Impact of Globalisation (AQA A-Level Sociology): Revision Notes
Impact of Globalisation
Understanding globalisation
Globalisation represents the process through which the world becomes increasingly interconnected via expanding international trade and cultural exchanges. Sociologists often describe this using the term interpenetration, highlighting how globalisation influences workers in both developed and developing nations.
Over the past five decades, international trade has expanded dramatically through trade liberalisation - the removal of barriers such as tariffs and quotas, combined with reduced transportation costs. This has facilitated the new international division of labour, encouraging substantial movement of industrial manufacturing to developing countries where labour costs are lower.
The concept of interpenetration is crucial to understanding globalisation's dual impact - it affects workers both in countries where jobs are relocated from (typically developed nations) and countries where jobs are relocated to (typically developing nations), creating interconnected economic relationships.
Globalist theories and concerns
Globalist perspectives present a somewhat pessimistic view of the future, suggesting that living standards previously enjoyed in Western developed countries may be under threat. Future unemployment becomes a concern as transnational corporations (TNCs) increasingly adopt the new international division of labour by relocating production to developing nations. This process weakens workers' bargaining power globally and increases unemployment in developed countries.
As production becomes increasingly outsourced to developing countries, the risk of long-term unemployment and dependence on state benefits becomes more common in developed nations. Optimistic globalists maintain that the West will remain the primary source of high-tech employment, whilst pessimistic globalists worry that the future holds mainly low-paid, non-technical jobs in sectors such as catering, retail, and security.
Critical Concern: Castles and Kosack (1973) conceptualise immigrant and migrant workers as a 'reserve army of labour' - a flexible workforce that can be utilised during periods of economic expansion and dismissed relatively easily during contractions. This creates vulnerability for migrant workers who lack job security.
Migration patterns have also shifted, with wealthier Western European countries experiencing large influxes of migrant workers from Eastern Europe following EU expansion.
Export processing zones and developing nations
Many developing nations established export processing zones (EPZs) or free-trade zones (FTZs) during the 1970s and 1980s to attract TNC investment. These zones encouraged companies to build factories producing goods for Western markets. Trade liberalisation proves economically logical when products can be manufactured far more cheaply in developing countries and then shipped to consumer markets in developed nations.
Case Study: Bangladesh Garment Industry
Bangladesh exemplifies the EPZ pattern, possessing one of the world's largest garment industries:
- Scale: Second only to China globally
- Employment: 4 million workers across 3,500 factories
- Economic impact: £14 billion turnover
- Working conditions: Predominantly female workers face extremely low wages, extensive working hours, and dangerous conditions
- Tragic example: Rana Plaza factory collapse in Dhaka (2013) killed nearly 1,200 people and injured 2,500, highlighting the human cost of cheap production
Key sociological perspectives
Anthony Giddens (1999) provides an important contribution to globalisation debates. He adopts a pessimistic stance regarding transnational corporations' role in global trade, challenging romantic notions of the world as a 'global village'. Instead, Giddens characterises the oppression and exploitation of developing world populations and resources as resembling 'global pillage' more accurately.
Contemporary applications
Marxist perspectives view globalisation as worsening conditions for impoverished populations in both developed and developing regions. They perceive global capitalism as creating a system of winners and losers, with few experiencing prosperity whilst the majority face misery and despair.
Statistical Evidence: During the late twentieth century, the poorest fifth of the world's population saw their share of global income decrease from 2.3% to 1.4%, demonstrating increasing inequality under globalisation.
Within countries like the UK, globalisation has substantially reduced employment in heavy industries including coal, steel, and shipbuilding, alongside manufacturing of domestic appliances and clothing. Marks & Spencer historically represented 'British quality goods' but abandoned this policy during the 1980s as UK-manufactured clothing became increasingly expensive and uncompetitive compared with developing world production.
UK employment growth since the 1970s has occurred primarily in the tertiary (services) sector, including education, healthcare, government services, finance, insurance, retailing, and leisure/tourism.
Lynda Gratton's three trends
Lynda Gratton (2012) identified three key trends associated with globalisation's impact on workers:
Hollowing out of work
Understanding "Hollowing Out"
This describes the vulnerability of middle-section labour force workers to globalisation pressures. The labour market is becoming increasingly polarised between high-skill and low-skill positions.
Demand will persist for high-skill, high-wage professionals (doctors, lawyers, accountants, IT specialists, engineers) and low-skilled workers (hairdressers, waiters, bank tellers, shop assistants). However, middle-skilled, middle-income positions - assembly-line workers, managers, secretaries - face particular vulnerability as this work can easily be outsourced to lower-wage countries or replaced by technology.
Globalisation of virtual work
Virtual Work Revolution
This refers to the expansion of internet-based distance learning platforms such as Open Yale, iTunesU, and Khan Academy, enabling students worldwide to access similar learning experiences and work towards comparable qualifications.
Highly-educated individuals in developing countries will increasingly work on online global projects, creating truly global employment that transcends national economic boundaries as virtual markets operate beyond individual country limitations.
Currently, platforms like oDesk, eLance, and Guru provide virtual employment opportunities for software programmers, translators, administrators, web designers, and salespeople globally. The combination of accessible education and global job opportunities will shift employment of highly educated workers towards the most talented and motivated individuals worldwide.
Rise of the transnational
The Global Elite
This trend describes geographically mobile individuals willing and able to relocate anywhere. This represents a cosmopolitan group of talented, educated workers who actively seek optimal global employment opportunities.
They possess high employability due to their competence, management capabilities, cultural sensitivities, and professional networks. Being fluent in English (increasingly the global business language) plus other languages enables them to facilitate cross-cultural communication essential for global organisations.
Previously, transnational workers originated from developed countries, but talented individuals increasingly emerge from developing nations. Strong diaspora communities from countries like India and China create robust market connections globally.
Research evidence
Research Study: OECD Investigation by Swaim and Torres (2005)
Research Questions:
- Does globalisation actually cause job losses?
- If so, to what extent?
- How should societies respond?
Key Findings:
- Globalisation does cause job losses
- Data from North America and Europe: 4% to 17% of job losses result from international trade and investment
- Job relocation creates trauma, anxiety and disruption for individuals, families, and communities
- However: Global forces weren't the sole cause - other factors included insufficient investment in technology, capital, skills, plus poor management
- Positive impact: Globalisation also creates business opportunities and generates new employment
Critical conclusion: Workers accept globalisation provided policies exist to prevent economic suffering during transitions.
Paul Swaim and Raymond Torres conducted this research for the Organisation for Economic Co-operation and Development (OECD) examining globalisation's impact on employment. The research revealed that globalisation's impact on public anxiety was considerable. Whether relocation fears are exaggerated or not, they represent genuine concerns for many workers.
Key Points to Remember:
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Globalisation creates both opportunities and challenges - while it generates economic growth and new employment in some sectors, it also causes job displacement in traditional industries
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Different skill levels face varying impacts - high-skilled and low-skilled workers maintain demand, whilst middle-skilled workers face the greatest vulnerability to outsourcing and technological replacement
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Geographical mobility becomes increasingly important - the most successful workers in a globalised economy are those able to adapt and relocate as opportunities emerge
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Policy responses matter - research suggests workers accept globalisation when adequate support systems prevent economic hardship during transitions
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Virtual work is transforming employment - internet-based platforms create global job markets that transcend national boundaries, particularly benefiting educated workers worldwide