Introduction

We live in a world which is shrinking day by day with the extensive use of technological advancements. These technological advancements are mainly in the fields of finance, IT, international trade, culture, environment and in fact all the other aspects of life are humongous are related to each not only physically or geographically but also strategically. Globalization has become one of the most unavoidable substances of today’s era which has resulted in the dramatic changes in economic setup of the world. The devotees of globalization are in the view that it has affected the social, political, environmental, technological and economical in a worthy way which has resulted in extended markets and increasing reach ‘to stakeholders’ and ‘of stakeholders’. However the critics of globalization has always been in the view that it has deteriorated the cost of local labor, land and other resources so the debate is still not concluded.

Globalization is giving rise to industry and is making collaboration among different industries to create a new mix which is giving birth to technological and industrial traffic ultimately resulting in environmental concerns.  Still the positives being fetched from globalization are said to be of more value and it is affirmed that the economy, environment, technology and society gaining a lot from increased globalization.

The following paper will shed light on the major outcomes of globalization effect and will further try to draw a line between the positives and negatives of globalization with respect to Australian environment.

What is Globalization?

The researchers haven’t yet reached to a conclusion to clearly define globalization. In fact it is a combination of a lot of simultaneous changes in the environment. Globalization can be described as an extensive idea casually used to portray a number of different phenomena that reflect expanded monetary reliance of geographically different countries. Such phenomena incorporate supply of merchandise (goods and services), cope with transportation obstacles, worldwide capital flow, multinational movement, FDI, outsourcing and expanded interaction with exchange rate volatility (Goldberg & Pavcnik, 2007). Still the subject matter experts are not on the same ground when it comes to defining globalization. They have examined the subject from multi-perspective approaches but a single universal perspective of globalization is yet not identified (Ch, et. al., 2011). A simplified common definition can be compiled after merging some existing definitions i.e. it is the process which integrate the scattered economies of the world as one unit or it is collection of policies used to manage policies, people and corporates of economies (Rothenberg, 2003).

The combination of the resulted integration on hands adds value to the existing market and on the other hand it helps in realizing the potentials as well. The definition given to globalization for the sake of understanding covers the aspects of culture, social, individual and at most the economical. The economic expansion due to globalization is humongous as the approximate value of daily transactions is $1.5 billion with an upward trend along with $8.9 trillion worth of goods transaction and $2.1 trillion of services provided in the same period. (Hill, 2009).

Merits of Globalization

Globalization is much more than the universal expansion of merchandise and venture. The reach of thoughts starting with one end of the world to the other has expanded tremendously in the recent decades. The world’s needy entities have profited massively which has resulted in life expectancy specially among developing nations, the child mortality is decreased by 60% especially in the last 4 decades and most of all the grain yields have increased by 200% in mid-60s within developing countries and also a huge increment in per capita caloric food supply (Johnson, 2002). Apart from these, there can be numerous positives when it comes to globalization. The globalization brings along HR information, free mobilization of capital and an increased currency exchanges throughout the globe which results in distribution of wealth across the globe. The global economy compels the organizational setups to strategically integrate with the economy and result in positive changes in the organization to meet the growing economy.

With globalization prevailing in the market the domestic organizations do not only depend upon the local customer as they are able to tap into the international markets with growing reach to customers globally (Ch et al., 2011; Mejfa-vergnaud, 2004). The past barriers of international trade are now broken with the help of hugely spread globalization which has helped global firms to attain growth and sustainability in the competition. The spread was made to keep the sustainability of the domestic firms but with the increased liberalization the barriers were nullified with the help of economic reforms and market reforms and an added ease to attain loan for their businesses. The availability of these added benefits helped the firms to expand their business reach and increase their revenues. Firms in developed countries, in order to decrease cost of labor, started outsourcing their labor requirements in developing and under developed countries which comes up with a two-fold benefit. The developing and under-developed labor get a chance to get earning opportunity and the developed countries get cheap labor as compared to their domestic labor (Hamdi, 2013).

Demerits of Globalization

Apart from all the good thing that mass globalization has given to this world, it also comes with some negative impacts on the society as well as economy. The drawbacks of globalizations are mainly highlighted by the critics of this discipline.

The economies having a lower labor cost (developing and under-developed) are often misused in the developed economies with the same wage rate, which results in the benefit of developed economies as they get lower labor cost as compared to their domestic labor cost but the developing and under-developed labor still gets the same or a little bit increasing cost. This also gives birth to the problem of unemployment in the parent countries as their domestic labor is not being used and services are outsourced instead. The government on the other hand face additional problems of handling the situation and trying to create a balance between the import and export of resources and to avoid the situation of brain drain in their country.

Globalization comes with the threat of increased disease spread as the humans from all around the world travels globally which is always having a hazard of carrying infection from one place to another place which was supposed to be contained in a specific geographical boundary before (Hamdi, 2103). The increased disease spread increases the medical expenses with time.

The critical researchers are in the view globalization has no doubt given boost to the economy but as a result the poor is becoming poorer and the rich is becoming richer and as the result, the gap between the rich and the poor is increasing with an increasing rate as compared to before. The living example from the last era is Indian economy which has grown at an increasing rate while the African states are still living below poverty line, which means that the globalizations is being partial to the economy (Hamdi, 2013).