Globalisation Global Governance and the Global Economy Assignment Sample

Introduction

Globalisation is termed for describing growing interdependence of the worldwide culture and economy, population, and others brought about by cross-border trade concerning services and goods, information, investment flow, and others. The present essay will pay attention to highlight relational attributes of real globalisation by selecting a particular geographic region Malaysia. Real globalisation characteristics will be explored in this concern along with the perspective of real globalisation taking place across the Malaysian region. Adequate theoretical evaluations will also take place in this essay with neoliberalism theory based on which the characteristics of real globalisation could be efficiently explored.

Reason for selecting Malaysia

Since independence, Malaysia has been recognised as one of the most globalised developing countries. Extended economic development and growth can be noticed across Malaysia as a result of conceptualising real globalisation. Moreover, a significant role of globalisation can also be noticed across Malaysia concerning the attributes of trade and labour migration, capital and technology, and others. A record-high growth of the GDP of Malaysia was recorded during 2020 with 16.1%. However, the toxic consequences of the covid-19 pandemic situation dampened nascent economic recovery in Malaysia by pushing the central bank of Malaysia to slash their growth forecast for 2021 to 3 to 4 % from 6 to 7.5 % previously (Hussain, 2021).

Despite experiencing this down falling growth, the Malaysian economy is still expected to gain momentum. The countrywide economy could be expanded by 4% in this present year with the conceptualisation of a record government budget to spur post-pandemic recovery. By the next year, the Malaysian economy is expected to grow by 5.5 to 6.5 %, which will largely be driven by the normalisation of economic activity (Hussain, 2021). The globalisation index of Malaysia can be noticed with a gradual uplift of recent values (Refer to appendix 1). During 2018, the globalisation index value of Malaysia stood at 81.55 points where the world average based on 194 countries was standing at 62.02 points (The Global Economy, 2021).

Concerning the mentioned development of globalisation index and economic growth, Malaysia has been selected as the geographic region for this essay.

Characteristics of real globalisation

Real globalisation can be defined as catering the business into the other international countries with the help of different means such as partnership, joint venture, and many more. As mentioned by Akadiri et al. (2021), the activities that are being connected with globalisation are distribution, production, and development of the business. Globalisation mostly plays a vital role in industries such as commodity markets, financial markets and insurance markets. In this generation, globalisation has paved their way towards the future innovation and recognition into several different markets (Yodgorkhon et al. 2021). Moreover, there are several reasons behind the growth of globalisation in the business world such as better communication and managing relationships with other countries.

Globalisation allows the countries to have free training without any interference from the government. As demonstrated by Aluko et al. (2021), through this the growth of trade and commerce is increasing. Real globalisation allows the interdepency of the culture, economies, and population. Furthermore, it helps in enhancing the cross border trade and the flow of investment and technological innovation in the world (Bishop and Payne, 2021). Through globalisation, every sector and the industry can gain the competitive advantages and improved skills into their respective business (Ngoc and Tien, 2021). The world is largely connected with each other after the emergence of technological innovation into the lives of every individual. It is essential for the industries and business to acknowledge the importance of real globalisation.

As identified by Chiu et al. (2021), globalisation is the most influential sector, which can be an advantage for the businesses that are deciding to expand their operation into international market. Accessing the new culture and values is one of the major characteristics of real globalisation, and through respecting it, expansion of the business can provide tremendous advantages for the business (Akadiri et al. 2021). Moreover, most of the countries have improved technological innovation along with lower labour cost, which will help in accessing the market easily along with developing them as well. As demonstrated by Ngoc and Tien (2021), real globalisation increases the competitiveness among the business along with contributing to the living standards of the country. Furthermore, through globalisation the business will be able to attract new markets along with retaining the new talents as well.

However, globalisation has significant advantages through its influence over the business operation, but it also has several challenges, which should be undertaken by the business to sustain successfully into the international markets. As mentioned by Obstfeld (2021), international recruiting has become a challenge for the business while expansion of the business in any host country. Furthermore, it becomes a challenge for the business industries to manage the immigrant employees along with coping up the cultural differences efficiently. Furthermore, it is essential to integrate their human resources along with transforming their internal process while expanding the business (Obstfeld, 2021). Moreover, successfully positioning the business overseas is essential to attain the advantages and benefits of real globalisation along with improving the business operations and marketing strategies.

