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I am opening the following question for blog discussion for participation by all. Meaningful answers will carry marks out of 3. The blog discussion opens today evening from 6-00PM (25-02-17) and closes on 9-00 PM on 28-02-17.
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Discussion Topic: " Why is there a Globlization backlash in today's world? What is likely to be its impact?"
I am opening the following question for blog discussion for participation by all. Meaningful answers will carry marks out of 3. The blog discussion opens today evening from 6-00PM (25-02-17) and closes on 9-00 PM on 28-02-17.
Please note the following
a. Answers/arguments/comments should not exceed 20 lines per person.
b. One student can participate only once in this discussion. Multiple participation will be acceptable but evaluation is only done for the best comment.
c. Examples, reference articles for your answers will carry better weightage only when you give relevant references alongside your comments/posts
d. Please understand/reserach the topic fully and carefully before you answer.
e. Maximum marks a student can get is limited to 3 only
f. No posts before and after the timings will be eligible for evaluation.
Discussion Topic: " Why is there a Globlization backlash in today's world? What is likely to be its impact?"
Globalization is under attack. The electoral victory of Donald Trump, the Brexit vote and the rise of an aggressive nationalism in mainland Europe and around the world are all part of a backlash to globalization.In each instance, citizens have upset the political order by voting to roll back economic, political and cultural globalization. Support for Brexit came in large part from those worried about their jobs and the entry of immigrants.Global trade is no longer driving global growth like it once was. It grew last year at just 1.7 percent, lagging world economic growth for the first time in 15 years and for only the second time since 1982, according to the WTO, which expects a further slowdown in 2017.Not only US and China but also the other countries pushing policy toward globalization backlash.
ReplyDeleteIts impacts are:(for the country like India)
*Reduce Employment: Major MNC of west will withdraw from india because of the disincentives provide by their nations,which will impact on employment.
*Export Sector will be strained:The protectionist policies of west will effect the export sector of india.
*Technology transfer:The technology transfer which india gets through MNC will be lost,we will be in the state of technology purchaser like defence(currently).
*Investments:Disincentives of western countries on invester will reduce their investments.
Sourav Banerjee
Delete161150
The earliest and most lucid theory of trade was enunciated by a famous Englishman, David Ricardo. The crux of Ricardo’s theory of comparative advantage was this: if two countries, England and Portugal, produced two commodities, cloth and wine, and England was more efficient in producing both, it may yet pay both countries to trade if England was more efficient in the production of wine than in cloth—i.e., if it had a comparative advantage in one over the other. England should then specialize in wine and Portugal in cloth, and both would gain from trade.
ReplyDeleteRicardo’s theories have been refined subsequently by succeeding generations of economists to explain the complicated nature of trade patterns in the modern world, which has moved far beyond the kind of trade patterns Ricardo tried to explain. Yet the basic kernel of this theory has become an integral part of economics: countries should specialize in their area of expertise and everybody can gain.
THE world appears to be experiencing a globalisation backlash with an assault coming from both economic and societal fronts. In this changing world, the two defining characteristics of globalisation – increased global trade and greater economic participation in trade – now look poised for an extended downward trend.
ReplyDeleteWhile leaders, bankers and economists meet in Davos this week to extol the virtues of a globalised world, their favoured view of the global approach is not one that is shared the world over.
Global trade is no longer driving global growth like it once was. It grew last year at just 1.7 percent, lagging world economic growth for the first time in 15 years and for only the second time since 1982, according to the World Trade Organisation, which expects a further slowdown in 2017.
The decline in world trade, cross border lending and foreign direct investment, and the increase in protectionist measures together will have profound implications for cross border global flows. And reversal of these multi-decade dynamics is likely to be have an impact in Asia.
The rise of anti-globalisation
Globalisation has become deeply discredited in parts of the developed world, as a result of the 2009 financial crisis.
The job cuts, house repossessions and instability that came with it left a swathe of the population marginalised and disenfranchised.
