Content area
Full Text
Globalization has become an increasingly controversial topic, and the growing number of protests around the world has focused more attention on the basic assumptions of globalization and its effects. The purpose of this literature review is to broaden the boundaries of the debate on globalization and increase our understanding of its influence beyond the economic sphere. The winners and losers resulting from globalization are identified along with empirical evidence of its impact on key areas: equality, labor, government, culture and community, and the environment. The literature indicates that globalization is an uneven process that has had both positive and negative effects. The article presents some of the arguments of various stakeholders in the globalization controversy.
Keywords: globalization; environmental sustainability; equality; labor conditions; governmental sovereignty; monoculture
The roots of globalization began to take hold in the 15th century with voyages by intrepid explorers who were funded by European monarchs seeking new trade routes. It continued throughout the years of the imperial expansion of Europe and the colonization of other lands primarily for the purpose of trade. In the mercantilist era, trading companies (such as the Hudson Bay Company and the East India Tea Company) served as surrogate colonial governments, merging trade and government. Later, trading companies were privatized, and intercontinental railways and transoceanic steamships made it possible to open previously protected markets. The global markets present in the early 20th century were disrupted by both world wars. After World War II, the World Bank and the International Monetary Fund (IMF) were founded to aid development in war-ravaged countries and lesser developed countries (LDCs). The English term globalization first made its appearance around 1960 (Waters, 1995). In 1995, the World Trade Organization (WTO) was created as a successor to the General Agreement on Tariffs and Trade (GATT) "to help trade flow smoothly, freely, fairly and predictably" (World, 2003, p. 3).' In recent years, many nations have liberalized their trade policies-removing trade barriers and focusing on exports-which further stimulated globalization.
The level of global trade increased 14-fold in the period from 1950 to 1997 (World, 2003, p. 2). In addition to increased volume, beginning in the 1970s and 1980s, a shift to foreign direct investment and technology characterized globalization. Recent growth in globalization has been facilitated...