Globalization is the increased trade between countries. It involves increased interdependence between economies resulting from the reduced barriers of trade. Globalization has both negative and positive impacts of various groups of people in the world. This research paper will evaluate the effects of globalization in Azerbaijan which is the capital city of Baku. There are both positive and negative effects that this research paper will evaluate.
The city like any other part of the world has benefited from the provision of a variety of goods and services. With globalization, manufactured goods from various parts of the world have managed to reach Azerbaijan. ‘The residents of the city are therefore able to enjoy the freedom of choice of what they want to consume.’1 The fact that there is competition in the sale of these goods and services ensures that the people in the city access the goods at very low prices. This is one of the factors that have led to improved standards of living.
The city has witnessed increase in technology use due to globalization. It is due to globalization that new technologies have reached the country. The results are that the communication and transport systems in the city and other parts of the country have improved to a great extent.
The economic growth of the city and the country in general has been witnessed due to globalization. This is because the production of goods and services has increased recently. With reduced trade barriers, many multinational companies have located their firms in the city.
1. United Nations. 2003. Managing globalization in selected countries with economies in transition. New York, N.Y.: United Nations.
2. Blum, Douglas W. 2007. National identity and globalization: youth, state, and society in post-Soviet Eurasia. New York [u.a.]: Cambridge Univ. Press.
The production of goods and services in the city has boosted economic growth. In addition, the location of these firms in Azerbaijan has stimulated other types of investments such as construction of rental houses. These investments have generated income to the residents of the city leading to economic growth.
‘The location of the multinational companies in Azerbaijan has played a big role in solving the unemployment problem in the city.’2 The new firms that have located their businesses in the city have ended up absorbing more of the unemployed individuals into the jobs they have. In addition, many of the unemployed individuals have found out innovative business ideas due to globalization and therefore trade to earn income that support their daily needs.
The people in the city have created great links with people from all over the world. The fact that residents interact with individuals from all over the world and this has opened new opportunities for the residents of the city. ‘Interacting with the foreigners has also led to creation of friendship with all the people of the world and hence peace that is necessary in the country to facilitate development has been assured.’1
There are however several negative impacts that have been witnessed in Azerbaijan due to the globalization. In the first place, the employees in the city are poorly paid. Many people from all over the world can get jobs with the firms located in the city. These firms therefore are only willing to pay the poorest wages in order to maximize profits. The income received by the employees who live in the city has is too little to meet all the needs of these employees.
1. United Nations. 2003. Managing globalization in selected countries with economies in transition. New York, N.Y.: United Nations.
2. Blum, Douglas W. 2007. National identity and globalization: youth, state, and society in post-Soviet Eurasia. New York [u.a.]: Cambridge Univ. Press.
The people who live in Azerbaijan have felt the negative impacts f pollution that has been caused by the globalization process. The international firms located in the city are less concerned about the negative impacts posed by the pollution of their firms. Therefore the people in the region are at a risk of contracting diseases such as cancer and various breathing problems.
The moral values of the people in Azerbaijan have been affected negatively due to globalization. The residents of the region have ended up copying the behaviors of the foreigners and this has resulted to problems in the city. ‘Moral decay such as prostitution in the city has been on rise. This has resulted to the increased spread of HIV/ AIDS in the city.’3 This is affecting the labor supply of the city negatively.
‘Globalization has also caused food problems and shortage of other basic necessities in the city such as water.’2 It is due to globalization that the population of the city has gone up. With increased population, the local government has faced difficulties in the provision of social amenities in the city. In addition, the high demand for food staffs has individuals cannot afford these foodstuffs. Poor individuals in the city cannot afford these foodstuffs.
Brain drain is a problem that has affected the whole country due to globalization. Important learned individuals from the city and other parts of the country have made a choice of moving to other countries to work there since they are well paid there. The problem is that the country now lacks specialists that are needed in the provision of various services in the economy. This hinders the economic growth of the country.
2. Blum, Douglas W. 2007. National identity and globalization: youth, state, and society in post-Soviet Eurasia. New York [u.a.]: Cambridge Univ. Press.
3. Aminah, Mahdi Parwizi, and Yang Guang. 2010. The globalization of energy China and the European Union. Leiden [The Netherlands]: Brill.
Generally, globalization has come with both positive and negative effects. Azerbaijan like any other part of the world has therefore witnessed both negative and positive effects of globalization. Even though globalization is advantageous and inevitable, it is important to seek ways of dealing with the problems it brings to the society.
Works cited.
United Nations. 2003. Managing globalization in selected countries with economies in transition. New York, N.Y.: United Nations.
Blum, Douglas W. 2007. National identity and globalization: youth, state, and society in post-Soviet Eurasia. New York [u.a.]: Cambridge Univ. Press.
Aminah, Mahdi Parwizi, and Yang Guang. 2010. The globalization of energy China and the European Union. Leiden [The Netherlands]: Brill.
