Part 11 – Pros and cons of globalisation

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Part 11 – Pros and cons of globalisation


Clip
Anti-globalisation protest (actuality)

Gary: “Anti-globalisation” protestors take to the streets to make their feelings known.

Clip
News story

Gary: “Globalisation” is a buzzword in our news bulletins, though according to some
commentators, it’s by no means a new phenomenon. Mark Gregory is the BBC
World Service Business Correspondent. I’ve been speaking to him about
globalisation, and I asked him first for his definition of the term.

Clip Mark Gregory, BBC World Service Business Correspondent
Well, “globalisation” has become a kind of catch-all phrase that’s used to describe a process of
seemingly ever-greater economic integration – a process in which economic events in one
place pretty soon have huge implications almost everywhere else. So there’s lots of different


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aspects to it. From the consumers’ point of view, increasingly people think in terms of global
brands: NIKE sells its “Sneakers” throughout the world, Coca-cola is bought in many different
countries of the world. That’s one aspect of it. Then, of course, there’s the sort of … the
economists are focused on things like the enormously increased volumes of international trade.
And many commentators associate that with this nebulous process of globalisation. And then,
of course, there’s just the increasing pace of technological change – the fact that using modern
communications via the internet you have instant communications everywhere; and, of course,
using jet travel, you can travel from one place to another all over the world. So, increasingly,
what happens in one place seems to affect almost everywhere else … and that’s what’s clubbed
together as “globalisation”.

Gary: Technological developments have made communication and travel much easier,
so that the world seems to be a smaller place. This has resulted, for example, in
greater international trade and foreign investment, both of which are signs, or
manifestations of what the experts call “globalisation”.
There are also cultural aspects of the globalisation process – such as the
increasing use of English and the appearance of similar (often American)
products in different parts of the world.
Mark Gregory again.

Clip Mark Gregory, BBC World Service Business Correspondent
The manifestations include global companies, the names that everybody’s heard of: Sony,
Microsoft, IBM. And also the fact that you’ve got common brands that are on sale in many
different parts of the world. You’ve got global financial institutions: the IMF, the World Bank
and so forth. You have global financial markets.



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Gary: So if we look at all those things which you’re lumping together and calling
“globalisation”, can we start to unpick, perhaps, the reasons, the causes, for those things
happening?

Mark: Well, it’s partly technology … the fact that transport is so much quicker than it used to
be, the fact that we have the internet, that kind of thing. There’s also the growth of global
financial institutions – the World Bank, the International Monetary Fund, the growth of global
financial markets, the growth of global companies – huge, enormous companies. So,
increasingly, it makes sense to talk in terms of … well, it’s ridiculous to say that everything is
“globalised”, but that the boundaries, the economic barriers between countries have broken
down. And so … many companies and much of the economy works on a … has a global
perspective.

Gary: So, we’re saying that technology is one of the reasons behind globalisation. What about
trade agreements, what role have they played?

Mark: Well, a lot of people have placed enormous emphasis on the move towards the
liberalisation of trade. And this is through institutional things in the last half a century or so,
since the first of the General Agreements on Tariff and Trade, we’ve had the bringing down of
tariff barriers between countries.

Gary: So what are some of the benefits of this new world we’re living in?

Mark: Well, the theoretical benefits are that, if you have globalisation with all those things that
we’ve been talking about, you have greater efficiency and thus greater wealth - and that in


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some cases, some poor countries have lifted themselves out of poverty because of their access
to global markets. And those people would say that people are a lot better off and a lot better
educated in China than they were fifteen years ago, because of that country’s phenomenal
economic growth. And that’s been tied in to the fact that China’s involved in international
trade. And countries like South Korea and Japan grew in the same way before it. So, there
have been some definite winners and it’s, if you like, globalisation provides a forum in which
opportunities for many people and many countries are greatly increased.

Gary: But if there are winners, are there losers as well?

Mark: Of course, a lot of people would say that these impacts have not only been positive,
some have been negative; and that the process of globalisation is a process in which, if you
like, some countries win and others lose. So that, for example, if you’ve got very cheap labour
like China, you expand enormously in areas that involve cheap labour, to the detriment of other
countries which have got quite cheap labour. And yet if you’ve got very good technology like
Japan, say, you do very well, which means that there are also losers: other people who don’t
have quite such good technology as Japan who’ve lost out. And a lot of people say, well,
that’s actually negative. And, of course, globalisation is often is associated with the growth of
Global Corporations, in which there are fewer restrictions on what they can do. Some people
say this is good, and others say well, there are many problems with it.

Gary: Finally then, Mark, as a journalist, when you’re reporting news stories about
globalisation, are there any particular language issues to bear in mind?




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Mark: Yes, the war against multi-syllable words, I think. “Globalisation” that in itself has got
quite a few little syllables – my maths isn’t good enough to work out how many it is. And
then, of course, you’ve got “multi-lateralism” – that’s the process in which lots of countries are
involved, as opposed to “bi-lateralism” – the process in which just two countries are involved.
Lots of syllables, and lots of jargon floating around. So to try and avoid some of that is, if you
like, a kind of constant war. On the one hand, people have to know … to understand the
jargon; but where possible, you have to avoid it. Also, jargon changes over time. We used to
have “multinational companies”. Now the buzzword is “transnational companies”. And the
reason for that is, of course, is that now people think of companies as so multinational that
they don’t belong in lots of different countries, they kind of belong across – hence the word
“trans”. We live in a world in which events in one place have enormous ramifications for
almost everywhere else. So, if you like, you’ve got to be able to tease out what those are.
And the fact that we now live in such a complicated place, there’s a lot, if you like, of
reporting required just to explain: well, how has the world changed? and to explain it in such a
way that it makes sense.


Gary: One manifestation of globalisation is the spread of similar products around the
world. These include well-known brands such as Coca-Cola and Nike … and -
with a slogan “One World: One Taste” - the American fast-food chain
McDonald’s. There are 30, 000 restaurants in more than 120 countries, and
McDonald’s has become a symbol of the American way of life. But it seems
that food tastes in the United States may be beginning to change … Research
shows that people are eating fewer burgers and hot dogs and trying to eat
healthier food. Our reporter Rob Watson has been finding out more, and we
meet him first at a drive-thru burger restaurant in Washington DC.



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Clip - Rob Watson's recording in Washington
[full transcript is not available]

Gary: In the United States millions of hamburgers are sold every day. For many
Americans this is the national dish.

Clip - Rob Watson's recording in Washington
[full transcript is not available]

Gary: But there are new rivals on the scene.

Clip - Rob Watson's recording in Washington
[full transcript is not available]

Gary: At Chipotle’s in downtown Washington, for example, they’re selling fresh
Mexican food – burritos stuffed with beans and rice. Actually, this chain is
owned by McDonalds as well. Perhaps it’s part of their response to the
growing demand for a healthy diet.

Clip - Rob Watson's recording in Washington
[full transcript is not available]




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Gary: If one of the features of globalisation is that what happens today in America
happens in the rest of the world tomorrow, then there may soon be a new chain
of restaurants alongside your local McDonalds. But are eating habits really
changing? Here’s a final word from Michael Sansolo, senior vice president of
education and research for the Food Marketing Institute.

Clip - Michael Sansolo
[full transcript is not available]