The predominantly white working class in both Europe and the U.S., unhappy with their current standing, has shown a growing lack of willingness to tolerate the status quo. While globalisation has certainly been massively influential in lifting millions of people out of poverty around the world, for many in the west, the benefits aren’t evident.
While the affluent central bankers, CEOs, celebrities and leading economists who are congregating in Davos this week have undoubtedly benefitted from the global economy and the breakdown of national borders, their standpoint, and lifestyle, could not seem further from reality for those they leave at home. And the push for global, rather than national, solidarity does not resonate with much of the populace.
The point is that there is a big backlash against globalization. We see it in the financial world. We certainly see it in the trading world as well. It's much more fundamental than pure economics. We know that globalization does increase income and social disparities within countries. We know that globalization does leave some countries and certainly some groups of people behind. We do know that a lot of Europeans don't want to eat genetically modified American foods and that adds to their resistance to globalization. We know that a lot Americans worry about races to the bottom--labor standards, environmental standards, and other perceived doubts about dealing with the rest of the world. We know that a lot of developing countries are raising doubts about the entire system, and such specifics as whether having agreed to the enshrinement of intellectual property rights is really in their national interest. (They would like to pull it back out of the WTO, having agreed to put it in five or six years ago.) So the list is long of the perceived intrusions of globalization into national sovereignties. There is therefore a backlash against it, which I think we have to take as an extremely serious economic, political, and social matter.
ReplyDeleteMy topic is the second set of issues, what I believe is another set of threats to prosperity and stability of the world economy, namely, the backlash against globalization.
ReplyDeleteThe world economy today faces a more fundamental set of challenges because the backlash against globalization is much more than economic.
The real backlash, the real challenge to globalization, is much more substantive; we have seen it arising not just in the last few months but over a series of years.
Much of the criticism of globalization either reflects ignorance of the facts; or is sheer nonsense, such as the argument that multinational firms promote races to the bottom rather than races to the top; or sheer disingenuousness, a cover for traditional trade protection; or, as Mario Vargas Llosa has said, a cover for traditional nationalism in many of its forms.
We must carry out a much more elaborate and extensive analysis of the impact of globalization, not just on whole countries but on groups within them.
These crises are particularly debilitating to smaller countries, which then are enormously tempted to try to find ways to opt out of the system or, at a minimum, to reduce the impact on them of unfettered globalization.
If we have a failure to move forward on the global front, if the opponents of globalization are permitted to continue to block any forward movement at the global level, then regionalism will not only fill the vacuum where countries can do it but it will take place in the absence of any effective multilateral framework and that could lead to the fears that many have expressed over the years that regionalism will drive the world apart rather than move it together.
This facilitated them to exploit these third world countries.by extracting raw materials,labor forces,and manpower for meeting their administrative and military requirements.this way the richer countries continued to prosper while the nations were pushed more towards poverty.
ReplyDeleteThe second step of globalization centered on inter imperial commercial activities,the mutual trade between the European nations,united states of America and of late,japan formed a series of groups on regional level,together with the governing powers,This give birth to cooperation and competitions in commercial spheres, making the multinational corporations struggle for gaining control over the market shares.They also joined hands to exploit the markets of to Third world countries more effectively.
Foreign trade is an intrinsic of globalization.exchange of goods on
an international level are closely knitted with the various classes of the social hierarchy as well as the commercial markets,it is this association which helps globalization attains class character.
As far the form of globalization is concerned,it is essentially "cyclic"in changing with various phases of national economic developments.
Why There's a Globalization Backlash
ReplyDeleteEconomic inequalities, political uncertainties and cultural anxiety are side effects of globalization; what does its future hold?
Protesters hold placards during an anti-European Union demonstration on Nov. 23, 2016, in London. Many of those in support of Brexit are those worried about their jobs and the entry of immigrants.
Cultural Backlash
The flattening of the world allowed for a more diverse ensemble of cultural forms in cuisine, movies, values and lifestyles. Cosmopolitanism was embraced by many of the elites but feared by others. In Europe, the foreign other became an object of fear and resentment, whether in the form of immigrants or in imported culture and new ways.
