See for yourself why we are one of the world's leading academic writing and proofreading company. Here's a carefully researched and written piece that shows the brilliant quality that's guaranteed with every order you placed. Secure your academic success and place an order today.
Globalization is a phenomenon that resulted from the increasing interconnectedness among countries, which enabled the rising flow of people, goods, and services among previously bounded societies. From a sociological perspective, globalization is used to explain social change that occurs on a global scale, and can be viewed politically, economically, and culturally. Although globalization has been argued to stimulate economic growth and lessen the prices of goods, several sociologists have provided evidence that these benefits can often be found only in well-developed countries, while developing countries experience poverty, inequality, and economic downturns (Kilic, 2015). Therefore, from a sociological perspective, this essay will critically discuss the problems concerning globalization and free trade spurring economic growth and leading to lower-priced goods, through analyzing the processes of globalisation, applying sociological theories, and providing evidences.
Global Capitalist System and World Systems Theory
From a sociological perspective, economic globalization had produced a global capitalist system, wherein resources from underdeveloped countries are exploited by well-developed countries. In support of this, Wallerstein’s World-Systems Theory suggests that there is a profound disparity in terms of global division of labour, wealth, and production, since well-developed countries, the core countries, grow increasingly dependent on underdeveloped countries, the peripheral countries, for cheaper resources (Wallerstein, 1987). Specifically, core countries are able to export highly industrialized products at a cheaper price, because they procure cheaper labour and production from peripheral countries. As such, these countries are able to accumulate capital, which lead to growth in their economy. In contrast, peripheral countries’ economic growth remain stagnant, as they are focused on exporting cheap raw materials, while depending on exported industrialized products from core countries, thereby preventing them from accumulating capital (Chase-Dunn & Grimmes, 1995). For example, this can be seen in the case of Brazil, who had been exporting cheap raw materials, such as agricultural and mineral products, to the United States. Due to its focus on exporting raw materials, Brazil had not been able to develop its industrialized economy, therefore they are unable to export more expensive products and they remain reliant on core countries for capital (Schwartzman, 2006). Another example would be the rising number of “sweatshops” in the increasingly globalized world. Evidences have shown that factories in China, which supply products for Western corporations, have been violating local law and international worker standards, as workers are paid less than minimum wage (Barboza, 2008). Thus, the cost of labour for peripheral countries remains low, while core countries become wealthier due to access to cheaper labour.
Transnational Corporations (TNCs) exploit Less-Developed Countries
In relation to an increasingly global capitalist system, the existence of a few TNCs that control and benefit in international trade also have negative effects to the economies in developing countries (Yunusov et al., 2008). TNCs are defined as businesses that operate beyond their home country, and who often engage in trade relations with less-developed countries that provide them with cheaper resources (Yunusov et al., 2008). Because of the desire to increase capital and spur economic growth, less-developed countries welcome foreign investment from TNCs. In response, TNCs are able to exploit cheap resources from these countries, thereby increasing revenue and building capital in their home countries (Yunusov et al., 2008). For instance, it has been shown that certain TNCs do not follow minimum international human right standards, and have reported to employ child labourers, to discriminate employees, to repress trade unions, to provide unsafe working conditions, and many more violations (Yunusov et al., 2008). In support, Apple, a TNC, has been reported to commit labor violations, which include employing temporary workers beyond the limitations provided by the government and not realising bonuses to employees (Albergotti, 2019).
Policies that Widen Income Gap
In terms of political globalization, evidences have shown that governments have adjusted their policies to accommodate increasing globalization, which in turn have contributory effects to the widening income gap in certain countries. Firstly, this can be seen as governments have implemented laws that supported rules, technologies, and prices, which encourage international trade across national boundaries at the expense of local businesses (Berger, 2000). For instance, in Singapore, the government had adjusted their labour laws and immigration policies to enable foreign employment, even though many Singaporeans were experiencing lay-offs (Amaldas, 2009). In addition, the rising globalization has also affected Singapore negatively in terms of widening income gap between skilled and unskilled workers that occurred as new technologies are introduced in the country. Specifically, new technologies have brought about larger revenues without the need for middle-class manufacturing jobs, which leads to job retrenchments and lower wages (Amaldas, 2009).
Have your assignment done by us today!
- Sure-pass, 200% money-back guarantee
- On-time delivery or your money back
- 5-day unlimited revision period
- Detailed Plagiarism Report
- Proofread by our Quality Control Team