Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale.
In other words, the term Globalization (or globalization) refers to processes of international integration arising from the interchange of world views, products, ideas, and other aspects of culture.
Factors in Increased Globalization
Globalization is being promoted through the four traditional links the emergence and evolution of TNCs with increasingly diverse business interests spread over an ever widening area the growth of regional economic or trading blocs such as EU , NAFTA (north American free trade agreement) APEC (Asia pacific economic cooperation forum) the encouragement of free trade between member countries is a another way of breaking down the economic barrier effects of national boundaries the development of transport links and networks capable of moving goods, quickly and relatively cheap.
Now I am going to specify some factors which directly contribute to the globalization. These are –
- Economies in transportation costs – freights, what have you
- Harmony among politics – no wars, etc.
- Integrated markets and ease in border control – think the formation of the EU, even if it was before your time management of regulation between countries
- Capital flows and investment abroad – although technically this is not such a strong factor as most investors rarely invest anything more than 10% of their money/portfolio abroad; it’s usually the countries themselves that does something. Although emerging economies like China and India may be somewhat different increase and improvement in facilities to break down language barriers
- Luck – some things just happen by chance and it worked. Sometimes, the conditions are just right e.g. there happens to be no international conflict, no droughts, etc. Ask yourself why globalisation wasn’t such a big hit before?
- Cheaper/better products from abroad – think Sony Play station vs Xbox
- Ease on border control – allow import and export; a tradition that was encouraged by the Brits
- Immigration – more people from different ethnicity, the larger the ethnical market.
- Willingness to travel – if you like to travel, you probably brought back ideas with you from abroad. Think tea, coffee, tobacco…
- Strengthened international relations – UN, EU, UEA, Tiger economies, etc.
- Taste for the curious – you are curious about new things that you have never seen before.
- Willingness to accept new culture – you like to welcome new people, and it’s a global thing.
- Change in culture – somethings change because you like the changes and it’s a move forward from the past of how things are done
These are the reasons I can think of from the top of my head. I think there are more, but I haven’t included them. nevertheless, it should be more than enough for your essay
Why Globalization Important?
Increase competition to lower price and increase economic welfare spillover effects from having a more interactive international market. Some specified importance are given below –
- More work for people – invest in other countries and they have work for people to build factories, etc. research and development from other countries
- Contagion effects – a bit advanced, I know, but you want to show off; if one country crashes, it develops a chain reaction in other countries for some strange reason
- Multiplier effect – by increasing your scope in the international market the aggregate whole will form some sort of synergy (the whole is greater than the sum of its parts)
- International relations – you may want to accept new things from other countries to strengthen your bond with those countries
- It’s a new wave – people profit from change in fashion (not talking about clothes) and new phases; the apparently new thing is globalization and it’s a huge profiteering venue
- It doesn’t look like it’s going away anytime soon – if it’s not going to change, then ignoring it won’t make it disappear. It needs to be managed (I can’t believe I just typed that) and handled along with its problems and rewards.
- A new source of innovation – it’s a possible channel to exploit and make better for everybody’s lives. It’s an optimist way of saying there is a future and it looks good.
Criticisms of Globalization
Some identified criticisms of globalization –
- Weaker countries loose their culture.
- Counties become more dependent on each other. That is why economic crisis-es move from one country to other countries very fast.
- Poor countries become poorer.
- More powerful countries dictate their “rules of game” for others.
- Growth of international crime.
- Countries are not able to control financial flows and migration.
- Companies from developed countries move their business to developing countries with less salaries. It causes growth of unemployment in developed countries.
In descriptive way’ critics of Globalization claim – Countries lose sovereignty,the resultant growth hurts the environment. Some People lose both relatively and absolutely.Threats national sovereignty. You’ve probably heard the slogan ~ ” Think globally, act Locally.” In essence, it means that the accommodation of local interests should prevail over global interests. Sovereignty that is, a nation’s freedom to ~act locally and without externally imposed restrictions. Much anti-globalization criticism revolves around issues of economic growth. According natural resources and increases environmental damage-despoliation through toxic and pesticide runoffs into rivers and oceans, air pollution form factory ad vehicle emissions, and deforestation that can affect weather and climate. In measuring economic well-being, we must look not only at our absolute situations but also at how well we’re doing compared to the economic well-being of others. we generally don’t find our economic status satisfactory unless we’re doing better and keeping up with others.The process of shifting production to foreign country is called globalization.