Globalization is the process in which people, ideas and
goods spread throughout the world, spurring more interaction and integration
between the world’s cultures, governments and economies. Globalization results
from the removal of barriers between national economies to encourage the flow
of goods, services, capital, and
labor. While the lowering or removal of tariffs and quotas that restrict
free and open trade among nations has helped globalize the world economy,
transportation and communication technologies have had the strongest impact on
accelerating the pace of globalization.
The many meanings of the word “globalization” have
accumulated very rapidly, and recently, and the verb, “globalize” is
first attested by the Merriam
Webster Dictionary in 1944. In considering the
history of globalization, some authors focus on events since 1492, but most
scholars and theorists concentrate on the much more recent past.
But long before 1492, people began to link together disparate
locations on the globe into extensive systems of communication, migration, and
interconnections. This formation of systems of interaction between the global
and the local has been a central driving force in world history.
Globalization is about the interconnectedness of people and
businesses across the world that eventually leads to global cultural, political
and economic integration. It is the ability to move and communicate easily with
others all over the world in order to conduct business internationally. The
word, globalization, is relatively new, coined in the late 1970’s. The
airplane, the telephone, and the Internet are just three inventions, which are
attributable to the spread of globalization. Due to the increased demand in the
high-tech industry around the world, business and industry have potential for
huge profits working globally.
The major types of
globalization are discussed below.
Financial globalization refers to the interconnection of the world’s
financial system. Globalization is more of a connection between large cities
than a nation.
Economic globalization refers to a worldwide economic system that
permits the easy movement of goods, production, capital and resources.
Technological globalization refers to the connection between nations
through technology such as television, radio, telephone, internet etc.
Technology was a traditionally available only to the richer but it is far more
available to the poor.
Countries are attempting to adopt similar political policies and style
of government in order to facilitate other form of globalization.
Cultural Globalization refers to merging or “water down” of worlds
culture e.g. food, entertainment, languages etc. It heavily criticized as
destructive of local culture.
It refers to seen the earth as single ecosystem than a collection of
separate ecological system because so many problems are global in nature For
example, international treaties to deal with environmental issue like
biodiversity, climate change and ozone layer.
It refers to a growing believe that we are all global citizen and should
all be held to the same standards and have the same rights for example. the
growing international ideas that capital punishment is immoral and that woman
should have all the same rights as the man.
As globalization increases more and more companies are setting a business
in other countries which increases the employment opportunities. It has become easier
for people to move across border to different part of the world to administer
their professional capabilities. An increase in free trade has opened doors for
investor in developed countries to invest their money in developing
counties. Information follow from one
part of the world to the other immediately, resulting in the world tied
together. Vital information can be shared between individuals and corporations
at a very fast rate. People have access to the best quality of goods and services
throughout the world. As competition in the market has increased due to rapid
globalization, producer have to price the product competitively in order to
remain in the market. As people move from one country to another, barrier
between various cultures tend to decrease. This has resulted intolerance and
openness toward other cultures. This has also facilitated communication between
different culture and nations. It has also led to a reduction in wars as we are
today living in one of the most peaceful periods in the history of mankind.
Developing countries can
take advantage of underdeveloped countries weak regularity laws. In term of
environmental protection many multinationals have been accused of social
injustice by exploiting labor in under develop countries in order to cut cost.
Labor are provided unhealthy working condition leading to health hazards. Many large
companies have also been accused of using child labor in their factories in
underdeveloped countries. Through the promotion of the idea that the advances
in technology and increase in productivity would create major jobs has been a
cornerstone of globalization. It has been seen that the past few years, such
advances have led to a decrease in the employment growth rate in some
developing economies. Small scale industries which are indigenous to a
particular place face extension as they don’t have the resources or the power that
the multinational companies have. As a result, these small industries are
unable to compete with bigger companies and got out of business. Deadly
diseases such as AIDS or other communicable diseases can spread at very fast
pace via travelers or due to other mean as a direct consequence of
the diffusion of ideas, practices technologies and increase of worldwide social
relations which link distant localities, significantly impacting on the economic,
social, cultural and political dimensions of nations and its peoples. The
recent recession has seen corporation and institutions from developed nations
moving their focuses to developing countries, particularly in the east. Cheap
labor, relaxed industrial norms and the capacity to shift base at short notice
to countries with more favorable policies have all significantly impacted on
economic globalization. Multinational corporation have shifted power away from
the nation state with “brand” globalization. Globalization is helpful because
it helps all countries involved, by keeping peace, making money, and educating
them on how other places and communities live.