1. GLOBALIZATIONZULKIFAL YOUSAF FA08-BSB-029 OVERVIEWOFGLOBALIZATION Name for the process of increasing the connectivity and interdependence of the world's markets and businesses. This process has speeded up dramatically in the last two decades as technological advances make it easier forpeople to travel, communicate, and do businessinternationally. Two major recent driving forces are advances in telecommunications infrastructure and the rise of the internet. In general, as economies become more connected to other economies, they have increased opportunity but also increased competition. Thus, as globalization becomes a more and more common feature of world economics, powerful pro-globalization and anti-globalization lobbies have arisen. The pro-globalization lobby argues that globalization brings about much increased opportunities for almost everyone, and increased competition is a good thing since it makes agents of production more efficient. The two most prominent pro-globalization organizations are the World Trade Organization and the World EconomicForum. Advantages Of Globalization People around the world are more connected to each other than ever before. Information and money flow quicker than ever. Products produced in one part of a country are available to the rest of the world. It is much easier for people to travel, communicate and do business internationally. This whole phenomenon has been called globalization. Spurred on in the past by merchants, explorers, colonialists and internationalists, globalization has in more recent times been increasing rapidly due to improvements in communications, information and transport technology. It has also been encouraged by trade liberalization and financial market deregulation.Globalization offers a higher standard of living for people in rich countries and is the only realistic route out of poverty for the world's poor. Pro-globalization groups e.g. World Trade Organization and the World Economic Forum believe that globalization helps to reduce poverty and increase living standards as well as encourage a better cultural understanding. Also, due to globalization, there can be international co-operation to solve environmental and social problems.Technology has now created the possibility and even the likelihood of a global culture. The Internet, fax machines and satellites have swept away the old national cultural boundaries. Global entertainment companies now seem to shape the understandings and dreams of ordinary citizens, wherever they live. Globalization leads to better cultural understanding and tolerance. Because of improvements in travel, more and more people are traveling to different countries, thereby spreading their culture to other parts of the world. DISADVANTAGES Globalization is causing Europeans to lose their jobs as work is being outsourced to the Asian countries. The cost of labor in the Asian countries is low as compared to other countries. The high rate of profit for the companies, in Asia, has resulted in a pressure on the employed Europeans, who are always under the threat of the business being outsourced. Companies are as opening their counterparts in other countries. This results in transferring the quality of their product to other countries, thereby increasing the chances of depreciation in terms of quality. There are experts who believe that globalization is the cause for the invasion of communicable diseases and social degeneration in countries. The threat that the corporates would rule the world is on high, as there is a lot of money invested by them. It is often argued that poor countries are exploited by the richer countries where the work force is taken advantage of and low wages are implemented. CULTURE AND GLOBALIZATION Culture and globalization are two different concepts. The word 'culture' originated from the Latin word, 'cultura', meaning 'to cultivate'. Culture is a way of life adopted by a certain group of people of a particular society at a specific time and place. While the second term, globalization, is an economic interaction between more than two countries. It shows global context than a limited interest of a country. Every society has its own culture and way of life. Culture is established by a group of people who live together and adhere to some principles in their society. In a broader sense, culture is a phenomenon of inheritance, unconsciously adopted by a person who is born within that group. When a culture newly is introduced to the globalization, people find it detrimental to their way of life. Such as they scared some inconsiderable concepts of other culture might take the place of their culture. The foremost effect of globalization on the world is 'Westernization'. It is a modern concept that has been developing in the past few decades because of the impacts of western expansion and colonization. Westernization is a process, in which people practice or imitate western customs, lifestyle and ideas. Here, we find globalization spreading its roots all across the world to make communication easier. Some societies find globalization as a dominating concept. It might effect on their lifestyle. If a society has complex cultural conditions such as exploiting people on the ground of race, gender or class, people will really try to get rid of such society. A culture, the restricted group of people has some other issues like chauvinism, fundamentalism, religion, ethnic and racial hatred in controversy. CONCLUTION GLOBALIZATION EFFECTS ON PAKISTAN: Increasing globalization has increased the influence of
Western culture
in Pakistan. Pakistan ranks 46th in the world on the Kearney/FP Globalization index. Many Western restaurant chains have established themselves in Pakistan, and are found in the major cities. A large Pakistani diaspora exists in the West. Whereas Pakistanis in the United States, Canada and Australia tend to be professionals, the majority of them in the United Kingdom, Germany and the Scandinavian nations comes from a rural background and belongs to the working class. A large number of Pakistani expatriates are also living in the Middle East. These emigrants and their children influence Pakistan culturally and economically, keeping close ties with their roots by travelling to Pakistan and especially by returning or investing there. GLOBALIZATION AND PAKISTAN’S ECONOMY: The International Monetary Fund (IMF), World Bank (WB) and US Treasury view globalization of economies as a mathematical and scientific problem and not as a socio-cultural phenomenon. To these institutions it is monetarist economics that should govern economic globalization. This study analyzes Pakistan's economy in the context of globalization by using the yardsticks of trade in general and Foreign Direct Investment (FDI) in particular. The inferences drawn are further reinforced by looking at stock market, external debt and liabilities (EDL), poverty, unemployment, inflation etc. Globalization is leading to growth in China but for South Asia, South East Asia and for Africa, it is perpetuation of poverty, hunger, disease and inequality. Revision of Millennium Development Goals (MDG) is a clear indication of that. Apart from successes in some areas, globalization has failed to bring positive change in the lives of millions of Pakistanis living below poverty line.