The Issue of Globalization

This paper seeks to explore the keys benefits of Globalization and the problems which have cropped up due to these problems. This paper also seeks to highlight what the Government can do in order to enjoy maximum benefits from Globalization.

Globalization is the process that is characterized by increasing interdependence and connectivity in the international market. This process has accelerated in the recent times due to the advancements in technology and it continues to increase every day.

What are the Key Benefits of Globalization?

The main engines or keys of globalization are numerous in number. The key concepts of globalization include: Global infrastructure existence, Global harmonization, borderlessness, Global diffusion and geographic dispersion of the main components or competencies. All these concepts are determined by dimensions, time and space, perspectives and functions and features. It is important to note that globalization has occurred in many world systems which are located in different parts of the world. This means that everything that takes place or that happens takes place and exists in time and space. (Chang, 2003)

Globalization has brought many benefits, especially in the recent times. These benefits include:

• The social economic structure has rapidly and drastically improved. This has been of great advantage and importance in the developing world. This is because it has effected and initiated positive changes in the social and economic aspects in the developing world.
• Globalization has greatly helped in the advancement of medicine and improvement in the health sector. This has not only helped to lengthen life expectancy but has also helped to reduce premature deaths in infants and grownups caused by health issues and complications.
• Globalization has also resulted in a major decline in child labor. This is because most of the developing countries’ income has increased, thus leading to a decrease of child labor over the years.
• Globalization has in many ways increased wealth in the world market. It has introduced concepts, ideas and methods which are used to increase wealth and productivity of different countries all over the world.
• Past decades saw a lot of discrimination against many people on the basis of tribe, color, gender, race or other religious reasons. Globalization has greatly improved on these regressive issues and has almost, if not completely, eliminated them all over the world.
• Globalization has allowed people daily choices in terms of economic and personal life. They can access greater benefits by adopting globalization in most of the economic and personal lives.
• Globalization has created economic equality and helped eradicate poverty, especially in poor and developing countries. This has helped the people in these countries to increase the economic, social and financial aspects of their lives. (Stiqutz, 2007)

The Main Problems of Globalization

Apart from the many benefits, such as achieving economic growth and financial stability, globalization has also brought many problems. Most of the risks arise from volatile capital movements. These risks are definitely a cause for concern but they are not reason enough for reversal of the same. However, the risks need to be addressed in order to avoid mishaps in the economic, social and financial status and growth in the many different countries which are affected by the risks. The risks would greatly affect the social, economic and financial status.

Many analysts argue that globalization is the main cause for the increased gap between the rich and the poor. They insist that globalization has caused the poor countries to become poorer and the richer countries to become richer. Other analysts have complained that globalization is advancing very slowly, thus delaying greater achievements in the economic, social and financial aspects of the world market. However, this view is only held by a few people. Many people are happy with the rate at which growth is taking place due to globalization. This is not to say that there is no room for improvement or that the process can not be improved. The process may be improved where necessary in order to allow many people and governments to enjoy more benefits of Globalization. A wide bridge separating the richer countries and the poorer countries would only limit the particular country from enjoying maximum benefits of Globalization. (Chang, 2008)

Other people have argued that Globalization has been unfairly distributed. This may be true to some extent considering the fact that the rich countries have enjoyed more benefits compared to the poor ones. In this case, there should be a way or method to ensure that the benefits and resources from globalization are fairly distributed all over the world. No country should be left out as far as the advancements and technologies in the world market are concerned. The other problem that has affected globalization is the creation of climate that increases realization of maximum benefits. In some parts of the world, the climate does not allow them to fully enjoy or realize maximum benefits of globalization. Globalization has caused a downward pressure on wages in some countries. This has negatively affected the people in these countries and has contributed to poverty levels rising. Globalization is irreversible and whatever risks it carries can only be reduced but can not be eliminated. This is because globalization is here to stay and there is no sign whatsoever that it will be ending any time soon. This simply means that the irreversible problems can only be resolved but can not be uprooted or reversed at any point. (Stiqutz, 2003)

What can Governments do in order to enjoy the Benefits of Globalization?

