The Impact Of Globalization In South Africa

West Africa produces some of the highest value diamonds in the world. West Africa is comprised of many countries like Ghana, Sierra Leone, Nigeria and more. All of these countries have fallen victim of globalization. Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. Globalization affects every party, some positively and unfortunately for West Africa isn’t holding the good end of the stick. I believe globalization impacts Western Africa in a negative way there isn’t any noted benefits to West Africa exporting the most valuable thing on the land which is diamonds.

That this was also the decade in which globalization came into full swing is more than a minor inconvenience for its advocates” (Rodrick). If globalization is supposed to present an advantage to developing countries, why have there been so many setbacks? Indeed, both sides will have its winners and losers regardless of which side of the development coin they live on, but for the most part globalization has lifted millions out of poverty, improved the standard of living, and increased life expectancy rates all while keeping developed nations relatively competitive to their developing counterparts. Globalization’s value is that it seeks to create an economic equilibrium in the world, where parties are free from barriers and can benefit from one another through a more efficient allocation of resources. This allows all participating nations to contribute to an integrated economy and where all nations willing to embrace globalization have the potential to benefit. Regardless, the path to successful integration to the global economy has not always been easy. There is contention towards globalization as some argue that it is detrimental to developed nations, while many developing countries that were forced to hastily open up their markets and integrate failed. However, if implemented properly, globalization has proven that it can benefit all parties involved and that the potential gains outweigh the losses.

Globalization, a contested concept among leading theorists in its definition, chronology, and measurement of effects, is almost certainly of a multidimensional nature if such theorists’ perspectives are all taken equally into consideration. The broad phenomenon of globalization can therefore be scrutinised more closely by separation and analysis of individual dimensions, such as its political, economic, cultural and ecological dimensions. This approach, while allowing for a more focused examination of the causes and effects of globalization within a single dimension, serves to highlight the interconnectedness of each dimension. The following essay will expose the complex interconnection between the political, economic and cultural

For individuals in very poor and economically unstable countries, globalization tends to do more harm than good. Through the economic, political and cultural examples stated above, globalization has not aided these countries climb out of poverty, develop an influential government or have a strong cultural identity, in fact, it has done the exact opposite. L’Huillier quotes Charles Darwin, “if the misery of our poor be caused not by the laws of nature, but by out institution, great is our sin” (2017 381). The business model that globalization suggests is an unattainable utopia for those in developing countries. These traits of poverty and war have always existed yet, many of today’s countries are the way they are because of the models that are favored and paraded under globalization

Globalization is a phenomenon that has been impacting our world since as early as 114 BCE. Globalization refers to the assimilation of different economies, trade, and communication. Its origins can be traced back to the establishment of the Silk Road; an ancient trade route extending across from China to the Mediterranean Sea. Globalization, throughout history has had a positive effect in developing economies and creating trade. However, in light of recent events, many economists and leaders are describing it as a barrier to a utopian society. As civil servant and Nobel Peace Prize recipient Kofi Annan once said, “Globalization is a fact of life. But I believe we have underestimated its fragility” (Annan 1999). In many parts of the world, globalization

Globalization has done a tremendous disservice to those that seek to create wealth and resource equality. Globally it has created a system where as the counties with access to strong markets, copious resources, and relatively educated populations will succeed, while those countries that lag behind in categories such as those willhave a difficult time maintaining in the global economic system.

Globalization over the past twenty has become an issue in many countries. This industrialization of second and third world countries by Western Civilization creates many opportunities for the inhabitants. Not only does it expand trading markets, but also promotes productivity and efficiency; thus improving the country and integrating it into the industrial world. This process not only benefits third world counties, but also industrialized nations by allowing them to export goods to the developing world and increase their profit margin.