Real globalisation in Malaysia

In terms of highlighting real globalisation across Malaysia, different respective actors are considered that are highlighted below.

Corporations

Different business corporations operating across Malaysia have been supportive regarding the empowerment of globalisation throughout the country. It can be eventually highlighted by notifying the trade performance of Malaysia in recent times. The countrywide trade performance experienced an expansion by 48.7% during May 2021 that is equivalent to RM 170.8 billion (Matrade, 2021). It highlights extended contributions from different corporations serving across the Malaysian market. Apart from that, the total trade of Malaysia had surged by 25.5% during September 2021 that was equivalent to RM195.5 billion (Matrade, 2021).

However, 4.3% economic growth can be noticed in Malaysia during 2019 with a 7.6 % annual variation in consumption (Focus-economics, 2021). The leading position of Malaysia can be noticed as compared with other respective developed countries like Japan, the UK, the Republic of Korea, and others in terms of recording higher gross domestic product per capita up to 2017 (Refer to appendix 2). These mentioned statistics highlight an extended growth of business corporations and their respective operations across Malaysia that has been adding a greater value to empower real globalisation. The fourth industrial revolution and industry 4.0 eventually played a leading role to empower globalisation across Malaysia. This factor can be notified by considering the manufacturing industry of Malaysia that is most positively impacted by the conceptualisation of the fourth industrial revolution. With the adoption of industry 4.0 technologies, Malaysia has been looking forward to considering distinctive productivity growth of up to $ 30 billion for the nationwide manufacturing sector throughout the upcoming decade (Estopace, 2019). The role of different business corporations like Cisco and others can be recognised in this concern that has been playing a supportive role behind the adoption of industry 4.0 technologies. It is also considered an integral part of establishing the next era of human-machine collaborations under the shape of a digital vision. A series of reforms were also undertaken by Malaysia in order to develop their business environment including streamlining regulations and administrative burdens for respective corporations. The establishment of competition authorities also played a supportive role in this concern based on which Malaysia has been ranking well as compared to their Southeast Asian peers (OECD, 2021).

Government

The Malaysian government considered a leading contribution from their perspective in order to support increasing globalisation across the nation. Subsequent development strategy was undertaken by the Malaysian government in this concern under the shape of an export-oriented industrialisation strategy taken during 1970 (Yusoff et al. 2021). The topmost concern of this strategy reflected increasing reliance upon foreign direct investment with an intention to obtain distinct economic growth through industrialisation. Aggressive persuasion of the second round import substitution strategy can also be notified from the Malaysian government perspective since 1980 considering the heavy industries corporation across the country. Extended support of the government is also provided in this case for developing the heavy industries including local car manufacturing, steel industry, cement industry, and others. Apart from that, the introduction of tax incentives had also been supportive for the efficient start of the industrialisation strategy in Malaysia. This strategy is eventually followed by the imposition of tariff rates and quotas for encouraging the early development of import-substituting industries (Yusoff et al. 2021). The Government of Malaysia had also paid attention to erecting a high tariff wall along with ensuring complete import control and others. Fiscal incentives are also offered by the Malaysian government in the form of tax exemption on capital goods and raw materials imported from the foreign market, tax holidays, and others. Under the lights of the Investment Incentive Act 1968, wide ranges of incentives were introduced by the Malaysian government regarding the business corporations investing in emerging enterprises or expanding in the domestic market. These incentives highlight complete or partial relief from the liability to pay development tax and income tax, labour utilisation relief, locational incentives in order to disperse industries, and others.

Trade unions

Respective trade unions are eventually impacted as a result of increasing globalisation in Malaysia. With the adoption of industry 4.0 technologies, the trade unions have paid attention to empower collective bargaining power between respective employees and employers in the Malaysian market. Different legal constraints can be reflected with the engagement of trade union within the process of globalisation across Malaysia. Valuable legislation of Malaysia regarding employment and industrial relations included the consequences of the Employment Act, the Industrial Relations Act, the Trade Union Act, and others (Kana, 2015). Regional trade unions are highly emphasized in Malaysia rather than national trade unions. Increasing productivity might result from the proactive involvement of trade unions within the globalisation process of Malaysia, which can further increase growth of export across the country. Overall exports of Malaysia remained strong with RM 110.8 billion during the present year, which has increased by 24.7 % year-on-year (DOSM, 2021). A significant contribution of both domestic and re-exports can be noticed in this concern. With a 79.1 % contribution to the total exports, the overall domestic exports of Malaysia grew by 22.4 % (DOSM, 2021). The encrypted figure in appendix has been demonstrating gradual maintenance of stability regarding both domestic and re-exports across Malaysia along with signifying its annual change (Refer to appendix 3). Similar consequences can be notified with increasing performance of imports across Malaysia that registered a growth of 26.5% during September 2021 that was equivalent to RM 17.7 billion (DOSM, 2021). The aforementioned statistics concerning extended trade growth across Malaysia highlight substantial suitability for globalisation.