But evidence of this backlash to cultural globalization also exists around the world. The ruling BJP party in India, for example, combines religious fundamentalism and political nationalism. There is a rise of religious fundamentalism around the world in religions as varied as Buddhism, Christianity, Hinduism, Islam and Judaism.
Old-time religion, it seems, has become a refuge from the ache of modernity. Religious fundamentalism held out the promise of eternal verities in the rapidly changing world of cultural globalization.
There is also a rising nationalism, as native purity is cast as contrast to the profane foreign. Across Europe from Bulgaria to Poland and the U.K., new nationalisms have a distinct xenophobia. Politicians such as Marine Le Pen in France recall an idealized past as a cure for the cultural chaos of modernity. Politicians can often gain political traction by describing national cultural traditions as under attack from the outside.
Indeed, the fear of immigration has resulted in the most dramatic backlash against the effects of globalization, heightening national and racial identities. In the U.S. white native-born American moved from being the default category to a source of identity clearly mobilized by the Trump campaign.
The backlash against economic globalization is most marked in those countries such as the U.S. where economic dislocation unfolds with weak safety nets and limited government investment in job retraining or continuing and lifetime education.
Much of the political action in recent years can be linked to a backlash against globalization—the Brexit vote or the rise of politicians like Marine Le Pen and Donald Trump, for example. This drew parallels with the first great era of globalization in the late 19th/early 20th centuries which also led to a backlash; anarchist assassinations, industrial unrest and restrictions on immigration.
ReplyDeleteTroubles tend to come in threes. Three broad international trends that matured this year are set to disrupt the world in 2017. The revolt against globalization in the developed world, a technological transformation that threatens to kill jobs in multiple sectors and the renewed great power contestation are likely to reinforce each other.
The vision of world as a "global-village" is fading with the growth of right wing leaders in countries like America. Despite growing economy India has not realized its full potential. With backlash against globalization, technological innovations and rivalries between great powers growing its impact on India cannot be negated.
1.Doors-shut: With India's outsourcing up to 50% and major countries like and America, Britain making strict provision for Visas Indian employment and remittances will be severely hit.
2.The Artificial World: With technology moving toward Artificial Intelligence, there will be reduction in an-power requirement, hence leading to greater unemployment. Global interference will increase in indirect way by internet and data breaches by tech. savvy countries.
3.War Zone: China's growing interference in South China Sea, and Beijing and Russia joining hands, creates a new world of war, which can affect India, China being its old rivalry.
J Sushma
161319
According to me India's path to be a developed country after independence and especially after economic reforms of 1990's has seen lots of up's and down's either in the form of adopting a mixed economy approach, showing allegiance to the forum like NAM for the world peace or to open the country's economic market for the world. India has always played its part at the world stage.
ReplyDeleteSimilarly disturbances in the world also affects her, and so now which are manifesting under the name of:
1. Anti- Globalization era- Sentiments in the US, Britain, France, Italy have shown that world is moving towards under blanket and does not want to work anymore under the Sky. For the developing countries like India, it shall be more detrimental than beneficial, since sharing knowledge, getting remittances of India's workforce working outside India, or getting financed for environmental support shall take a backseat.
2. A sigh of grievance against technological Innovations: Under the fear of losing jobs for majority of the workforce, the country like India who depends and earn a lot of revenue by the route of software, the road is going to be tough, unless the market not open up at the domestic level.
3. Bitterness amongst Biggies: This is an era when the already dwindling world economy may get a further blow if any country try to show muscles for its own profit only and not for the region at large at least let alone the world.
Now Impact on India:
Backlash against Globalization:
1.Prevailing xenophobia amongst masses (e.g. BREXIT) and the change of leadership in US to a more protectionist one might result in cancellation of free trade agreements, jobs cuts for outsiders( repeal of H1B visa). This will hurt India's trade with US and also many Indians will be rendered jobless as Indian IT industry is heavily dependent on US.
2. "Make In India" campaign will be negatively impacted due to reduced FDI.
