TSA Section 2: The Definitive Guide to Section 2 of the TSA 2024

Globalisation, the process by which people and countries become more closely integrated across the planet, brings with it a number of benefits to individuals, businesses, and countries. These include the development of free trade and improvements to the mobility of labour. However, it also brings with it certain dangers, including environmental harm and exploitation of developing nations. Despite these dangers, globalisation presents more of an opportunity to nations than it does a threat.

Globalisation is generally considered to be an economic issue. The removal of barriers between nations allows for increased interaction, and opens up a truly international marketplace. Over the last century, technological developments in the fields of transport and communication have allowed for a significant increase in worldwide trade. The birth of the internet and the expansion of the aerospace industry have made the world a much more connected place, and businesses have capitalised on these advancements.

Imports and exports, once considered a rarity, are now a huge part of day to day life and consumers reap the rewards. Increased choice and lower prices are just some of the economic benefits to consumers brought about by globalisation, whilst businesses profit from access to new output markets. Nations have benefited from an increased quality of life, driven by the availability of import markets, and higher economic growth, driven by the availability of export markets.

A second economic benefit stemming from globalisation has been the increased free movement of labour. Globalisation has allowed workers to move between nations more freely, due to the removal of many existing barriers to geographical mobility of labour. This issue is a controversial one, with many citizens of developed western economies unhappy at the additional strain immigrants who fail to work place on their welfare system, but theoretically advantages all nations. Those economies with high levels of unemployment will see their workers move elsewhere for jobs, relieving the strain on the nation’s welfare system. Simultaneously, those countries which have excess jobs that need filling gain access to a vastly expanded labour market, and can use immigrants to promote the economic growth they are pursuing. This has seen to be effective in areas such as the EU, where the removal of labour mobility barriers has caused many Eastern Europeans to migrate west.

However, it is worth considering that these perceived economic benefits may come at a price for some nations. One threat of globalisation is that it makes developing economies increasingly vulnerable to exploitation from external sources. In particular, the increased access multinational corporations have to the resources of underdeveloped nations has the potential to be extremely damaging. Many struggling countries in Africa and Asia have seen increased activity from these international businesses, which are afforded the opportunity to extract resources for less than they would pay in a more established economy. This “investment” may initially seem beneficial to the nations involved, but in reality they would be better served using such resources domestically. Similarly, the global labour market may provide a “drain” which absorbs skilled workers away from the nation to take up positions abroad. These events are likely to impair the economic development of such nations, rather than provide the expected benefits of globalisation.

One further threat brought about by globalisation is that of environmental damage. As has been established, globalisation assists international capitalism through improved transport and communication links. However these links rely heavily on use of non-renewable, carbon based energy sources. Globalisation stimulates huge demand for such resources, to power everything from aeroplanes to computers, and nations suffer serious environmental damage as a result. Rising pollution levels and climate change pose real threats to the future of all countries, which if left unaddressed may result in serious international problems. It has been argued that this is not so much an issue with globalisation, but rather with the current methods of supporting globalisation. It is true that this is a threat that may be rectified in the future, but that makes it no less of a threat.

With careful consideration of all these arguments, globalisation should be seen as an opportunity for nations to benefit economically through increased trade and labour mobility. However, this does not mean that globalisation comes with no dangers. Legislators and governments must ensure that globalisation does not lead to the exploitation of developing nations, or to the exploitation of non-renewable resources, or they risk allowing globalisation to become a threat to nations.