by Naoko Ohshima
Today the word “globalization” is often said in the world. Globalization is defined as the spread of worldwide practices, relations, consciousness, and organization of social life. Globalization emerged as the result of real world concern with the dramatic transformation of globalization as well as a reaction against the earlier perspective of modernization theory. By the way, what is a profit of globalization for us? I will state about advantage and disadvantage of globalization in the following.
First, viewed in enterprises, the profit of investment in bond in foreign countries and of direct investment in local countries are increasing. These profits of investment in foreign countries are called income balance, “the balance of trade” which have made Japanese current balance in the black has remained at the same level so far. This increasing of the black income balance is connected to the increasing of the black current balance, to the increasing of foreign assets. This becomes more foreign investment, it is good circulation.
However, there is also disadvantage in enterprise point. “The hollowing out of domestic industry” is accompanied by overseas expansion of enterprise, which affects declining in domestic product causes declining in employment. Moreover, developing globally means that we will not only battle with domestic concurrent so far, but also competition with the whole world concurrent. On-the-spot business habit, difference of social system and labor law, and correspondence to customer who has different culture will be rising.
Next, I state about advantage of globalization viewed from laborer and citizen. In financial service, we can use internet and have dealings with only domestic financial institution, it become possible to invest financial assets overseas in an instant. We can invest in financial merchandise which is at high rate of interest and make a profit. Also in side of a currency exchange profit, more and more strong yen become, we can not only be blessed with advantage of Japanese yen in traveling abroad, but also declining of import goods due to the strong yen is advantage for citizen.
However, laborer’s wages decrease. It is considered to cause declining laborer’s ability to negotiate due to globalization and intensive industrial capital and technical skill due to IT. Moreover, gap between laborer who has skill and not skill will expand in domestic. In case of Japanese laborer and the general public who go abroad, it is general to speak English as a universal language, so it may be most difficult to communicate with the local people. And also in foreign countries, we need deal with local culture and society, so it may be difficult to come under local society if you have the domestic way of thinking and living thus far.
In conclusion, to consider globalization, we think of globalization of industrial organization. However, if globalization of product, commodity and skill which are accompanied by corporate activity headed, globalization of laborer and financial service, it will become great challenge to Japan from now on.