Topic: BusinessManagement

Last updated: February 5, 2020

Maciej Gerard Klimek
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LSBM04-17-A3 (Essay)

The Impact of globalization-positive or negative?

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Barber (1995) writes: democracy can be spread and secured through the world satisfying the needs of both the “McWorld and Jihad”. “With its concern for accountability, the protection of minorities, and the universal rule of law, a confederal representative system would serve the political needs of McWorld as well as oligarchic bureaucratism or meritocratic elitism is currently doing.” Some can accept democracy faster than others. Every case is different, however “Democracy grows from the bottom up and cannot be imposed from the top down. Civil society has to be built from the inside out.” He goes on to further explain exactly what the confederal option means and how it will help. “It certainly seems possible that the most attractive democratic ideal in the face of the brutal realities of Jihad and the dull realities of McWorld will be a confederal union of semiautonomous communities smaller than nation-states, tied together into regional economic associations and markets larger than nation-states—participatory and self-determining in local matters at the bottom, representative and accountable at the top. The nation-state would play a diminished role, and sovereignty would lose some of its political potency.”

There is no single globalization. Globalization is recognized in many ways: economic, political, informational, ecological, cultural and demographic.

Positive and negative impact its only paradoxically, thanks to these good and criticizes changes, (what we experience, in temporary transition times) as if in the form of compensation for breaking the eternal interpersonal bonds, there has been a development of modern global- national consciousness.

A. Economic dimension

In economic terms, globalization means expanding the capitalist system into a growing area of the globe and transforming local economies into a single “global” system. Financial globalization has largely been supported by the process of developing information technology, which has enabled the electronic flow of funds in the financial and real-time business transactions worldwide. A significant contribution to the process of globalization is rapid development of international corporations, which today often have a higher budget than the budgets of small countries, and are largely outside the control of the government in the country. This aspect of globalization is described as a globalization of production. We are dealing with the expansion of the market to the scale of the whole world, and the abolition of borders between specific default economies. In many ways, it is a process similar to what developed a years ago, is a faster expansion of financial capital. Within minutes, and even seconds, it can move from one end of the world to the other. It has contributed to the progress of electronics and, as a result of the technological revolution, the creation of new measures in the transmission of information and the emergence of new services in this area. Robertson (2012)

B. Political dimension

As a result of the political globalization process, international organizations such as the World Bank, the International Monetary Fund and the World Trade Organization have emerged. These organizations affect the world economy and thus limit the independence of national states. In this context, the also European Union is often mentioned. Some political recognize in this dimension the also process of the emergence of a new international bourgeoisie, but the issue remains contentious. Sztompka (1999)

C. Information dimension

In the informational dimension, globalization means a rapid flow of information around the world. The media is largely involved, thanks to which information from every corner of the world reaches us very quickly. Something happens on the other end of the world and for a few minutes already and we can know about it. A huge impact in this aspect has development the Internet. The Internet every day has more and more impact, and the information in it is transmitted instantaneously, without any problem in we can communicate with people from the other end of the world, or find out what is happening in a particular country.

D. Ecological dimension

In this dimension, we can mention international agreements and arrangements in matters related to ecology and international reserves in nature or protected flora and fauna.

E. Cultural dimension

Globalization in cultural terms is a result of the development of mass tourism, increased migration, commercialization of the product in cultural and the spread of consumes ideology. It contributes to also marketing activities of international corporations and the development of mass communication. In this context, also “McDonald” society is often mentioned.

F. Demographic dimension

Globalization is a demographic diversity of the population, as well as its free change of residence around the world.

The positive effects of globalization

As every process, globalization has to, negative and positive effects.
First, I start by examining the positive effect of it in.

Globalization can lead to the development of new forms of government in and the extension of democracy to all countries of the world, and as a result-to the emergence of a new peaceful world system.

100 largest companies in 1993 year employed around 5 million in production process. These big companies have most of their capital in outside the home country, for example Bayer (90%). This usually corresponds to the high share of employees in establishments outside the borders. The selection of the location determines the cost of production. These big companies are building their bets in places where there is a cheaper labor force, lower taxes, weaker trade unions, or less extensive social care. This allows them to produce at a lower cost and provide more profit. For the average person, this is also good, as prices can be reduced by globalization and products will be cheaper. Sztompka (1999).

Globalization in the economy contributes to the competitiveness of enterprises, it enforces efficiency, flexibility and innovation in management. It leads to general cheap goods and services, enabling them to be widely available. Participation in economic globalization is leveraged by economic development.
Thanks to global culture, the phenomenon of tribalism appeared – the sense of identity of groups of people resulting not from shared education and life, but from the community of interests, views, ideals, ideas for spending free time. This sense of identity often occurs between distant people. Thanks to this, we can have friends from a distant place from our place of residence and this allows us to further develop our preferences. Robertson (2012)

One of the most important hopes of globalization is the near future, liquidation of wars. The economic confrontation will replace the military one. People will not have to die anymore, there will be no traditional wars.

Some believe that this process is the natural end to the development of the market economy. Progress, in their opinion, results from the elimination of restrictions on the operation of market mechanisms. The basis for the development of market economic order is management freedom and ownership security. Creation and acceptance of new-independent -global currency ( call for now, crypto currency -bitcoins).

Globalization will contribute to the connection and friendship of many people, it will reduce differences between nations.

According to experts in contemporary civilizations, several separate civilizations decide about global politics. Therefore, conflicts may arise from the cultural differences between these civilizations. Countries and societies with similar cultures are approaching each other, and different ones are moving away. This process leads, on the one hand, to the creation of boundaries, and on the other hand to the formation of alliances and determination of common identity within the limits of civilization

Negative effects of globalization

Globalization also has many negative effects, in transitions time. I will present them below.

