Concept of

Globalization

By:Edrick Dimayuga BSA Cubao

Jan. 19, 2021 (11:45 PM)
Prof: Noel Antijendra
What is Globalization

Globalization means the speedup of movements and

exchanges (of human beings, goods, and services, capital,
technologies or cultural practices) all over the planet. One
of the effects of globalization is that it promotes and
increases interactions between different regions and
populations around the globe.
According to WHO, globalization can be defined as ” the
increased interconnectedness and interdependence of
peoples and countries. It is generally understood to include
two inter-related elements: the opening of international
borders to increasingly fast flows of goods, services, finance,
people and ideas; and the changes in institutions and policies
at national and international levels that facilitate or promote
such flows.”
History of Globalization
Although many consider this process a relatively new
phenomenon, globalization has been happening for
millennia.The Roman Empire, for example, spread its economic
and governing systems through significant portions of the
ancient world for centuries.Similarly, the trade routes of the
Silk Road carried merchants, goods and travelers from China
through Central Asia and the Middle East to Europe and
represented another wave of globalization.European
countries had significant investments overseas in the decades
prior to World War I, prompting some economists to label the
prewar period as an earlier golden age of globalization.
The term globalization as it's used today came to
prominence in the 1980s, reflecting several
technological advancements that expediated
international transactions.Globalization has ebbed and
flowed throughout history, with periods of expansion,
as well as retrenchment. The 21st century has
witnessed both. Global stock markets plummeted after
the Sept. 11, 2001, terrorist attacks in the United States,
but rebounded in subsequent years.Overall, however,
the early 21st century has seen a dramatic increase in
the pace of global integration, driven primarily by rapid
advances in technology and telecommunications.
How Globalization
Works?
Globalization is driven by the convergence of political, cultural and
economic systems that ultimately promote -- and often necessitate --
increased interaction, integration and dependency amongst nations.
The more that disparate regions of the world become intertwined
politically, culturally and economically, the more globalized the world
becomes.
These international interactions and dependencies are enabled and
accelerated by advances in technology, especially in transportation
and telecommunications. In general, money, technology, materials
and even people flow more swiftly across national boundaries today
than they ever have in the past. The flow of knowledge, ideas and
cultures is expediated through internet communications.
Different types of Globalization

● Economic globalization. This type focuses on the

unification and integration of international financial
markets, as well as multinational corporations that have a
significant influence on international markets.
● Political globalization. This type deals mainly with policies
designed to facilitate international trade and commerce. It
also deals with the institutions that implement these
policies, which can include national governments as well
as international institutions, such as the International
Monetary Fund and the World Trade Organization.
● Cultural globalization. This type focuses on the social
factors that cause cultures to converge -- such as
increased ease of communication and transportation,
brought about by technology.
Effects of Globalization
● The individual level includes the way international
influence affects ordinary people within a nation or region
● The community level includes effects to local or regional
organizations, businesses and economies.
● The institutional level includes effects to multinational
corporations, national governments and higher education
institutions that have international students. At this level,
decisions are made that affect the lower levels.
Example of
Globalization
One relevant example of globalization is the existence of
multinational corporations. The term multinational
corporation simply refers to a business that conducts
operations in more than one country. McDonalds, for instance,
is a multinational fast-food corporation with 37,855
restaurants spread over 120 countries and territories as of
2018. With 1.7 million employees, it is the second-largest
private employer in the world behind Walmart.
Other examples of multinational
corporations include the following:

● Ford Motor Company, an organization that works with

about 1,200 suppliers it identifies as tier 1 around the
globe; and
● Amazon, an organization that uses tens of thousands of
suppliers and employs more than 250,000 full-time
workers in 175 distribution centers around the world.
Advantages of
Globalization
Proponents of globalization argue that it can solve
fundamental problems with the global economy, such as
poverty and unemployment, by promoting a free market that
benefits rich and poor nations alike.Free trade aims to reduce
the amount of trade barriers between nations. A trade barrier
is any imposed restriction on international trade, including
tariffs and subsidies. This consequently promotes economic
growth, creates jobs, makes companies more competitive and
lowers prices for consumers.It also theoretically gives poorer
countries an opportunity for economic development through
exposure to foreign capital and tech, resulting in conditions
that foster an improved standard of living for the citizens of
that nation.
Disadvantages of
Globalization
The biggest advantages of globalization are also its biggest
disadvantages. While many proponents view globalization as
an avenue for solving core economic problems, critics see it as
worsening global inequality. For instance, while some
proponents say globalization creates new markets and wealth
-- and promotes greater cultural and social integration by
eliminating barriers -- critics blame the elimination of barriers
for undermining national policies and cultures and
destabilizing advanced labor markets in favor of lower-cost
wages elsewhere.Similarly, some proponents point to the
rising economies of poor countries benefiting from companies
moving operations there to minimize costs. Meanwhile, some
critics say such moves could lowerlivingstandardindeveloped
countries by eliminating jobs.
While proponents focus on the increased trade benefits and political cooperation
that come from a united global economy, critics acknowledge that tightly
integrated global economic markets carry greater potential for global recessions.

Advocates of cultural globalization point to improved acknowledgement of human

rights on a global scale and shared understanding of our impact on the
environment, while critics decry the decimation of unique cultural identity and
language, especially in the age of social media.

Advocates view the increased ability to travel and experience new cultures as a
selling point of cultural globalization. However, critics point out that increased
travel has the potential to increase the risk of pandemics, with the H1N1 (swine flu)
outbreak of 2009 and the coronavirus of 2020 serving as two examples of serious
diseases that spread to multiple nations very quickly.
Future of Globalization
Technology advances, particularly blockchain, mobile communication and banking
are fueling economic globalization.

Nonetheless, the rapid pace of globalization in the early 21st century could be
slowed or even reversed by potentially rising levels of protectionism and
anti-globalization sentiment happening in several countries.

Aside from nationalism and the growing trend of increasingly conservative

economic policy, global trade is under rising threat from climate change, decaying
infrastructure, cyberattacks and human rights abuses, all requiring responses from
both corporations and governments, according to the Council on Foreign Relations.
References:

Rouse, M. (2020, January 29). What Is Globalization? Globalization Explained (1157021571

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What is Globalization? Examples, Definition, Benefits and Effects. (n.d.). Retrieved January 19,
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