By Damian Forbes

In the last decade much attention has surrounded the concept of globalization and its effects on the economics in which we live and do business.
The term globalization was first coined in the late 1980s, however, the concept itself dates back decades, possibly even centuries to the old trading empires built in Spain, Portugal, Britain and Holland. The foundation for globalization was set and gained momentum in the aftermath of World War II as nations resolved to build and strengthen their international ties. Globalization deals with the impact and possibilities that result from international trade and migration. It has brought about diminishing national borders and the integration of individual national markets. It has stimulated free movement of capital through the abandoning of protectionist barriers, allowing companies to set up business and bases around the world. (McDonald’s, for example, has over 25,000 outlets in about 120 countries.)

Supporters of globalization note that it has brought about increased trade, greater spending, rising living standards, and growth in international travel. Supporters also assert globalization has promoted information exchange, led to a greater understanding of other cultures, made nations wealthier as a result of increased international trade, and has allowed us to lead more diverse lifestyles.

However, this all comes with a price, and the growing opposition to globalization can be witnessed in the November 2000 protests of the World Trade Organization Conference in Seattle or the demonstrations in Prague directed toward the annual meetings of the International Monetary Fund and the World bank.

Environmentalists, anti-poverty campaigners, trade unionists, anti-capitalist groups, and other critics of globalization contend that the West and large nations unfairly benefit from globalization at the expense of developing countries.

They assert that the freedoms generated by globalization lead to increased insecurity in the workplace as jobs are threatened when companies shift their production lines overseas to low-wage economies, or small firms fear that global economies of scale will render them less competitive and drive them out of business.

Critics also claim that the huge trans-national companies that form as a result of globalization are becoming too powerful and place shareholder interest above those of their communities and customers, restrict individual freedom, and disregard the environment in their quest for profits and market share. They state that national cultures suffer as a result of globalization as countries are inundated with foreign influences.

No matter whether you order a McDonald’s burger in Russia, buy Polo gear, or eat imported peas in your peas ’n rice, globalization affects us all; from the advent of the Internet to the development of BISX and trading on the international capital markets.
The only question is, as a nation, how much of a trade-off of our culture, identity, freedoms, and human rights are we willing to sacrifice toward the necessary quest for increasing economic prosperity, growth, and technological advancement?