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parts of the world. Even developing the technology to harvest rare metals 
from outer space is under consideration. Measures to reduce the effects of 
predicted global warming are being considered, despite resistance because of 
cost and, in some quarters, scientific scepticism about the reality of the 
effects of climate change. Plans to reduce carbon emissions already in place 
will be further developed, as will more research into renewable sources of 
energy. Pharmaceutical development will continue its efforts to eradicate 
diseases such as malaria and HIV/AIDS. With the world’s population now 
having reached seven billion, there will be more research into and develop-
ment of genetically modified crops.
In the twenty- first century, there has been a significant increase in global 
maritime trade, particularly in petroleum, natural gas and manufactured 
goods, including much use of containerization. As a result, there has been 
an increase of 40 per cent in the global maritime container fleet between 
2008 and 2011, with more than 80 per cent of the world’s trade being car-
ried by sea. This has meant that the potential ‘choke points’, such as the 
Malacca Straits, through which pass three times as much trade as through 
the Panama Canal and twice that through the Suez Canal, are of vital impor-
tance to global trade. In addition, the Straits of Hormuz are the conduit for 
a quarter of the global oil production. Their security is threatened by piracy, 
international terrorism and hostile neighbouring states. As a result, there is 
active consideration of opening up an alternative northern route for much 
of global trade, in effect a new Northwest Passage.
The interdependence of global business means that any disruption to 
the global supply chain will have serious economic consequences. This is 
borne out by the results of the earthquake and subsequent tsunami and 
nuclear disaster in Japan in 2011. This caused disruption to the supply of 
components from Japanese plants, which affected car production in other 
countries and caused, for example, the temporary closure of General Motors’ 
production lines. Global supply chains are threatened not only by natural 
disasters but also by local political turbulence and conflict, local corruption 
and international terrorism, as well as sudden fluctuations in demand, price 
volatility and failures in the transport infrastructure.

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Globalization and its Effect on Culture 221
The drive to exploit scarce resources worldwide is another aspect of 
globalization which increases competition between those countries who 
are seeking new reserves of oil, gas and precious metals outside their own 
national boundaries. This drive is at its most intense in Africa, where China 
is investing heavily in the search for rare earth metals. As a result, prices 
have risen significantly and China has been accused of following a policy 
of ‘economic imperialism’. However, both Chinese investment and that 
of other foreign nations have helped improve local economies, raising the 
standard of living and providing employment. Russia has already begun to 
take an active interest in developing the oil resources in the Arctic region, 
and the UK and Argentina are in dispute over the Falkland Islands and its 
off- shore potential oil resources.
Failed states such as Somalia pose international problems as havens for 
international terrorism and piracy to the whole global community. A failed 
nuclear state poses the greatest threat to global stability, particularly with 
the threat of nuclear terrorism. However, any intervention by outside forces 
into a sovereign state can be justified only on humanitarian grounds when 
all other diplomatic efforts have been exhausted and can be sanctioned only 
by agreement of the UN General Assembly and with the full agreement of 
the Security Council in accordance with Article 21 of the UN Charter.
Summary
Because of the need to access new markets, increasingly scarce resources 
and cheaper labour, to do business globally is now less a luxury and more 
a matter of competitive survival.
The BRICs will become increasingly important global players and will 
challenge the economic leadership of the West. As the US share of glo-
bal economic output continues to decline, a more balanced picture is 
developing among the industrialized countries. With the growing pace of 
globalization, there will be an increased need for international managers 
to operate effectively in the global marketplace, demonstrating a wide 
range of cross- cultural competencies. They will face increasing complex 
and uncertain environments, characterized by continuous change.
However, cultural differences will remain important and will need to be 
taken into account in the production of new products, as ‘glocalization’ 
will be the trend for the future in order to gain competitive advantage 
and meet the individual requirements of a growing body of more affluent 
local consumers.
Globalization will continue to be attacked as it is seen by its opponents 
to provide a cover for the failure of individual countries to deal with 
their social, economic and ethical problems. Protesters will continue 
to attempt to persuade governments to address these problems. The 
G8, the G20, the World Bank, the IMF, the OECD and the UN have all 
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222 Cross-Cultural Communication
acknowledged that poverty is the greatest challenge. Globalization will 
also continue to pose a perceived threat to diversity if people become 
purely consumers with little or no respect for their own cultural heritage. 
With the threat of continued financial crisis, there will be the risk of 
succumbing to the demands for protectionism.
There has been an increased awareness of the corporate social responsibil-
ity of global companies towards their employees, particularly with regard 
to health and safety, working conditions and fair wages, the environment 
and their shareholders. This approach has, to an extent, counterbalanced 
some of the disadvantages and negative views on the effects of globaliza-
tion on LDCs and local cultures.
International business and diplomacy have both displayed increased 
interactivity, with more emphasis on wider networking and consulta-
tion across national boundaries, developing a ‘coalition of the willing’ to 
cooperate to find mutual solutions to global trade problems.
Nevertheless, globalization will be seen to fail if it provides legitimization or 
an excuse for the inability of individual states to cope with their own social, 
economic, ethical and environmental problems through poor governance.
Globalization will also be seen to fail if the G8, the G20, the World Bank, 
the IMF, the OECD and the UN do not work together to achieve the glo-
bal targets originally set for 2015 to halve global poverty, reduce infant 
mortality and ensure that every child has the right to education.