Positive Impact: Backlash against Globalization will help India to withhold its protectionist policies from farmer subsidies to restriction against imports , majority of our international disputes will resolve and will not occur in future ex. favouring domestic solar manufacturing industries over foreign industries etc.
Free trade and globalisation seem to be under siege from a broad and loud range of opponents.
ReplyDeleteFor decades there has been a strong consensus that globalisation brought more jobs, higher wages and lower prices - not just for richer countries but also for developing and poorer nations.
But many people, including politicians, are now voicing their anger as they see jobs being taken by machines, old industries disappearing and waves of migration disturbing the established order.
You don't have to look far to see the effect of those concerns in recent events.
Globalisation: Where on the elephant are you?
The Brexit referendum was dominated by concerns over immigration, the rise of Donald Trump has brought back the rhetoric of protectionismin the US and there have been mass protests in Europe over prospective international trade deals.
What is behind this backlash and what can be done to address this crisis of globalisation?
'Free trade is stupid trade'
The US presidential election has felt like the epicentre of the rising tide of disquiet against free trade and globalisation.
Donald Trump has accused China of wanting to "starve" the US population by manipulating their currency and "cheating" on international trade.
Evidence:
Evidence of de-globalization think Brexit and other attacks on international interdependence is everywhere. This has significant and far-reaching implications for corporate decision making.
Boards of directors of global corporations will increasingly face strategic choices and capital allocation decisions framed by mounting geo-political risks. Three trends characterize the environment within which global businesses must contend: rising trade protectionism and a concomitant fall in global trade volumes, declining cross border capital flows, and mounting regulatory requirements. As a practical matter, for example, these changes in the global policy regime are forcing multinational corporations to scale back and sell parts of their international operations.
According to the World Trade Organization, international trade this year will grow at its slowest pace since 2007. In 2015, Global Trade Alert, an independent trade-monitoring group, cited at least 644 discriminatory trade measures imposed by the G20 economies with the U.S. at the forefront. Imports among the world’s 20 largest economies have fallen as a share of their gross domestic product for four consecutive years
Some recent developments in this regards.
ReplyDelete• Brexit.
• Election of Donald trump on anti-globalization agenda.
• Increasing muscle flexing by nations like Russia and China.
These developments are likely to have significant impacts on India because:
• India’s economic reform aimed to push India more towards globalization. Rising anti-globalization resentments in west will lead India to restructure its reform process.
• Newly elected leaders like Donald Trump have been threatening of penalising companies moving their factories abroad. This will have adverse impact on India’s effort to boost manufacturing sector.
• Heavy dependence of industries on technological innovation will impact employment avenues. The impact suggest India can’t replicate the Chinese economic strategy of the last three decades. Therefore India need to find ways to cope with social consequences of technologies.
India need to introspect its policy reforms in order to adjust itself with rising world trends and keeping the pace of its growth and development as well.
Agreeing to what you have pointed out, the main issues regarding to the backlash of globalization are as follows
Delete1) Increase of Xenophobia-
Which means that there is an increase in the levels of fear or hatred towards the people of other countries.
2) Maintain control over their country's market and jobs-
The following events such as Brexit and Trump's elections are examples of this. British wanted to have control over their market and the control over the jobs is the main objective of Trump's election manifesto.
3) Domestic goods over foreign-
The way of India is implementing Make In India program and the main purpose of it is to avoid using foreign products and increase the manufacturing sector in India. This made an indirect impact towards the reduction of Foreign Direct Investments as the foreign goods are avoided intentionally.
This comment has been removed by the author.
ReplyDeleteBACKLASH OF GLOBALIZATION BY LARGER ECONOMIES:
ReplyDeleteWhile capital could now survey the world to ensure the best returns, labor was fixed in place. This meant there was a profound change in the relative bargaining power between the two – away from organized labor and toward a footloose capital. When a company such as General Motors moved a factory from Michigan to Mexico or China, it made economic sense for the corporation and its shareholders, but it did not help workers in the U.S.
Freeing up trade restrictions also led to a global shift in manufacturing. The industrial base shifted from the high-wage areas of North America and Western Europe to the cheaper-wage areas of East Asia: first Japan, then South Korea, and more recently China and Vietnam.