Gender

On the other hand, Malaysia has been staying behind with regards to the achievement of gender equality that has been creating a potential barrier in front of successfully achieving distinctive fourth industrial revolution. It has been also hampering increasing financialisation across Malaysia based on which the countrywide globalisation is getting affected negatively. Malaysia has been noticed to score 0.68 during 2020 in the global gender gap index where the score of 1 is absolute parity and score of 0 is absolute imparity (Hirschman, 2021). It reflects the requirement to improve gender equality in Malaysia as an integral part of supporting increasing globalisation and industrialisation.

Civil society organisations

The civil society organisations had eventually contributed to a large extent for supporting globalisation in Malaysia. However, the influence of civil society can be noticed with their role to link and legitimate respective industry with other sectors through innovation system. With the emergence of innovation in the form of an economic transformation foundation, a new network of lateral relationships can be notified between multiple civil society organisations (Iqbal and Rasli, 2014). The context of knowledge economy transformation has been the most significant attribute in this concern. It eventually highlights the role of civil society organisations regarding the empowerment of market accessibility and competitiveness, availability of skilled and trained workforce, highly organised financialisation, and others (Christensen et al. 2016).

Theoretical underpinnings

Neoliberalism theory

Neoliberalism is considered an economic theory that is directly and indirectly related with the consequences of globalisation. This theory also recognises the consideration of market-oriented reformation policies including the consequences to deregulate capital markets, elimination of price controls, reduction of relational trade barriers, and others (Amable, 2011). The core functions of new liberalism highlights the characterisation of belief towards sustained economic growth in order to ensure the achievement of human progress. Moreover, the congruencies of most efficient resource allocation attributes and increasing emphasis upon minimal state intervention across social and economic affairs are eventually conceptualised according to this theory.

From the globalisation perspective of Malaysia, an extended focus of the Malaysian government can be noticed regarding the elimination of relational trade barriers such as imposer of tariff rates, income tax and development tax, and others. This initiative highlights the government’s preference with a neoliberal approach for empowering the attributes of globalisation across Malaysia (Gamble, 2001). Moreover, Malaysia has also been looking to increase human progress and thereby positively influencing nationwide productivity across different industries. This factor can eventually be supported by notifying increasing import and export growth that is also adding a greater value to empower the Malaysian economy. However, sustained economic growth has been also ensured by Malaysia by referring to the concept of neoliberalism where increasing preference towards the fourth industrial revolution can be notified. Relational technological advancement had been undertaken across Malaysia as an integral part of supporting increasing globalisation.

On the other hand, respective business corporations operating across Malaysia have also been attentive to empower the overall trade performance of Malaysia with the consideration of globalisation. An extended economic growth of Malaysia has been supporting this statement to a large extent. However, the consideration of neo-liberal approach can be recognised as beneficial for Malaysia with regards to the above-mentioned evaluation (Venugopal, 2015). Despite having extended economic growth, the Malaysian government can be recommended to introduce more business friendly legal constraints in order to simplify the attributes of direct export and import along with foreign direct investment for enhancing globalisation in future.

Conclusion

The overall essay has been supportive to highlight valuable concerns regarding increasing globalisation across Malaysia. The Malaysian government intervention with the elimination of tariff rates, income tax, and others has been supportive to encourage industrial globalisation to a fair extent. Apart from that, lucrative economic growth along with export and import performance improvement have benefited Malaysia with the leading spot by means of recognising high annual GDP growth rate as compared with different developed countries. However, different beagle constraints are eventually highlighted in this essay for simplifying the regulatory attributes of globalisation in Malaysia. With the development of gender equality and expanded role of civil society organisations in future, Malaysia might be able to emerge as one of the powerful economy throughout the globe.

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