The Concept of Globalization
Introduction
Globalization is the process of interaction and connection between people, corporations, and governments of various nations resulting from the expansion of international political, cultural, and economic activities. The globalization process is made possible by global commerce and ventures. Technological advancements and governmental policies facilitate it. The improvements in information technology, transportation, and telecommunication have accelerated these international interactions. Due to globalization, people, money, and technology flow more swiftly across the globe than they have in the past. It is worth noting that globalization is a broad concept. Globalization involves several spheres, including economic, political, and cultural. The economic globalization sphere mainly focuses on the uniformity and integration of the international financial markets.
On the other hand, political globalization focuses on the policies governments make across the globe to facilitate international trade and commerce. Finally, cultural globalization addresses various social factors that cause different cultures to converge. However, the globalization concept mainly concentrates on the economic aspect as it less of a reality in the political and cultural spheres in comparison to the economic one. However, it is with full acknowledgment of the fact that all these types influence each other.
Discussion
Mainly, the concept of globalization is characterized by the economy. When talking about globalization, it is the world economy that is thought of as being globalized. Countries across the globe have created economic partnerships that have made swift movements of goods and interactions between people across the world possible. Simply put, globalization means that the entire world is increasingly behaving like it is a part of a single market. In this case, the single market concept involves interdependent productions, consumption of similar goods, and facing the same challenges. Globalization can be said to have created new jobs and presented new opportunities across the globe. However, some authors have argued that these new jobs and opportunities are not evenly distributed. Some contend that globalization has benefited large corporations in the western world, while others indicate that various industries in different countries have been disrupted. Some of the examples of the disrupted industries include the U.S textile industry and corn farming in Mexico.
Government policies have been some of the key drivers of globalization. These policies have opened both local and global economies. Governments across the globe have taken up an open market economic system. This has helped to increase productivity potential, as well as increasing opportunities for investments and international trade. Governments of different nations have negotiated and came up with policies that reduce trade barriers. The systems have also launched worldwide contracts to encourage trade of goods, services, and investments. Additionally, most nations have maximized on foreign market opportunities and have built international industrial units. Also, they have launched productions and put marketing arrangements with overseas markets in place. As a result, many scholars have argued that globalization’s defining feature the international industrial and a financial trade structure.
Technology has also been another critical facilitator of globalization. The rapid advancement of information technology has had a significant impact on economic life. Advancement in technology has provided essential tools to facilitate international trade. Technological progress has made it easier to pursue economic opportunities. As a result, people worldwide can have a quick and well-versed breakdown of relevant business and industry trends all over the globe. Also, people can transfer assets quickly and collaborate with like-minded people across the world. Technological progress in terms of transport has also enabled the swift movement of goods to and from different markets of the world. Technological advancements in the past decades have dramatically decreased the cost of transportation and communication. This has facilitated accessible communication and movements of goods and services overseas. It is worth noting that without the reduction of transportation and communication costs, trends such as outsourcing, global value chains, and long-distance trades would be impossible.
Several scholars have indicated that globalization is contentious. Globalization proponents suggest that it helps underprivileged nations to develop economically. As such, they can catch up with other developed countries as they enhance manufacturing, economic expansion, and improvements in people’s living standards. Also, proponents contend that outsourcing by companies provides technology and jobs to developing countries. Due to trade initiatives involved in globalization, cross-border trading is increased by eliminating supply slide and trade-related restrictions. Also, social justice has been advanced on an international scale as a result of globalization. What is more, advocates report that it has focused attention on human rights across the globe. On the other hand, opponents argue that although it has benefited multinational corporations significantly, it is at the expense of local ventures, the people, and culture. Also, opponents contend that a downturn in one country’s economy can have severe adverse impacts on its trade partners. The detractors of globalization also argue that it has led to the concentration of wealth in the hands of a few elites, which can guzzle smaller competitors worldwide. In consideration of these contrasting arguments, it would be prudent to argue that it would be challenging to find the right balance on globalization.
Conclusion
Globalization has a technological base, and therefore, it is here to stay. For a country to get the best out of it, educating its citizens is paramount. Citizens should be educated on the relevant skills necessary to fit in the globalization world. Every country must learn to prepare to face the globalization challenge so that it is not bypassed by this significant wave of both technological and institutional changes. Globalization is not a new phenomenon. It has been evolving since history. The recent developments in communication and technology have accelerated globalization. These developments have made geographical distances become less of a challenge. Today, borders have become more permeable, and the sky is open. Although technological progress has played a significant role in enhancing globalization, it should be understood that it is not purely a technical phenomenon. Globalization has diverse dimensions, including ideological. Understanding gains, losses, benefits, and dangers associated with it is paramount. The risks associated with an open economy are known. However, the opportunities that globalization can offer to the world should not be missed.