opened employment prospects for women, who are becoming a larger part of the workforce that in turn has put a damper on inequality among the sexes, something that Indian women have been struggling with their entire lives. Globalization has influenced the traditional views towards women so they can take an equal position in Indian society.

As compared to earlier old-fashioned idea people have become more due to introduction to other cultures through cable network. Now a day's bachelor boy and girl sharing same accommodation and stay away from home have become more common in India. This has had its own social and cultural impact. More availability of cheap and dirty stuff (CD's or DVD's of Hollywood movies, Adult movies, foreign channels) in the name of liberalization has negatively affected the young crowd of India. There has been increase in the violence and also the number of rape cases has increased than before. Globalization has made possible for people to achieve better awareness and understanding of diverse fashion trial, life style, things in a foreign country and at home. Not only Multiplex theatres have become known but also restaurant like McDonalds, KFC, and other fast food has well like by the people. However it has not replaced the Indian traditional food like Parathas and other road side fast food. With Scientific advancement and hi-tech improvement life in urban and rural area have become reasonably relaxing, speedy and pleasant. Some years back in India even land-line was a status icon whereas, now each every person has a mobile in hand, listening to music or talking.

As per the certain previous incidents it is become evident that if a particular countries culture is outlined over a long historical time period, it can suppress over a period of time. But the Indian culture has proved to be strong enough to hold back its vital Indian personality with exceptional stability, despite of the several overseas attacks and a huge growth in population.