Globalization implies the opening of local and
nationalistic perspectives to a broader outlook of an
interconnected and interdependent world
with free transfer of capital, goods,
and services across national frontiers.
"Never doubt that a small group of thoughtful,
committed citizens can change the world; indeed,
it's the only thing that ever has"
Global citizenship is the idea that we are all
citizens of the globe.
The idea of globalization may be simplified by
identifying several key characteristics:
Improved Technology in Transportation and
Movement of People and Capital
Diffusion of Knowledge
The ever-increasing capacity and efficiency of how
people and things move and communicate.
A general increase in awareness, opportunity, and
transportation technology has allowed for people to
move about the world.
When a new invention or way of doing something pops
up, it does not stay secret for long.
Stroll into your local Starbucks and you
will find yourself part of a cultural
experiment on a scale never seen before on
this planet. In less than half a century,
the coffee chain has grown from a single
outlet in Seattle to nearly 20,000 shops in
around 60 countries. Each year, its near
identical stores serve cups of near identical
coffee in near identical cups to hundreds of
thousands of people.
Our world has become so quickly global and is not
slowing down. The impact of international business is
invading each part of our daily lives.
We can text someone instantly and get a response back
from Russia immediately. We can call someone over
Skype in India and talk for free on our computer for
as long as we want.
Once you start up a new business, you plunge into an
ocean populated by a few smaller fish, which compete with you
for food, and lots of bigger ones, eager to eat you alive.
Factors affecting the impact of Globalization on small business:
The destruction of local businesses leads to the loss of
local culture, and the rise of a singular anonymous corporate
culture which only varies slightly from country to country.
Visiting China today, the urban landscape is littered
with KFCs, Pizza Huts, McDonald’s and Starbucks. A trip to a
Chinese department store is virtually identical to one in America.
There was a time, decades ago, that “Made in the
U.S.A” meant well-made products that you could
be patriotically proud of. Today, “Made in the
U.S.A” usually means paying high labor costs.
In an all-out war against the big guys, the enemy
of your enemy is your best friend.
“Impacts Of Globalization”
Positive Aspects Negative Aspects
Greater access to foreign
Wider choice of goods &
Global awareness of issues.
Encourages creativity &
Increasing unemployment .
Western focus is applied to
non western situation.
Concentration of wealth.
There is a sizeable degree of opinions that determine
that the economic growth is an essential ingredient of
Ultimately, the goal is to better understand why the
economic policies of Pakistan did not bring it all the
promises of a globalized economy.
Pakistan in the decades following its independence
was a country that spent more than it can afford…
“IMF & World Bank”
As part of Structural Adjustment Programs of the
economy in the 1990’s the successive governments of
Pakistan liberalized trade.
As a result the tariff rate dropped from 225 percent in
1990-1 to 25 percent in 2005-6.
The government replaced non-tariff barriers on imports.
Negative impact on domestic products:
Reducing the tariffs brought the prices down of the
consumer goods and this had a negative impact on the
domestic producers in rural areas.
During the mid 1990’s unemployment in the urban
areas remained higher than rural area. Not surprisingly
higher unemployment led to higher rates of poverty.
Poverty is defined as an individual’s ability to obtain
2250 calories daily.
1987-8 (17.32 percent).
1990-91 (22.11 percent).
1998-99 (32.60 percent).
The high rates of poverty led to lack of nutrition, which
leads to vulnerability to infectious diseases.
1 out of 3 children in Pakistan is suffering from stunned
growth, while the same amount of adults were suffering
Pakistan has had the following problems haunt its
High illiteracy rate, especially among women.
Poor quality of learning and instruction.
High level of teacher absenteeism and “Ghost” schools.
Not only is the education system very poor, but there is
also gender inequality.
There is a vicious cycle that needs to be changed and
main part of that is a better economic policy.
The lowering of the trade tariffs was led to lower revenue and
this was even worst for the economy in which after all the efforts
to increase FDI failed, causing even more hardship.
Pakistan’s inability to recognize the vulnerable society which led
to an increase in poverty.
In order for a government to have sustainable human
development it needs to invest in health.
Finally, the government should place priority on education,
because that is one of the key elements of human development.
Ultimately, the economic policies of Pakistan did not
bring it all the promises of a globalized economy.