SCHOOL OF FOUNDATION AND

CONTINUING STUDIES

Writing and Research Skills 061

NAME : Syazrul Ikhwan Bin Zainol

STUDENT ID : 7E0B8184
GROUP : 1E3
COURSE OF STUDY : Foundation in Engineering
LECTURER : BaEllison Ludan Mayan
TITLE OF ESSAY : Globalization
DATE OF SUBMISSION : 12th November 2010
DECLARATION

I declare that this project does not incorporate without acknowledgement any

material previously submitted for any institution of higher education; and that to the

best of my knowledge and belief, it does not contain any material previously

published or written by another person except where due reference is made in the

text.

Miri, 12th November, 2010

Syazrul Ikhwan Bin Zainol

7E0B8184
TABLE OF CONTENT

NO. Contents Page

1
1. Abstract
2
2. Introduction
3-5
3. Background
6
4. Cause Paragraph 1
7
5. Cause Paragraph 2
8
6. Cause Paragraph 3
9
7. Transition Statement
10
8. Effect Paragraph 1
11
9. Effect Paragraph 2
12
10. Effect Paragraph 3
13
11. Conclusion
14-15
12. Reference List
16-18
13. Bibliography
19
14. Appendix
ABSRTACT

The principle of this essay was to study the causes and effects of

globalization. To accomplish this essay, secondary research method was used.

Resources such as Internet and books were used as the research materials. This

essay was done in techniques like researching, drafting, writing, editing, planning,

proof reading and brain storming. After reading on the research materials gained, it

was found that the three main causes of globalization were the efficiency of

international transportation, the growth of information technologies (IT) and making

international trade and enterprise profitable. Meanwhile, three main effects of

globalization were corruption, air pollution and the spread of education. In

conclusion, the concept of globalization is world without borders promises a future to

change the social, political and economic things as we know them will be radically

different and probably threatening in many ways. Thus, globalization must be

interpreted precisely if it is ever going to bring about a improved life for everyone in

this universe.

1
INTRODUCTION

Globalization from the word global means the spreading throughout the

world and the intend of having a globalised community is to have interdependence of

the world and its people with the concern of self-development and self-interests.

Now days, people can easily connected to each other than before. In fact,

information and money transferring quickly than ever. Besides, services and good

manufactured in certain country are increasingly spread to all parts of the world. This

tremendous phenomena can be described as “globalization”. Basically, globalization

is the interaction among countries in order to develop the global economy and

society. Moreover, process such as regional economies, societies and cultures that

had contributed significantly to the development of global network of communication,

transportation and trade is classified as globalization. Globalization is fast ever

growing force that changed the world into better living place and key factors that

contribute to globalization are the efficiency of international transportation, growth of

the technologies and making international trade and enterprise profitable.

2
BACKGROUND

Globalization is the process that has been growing on for the past 5000 years,

but it had increased drastically since the corruption of the Soviet Union in

1991(Riggs.2000). AT the beginning stage of globalization concept is referred to

“restructure” the world economy during the late twentieth century. The globalization

strictly emphasis on the rapid change in the technical, social, political and territorial

organization of investment, production and trade. Besides, the most obvious change

that caused by globalization are the transnationalization of communication,

commerce production and politics which had increased the volatility of the market

demand and the strategic ascendance of financial capital also specialised services.

In fact, the key factor of (NGO’s) and alternative government organization (AGO’s).

Globalization is also known as a process along four dimensions which are economic

globalization, the formation of world outlook, democratization and political

globalization. Noticeably, globalization is a comparer and controversial trends that

include technological developments, cultural dynamics and organizational strategies

for global competition which had increasing since 1980’s. Currently, the

globalization wave has been driven by the policies that economies to be opened

domestically and internationally so that international industrial and financial business

structure to grow rapidly in all countries. In fact, the key factor that triggers

globalization is the advanced information technologies that changed people’s life.