As a result, there was a global redistribution of wealth. In the West as factories shuttered, mechanized or moved overseas, the living standards of the working class declined. Meanwhile, in China prosperity grew, with the poverty rate falling from 84 percent in 1981 to only 12 percent by 2010.
Sai Venunadham-161340
The recent win of trump and brexit these factors may slow down the globlization but they cannot stop globlization .For a time being it gonna impact on employment on the country,gdp of the country,diverification at work place gets impacted.for eg if we take USA companies like tcs and infosys finding difficulties fr finding a it techies fr their companies.
ReplyDeleteNavaneeth
147
Globalization backlash in today's world is mainly because of the electoral victory of Donald Trump, the Brexit vote and the rise of an aggressive nationalism in mainland Europe and around the world are all part of a backlash to globalization.
ReplyDeleteIn each instance, citizens have upset the political order by voting to roll back economic, political and cultural globalization. Support for Brexit came in large part from those worried about their jobs and the entry of immigrants. Similarly, the Midwest of the U.S. – the industrial heartland hurt by global competition – was the linchpin of Donald Trump's victory.
But what exactly are these globalizations and why the discontent? A deeper examination of global integration sheds some light on how we got here and where we should go next.
It defintely has impact on the Global transfer of wealth because The industrial base shifted from the high-wage areas of North America and Western Europe to the cheaper-wage areas of East Asia: first Japan, then South Korea, and more recently China and Vietnam.
As a result, there was a global redistribution of wealth. In the West as factories shuttered, mechanized or moved overseas, the living standards of the working class declined. Meanwhile, in China prosperity grew, with the poverty rate falling from 84 percent in 1981 to only 12 percent by 2010.It also has impact on Expanding free markets across the world.
The present world scenario a U turn against the globalization. It is witnessing a strong backlash against globalization.
ReplyDelete-Brexit
-Election of Donald trump
Impacts:
-Service sector has been largest contributor to India’s GDP. Services like IT will be adversely impacted due to anti-globalization trend.
- will help India to withhold its protectionist policies from farmer subsidies from restriction against imports , majority of our international disputes will resolve and will not occur in future ex. favouring domestic solar manufacturing industries over foreign industries etc
-Backlash against Technical innovation does benefit India in terms of employment. But productivity of Industries will be impacted too. If we need to have a productivity at per over competitors like China we need to have technology edge.
A.hema nymisha,
161304.
Deglobalization is a word that advocates of a world without trade barriers loathe to hear. But it may just be the catchword to define a new era. Raising barriers to trade along borders, instead of bridges and railways, could undermine the well-established international trade system as a whole. Brexit, one of the biggest geopolitical risks to shake up the year, became a reality in June. For supporters, change has got to come as the Brits leave the EU and take control of their own borders and policies. Brexit is also seen as a harbinger of an insular tsunami that may sweep Europe. US president-elect Donald Trump, who is averse to free trade deals, also contributed to the uncertainty over globalization.
ReplyDeleteIMPACT:
The top 5,000 multinational enterprises have been pulling back on direct capital investment and overseas acquisitions in the environment of political uncertainty and dramatically rising protectionist barriers to trade in recent years. Global Trade Alert has found that protectionist measures rose from almost zero in 2008 to over 6,300 trade restricting measures in 2016.
Globalisation has become deeply discredited in parts of the developed world, as a result of the 2009 financial crisis.
The job cuts, house repossessions and instability that came with it left a swathe of the population marginalised and disenfranchised.
Backlash to a system that doesn’t work for everyone is almost inevitable, and that’s exactly what we seem to be seeing here.
Wage stagnation, insecure jobs and widening inequality between rich and poor are just some of the factors that are laying the foundations for the rise of narrow nationalist policies, populist politicians and anti-globalisation sentiment that we are seeing throughout western politics.
