Globalization and the Free Trade –

The time period globalization was first entered the English dictionary in 1961 (Webster[1], 1961: 1965; Schreiter[2], 1997). Economists, geographers, journalists and different teachers and professionals picked up the idea later throughout the 1980s. However, the concept of globalization nonetheless tends to stay laborious to outline, As Anthony Giddens noticed, “there are few terms that we use so often, but which are in fact as inadequately conceptualized as globalization” (Giddens[3], 1996). Persian audio system make a political assertion of their selection between the phrases Jahanisasi and Jahanishodan. The first phrase, ‘making global’ is related to a US-led imperialist plan, whereas the second, ‘becoming global’, embraces connotations of an open course of that may be formed in varied future instructions (Scholte, 2005)[4]. However, as there’s no common acceptable definition accessible, it appears to be like like most frequently, it’s described quite than outlined. Some individuals see globalization as internationalization and progress of enterprise transaction between nations and describe this simply as an intensified type of worldwide commerce. In that sense, advocates imagine it brings constructive advantages for customers, serving to to extend selection, drive down costs, enhance companies and generate extra jobs and alternatives. But the opponents to internationalization blame this intensified type of worldwide commerce for altering the behaviour of customers and making a mass consumption and in consequence, altering the ecosystem and inflicting environmental catastrophe. As an advocate for globalization, I’ve to say it’s after all right that in current years, the consumption in developed nations has elevated. In my opinion, that’s not purely reason for globalization, however is extra possible as a consequence of mis-training and the flawed cultural notion. Even the environmental degradation is most certainly brought on by industrialization quite than globalization.[5]


However, some see globalization as a liberalization of a strategy of eradicating authoritatively-imposed controls on actions of assets between nations as a way to open the economies and societies round the world[6]. With this view, the individuals have extra freedom to selected the place they need to be or work and once more, globalization offers extra alternative. Therefore, it may be seen as a constructive pressure for change that has the potential to boost dwelling requirements and drive economies ahead. At the identical time, it offers extra cultural range and provides individuals an opportunity to create higher understanding about different cultures. It may trigger individuals to get nearer to one another and cut back the threat of wars in addition to promote democracy.


It’s essential to notice, although, that there are some individuals against globalization who outline it as universalization and describe it as a strategy of standardization and homogenization with world cultural, financial, authorized and political convergence[7]. For instance, some economists have even reviewed globalization by way of the diploma to which costs for explicit items and companies turn out to be the identical throughout nations (Bradford and Lawrence[8], 2004). This is an entire misinterpretation of globalization because it doesn’t even have something to do with universalization. By getting access to different cultures, private free will and understanding how different individuals work doesn’t routinely equal universalization and the strategy of shedding of your personal private id and tradition. On the different hand, we will ask ourselves: is there any tradition in the world that has been unchanged via time? Should we cease studying and preserve ourselves in isolation simply because we don’t want adjustments?


Some critics of globalization imagine as the IMF, the WB and the WTO and usually, that wealthier western nations are largely influential in the course of the globalization growth[9]. They are additionally seen as the motivating forces behind the coverage reforms that the creating nations needed to implement as a part of their structural adjustment packages below the supervision of the IMF, the World Bank and the WTO[10]. Therefore, this group believes that it’s apparent that these nations and organizations will solely promote their very own pursuits, so that they assume globalization is the intensive coverage of the industrial western world, significantly of the multinational companies, to take care of their curiosity and encourage a brand new type of colonization; this group defines globalization as westernization.  I can’t deny that there’s some true in the assertion above; nevertheless as extra and extra creating nations are making use of for membership in these group, they’ll be capable of affect its coverage and form this course of to profit their growth wants. As the head of Iran’s National Center for Research on Globalization[11] says, Tehran ought to prioritize becoming a member of the World Trade Organization to advertise their values and pursuits and at the identical time, profit from the constructive growth and the alternatives to draw extra international direct funding.[12]


As most opponents and conditional advocates of globalization are important to its impact on environmental degradation and different social values that are essential to creating societies, they point out that globalization advocates solely focus on its constructive impact on an financial system and ignore different damaging results. I’ve to agree that the financial coverage will not be solely the core human and social values, and as even the Iranian Constitution has mentioned, the financial system is a way, not an finish,. But the financial system has not been the solely pressure behind globalization both. Globalization is a social scientific phenomenon and the main drawback it was supposed to resolve was financial, and as most governments have engaged in globalization growth insurance policies pushed by the concept of financial progress to furnish all residents with equal and acceptable alternatives. It can be meant to supply them with work, and to fulfill their important wants, in order that the course of their progress could also be assured. This is usually a good place to begin adopted by the pursuit of different essential issues corresponding to cultural promotion, ecological care, democracy, peace and and many others.


But does the globalization and financial progress assist humanity to realize or enhance our values corresponding to ecological care, democracy and peace? To reply this query, we will outline and describe every of these parts individually in particulars that are clearly past the area and scope of this case examine. As everyone knows, financial inequality and poverty has been the foundation of most human conflicts.  Paul Hirst[13] believes that environmental crises will trigger a scarcity of assets, uncooked supplies, water, dry land and power, which is able to produce competing claims for assets, and turn out to be the principal cause for future conflicts and wars. But even with out any social research and analysis that has been carried out on the results of globalization on the atmosphere, democracy and peace, we will actually declare that globalization and financial progress will assist and has helped to enhance the way of life and so lots of these values which might be very important to us. And though the discourse on globalization and sustainable growth will not be homogeneous, most individuals will agree that it is going to be simpler to beat future international challenges with worldwide cooperation quite than segregation, it doesn’t matter what the challenges shall be. However as the intention of my examine is to analyze the globalization impacts on SMEs and focus primarily on macro economical results, for the simplicity’s sake, every time I exploit the time period globalization in my examine, I consult with the broadly accepted Hollensen[14] definition that globalization “reflects the trend of firms buying, developing, producing, selling and distributing products and services in most countries and regions of the world” as a way to create aggressive benefit and improve their market share.

Extracted from the paper: Iranian Government Globalization Policy Impacts on SMEs and the Corresponding Effect on Iranian-Swedish Trade


[1] Webster (1961) Third New International Dictionary of the English Language Unabridged. Springfield, MA; Merriam

[2] Schreiter, R. J. (1997) The New Catholicity: Theology between the Global and the Local. Maryknoll, NY; Orbis Books

[3] Giddens, A. (1996) On Globalization, excerpts from a keynote handle at UNRISD Conference on globalization and citizenship, 1 Dec 1996.

[4] Jan Aart Scholte, 2005, Globalization a important introduction, Palgrave Macmillan, 2nd version

[5] Wild J, Wild, Okay and Han J: International Business – the challenges of globalization, Prentice

[6] Jan Aart Scholte, 2005, Globalization a important introduction, Palgrave Macmillan, 2nd version

[7] Ibid

[8] Bradford, S. and R. Z. Lawrence (2004) has globalization gone far sufficient? The prices of fragmented markets. Washington, DC; Institute for International Economics.

[9] America Vera-Zavala (2001) international justice is feasible, Pocky

[10] Ibid

[11] Esfandiar Rahim-Mashaei the former head of Iran’s National Center for Research on Globalization

[12] Jan 2008

[13] Hirst, P. (2007) War and energy in the 21st century, Polity Press

[14] Hollensen S. Global advertising and marketing, fourth version 2007, Pearson Education Limited

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