3
Cause 3

One of the causes of globalization is the efficiency of international

transportation as a fundamental element supporting the global market. International

transportation refers to a factor that causes international trade to extend more rapidly

because international trade requires infrastructures which can support trade between

several companies. Since, half of the global trade occurs between locations of more

than 3000 kilometres away, most international goods movements involve several

modes especially when the destination are far away from each other. Maritime

shipping and air transport are one of the transportation modes which concerned with

international trade. One of the advantages of Maritime transportation is, it handles

about 90 percents of the global trade which includes a series of getaways granting

access to main production and consumption region (Jean, 2010). Meanwhile, the

importance of air transport is, it carries international air freight which is about 70

times more precious types of good than its maritime counterpart (Jean, 2010).

6
 The driving factor that leads to the process of globalization is the growth of the

information technologies (IT) which had changed the world dramatically. In the early

1990’s, the development of computer hardware, software and telecommunication

had caused the wide spread improvements in access to information and economical

potential. Information technologies provides the communication networks that

facilitates the innovation of products, ideas and resources among nations and people

throughout the world (Bestshy,2010). Since, application of IT spread extraordinarily

rapid almost every aspect of life in this industrial societies are depend on the product

based upon and enhanced information technology. For instance, only scientists were

using the internet had transformed into commercial networks, which allows users to

make transactions, for businesses to manage the flow of production inputs and

markets products. IT makes life easier for people as it provides websites, chat room,

instant messaging, systems, e-mails and other internet based communication

system to collaborate and exchanging ideas with each other.(Information, technology

and globalization,2006). Briefly, the innovation of IT had changed society drastically

and have created new jobs promoted the growth of new markets and increased

international trade and investment.

Cause Paragraph 3
 Another cause that triggers rapid globalization is making international trade

and enterprise profitable. Economist believed that globalization increases the

economic opportunity and prosperity to the developing world. International trade

become significantly profitable throughout the process of openness to foreign direct

investment stimulating of domestic capital formation and enhancing efficiency and

productivity by the foreign direct investment can contribute to the economic growth.

Indeed, trade liberalization is being found to increase economic opportunities for

consumer and producers to lift up earning for workforce and that under greater

openness to trade, resources tend to be reallocated away from less efficient

activities and towards productive activities. Surprisingly, Foreign Direct Investment

(FDI) managed to attract the openness towards the free flow of capital, which leads

to the development of domestic investment and contribute to employment generation

for economic growth. For instance, the growth of world trade can be reflected by the

explosion of Foreign Direct Investment (FDI) in developing countries which had

increased from USD 2.2 billion in 1970 to USD 154 billion in 1997 and resulted in

national capital market to become integrated drastically (Zaher,2008). Financial

openness certainly helps to increase the depth and breadth of domestic financial

markets which cause to increase the efficiency in financial markets through lower

costs and improved resources allocation.

Key Words

Globalization - Globalization is the integration of the countries and peoples of the

world. Globalization also cause the gigantic reduction of costs of

 transportation and communication, and the breaking down of artificial

barriers to the flows of goods, services, investment, knowledge, and

people across margins(from Globalization and its Discontents,2004).

Corruption - The act of corrupting or making decomposed, or state of being damage

or putrid, decomposition or disorganization(Brainy Quote,2001).

Restructure – construct or form a new or provide with a new structure.

territorial organization of investment- The definition of space and spatial organization

as being produced, and structured through the

organization of social relationships, has been

thoroughly developed(Swyngedouw,1992).

Transnationalization - transnationalization is essentially related to the rise in the

importance of markets and their dependence(

Transnationalization, Globalization and their effects on mid-

career mobility transitions,2008).

Volatility of the market demand - volatility refers to a variable’s degree of

unpredictable change much more towards standard

deviation of an asset’s price over time based on

market demand(What is volatility? ,n.d).

International industrial and financial business- Industrial international

competitiveness is an important
 branch in the research field of

international competitiveness(Chuang Li, 2008).

Cultural dynamics - dynamising role of cultural heritage and interaction between

culture and society: past and present(Cultural Dynamics,2009) .

Democratization-is the institutions and practices evolve and are spread both within

and across nationwide and civilizing limits(Democratization,2010).

