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Effects of Globalization and Modernization

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A.) Globalization and modernization has impacted countries worldwide, the introduction of modern transportation, technology and advances in medicine, to name a few, have had great impacts on underdeveloped countries and their cultures. Two of the countries that have been impacted are South Africa and India (Flores-Arraoz & Musca, 2011). In May of 2011, The American retail giant Walmart bought fifty one percent of the South African retailer Massmart (Flores-Arraoz & Musca, 2011). Before this purchase was cleared by African authorities, there was great resistance from numerous local agencies. One in particular was from the South African Commercial, Catering and Allied Workers Union. This union feared that a purchase by Walmart would represent a loss of jobs and a decline in the local manufacturing and production, consequently causing the closure of local businesses (Flores-Arraoz & Musca, 2011).

The South African authorities eventually approved the takeover, but imposed some general conditions to protect local jobs. These included, no jobs cuts for the first two years following the takeover, labor agreements in existence would be honored for three years and a fund would be set up to develop local suppliers (Flores-Arraoz & Musca, 2011). Currently Walmart is helping to boost the growth of local small producers by allowing them to deliver their products locally and have them distributed nationwide (Flores-Arraoz & Musca, 2011). Increases in productivity is causing a net gain within the economic system, but at the same time causing a shift in the economic system. People of South Africa have farmed their own land and used human labor to live off the land. Where human labor is most valuable, the landscape of the job market has changed. Some jobs have been created, while others have disappeared (Flores-Arraoz & Musca, 2011). In India, globalization has introduced a wave of growth and wealth.

A large amount of multinational IT companies, known as business process outsourcing companies (BPOs), have set up call centers all over India. Employing thousands, by taking advantage of its large population of English-speaking college graduates. A few decades before globalization boomed in India, it was difficult for young people to earn high wages. Young adults were expected to reside at home until they married. Communication with the outside world was limited. Since globalization, young adults have had new opportunities to earn an impressive living from IT companies, opportunities that were never available to their parents’ generation. The internet, cell phone use and access to television has expanded rapidly, exposing the population to other cultures. Thus, changing the perceptions and dreams of the people of India (Parande, 2012).

B.)Outsourcing to India by western countries has increased significantly over the last decade. The initial purpose was to arrange national presence in other countries such as China, Brazil and India. Recognizing that these countries had a huge potential for high earnings growth on goods and services, enticed these large corporations. The availability of low wageworkers, unlimited available resources, fewer governmental regulations, lower taxes and potential for huge profits made India an ideal location for outsourcing. Currently, more than 50 percent of the revenues of these corporations come from outsourcing to international markets, including India (Burton, 2013). Western corporations have been acutely aware of the increasing wealth and changes in the lifestyles of the people of India. Their marketing campaigns are specifically designed to lure customers into purchasing their products.

The accessibility of luxury western goods has created a cultural shift from a society based on history and tradition, toward a society based on materialism and consumerism (Parande, 2012). The impact of globalization has had both a positive and negative impact on the social and cultural values in India. Globalization has brought happiness to many people’s lives by creating thousands of employment opportunities at higher wages, and improving the standard of living. Young adults take advantage of this cultural change and use their new found wealth to move away from their families to live on their own. Women have begun choosing careers over starting a family. There is a rise in the number of love marriages as opposed to marriages arranged by families.

This often results in conflicts between the older and younger generations (Parande, 2012). Unfortunately, this wealth is not shared equally throughout Indian society. India has innumerable amounts of people that are living in horrible poverty in thousands of slums Although some of the poor have benefited from the increased demand for construction workers and domestic services, they are still not paid sufficient wages to meet the rising cost of living. Choices by younger adults to become more independent and take on less traditional roles, often results in conflicts between the older and younger generations (Parande, 2012).

The response of the people living in the metropolitan cities to globalization has been positive. They are grateful for the new opportunities that are available to them. Enjoying their new financial independence, as well as a higher standard of living. The response of the people in the rural areas, has not been nearly as positive. The rewards that globalization has brought to the metropolitan areas, has not benefited the rural population. The populations outside of the cities continue to live in slums, suffering from significant poverty, disease and shortages in housing, water and energy (Parande, 2012).

Burton, T. T. (2013, May 1). Outsourcing revisited [journal]. Industrial Engineer: IE, 45(5), 34-39. http://dx.doi.org/http://ehis.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=31&sid=8ad25519-e6ec-4dcb-a557-c374978854a1%40sessionmgr12&hid=5 Flores-Arraoz, M., & Musca, V. (2011). Walmart in South Africa: The good, the bad and the ugly. Retrieved from www.consultancyafrica.com Parande, N. V. (2012, September). Globalization and cultural transformation in India. Indian Streams Research Journal, 2(8), 1-5. Retrieved from http://ehis.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=d9aca9a2-5326-4b23-9803-d018b44e1774%40sessionmgr111&vid=25&hid=105

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