Globalisation and the Nation-State

Emerging terra firmas such as China and India aim also releaseed companies to reduce production costs and target wider developing consumers. With these opport unit of measurementies and with some(prenominal) of the other opportunities surrounding ball-shapedization stintings now look at the de make outry on a lobar scale as oppose to a home(a) scale which has led to conflicting perspectives on the hold of the nation-state.As early as 1969 economics such as Charles Kindergrtner sparked the perspective that the nation state Is Just about by as an economic unit (Eagleburger 1969 207) The following essay go out look at globalisation in terms of the economy and look at two of these businesses veritablely direct globally to see if the role of the individualist nation-state government remains springy despite the trend towards globalization. Firstly whiz must define what libations rattling Is and what type of organizations qualifies as a global company.Researchers suggest that globalization is unrivalled of the most mis utilise and one of the most confused words about today (Dickens, 2007). globalization is a widely used term that has no simple definition Instead researchers suggest that the word has become a convenient summary term used by umteen to bundle unitedly virtually all the goods and bad facing contemporary societies (Dickens, 2007). There is one definition that most globalizes will agree upon and thats that it is a process by which the experience of e very(prenominal)day life, marked by the diffusion of commodities and Ideas, Is becoming interchangeable nearly the human being. In terms of the economic globalization that essay will be concentrating on, Globalization Is a level of economic activity that has outgrown national markets through industrial combinations and commercial groupings that cross national frontiers, and international agreements that allow businesses to operate world-widely (Hirsh, 1996) Lloyd TTS Is one company th at can be defined as a global organization. Lloyd TTS Is an International bank thats part of Lloyd banking group. Its interrogation office is in London and it originated in 1745 as a private banking service with one single office in Birmingham.In the 1 answer Lloyd began to expand offices through Europe, India and South America. In the late sasss Lloyd acquired other International businesses and soon had hundreds of offices in over 50 divers(prenominal) countries. McDonalds is a prompt victuals restaurant. It was formed in 1948 in California and is currently the largest extravagant food restaurant In the world. It currently has 31,000 restaurants in 118 countries. Macdonald has become global as more than 75% of McDonalds restaurants relied argon owned as a franchise.Both companies are large global companies that are as successful as they are as they view the world as one get and not in terms of nation-state governments. Although both companies are similar In the sense that they operate globally they are both very various organizations. Lloyd TTS began in the UK and have bought other companies and diversified to gain its global recognition. McDonalds however, 1 OFF operates In ten T sector Ana stall masculine operates alertly In ten A It galena global standing by franchising the brand and the products across the worldThere are also other key differences mingled with the companies. As well as operational in different economic sectors, Researchers suggest that although both organizations operate as transnational organizations their global trading operations are completely different. Lloyd TTS is a global organization as its oversea operations are de hold upry of the akin service to Just different consumers, whilst the same researchers would describe McDonalds as a Multinational Organization as it views much of its overseas operations as a portfolio of independently run businesses (Bartlett, 2000)On both Lloyd TTS and McDonalds thither are major i nfluences affecting them as they operate in the globalizes economy. Globalization and international companies arriving in individual national-states have always been met with a diverseness of positive and negative opinions due to the instant challenge it brings to the uses and the very organism of the nation-state. There are currently 194 individual nation-states in the world (Rosenberg, 2009). separately state has its own common culture and has its own way of administration its state.With new technologies, transportation and communications and the fact that organizations are now creating a standardized way of living it can be assumed that the agency and control once held by the nation-state is being severely reduced. Due to the claims by theorists such as Kindergrtner (1969) there has been much debate sparked into the existence of the nation-state and the uses of globalization. In the globalization debate there are three conflicting perspectives on the uses of the nation-state. The first perspective is that of the Hyper-Globalizes, who argue that we live in a borderless world and the nation- state is no longer relevant. The Hyper- Globalizes view globalization as a new development and suggest that the worlds cultures and experiences are becoming homogeneous through standardized global products. The second opinion is the Skeptical Internationalists who accept that globalization exists however believe that its not new and the grounding globalizes who believe that duodecimal consider is Just as important as qualitative date in the debate.According to Dickens (2007IPPP) the roles of the nation-state in the contemporary global economy has tetrad key roles containers of institutions and cultures, regulators of economic activities, competitors with other states and elaborators with other states and when globalization intrudes these roles its often met with a degree of negativity Lloyd TTS and McDonalds are diversifying into these individual nation-states and a s a closure are sometimes met with this negativity and political concern targeted towards the hyper-globalizes perspective.These companies and most of the companies that are isolating are often from Western dominated economies and arrive with westward abide bys and cultural takes. Hilton (1998) suggests that one of the main negative impacts on these organizations and libations in general is that they are incorporating third world and developing economies into the global economy only as passive consumers of standardized products and nothing more suggesting that although these companies are operating globally the economic wealth and growth still lives within its overlord national economy which widens the gap between the rich and poor countries.Omaha (1995) considers the standardization of culture as a negative impact on globalization. These Uninominal nation-states Tanat companies same(p) Lloyd Dank Ana c an ass are penetrating have individual cultural values and beliefs. Both companies are bringing their Western cultural values into these individual nations and creating a standardized culture within. McDonalds for example has a very western cultural style to its food, items on its menu such as French fries and hamburgers are very much western orientated foods.The very way in which McDonalds delivers its food in fast food restaurants, through American style diners and drive troughs again reflect the western cultural values which are now being adapted and standardized around the world. Omaha (1995) suggests that these changes can be seen as negative impacts and are seen as a challenge to the importance and use of a nation-state if the world is starting to live in a standardized way.There are umteen negative opinions in the role of the nation-state debate and evidence to suggest that we are beginning to live in a homogeneity environment however, there have been many recent events that have shown that despite the trend to globalization the nation-state i s still snappy and that we do not live in a homogeneity world. oneness recent event thats affected nearly everyone is the global recession or the Credit Crunch the world is currently experiencing.The Credit Crunch can be defined as a severe shortage of money or reliance (BBC, BBC NEWS, 2009) and is caused by banks not lending out money. Lloyd TTS is one of many financial institutions affected in the credit crunch due to the very nature of the business and the fact that deregulation in the global financial economy allowed banks to lend money in insecure lax borrowers, especially in the American mortgage economy Where billions of dollars was invested into mortgages made available to sub-prime borrowers ( hoi polloi with bad credit rating, no Jobs, no repayment amounts) at a low interest rate.When interest rates started to increase people began to default on borrowings which meant the value of these enthronizations plummeted expirying in huge losses for banks globally (Badmouth, 2009), including Lloyd TTS. As a result of this lax lending Lloyd and many other global banks were forced to create verbally off millions of pounds of debts. Lloyd were left 250 million short (BBC 2007) which left them at a huge loss and unconfined to lend out more money. As a result of the financial difficulties Lloyd were forced to make over two one thousand people redundant and were left to turn to the nation-state for help.In terms of the nation-sate debate its unmistakable in economic downturns such as the global credit crunch and the current recession the nation-state is vital for companies such as Lloyd to survive. The British government used tax-payers funds to bail out the bank by supplying them with over a billion pounds worth of investment. McDonalds, operating in a completely different economic sector completely survived the economic downturn as people looked to them for a cheap source of food and drink.McDonalds made a mesh through the economic downturn and look set to do the same this year (McDonalds. Com 2009). Further to the debate that we do not live in a homogeneity world is the fact that states regulate trade, foreign investment and industry and each state takes an individual stance on how they do this. Policies towards imports and exports are individual in every state and McDonalds and Lloyd TTS have to stick with with these policies in each individual state.