BY
G SWETHA
161121
The world economy today faces a more fundamental set of challenges because the backlash against globalization is much more than economic.there is a huge political dimension and the politics and the economics are often out of sinc. there is also a huge cultural dimension which raises a mass of contentious and difficult issues of their own.Now the backlash has been manifest in the demonstrations in Seattle, Davos, Bangkok, and in Washington this coming weekend. Demonstrations highlight the importance of the NGOs, which is an important part of the issue. But, in my view, the demonstrations themselves are only superficial signs of the real issue. The real backlash, the real challenge to globalization, is much more substantive; we have seen it arising not just in the last few months but over a series of years. I believe it is the critical issue of multilateral management for the future with which this Commission ought to concern itself.
ReplyDeleteby
sivashashank.N
161257
These developments are likely to have significant impacts on India because: India's economic reform aimed to push India more towards globalization.
ReplyDeleteRising anti-globalization resentments in west will lead India to restructure its reform process.
Service sector has been largest contributor to India's GDP. Services like IT will be adversely impacted due to anti-globalization trend.
The impact suggest India can't replicate the Chinese economic strategy of the last three decades.
Therefore India need to find ways to cope with social consequences of technologies.
Rising rivalries among nations need India to readjust its foreign policy & defences in order to mark its significance.
India need to introspect its policy reforms in order to adjust itself with rising world trends and keeping the pace of its growth and development as well.
macro changes also will affect how corporations will fund themselves. Specifically, boards will have to figure out how to navigate mounting financial challenges and funding questions when facing higher capital controls that could limit the ability to pay shareholders across borders. Furthermore, there will be new complexities in managing the balance sheet and navigating wider financing decisions; particularly as the “carry trade” (the strategy of borrowing at low interest rates in developed countries and investing in higher yielding emerging markets), becomes less attractive. Moreover, as the carry trade, which assumes that capital can move freely across borders, is replaced by more siloed, and more regionally-focused financial institutions, investment capital will have to be raised, secured, and returned to shareholders in ways that are more local, and less global.
ReplyDeleteTrans-border social considerations are also more challenging and urgent as businesses reexamine their international footprint and in some cases, decide to scale back their global operations in the face of the evolving and more stringent policy and regulatory backdrop. Even so, on-going liabilities for international staff facing retrenchment, decommissioning of international operations, environmental obligations, and tax and regulatory liabilities can expose a business to longer-term cash outlays and geopolitical risks well beyond shutting down operations. All of which require a deft handling of intercultural sensitivities
Economic inequalities, political uncertainties and cultural anxiety are side effects of globalization
ReplyDeleteGlobalization is under attack. The electoral victory of Donald Trump, the Brexit vote and the rise of an aggressive nationalism in mainland Europe and around the world are all part of a backlash to globalization. Our latest special report on the company pointed to another parallel with the late 19th century; the emergence of giant corporations. Back then, such companies were dubbed trusts in America and were tackled by Teddy Roosevelt and Woodrow Wilson. But this was not a purely American phenomenon; some of the big German companies, such as Bayer and BASF, had already appeared well before 1914. Bismarck was influential in setting up the close link between large German banks and the corporate sector that has been a feature of the German economic model ever since. In other words, globalisation doesn’t just create a backlash in politics; it has big repercussions for business too. And of course, the growth of giant businesses will itself have an impact on voter attitudes, potentially increasing their resentment at corporate power. A backlash against the backlash.
This comment has been removed by the author.
ReplyDeleteWhile globalization has benefited humanity in many ways, its continued progress is in serious doubt. the two leading political science theories, liberalism and realism, both predict that globalization as we have known it over the past two decades may well recede or disappear. First, to the extent liberalism as a theory is correct and globalization is under threat because of its adverse impact on parts of the population, re-embedding economic freedom would be a wise choice if globalization were worth preserving. this may require giving up some extent of economic freedom to reduce its adverse impact so that at least the bulk of that freedom can be preserved. International financial flows have never recovered from the 2008 financial crisis. This is at least partially the result of restrictions put in place to stabilize Western banking systems, but it has also had the helpful effect of reducing the flow of “hot “investments, whose sudden withdrawal may cause financial crises.
