11/12/2016

BREXITandGlobalization

SubscribetoBlogviaEmail
forumias.com/portal/brexitandglobalization/

11/13/2016
Download!ForumIASMainsMarathonAugust+SeptemberCompilation>
WehavereleasedtheMainsMarathonAugust+SeptemberCompilation!DownloadLinks:August|September|
October

Context:
Britainsexit(akaBREXIT)fromEuropeanUnionhassparkedadebatecenteredonglobalization.
Globalization:
Globalizationisaprocessofinteractionandintegrationamongthepeople,companies,andgovernmentsof
differentnations,aprocessdrivenbyinternationaltradeandinvestmentandaidedbyinformationtechnology.
Globalizationhasbeengoingonforcenturies.
Whathasmadeituniqueinrecenttimesisthespeedofthemovement.
1.Proponentsofglobalizationarguethatitallowspoorcountriesandtheircitizenstodevelopeconomicallyand
raisetheirstandardsofliving.
2.Opponentsofglobalizationclaimthatthecreationofanunfetteredinternationalfreemarkethasbenefited
http://forumias.com/portal/brexitandglobalization/

1/3

11/12/2016

BREXITandGlobalization

multinationalcorporationsintheWesternworldattheexpenseoflocalenterprises,localcultures,andcommon
people.
3.Resistancetoglobalizationhasthereforetakenshapebothatapopularandatagovernmentallevelas
peopleandgovernmentstrytomanagetheflowofcapital,labor,goods,andideasthatconstitutethecurrent
waveofglobalization.
DidBritishpeoplevoteagainstglobalization?
No!BecauseBritainhasbenefittedgreatlyfromGlobalizationthroughfreetrade.Inbothdemographicand
geographicterms,Britainisasmallcountry.Itisnotthesizeofthedomesticmarketthathasdeterminedits
growth.
Moreover,evenafterBREXIT,Britaincantchoosetobecomeanisolatedisland.Itwillhavetocontinuetobe
partofaninternationaltraderegimefueledbyglobalizationandunderlyingprincipleoffreetrade.
ReasonsforBrexit:
Xenophobia:BritishpeoplehavevotedagainsttheEUsmigrationpolicywhichhasresultedinshiftingofallthe
lowpaidjobsinthehandsofmigrants.
EUsincreasedattemptsatgreatereconomicintegration,wellbeyondfreetradeofgoodsandservices,
resentedbyBritishnoneliteandmadethemvoteforBREXIT.
Riseofpopulistpartiesacrosstheworld,moldingthepublicopinionagainstglobalization.Thefailureofcurrent
governmentstoresolvetheeconomichardships(lowgrowth,unemploymentetc)hascreatedthefavourable
conditionsforit.
AntiEUfeelingswhichdeepenedinthewakeofEUsinabilitytorespondeffectivelytotheglobaldownturnand
theEurozonecrisisalsocontributedtoBREXITvote
SetbacktoGlobalization:
Thebacklashagainstglobalizationstemsfromagrowingrealizationthatthebiggestwinnersofglobalization
havebeeninternationalcorporations,wealthyfamilies,skilledandeducatedworkersandthosewitheasyaccess
tocapital.
Older,workingclassfamiliesinmanyWesternnationshaveinsteadstruggledwithstagnantwages,joblosses
andstaggeringdebt.
Incomeinequalityhasgrownworseinmanyofthesamecountriesthathaveembracedglobalization.
Worldtradeandeconomicgrowthhavealsoslowedinrecentyears,creatinganegativeopinionagainst
globalization.
ImpactofBREXITonglobalization:
GlobalizationhasbeengettingsetbacksevenbeforethehappeningofBrexit.Brexitisjustoneprocessina
continuum.
BREXITcouldleadtoamoreclosedEurope,withfreeflowoflaborandgoodsimpacted.
OpentradeandimmigrationpolicieswillbearthebruntofBREXIT.Itcanfuelthebacklashagainstglobalization
culminatingintothetotalbreakdownofEUitself.
Therecanberesistancetointernationalmigrationofworkers.ForexampleinUnitedStatestheH1visaissue.
Butoverallglobalizationisheretostay.Countriesaroundtheworldaresointegratedandcrossborder
movementofgoodsandserviceshasbeenestablishedsowellthatitisdifficulttobreakfromitandgrow
independently.

http://forumias.com/portal/brexitandglobalization/

2/3

11/12/2016

BREXITandGlobalization

Conclusion:
BREXITasinitselfhasonlybroughtthisentiredebateaboutprosandconsofglobalizationtothecentrestage.
Worldleadersneedtoframepoliciesthatoffsetthenegativeimpactsofglobalizationwheneconomiesarein
recession.Givingintotheantiglobalizationsentimentwillonlyprovetobearetrogressivesteptowardsaworld
withborders.

Copyright@ForumIAS.com

http://forumias.com/portal/brexitandglobalization/

3/3