Globalization is a widely used term in every industry and in every geographical location around the world today. It has brought countries together for thousands of years and has influenced all types of trades, commerce economy, and culture. Today you can get French champagnes, Japanese electronics, Swiss watches, Italian suits, German machines, and Chinese noodles in every corner of the Earth.
Globalization has turned the world into an integrated market place and economy. Many multinational companies and brands today find it beneficial to globalize their market place, integrating resources from around the globe.
Although globalization has become more common and easier today, the concept of globalization is not a new one. For thousands of years, people, corporations and nations have been buying, selling and trading with each other across the globe for mutual benefits. Globalization helps the flow of capital, removes barriers between nations and economies, and encourages the flow of goods, services, and labor. It has affected people, economy, culture, technology and environment for thousands of years.
The open trade market around the world has been a leading factor in economic development in the world economy. The recent developments in transportation and communication technologies have accelerated the pace of globalization in the recent years.
Multinational companies operate globally with branches and offices in numerous locations around the world. Many of the richer countries of the world have been outsourcing their work to developing countries, bringing them much needed jobs and a source of income which can help to develop their economies.
Some examples of globalization are Honda, Toyota, and General Motors corporations. Toyota and Honda have factories set up in the United States; they import the parts and then assemble the automobiles for the US market. General Motors has factories setup in many countries, such as Malaysia, where the labor cost is cheaper.
The textile and footwear industries in the Third world have been deeply influenced by rapid globalization trends in the past 25 years. However, sustainable development and globalization have been perhaps the two most controversial issues that seem to be contradictory, having opposite tendencies.
Globalization has various advantages, but it also comes with its own disadvantages. Globalization in textile industry has both pros and cons.Although the development of textile industries in the Third Word and Asian countries have improved their economic conditions, it has also been argued that in the past 25 years the outsourcing has resulted in sizable employment losses in Europe and North America.
At present, more than 60% of the world’s clothing exports are manufactured in developing countries, and more than 33% is being manufactured in Asian countries like Malaysia, Bangladesh, Sri Lanka, Indonesia, and the Philippines. “Globalization has led to a net gain in the level of worldwide employment and that the informal sector promotes “a growing volume of employment in developing countries, especially in clothing and footwear.” – Globalization Changes the Face of Textile, Clothing and Footwear Industries
As the developing countries get more industrialized, their oil consumption, carbon emission and pollution levels increase. They also seem to lack the necessary regulation, controlling, and monitoring agencies, to ensure safe workplace condition, and environmental policies to ensure proper business operations.
“Bangladesh’s textile workers are among the poorest paid in the world. Most of the people employed in the sector receive a minimum wage, which in the year 2010 was raised to around US$ 38 per month after mass protests.” – Bangladesh textile workers fed up with conditions | Asia | DW.DE | 25.09.2013
A more integrated world brings both benefits and problems for the world. Natural and built environments have a direct impact on people’s potential to develop and achieve their potential. Our resources are not unlimited, and having an integrated world tends to use up resources more quickly, increases carbon emissions, and makes it difficult to regulate any one country contributing to pollution and depletion of the environment, while others may be trying to minimize global impacts.
Source: Institute Of Ecolonomics