ReplyDeleteGlobalization is under attack..
ReplyDelete1. Brexit
2. Election of Donald trump on anti-globalization agenda.
3. Increasing muscle flexing by nations like Russia and China.
India’s economic reform aimed to push India more towards globalization. Rising anti-globalization resentments in west will lead India to restructure its reform process.
• Service sector has been largest contributor to India’s GDP. Services like IT will be adversely impacted due to anti-globalization trend.
• Newly elected leaders like Donald Trump have been threatening of penalising companies moving their factories abroad. This will have adverse impact on India’s effort to boost manufacturing sector
The flattening of the world allowed for a more diverse ensemble of cultural forms in cuisine, movies, values and lifestyles. Cosmopolitanism was embraced by many of the elites but feared by others. In Europe, the foreign other became an object of fear and resentment, whether in the form of immigrants or in imported culture and new ways.
the main point I want to leave is that we in the Trilateral world, or more broadly we in any part of the world who believe in the benefits of an open world economic system, not just for economic but for political and much broader reasons as well, ignore the backlash against globalization at our peril. There is no doubt that the anti-globalization forces now are in the ascendancy, at least on the policy front, and that it is particularly paradoxical and particularly worrisome that such is the case when the world economy, and particularly the U.S. economy, is in such good shape. I think it is essential for each of us in our individual countries, but also working collectively in groups like the Trilateral Commission, to take the threat seriously and begin devising a multi-part program to start turning the tide against the criticism
There is certainly a backlash against globalization … There are winners and losers, we saw that in the U.K. vote: The gap between the rich and less rich, young and old, skilled and less skilled, urban and rural.We have to recognize these gaps are becoming more severe.
ReplyDeleteIn Austria for example, the far-right Freedom Party of Austria, who also takes a hard line on immigration.
Similar story can be seen across the Atlantic, where Donald Trump has won the support of several blue-collar, predominantly white Americans who complain of job losses, influx of foreigners and loss of competitiveness from free trade.
Next in case of China there has been the main beneficiary of globalization for decades but now, the mainland must review how to reconfigure its growth engine and focus on domestic instead of external demand.
Agreements like the TPP have contributed in important ways to this inequality.
Corporations may profit, and it is even possible, though far from assured, that gross domestic product as conventionally measured will increase. But the well-being of ordinary citizens is likely to take a hit.
This comment has been removed by the author.
ReplyDeleteMillions around the globe may have taken to the streets in recent years to protest against the impact of globalization on their jobs and communities - but this backlash is only likely to grow as globalization itself becomes more disruptive. Richard Baldwin, president of the Centre for Economic Policy Research think-tank, who has been studying global trade for the past 30 years points out that the backlash is not the same in every single country. It often depends on how governments deal with workers who may be displaced by technology.
ReplyDelete"For instance, in Japan they take care of their workers, and there really isn't an anti-globalization feeling there," Ever-faster internet speeds becoming globally more widely available, coupled with the rapidly falling prices of robots will allow workers, for example in the Philippines or China, to remotely provide services to a country like the UK - where the sector accounts for about 80% of the economy. The rise of Donald Trump and the retreat of the United States from international affairs have placed Merkel and Germany at the moral center of the “West” because of their acceptance of refugees and non-acceptance of Vladimir Putin. The Christian Democratic Party is consequently slumping at the polls.
Mark Zuckerberg has warned of a growing backlash against globalization and urged the public to respond by building a “global community” instead of “sitting around being upset”. He said, “Every year, the world got more connected and this was seen as a positive trend. Yet now, across the world there are people left behind by globalization, and movements for withdrawing from global connection”.
why globalization backlash:
ReplyDelete• Because of increase in xenophobia in people in different countries. For example, if we take the recent attack on Indians in America it is clearly evident that there is hatred among Americans against the other regionals.
• In developing countries like India where more opportunities were given to MNC’S because the governments are attracting foreign investments by providing incentives in taxes etc. For example, in case of Walmart entering into India, where they were given a lot of incentives but the local retailers were given least importance.