Globalization process opposes the marginalization of countries with low levels of economic development. There is an increasing distance between the economically advanced countries and the poor countries.

The relationship between the income of the 20 richest and the 20 poorest countries in the world is constantly deteriorating. The level of national income per capita in 1995 was nearly 86 times lower in the poorest countries compared to the richest countries. Below the poverty line, 23% of the inhabitants of the Earth live. It is predicted that only 20% of the population will benefit from the positive effects of globalization today. The specific social structures of the more developed countries of the Third World have been perpetuated. The elite and the few middle classes co-exist with the mass of urban poor. Mass legal and illegal migrations from poorer countries of the world to rich people disrupt the sense of identity and result in xenophobic reactions. Spiegel Staff (2016).

Another negative effect of globalization is the deepening of unemployment. Restructuring work of people in well developed countries, reshaping middle class. Spiegel Staff (2016). Globalization affects the destruction of the natural environment due to the uneven use of resources. Disorders in the climate of the Earth, the so-called greenhouse effect, caused by the plundering economy.

In the sphere of political globalization, also unfavorable trends are also emerging. The role of the state is decreasing, both in organizing business activity and in the role of the sovereign subject of political life.

Despite the growing range of democracy, the crisis of democracy is emerging as a result of the collapse of communism and authoritarian regimes. In countries with stabilized democracy, there is a growing lack of involvement of individuals in public life. The society is experiencing alarming phenomena of intensifying political corruption, there is a decline in the authority of the leaders and institutions, a growing population of populist ideologies. Sztompka (2004)

Globalization contributes to the unification of the world. Undoubtedly, this is a negative effect, because many cultures, languages, customs will disappear …

As a result of globalization, a tendency to a new, cosmopolitan lifestyle is created, consisting in the disappearance of the role of religion, native culture and nationality, which factors constituted the determinant of human behavior.

Globalization destroys cultural diversity, degrades cultural and national norms, kills local identities, marginalizes artistic and craft products.

The effects of globalization are superficial uniformity and accompanying disintegration. There is an explosion of small nationalisms, as a result of which small communities are trying to create their own nation states.

The cause of the global conflict may be the interference of countries constituting centers of a specific civilization in the internal problems and conflicts of countries of other civilizations.

Globalization increases the significance of unelected authorities, such as corporate boards and the leadership of international organizations.

Aggressive acquisition of consumers to create their needs consists in manipulating people. This phenomenon has intensified in the globalization process. The media has been subordinated to work aimed at gaining a consumer, and the advertisement creates its artificial needs.

Globalization processes lead to the unification of consumer patterns, lifestyles and culture.

Large corporations that enjoy the enormous benefits of globalization remain practically beyond democratic control. Their financial capabilities are even bigger today than most small nation states. They decide about the fate of millions of people, but they are in no way responsible to them. Aristotle, (350 B.C.E).

Undoubtedly, the negative effect of globalization will be the disintegration of states and the disappearance of national identity.
Mass migration is another negative effect of globalization. An example can be, European financial capital- London, today – Poles estimated 1 million of them- Office for National Statistics, (2015). leave their home cities, and go there in search of a job, they come and in many cases, cannot find it, they become unemployed and beggars, they cannot even afford to return to their homeland. Of then they are also deceived, and the city becomes overpopulated. BBC Today: online (2015).


Like any, – globalization process, it has its pros and cons.

I believe that in order- for more societies to bear lower costs as a result of globalization, and achieve greater benefits, it must meet several conditions:
– to satisfy the needs of poor people to a larger extent- than ever before
– to provide a durable, fairly- harmonious development of the whole world
– improve the condition of the natural environment
-assure the co-existence of different cultures and values and create conditions for solving conflicts and
tensions between individuals, states, regions, throughout the world.

If the above conditions are met, everyone agrees that globalization is a positive process.
All the negative effects can by eliminate in temporary, so call transition- adjusting process (in next 5-10-15 years, maybe one, next generation time, depends on political will or majority agreement).

The presented characteristics of the globalization process gives the opportunity to define it as a worldwide revolution causing far-reaching consequences in terms of people’s security and well-being. The current intensity and pace of changes taking place in the world economy, politics, society and the environment give rise to the definition of globalization by revolution. The globalization process can be considered extremely important in the present times for the development of humanity. It is particularly significant, because it can be considered in two aspects, namely social and economic. Robertson, (2012). Therefore, all of us feel the effects of globalization, both positive and negative. One of the most important effects of globalization is to create an economy based on knowledge and information. This is possible thanks to the progress that has been made in the field of telecommunications and IT technologies and has contributed to the reduction of transaction costs. The intensity of the flow of information and knowledge is a measure of information maturity, changing the framework and structure of the world around us.


Aristotle, (350 B.C.E) Aristotle, Politics, Part 4, 350 B.C.E. Democracy Past and Present online Available from : Accessed 03/01/2018.

Barber, Benjamin R. (1995). Jihad vs. McWorld. Political science, United States. English; Times Books. Hardcover. 381

Berg, S. BBC Today, Are Poles returning home? BBC Online Available at; Accessed on 03/01/2018

Office for National Statistics GB International table of contents , Available online: Accessed 03/01/2018

Robertson, R. (2012). Cultural Reader Now, Roland Robertson’s Concept of Globalization – definition. online Available at; Accessed 03/01/2018

Spiegel Staff, (2016) A Turning Point for Globalization. Spiegel Online. online Available from: Accessed on 03/01/2018.

Sztompka, P. (1999). A Sociological Theory Cambridge Cultural Social Studies. Cambridge University Press, 1999.


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