According to Globalization101.org, “Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.” There are countless numbers of benefits and detriments of globalization. Greater free trade, Greater movement of labour, Increased capital flows, Growth of multinational companies, Increased integration of global trade cycle, Increased communication and improved transport, effectively reducing barriers

The international and regional business cycles refer to fluctuations in the level of economic activity in the respective global and regional economy over time. SA’s high protection and corruption in the 1980s meant that the business cycle did not strongly affect it at this time. However, since SA’s trade intensity has increased (exports now account for 27% of its GDP) and its export base diversified, it has had a growing dependence on other countries. Globally, SA’s reliance on foreign funding for domestic investment meant that the GFC devastated the economy, with a -1.8% growth in GDP experienced in 2009 as opposed to 3.7% in 2008 highlighting the impact of the international business cycle on SA. Regionally, SA has taken a leading role in Africa, being a leader in the “New Partnership for Africa’s Development” program to enhance growth and development in the region, and exporting about 1/3 of its exports to

The superimposing factor that gives South Africa such an advantage over other prospective African business environments is that it possesses of a very powerful and sophisticated vantage-point geographically. South Africa is strategically located for manufacturing and exportation into several regions globally and can be an unmitigated platform for MNC’s who may be interested in a venture within this region. The important advantages include regional competitiveness, combined with reduced operational costs and a significantly prominent market access (Safrica.info, 2011).

Globalization can be defined as a system of interaction or increasing global relationships between cultures, people, and economic activities among the countries of the world. Globalization in its simpler form refers to conglomerate exchange of languages, ideas, and cultures. Behaviour or impacts of Globalization differ from country to country having a demarcation between developed countries like Britain and developing countries. Some critics allege that it has been footing down the cultural values and increasing conflicts between two nations. Globalization is a double-edged sword as it impacts and affects all generations of people, economically, politically, environmentally, and culturally. While Globalization has its benefits-millions of people around the world are now more empowered because of global interconnectedness-there are still many problems that can and already have risen from cultural and economic development around the world

South Africa has reaped the benefits of economic globalization first hand as it has emerged to become a major economic power in Africa, especially in recent years. This country has been infamously plagued by apartheid, an inhumane policy of segregation based on grounds of race, which also had economic consequences as trade sanctions were established in 1986 by the United States in response to South Africa’s policy of apartheid. However, apartheid ended in the 1990s and the South African Development Community was created in 1992 in order to promote economic development through free trade zones in other regions in Africa. South Africa also signed free trade agreements with other regions, including Europe. I am interested in analyzing South Africa from 1991 when severe trade sanctions imposed against South Africa were repealed by the United States to 2010 when South Africa became part of the esteemed BRICS countries, a major indication of global economic success. The independent variable is therefore economic globalization, stimulated by the rescinding of the punitive trade sanctions by the United States in 1991, while the dependent variable is whether South Africa has done better or worse since 1991 when it became more connected to the global economy. The indicators for the independent variable are the number of level of trade barriers, the repeal of Comprehensive Anti-Apartheid Act, openness to free trade and free trade agreements, exports, and

“Globalization is not just one impact of the new technologies that are reshaping the economies of the third millennium” (Thurow 19-31). When speaking of globalization, most people will not have a complete understanding as of what it actually means or what aspects of the world it affects. Globalization promotes free trade and creates jobs. The capital markets attract investors, resort cheap labor, and leads to job losses in some areas of higher wage. While all of this is happening, the world economy is being effected: economically, culturally, socially, and politically.

"Globalization refers to the shift toward a more integrated and interdependent world economy." [Hill, 2003: pg6] South Africa provides a unique opportunity to observe the effects of globalization in that the pre democratic period was a period of very little globalization, which can be contrasted with the democratic period which has been characterised by rapid globalization. This sharp contrast emphasises the effects that globalization has on a country.

South Africa (SA) was distant from many other major markets and production centers. This made it complex for international trade to compensate for these conditions, even though trade has expanded since 1994, mainly with the European (EU) and the United States (US). Tariff levels have declined on average, but anti-dumping duties protect key industries such as steel, where the state has long had an interest and an exclusive export agent can prevent arbitrage between export and local markets. SA’s history of import substitution and the attendant habits of business practice and government policy favored local insiders thus challenging other market entrants. This encouraged the new SA government to review the SA competition law regime in the White Paper on Reconstruction and Development in 1994. The need for a new competition policy in SA was because of excessive economic concentration and ownership, collusive practices by enterprises and the abuse of economic power by firms in dominant positions. A need for further transition emanated from the effects of globalization and trade liberalization and the need to redress past inequality and non-participation in the national economy. Thus fundamental principle of competition policy