The phenomena that is globalisation is largely defined by five (5) major flows. Whereas physical, cultural, information and media flows are generally two-way and reciprocal in nature, the flow of capital is being dictated by transnational corporations, whose foundations lie in a developed and largely westernised world. As such, it underlines how capital flows are increasingly one-way in direction, lacking in reciprocity and 'balance'.
To underline the differing nature of the flow of capital, one must only look at the rise of western products in developing and third world countries. Transnational organisations like McDonald's, Nike, Adidas, Coca-Cola and Apple are instantly recognisable and becoming more commonplace in third world and developing countries, sceptically being labelled as 'consumer colonies of America' (Hachten & Scotten, 2002). While manufacturing of these products are being transferred to developing nations where labour costs are substantially cheaper, the introduction and use of consumer goods and services from develping and third world countries on a global scale is rare. Further to this, transnational corporations are scarcely sourced outside of developed nation-states, due to inadequate infrastructure and resources.
This highlights the infiltration of consumer goods and services, particuarly the one-way nature of the flow of capital from wealthier nation states.
References:
Hatchen, WA & Scotton, JF 2002, ‘News communication for a new global system’, The world news prism: global media in an era of terrorism, 6th edn, Iowa State Press, Ames, pp. 3–14
Hi Will, I completely agree with your post about Globalisation where the flow of capital is mostly one-way. I like your use of examples that everyone would know (such as McDonald's, Coca Cola, Apple etc), as these are the main things that come to mind, when I think of Globalisation.
ReplyDeleteHowever I also find it sad that the people of these third world countries, where these products are produced, are rarely the consumers of the goods they make. Do you think that there could ever be 'balance' between developing nations and 'western' countries, in a world where Globalisation exists?
Hey, I think your first blog post was great. Your photo was a great way to back up your examples. I really liked the way you went about your blog post by integrating Transnational organisations such as McDonalds and the growingly popular Apple. Over all, a clear blog with a great mix of your original thoughts and references.
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