In order to enjoy all the benefits of globalization, Governments need to adapt to the newest technologies making them available to the people of their respective countries. This will ensure that all levels and organization in the country will be able to enjoy Globalization. The other step that the Governments need to undertake in order to enjoy the benefits of organization is to take in to consideration all the problems that are caused or that crop up due to globalization. Governments should then try to resolve the major problems in order to ensure that all their citizens and different sectors in the organization get to enjoy most, if not all, the benefits of globalization. Governments also need to avoid these problems altogether. For example, one of the problems of globalization is unfair distribution. In this case, Governments need to ensure that globalization has been fairly distributed in all the parts and sections of their countries.

A volatile capital movement is also a risk that must be resolved by Governments in order to tackle the problems faced by Globalization in their countries. Governments should ensure that they expose their countries to all the aspects of Globalization. It should also ensure that Governments stay on top of the world market in order to enjoy maximum benefits. This is because Governments that are top on the chart in the world market are more likely to enjoy maximum benefits of Globalization. The Governments must realize the importance of Globalization to their countries and citizens as well. In this way they will be able to make an effort and take step to ensure that they enjoy all the benefits of Globalization to the maximum. (Greig, 2007)

Today, the issue of “globalization” is influencing many companies and has noticeable affect on the work nature. Organizations are developing certain “trans-national teams” to perform in an effective manner. It will help to overcome certain means of efficiency and flexibility to reduce certain problems. Therefore, it seems that if one worked in circumstances which are scattered it will positively affect teams. This will reduce “opportunities” of “informal collaboration and knowledge sharing”. (Chris Kimble, Feng Li and Alexis Barlow, 2000)

International working creates tension in the working of the teams because they have to tackle both geographic barriers, “time, culture and in some cases language differences” In order to understand the “barriers” faced by the members of virtual teams one should understand that the physical boundaries do not have any impact on “informational economy” it is important to understand the nature of the novel boundaries to appreciate the “informational economy”. (Chris Kimble, Feng Li and Alexis Barlow, 2000)

 “Outsourcing, downsizing and programs of planned redundancy” all reduce the “staffing level” because the employee turnover rate rises. It is easy to use new knowledge in place of the original foundations this is because the people leave and create problems for the virtual leaders. Besides, most of the companies today have to tackle with the high level problems with the international organizations. The demand is now on high level of needs to manipulate and attain more knowledge in the groups. (Chris Kimble, Feng Li and Alexis Barlow, 2000)

The idea of the development and maintenance of “virtual teams” is being greatly perplexed with the ideas like “virtual and networked organizations, the virtual workplace, virtual communities, electronic commerce and some forms of teleworking”. To understand the possibilities of situations they have been classified in to eight categories. (Chris Kimble, Feng Li and Alexis Barlow, 2000)

Four of these consisted of employees working for one particular company while the rest to the virtual group whose members are not the working for one particular organization but are working for many different organization from different sites of the world. In the first for of situation experts are selected from the particular organization these are “production planners and production operatives”. The second category is mostly used in the “consultants or external assessors or in business to business activities like B2B e-commerce”. This categorization also depends upon the principle of “proximity” to explicit whether employees are geographically close to each other or are scattered. A “work-cycle synchronicity” was designed to understand the interaction of the participants at different time periods. (Chris Kimble, Feng Li and Alexis Barlow, 2000)

The efficiency and “effectiveness” of the virtual teams has been greatly affected by the “spatial and temporal” distance between its members. This notion is significant in both cases whether the members are communicating with its own far fetched employees or a communication is being take place among different organizations. (Chris Kimble, Feng Li and Alexis Barlow, 2000)

The working of virtual teams in an “effective” manner is very much necessary while maintaining “trust and identity”. However, the identity of the virtual teams becomes vague in case of “spatial and temporal separation” of the team members. Several signs of “personality” and society positions we are used with are not present in the real world of existence.  In the real world the self is considered as united from inheritance. The “body” is defined to be an explicit method of defining “identity”. It serves as and “anchor” of the self which is confound in reality.  However, the world of virtuality is different from the real world. It is made up of the “information” in spite of “matter”. The information is expected to scatter and “diffuse”. The information conservation law is deficient in it. The participants of the electronic world are not close to each other rather they are diffused and are not bound physically with each other. It is easy for one to develop many virtual personality utilizing ones “time and energy”. (Chris Kimble, Feng Li and Alexis Barlow, 2000)