Political globalization- Political globalisation refers to the increasing number and

power of human links which influence or direct the world as a

whole.

Transition Statement
 These are the three causes that planted the seeds for rapid globalization and

the effects of globalization that people will face are the corruption, pollution and the

spread of education.

9
Effect Paragraph 1

The first effect of globalization is the corruption of economic and political in

the particular developed country. As developing nation’s increases the involvement

in world economy, the strengths of the financial and governmental institutions are put

into test. If the institution are strong, the economic gains from globalization but if they

are weak, bulk of gains are lost which leads to the corruption of the nations. In fact,

the bankruptcies of so many companies also affect the government because banks

will accumulate loans while losing values of clients due to recession-government

which depend on companies taxes and banks will suffer terrible reduction in revenue

and development expenditures which leads to the corruption of a nation (Mahathir,

2002, 230). Besides, corruption affects the poorest country the most, especially

poorer countries as they usually export agricultural good which does not make a lot

of profit as larger countries provide all sorts of financial aid such as subsidise for

their farmers to lower the market price under the free trade ( Shah,2008). Corruption

of a nation would probably destabilize development and worsen inequality, distorting

the decision for making in favour projects that benefits the nation and increase the

debt of the nation as a result of lost in global economy.

10
Effect 2

One of the bad effects of globalization is pollution that is caused by factories

such as chemical waste and air pollution. Most of the manufactures nowadays are

just throwing the waste chemicals into the nearby river and producing air pollution

without considering about the cleanliness of the environment. All that come into their

mind is the profits without bothering about the consequences of doing such things. A

number of researchers consider that there is a bond between income per capita and

the environment where negative an effect rising with per capita income – well

developed nations where per capita is low, and more pressing social needs enjoy

priority over environmental regulation (Ruan, 2010). Negative effects on the

environment such as air pollution still occurs although the governments in some

developed countries enforced rules on the protections of the environment. In

addition, globalization contributes air pollution because big industry takes opportunity

from careless environmental controls in developing nations and moves its

manufacturing facilities to such “pollution asylum” from where air pollution travels

around the globe of world without obstacles (Pollution Effects on Humans, Animals,

Plants and the Enviroment, 2008).

11
Effect Paragraph 3

Globalization has a positive side as well and the positive effect globalization is

the spread of education. Education is vital for people as it acts like an instrument to

enhance our knowledge, develop our skills and talent that can produce educated

workforce that will be a great profit to the country in the future (Yeoh et al. nd, 11).

The massive spread of education at all levels because the consequence of widely

available schooling as a result of globalization process in this century. Regarding the

role of schools- globalization has become significant chapter of study especially in

the field of comparative education, which applies social theories. Besides, the effects

of globalization on education also triggers the development in technology and

communications such as innovation of learning system across the world such as

ideas and knowledge to adapt the students into information based society. It helps in

shaping children to be the future citizen into global citizen who are intelligent with

broad range of knowledge to apply in the competitive society and thus reflects the

cultural imperialism (Chinnamma, 2005). Education system now face the dual

challenge of producing students with the fundamentals knowledge, skills and value

needed to be spirited in a global market while at the time producing graduates who

are responsible to be good citizen towards their country and the world.

12
Conclusion

In conclusion, as globalization continuing progressed virtually in all countries

during this century which caused by the efficiency of transportation, growth of

technologies and making international trade and enterprise profitable .However,

there are some effects from the globalization which apparently can be classified as

positive effects and negative effects. The negative effects of globalization are

corruption of a nation and polluting countries by producing chemical waste and air

pollution. Meanwhile, spread of education throughout world is one of the positive

side of globalization. Thus, the international community should endeavour by

strengthening the international financial system, through trade and aid to help the

poorest countries integrate into the world of economy so that allows them to grow

more rapidly and cut down the poverty in that particularly country. By this way, all

people from all countries have a chance to gain benefits from the globalization

process. Finally, people should realise that although we can identify and analyse the

process of globalization, we should not imagine that this process of globalization will

go on forever and that this process is irreversible.

13
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18
APPENDIX

19