Globalisation world by the increased use of the

Globalisation is the process by which economies, industries and cultures have become interconnected around the world by the increased use of the global network of trade, communication, immigration and transportation (The Financial Times). National and regional business have moved to a more global level. Stakeholders, such as employees and communities within which business operate (Business Dictionary), are all affected by the business organisation and hence globalisation. Globalisation has enabled businesses to have the power over other stakeholders such as its employees. I will argue this point in my essay, by exploring the economical, social and environmental factors. I will critically assess how globalisation has resulted in an economic growth by the liberalisation of trade and its impacts on developing countries. I will analyse how employment rights are affected by globalisation. Also, the impacts on climate change by trade liberalisation.International trade increases the growth of economies of countries. The International Monetary Funds (IMF), The World Bank, and the World Trade Organisation (WTO), are the major transnational institutions that support the global economic activity (Cairns and S?liwa, 2008). These international institutions were introduced by the Bretton Woods conferences and in 1995 WTO was the successor of GATT (General Agreement on Tariffs and Trade) (Steger, 2009). Liberalisation of trade is believed to be beneficial for all countries, including the poor countries (Cairns and S?liwa, 2008). Free trade is meant to lead countries to their development, however problems were seen with this idea (Cairns and S?liwa, 2008). An example of this is when Mexican farmers were paid half the amount for their maize, when Mexico opened its market for US exports (Cairns and S?liwa, 2008). This shows that liberalisation of trade has only benefited the richer countries but not the developing countries (Cairns and S?liwa, 2008). Trade liberalisation has also had a significant effect on the availability of resources. Economic growth is dependent on increased GDP, which means there’s a need to use more natural resources (Cairns and S?liwa, 2008). This exploitation of finite natural resources leads to loss of natural habitats of species and global warming (Cairns and S?liwa, 2008). This shows how globalisation has opened doors for liberalisation of trade, which has been beneficial for richer countries like the US for its economy, but has also had a negative impact on developing countries like Mexico. In this context, farmers in poorer countries can be seen as stakeholders, who are affected by the trade business in richer countries. These farmers are paid less and so they face a lower standard of living. Globalisation has also impacted the environment to some extent, which will be considered later on.Globalisation has led business to work at a more global level. Giant businesses would have their main core business in high income countries (Nolan, 2012). Giant Firms would build factories and more firms in other parts of the world to increase profits. This would benefit countries as more jobs would be created for the locals. This also means that giant firms can save on labour costs if they outsource their work to countries where labour is cheap (Bonacich and Wilson, 2008). Giant firms would not have to consider employment rights in poorer countries as workers here would mostly be looking for a job for survival. Giant firms can also hire other smaller firms in other countries to work for them. If employees in these smaller firms ask for their right such as better working condition or increased pay, than the giant firm can simply choose to drop that smaller firm and go to another one (Bonacich and Wilson, 2008). This puts pressure on employees to work in any given conditions so employment rights are usually neglected in poorer countries because of the giant firms. Unions are also avoided by these smaller firms as it can afford them to lose their contract with the giant firms, because this would establish employment rights which would increase costs for the giant firm (Bonacich and Wilson, 2008). This shows how employment rights are not considered in poorer countries as contracts can be lost from giant firms which can cause unemployment. It suggests how globalisation has led business in high income countries to have empowerment over stakeholders in poorer countries. Globalisation has led countries to work in different ways. The contemporary world can be categorised into two varieties of capitalism, namely Liberal Market Economies (LMEs) and Coordinated Market Economies (CMEs) (Dicken, 2011). These both are fairly distinct from each other. LMEs have limited relations between employer and employees. It is fairly easy to hire and fire workers which doesn’t provide a long-term employment within one job (Hall and Soskice, 2001). There’s investment in general skills and there’s limited roles of unions (Hall and Soskice, 2001). In CMEs, on the other hand, there is specific vocational training with strong relations between the employers and employees. There are more roles for unions and usually long-term employment within jobs (Hall and Soskice, 2001). In overall, LMEs are mostly English-speaking countries such as the USA, UK, Canada, Australia and New Zealand (Hall and Soskice, 2001, cited in Guy, 2009, p. 155). CMEs include Germany, Austria, Switzerland, Italy, Sweden and some more countries (Guy, 2009). In terms of employment rights, workers in CMEs have more rights than in LMEs. In LMEs, if workers lose their job then income from unemployment insurance is fairly supportable (Guy, 2009). In LMEs, employment contracts are mostly based on ’employment at will’ (Guy, 2009), so it is easier to lose jobs. CMEs have stronger employment protection. They have trade unions that protect employment rights and have legal constraints on the actions of employers such as payments for the dismissal of workers (Guy, 2009). CMEs also provide better unemployment benefits than LMEs (Guy, 2009). This implies how employment rights for employees as stakeholders in businesses are different in CMEs and LMEs.Globalisation has also had a great impact on the environment. As mentioned before, to drive economic growth, free trade has meant that there is increased production and distribution of goods. This means there is more usage of different modes of transportation, which involves the burning of fossil fuels (Malm and Hornborg, 2014). Fossil fuel burning produces greenhouse gases such as carbon dioxide (Crutzen, 2012). Greenhouse gases contribute towards global warming which has led to climate change. According to the Intergovernmental Panel on Climate Change (IPCC), the Earth will warm by 1.4-5.8 ? during this century (Crutzen, 2012). Global warming leads to the Earth getting warmer which has drastic effects on the environment. An example of this is the melting of ice caps in the arctic which leads to the rising sea level which can result in low lying countries like Bangladesh to flood. Energy usage has also grown causing 160 million tonnes of atmospheric SO2 emissions (Crutzen, 2012). This implies how globalisation has caused an increased energy consumption which can potentially be harmful to humans in the long term. In this context, people living on Earth can be considered to be stakeholders as they can be affected indirectly by businesses that work globally.In conclusion, globalisation has caused many significant changes. The liberalisation of trade has had its benefits of helping the economy of countries. There has been a negative impact of this as well, such as the exploitation of cheap workers in developing countries to reduce labour costs. Employment rights differ in different countries, but in overall employees are not given much right in developing countries due to their poorer conditions. CMEs are also seen to have more employment rights for its employees than in LMEs. Trade liberalisation has impacted the environment as it has resulted in carbon dioxide emissions which is causing global warming and hence climate change. So overall, globalisation has given business the opportunity to work globally which has impacted stakeholders such as its employees. It has also impacted the people globally because of its effects on the environment.