So there may be protest against the government by these retailers which may result in globalization backlash.
• Because of increase in government regulations. For example, regarding the taxation policies etc.
• Because of decrease in availability of resources across the globe.
Impact of globalization backlash:
• Employment will be reduced.
• Technological help which MNC’S provide will be reduced. For example, the technology required for extraction of oil in Dubai is provided by USA.
• We will not be able to achieve synergies which we usually gain through globalization.
backlash against globalization
ReplyDeleteafter knowing the meaning of backlash i got to know that large people who are against a social or political development
Due to globalization there are some positives and negatives
globalization uses the finite resources more quickly
for example: when China joined in WTO in Dec 2001, within a one year the coal usage has been increased rapidly
on the other side
globalization creates greater opportunities for firms in less industrialised countries to tap into more and larger markets around the world
Also, the role of developing country firms in the value chain is becoming increasingly sophisticated as these firms expand beyond manufacturing into services. For example, it is now commonplace for businesses in industrialized countries to outsource functions such as data processing, customer service and reading x-rays to India and other less industrialized countries . Advanced telecommunications and the Internet are facilitating the transfer of these service jobs from industrialized to less industrialized and making it easier and cheaper for less industrialized country firms to enter global markets. In addition to bringing in capital, outsourcing helps prevent "brain drain" because skilled workers may choose to remain in their home country rather than having to migrate to an industrialized country to find work.
the backlash on globalisation may be because of environmental threats, economic and social inequalities
the impacts for the backlash may results to
*slower long term growth of the countries
*huge gap between rich and poor countries
*international conflicts
*increase of unemployment in countries of origin
* The International Organization for Migration also warns against the risk of rising xenophobia "based on the false perception" that migrants steal jobs from local workers, which is more in European and other countries
thank you
Abhishek reddy.G
161213
I feel that every country is becoming so protective, to develop their own nation.Backlash against Technical innovation does benefit India in terms of employment. But productivity of Industries will be impacted too. If we need to have a productivity at per over competitors like China we need to have technology edge.First, we need to boost manufacturing productivity significantly, so it makes good economic sense to keep production in the country. Second, we need to reinvent the way we train and educate our children and employees so they have the skills they need to succeed in today’s rapidly changing workplace.
ReplyDeleteGlobalization has become deeply discredited in parts of the developed world, as a result of the 2009 financial crisis.
ReplyDeleteThe job cuts, house repossessions and instability that came with it left a swathe of the population marginalized and disenfranchised.
The predominantly white working class in both Europe and the U.S., unhappy with their current standing, has shown a growing lack of willingness to tolerate the status quo. While globalization has certainly been massively influential in lifting millions of people out of poverty around the world, for many in the west, the benefits aren’t evident.
Donald Trump embodied this sentiment in his election campaign, tapping in to the concerns of the frustrated working class, acknowledging the damage that globalization had done to their communities and America’s standing on the world stage, and promising to do something about it. His slogan – Make America Great Again – alone harps back to a time when America was prosperous and dominant in the world.
The top 5,000 multinational enterprises have been pulling back on direct capital investment and overseas acquisitions in the environment of political uncertainty and dramatically rising protectionist barriers to trade in recent years. Global Trade Alert has found that protectionist measures rose from almost zero in 2008 to over 6,300 trade restricting measures in 2016.
According to their latest forecasts, UNCTAD expects the world’s largest companies to invest 10 to 15 percent less in their overseas operations in 2016, effectively trimming foreign direct investment by around US$250 billion.
The advances in technology that the world has seen over the last decade also pose its own threat to globalization.
The allure of cheap labor in developing countries is not the draw it once was. With advancements in automation and digitization, the advantage of low-wages has been undermined as companies are now able to manufacture products at home with minimal workforce.
Not only will this see an increase in new companies setting up in their western countries, but will also see many leaving the emerging economies and “reshoring” to where the technology originates.
ABHISHEK JAIN
161102
The discussion is closed and any comments after this post will not be eligible for evaluation. This post is made on 01-03-2017 at 11-20 AM
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