globalization

Things are done in a particular way in one country. Have you thought what happens when it is done together around the world? This is globalization. It is about economics or trade, technology, politics and culture. Some people think globalization helps everyone while others think it brings challenges. 

In this lesson, we will learn: 

1. Definition of globalization
2. Types of globalization
3. History of globalization
4. Examples of globalization
5. Advantages and disadvantages of globalization

Definition of globalization

Globalization is the increased interconnectedness and interdependence of people and countries. In general, it includes two elements: 

• Opening of international borders to increasingly fast flows of goods, services, finances, people, and ideas. 
• Changes in institutions and policies at national and international levels that facilitate or promote such flows.

Types of globalization

• Financial globalization. It is the rise of a global economy with international monetary exchanges. When a stock market faces a decline, it negatively influences other markets and the economy as a whole.
• Economic globalization. It is the evolution of trade systems inside transnational organizations such as non-profit organizations. 
• Cultural globalization. It is the interpenetration of world cultures that, as an outcome, involves adopting national principles and beliefs of other countries by losing their originality.
• Political globalization. It refers to the development of international organizations like the United Nations or World Health Organization and other bodies operating at a global level.
• Technological globalization. It is the method that interconnects people worldwide due to the power of the digital world.
• Geographic globalization. It is the new organization of different areas of the world where it is possible to travel the world without restrictions.
• Sociological globalization. The interconnection of events and consequences results in cultural diffusion and mixing of different societies.
• Ecological globalization. It is the idea of viewing planet Earth as a singular global entity.

History of globalization

Many people say 'globalization' is inherent to human nature and believe that it began about 60,000 years ago. Throughout human history, commercial trade routes and cultural exchanges have been part of societies in different civilizations. A large part of globalization happens due to human migration, especially nowadays when traveling is easier, quicker, and more affordable. In earlier times, military conquests and exploration expeditions were the key activities leading to globalization. The term 'globalization' became widespread in the second half of the 20th century when world trade accelerated due to technological advances in communication and transportation.

Signs of globalization

Since World War II, a number of trends are considered to be related to globalization. These include: 

• Increase in international trade and flow of capital including foreign direct investment
• Greater flow of data across borders internet and communication technologies
• Spread of multiculturalism and cultural diversity
• Increased international travel and tourism
• Higher immigration 
• The increased role of international organizations such as the United Nations, World Trade Organization, International Monetary Fund, and World Health Organization
• Development of global financial systems
• Development of global telecommunications infrastructure
• Increased global standards like copyright laws

Advantages of globalization

1. With the implementation of globalization, technology has been altered to a great extent and paved the way for overall development. 
2. Globalization has helped provide better services to people worldwide and increased the rate of gross domestic product. 
3. Owing to globalization, governments have been able to help economic growth and aid the advancement of infrastructure. 
4. Countries around the world now have access to trade and commerce worldwide with affordable commodities rates. 
5. Globalization favors the extension of markets. It provides an opening for domestic companies to go global.

Disadvantages of globalization

1. Globalization can raise the problem of inequality everywhere in the world by increasing specialization, which results in poverty.
2. Globalization can increase the unemployment rate since it demands higher-skilled work at a lower price. 
3. Over the years, trade imbalance has increased in developed countries by competition in the market due to globalization. 
4. Globalization favors industrialization that sometimes harms the environment. 
5. Overall economic growth in some developing countries may be slowed due to globalization. 

Globalization is a complicated issue. While the globalists believe that it increases the choice of consumer goods for all, alter-globalists are of the view that it is malign, encouraging the rich to become even richer.