Though globalisation has improved the state of the world we live in, it has brought about critical challenges for all those who have been affected by it.
Crossing national borders and distributing goods and services across continents has become a lot easier with the advent of the internet, excellent communications and faster shipping routes. Corporations constantly face the challenge of doing business ethically across borders and the ever increasing presence of civil society and Non Governmental Organisations keeps them thinking how to be sensitive to local culture and customs, and to do business responsibly. Commitments of governments by signing international human rights treaties prevents corporations from getting an unfair advantage in international trade by flouting workers rights and allowing poor working conditions.
Capitalistic economies get healthier when governments attract Foreign Direct Investment which hastens a country’s growth in the world market. Signing of cross border trade agreements develops the local market and encourages foreign investors and directly promotes employment. The setting up of Free Trade Zones with liberal policies further enhances capital growth. In such a situation, governments face the challenge of balancing investor friendly policies with Federal regulations based on international human rights treaties which they are signatories to. Civil society and investigative journalism play their role of highlighting issues of concern related to labour rights, working environment and the negative affects caused due to globalisation.
Globalisation has promoted economic growth while at the same time; it has caused social problems such as unequal distribution of wealth. In this process, neo-liberal economic policies adapted many countries have weakened the foundation of trade unions. Workers find themselves increasingly unprotected in respect of employment, wages, social security and occupational health and safety, resulting sometimes in worker strife and conflicts. This puts pressure on governments and corporations and ensures they apply credible methods of developing national legislation and conducting business.