Globalization affects nearly every country in the world in both positive and negative ways. Investigate and discuss this phenomenon based on the country that you are familiar with. You will have to present your findings/arguments by using empirical data/evidence identified from other sources.
Globalization “The shift towards a more integrated and interdependent world economy” “The close integration of countries and peoples of the world”( vuw,2013 )In regards to globalization of production, this is when production of goods and services are outsourced to another country due to cost of labor, energy, capital etc. being cheaper. Many corporations such as Telecom in New Zealand choose to outsource to India for utilities such as call centers steamed by cost of living being much lower in India thus the average wage rate also being much lower. Outsourcing therefore saves company money and positively affects India by providing more people with jobs thus making more individuals better off. “Positive role play by the forces of globalization in enabling poor countries to converge on the living standards of the rich ones” Mosley(2002) although there are positives to this movement there are also negatives , the social cost of employees in Indian call centers is becoming greater, causing a movement of unhappy employees losing a sense of real cultural identity. Global outsourcing of software development to India has become a phenomenon, having positive and negative repercussions of its own which will be describe in this essay. There are high ecological and social costs linked to globalization of agriculture in India which negatively impacts small farmers.
The phenomena of corporations developing software’s in India has increased significantly , the average wage rate for engineers and computer programmers in India is around $8000 NZ a year compared to New Zealand where there earn on average $70,000 a year ,over 6 times as much . European, North American and other western countries are feeling pressured to meet man power resources and find ways in which they can cut costs thus playing a strong part in the movement of globalization of production to India. Being that the cost of living in India is lower than most western countries the average salary is also much lower even when it comes to computer programing as mentioned above thus benefiting both the corporation that outsourced to India and the employees employed in India. If more individuals in India are given opportunities by overseas firms to work, more individuals are better off because they are paid an amount that meets the price of living in the country. This movement has seen an increasing number of young people going into higher education specifying in engineering and computer programing, this lessens the number of students learning other professions such as teaching thus negatively impacting the country because there is less focus on other professions.( Nicholson ,2001)
The introduction of biochemical, genetically engineered seeds such as genetically engineered cotton seeds developed by western countries has seen a high movement in mergers with large cooperation’s in India and western countries with the hope that the cotton will take full account of all the hybrid cotton seeds sales over a short period of time. Due to intellectual and property rights agreements restricts local farmers from sharing, redistributing and reselling of the seeds emphasizes that the full benefit of seed globalization in this case go to the seed and chemical corporations and the burden of globalization falls directly upon the farmers, this is proven by the increasing rate of farmer suicide led from inability to provide for themselves or their family, “the tragedy of farmers committing suicide in some states in India highlight the social cost linked to globalization of non-sustainable agriculture ”A policy that has been in placed in India has lifted the barriers of restriction allowing big seed firms in specific firms that have merged with foreign countries to gain a higher market share e.g. the merger of Monsanto US and Mohyco India in May of 1998; Shina,Emani,Jafi,(1999)
An increasing number of firms in particular US firms outsource call centers to India this is done to reduce costs, yes these firms are providing more jobs for people in India thus increasing the number of people able to have a better standard of living but at what social cost?. By doing research it was found that many corporations use a technique that falsely represents the employee by making them out to be an American, why is this done? And what social cost is it having on the Indian staff. Employees are told to try and change their accents to sound more American use alias western name that are given to them by their manager . When asked where there located by a customer some are asked to lie and say they are located in America.
The question that hunts many people today is why they are not focusing more on training the quality of customer service and not focusing on illuminating a person’s self of identity and culture. Could this be leading employees to becoming ashamed of their country and who they are thus leading to other problems such as depression or even suicide? A main reason for the techniques used is the elimination of racial abuse that employees experience by western callers especially after the 9/11 attack on America “most often, consumer hostility in my sample resembles the Bush admiration state rhetoric of war on terror” Poster., (2007). This topic is one to think upon, are corporations really protecting the staff by using these techniques or harming them.
In conclusion India has seen a high increase in globalization in many forms; all have had positive and negative outcomes. Yes western countries are using the educated well English spoken, cheaper cost employees to their advantage in the production of software’s and the outsourcing of utilities such as call centers. This has a positive impacted in India in proving more people with jobs thus enabling them to have a better standard of living for themselves and their family. The phenomena of western countries using Indian software developers has seen an increase in Indian students learning computer programming thus lessening the amount of students learning other useful professions such as teaching that would benefit the country . The techniques used in Indian Call centers are taking away an individual’s sense of identity and culture thus impacting upon an individual working via the call centers in a negative way. Globalization mainly focuses on making larger firms even greater, a way of doing this is by mergers of big corporations in trying to monopolies a product or service by having a better one on offer thus impacting negatively upon smaller firms such as farmers which has been identified in this essay .
Poster.(2007).Who’s on the other line? India call centres pose as Americans for Us outsourced firm’s .Industrial relations, 271-304. DOI: 10.1111/j.1468-232X.2007.00468.x Shiva,V.Emani,A.Jafri,A.(1999,March 6) Globalization and the threat to seed security .Economic &political weekly,p.601-603. Mosley,P(2002). Globalization, Economic policy and convergence. The world economy ,613-634, DOI: 10.1111/1467-9701.00293 Nicholson,B.(2001). Some political and cultural issues in the globalization of software development: case experience from Britain and India: Information and organization. Oslo, Norway: Crawford