Chris et all conducted a study to understand the ideas and working of virtual teams and to point out the hurdles in the effective functioning of virtual teams.  About ten case studies of diverse virtual organizations were used in this study.  These focused upon the enlarged application f “virtual teams” around the world and the advantages they give to the “organizations and individuals”. These case studies also focus upon certain impediments caused in the “spatial and temporal separation of team members”. “Face to face interviews, emails, faxes, company reports and telephone calls” were used to collect data. (Chris Kimble, Feng Li and Alexis Barlow, 2000)

The interpretation of the case studies proved that certain barriers of technical nature do exist in the virtual communication. These hurdles consist of “unreliable systems and incompatible networks to slow computers and traffic congestion”.   Virtual leaders mostly communicate with their members via “voice, data, text, video and shared whiteboard”. Usage of these is helpful in creating an “integrated broadband telecommunication infrastructure”. Notwithstanding, these devices are unavailable at many places. Installation of such infrastructure would be definitely costly for the people. There is a great want for the expertise in the up gradation of time. In addition the highly increasing user’s expectations are also barriers to the success of virtual teams. These may be necessary to support virtual teams. This shows that The problems faced by team working in virtual setting are different from those faced by people working in the geographical proximity. For instance, “constraints of time zones, lack of non-verbal cues, cultural differences, problems of trust and identity”. This restriction of characteristics helps in the “effective” understanding of the virtual leadership. (Chris Kimble, Feng Li and Alexis Barlow, 2000)

A study was conducted by George E. Arnold to analyze the “relationship between the styles of leadership and its impact upon the success of a “virtual project”. Today, world has seen a considerable increase in “virtual projects”. Estimates show that in 2004 about thirteen million “employees” in US were part of at least one team making “virtual projects”. About five hundred “project management professional-certified project manager” of the “Kansas City, Missouri, Metropolitan area” was assessed for the study. These managers were evaluated upon questionnaires. Which were divided in to three sections? These questionnaires were administered via emails. A total of two hundred and twenty nine responded of the selected sample of five hundred. The response rate was about half of the selected population, it seemed significant with the total of two hundred and eighteen responses needed to prove the variables at the selected “confidence interval”. (George E. Arnold, 2008)

The study showed that a “significant relationship” prevails among different leadership styles mostly importantly “transformational leadership and project success in virtual projects”. Quantitative analysis was done of the data. This data is expected to help leaders in comprehending the affect of different styles of leadership on the progress of different projects formulated for virtual communication among organizations. (George E. Arnold, 2008)

The usage of “collaborative technology” is growing at high rate in this rapidly growing environment. Today organizations are required to install “virtual projects” to bring close people from different geographical locations. The creation of virtual team will help the organizations perform their functions at different georgraphical locations bridging the gap of time and distance. This type of team supports the organization to bring close several talented people unable to maintain “face to face” working relations in different projects of virtual teams. “Virtual project teams create unique leadership challenges”. These types of teams do encounter restrictions in “face to face communication” therefore their activities are impeded due to “primary leadership activities”.  (George E. Arnold, 2008)

The selection of an accurate and suitable style of leadership is necessary to maintain the functioning and success of “virtual projects. (George E. Arnold, 2008)

It is assumed that future organizations will require such leaders that will be capable to handle “uncertainty and competition” among a different working people. This will help leaders attain the “viability and profitability” of their organizations. The second category is mostly used in the “consultants or external assessors or in business to business activities like B2B e-commerce”. These categorization also depend upon the principle of “proximity” to explicit whether employees are geographically close to each other or are scattered. A “work-cycle synchronicity” was designed to understand the interaction of the participants at different time periods (George E. Arnold, 2008)

“A virtual project team is a group of geographically dispersed workers brought together across time and space through information and communication technologies”.  These teams work in unison and are very close to each other despite having temporal, spatial and cultural differences. They mostly communicate via “conference calls, video conferences, email” etc. this is leading to the development of a new leadership role in the criterion. Advancements in the technical and “collaborative soft wares” increases the utilization of “virtual team”. These types of teams play an important role in maintaining reductions in the “real estate expenses, increased productivity, higher profits, environmental benefits and greater access to global markets”.  (George E. Arnold, 2008)

Conclusion

This paper has outlined and explained the key benefits of Globalization and the main problems of Globalization. This paper has also described what Globalization is as well as measures that can be taken by Governments to ensure that they enjoy maximum benefits of Globalization.