Why do we live in a Globalised world?

The world we live in is an increasingly interconnected one, so much so that most of our clothes, our food, our toiletries have all been manufactured in one country and sold in the other. Furthermore, Globalisation describes a process by which national and regional economies, societies, and cultures have become integrated through the global network of trade, communication, immigration and transportation. In fact, Many historians believe that the first wave of globalisation began with the gold standard in the 1800s, through the induction of a gold trade throughout Europe and newly founded America. However, symbiotic with its worldly reach on our planet comes a plethora of issues and complications.

Although brands such as the likes of TOM’S have successfully managed to globalise in a sustainable fashion, through their Provision of  shoes, medical and mental treatment for underdeveloped and their implementation of  ‘Giving Tuesdays’ - which is when the corporation invests in anti-racism for employees and provide money for employees to give to organisations that they are part of and they use sustainable materials and were given the highest score for their Environmental Report of all other shoe companies. Many other multinational corporations such as Victoria Secret have failed to do so, so much so it is almost admirable. Facing multiple claims of extensive child labour and formaldehyde lawsuits, the lingerie brand is also known to abstain from revealing their manufacturers and the labour codes of their workers, most notably their poorest ones. In fact, some experts estimate that Victoria Secret workers may be working up to 14 hour days, forced.

Of course the use of sweatshops and labour abuse are some of the primary ethical concerns to do with globalisation, as multinationals such as Nike and Mcdonalds were given the opportunity to be global brands. As a result, the drive for annual increases in sales and profit lead to exploiting new markets as this provides opportunities for ethical concerns to be part of multinational strategies. Another key factor of globalisation is its benefit for trade and tariffs. In the 1920s countries protected their own industry by placing taxes on imported goods of up to 23% of the price. Likewise, by the year 2000 tariffs were largely eliminated or imposed at a maximum of 4% of value. Where trade occurs, poorer countries can enjoy growth and development through the implementation of schemes such as FDI. This is thus aided by the development of technology, as telecommunications and microprocessors have infiltrated today’s market. The construction of the internet has opened up countless doors for new innovative ideas, such as online shopping and through transport technology such as air freight and container ships we are able to have faster transactions and thus faster growth, leading to an increase of exports for that specific country. It is also important to note, technology allows consumers to find out and decide whether practices are morally acceptable and delve into their own research concerning business ethics.

Vietnam's embrace of globalisation has driven economic reforms, transitioning to a socialist market economy.The inflow of FDI from companies such as LG and Samsung has surged, catalysed by low labour costs, increasingly improved infrastructure, and a skilled workforce. With a deregulated business environment and a managed floating exchange rate, its transformation from low to low-middle income status in just two decades showcases globalisation's role in successful development.

In conclusion, Globalisation is the beholder of many risks and positives symbiotically. Along with the induction of foreign investment and new flows of income, there is also the strong possibility of exploitative labour and environmental costs. However, without globalisation our modern world would look utterly dystopian, completely different to the world we know and love today

By Aurore Lebrun

Edited by Annika Bjerregaard and Aurore Lebrun