What Is Globalization?
Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.
Globalization is not new, though. For thousands of years, people—and, later, corporations—have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries, people and corporations have invested in enterprises in other countries.
This current wave of globalization has been driven by policies that have opened economies domestically and internationally. In the years since the Second World War, and especially during the past two decades, many governments have adopted free-market economic systems, vastly increasing their own productive potential and creating myriad new opportunities for international trade and investment. Governments also have negotiated dramatic reductions in barriers to commerce and have established international agreements to promote trade in goods, services, and investment. Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners. A defining feature of globalization, therefore, is an international industrial and financial business structure.
Technology has been the other principal driver of globalization. Advances in information technology, in particular, have dramatically transformed economic life. Information technologies have given all sorts of individual economic actors—consumers, investors, businesses—valuable new tools for identifying and pursuing economic opportunities, including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with far-flung partners.
Globalization is deeply controversial, however. Proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that the creation of an unfettered international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people. Resistance to globalization has therefore taken shape both at a popular and at a governmental level as people and governments try to manage the flow of capital, labor, goods, and ideas that constitute the current wave of globalization.
To find the right balance between benefits and costs associated with globalization, citizens of all nations need to understand how globalization works and the policy choices facing them and their societies. Globalization101.org tries to provide an accurate analysis of the issues and controversies regarding globalization, without the slogans or ideological biases generally found in discussions of the topics. We welcome you to our website.
Advantages And Disadvantages Of Globalization
People from different parts of the world have become more connected now than they were before. Now, it is easier for money and information to flow easily. Services and products produced in one part of the globe are becoming available in almost all parts of the globe. All this is because of globalization which has become a major tidal wave that cannot be stopped. The concept of globalization has some clear disadvantages and advantages.
⦁ Employment opportunities-This is considered the major benefit of globalization. Companies are setting up shop in new countries creating opportunities for employment. What is more, people are able to migrate easily further creating opportunities for better jobs.
⦁ Education-With educational institutions spread across the globe, it has become easier to move from home countries for better education opportunities. This has led to integration of cultures and people from different educational backgrounds. Countries that are labor intensive as well as developing nations have accrued the most benefits from this.
⦁ Thanks to international trade, trade has become more competitive leading to production of high quality products. Products now have to be enhanced so they can capture the attention of consumers. Consumers today can make compromises when it comes to price but not quality.
⦁ Price of commodities has also become cheaper especially because of the fierce competition noted in the market. There are different products for consumers to choose from making it a necessity for producers to price them competitively.
⦁ Socially, people have become more tolerant and open towards one another. Additionally, globalization has also enhanced communication
Globalization is not all rosy. It also has some disadvantages pegged to it and these include the following:
⦁ The most common complaint is that globalization has only served to make the rich even richer while making the poor poorer. It is the general feeling that for managers, it is a great benefit while for nature and workers, globalization is hell.
⦁ Multinationals have been accused of unfair working conditions and social injustice. They have also been accused of not caring so much for the environment, ecological damage as well as natural resource mismanagement.
⦁ Anti-globalists claim it has not worked in favor for a large section of the population. During 1968 through to 1998, they claim inequality has only gotten worse. The United Nations Development Program for instance reports 20% of the world’s rich population used 86% of the global resources while 80% of the poorest population only gets 14% of the global resources.
⦁ Globalization has also led to incursion of diseases especially deadly ones like HIV/AIDS spread by travelers in some cases, to the most remote regions in the world.