Globalization:

Introduction:

Globalization is a term used to describe the increasing connectedness and

interdependence of world cultures and economies. It is used to describe how trade and
technology have made the world into a more connected and interdependent place. It also captures
in its scope the economic and social changes that have come about as a result.

Definitions:

Sir William Derites defined it as:

“The process by which people and goods move easily across borders”.

In international economics, According to Borgean Crooks:

“Globalization is the web of relationships between economies worldwide by way of international

trade and investments.”

According to Bridth somesom:

“Globalization is a process wherein organizations or businesses build influence internationally

or start their operation in various locations worldwide.”

According to Domenats Somith:

“Globalization can mean the merging of national economies through technology, migration of
labor force, the flow of capital, investment, and trade.”

Explanation:

Principally, it's an economic concept the integration of markets, trade and investments
with few barriers to slow the flow of products and services between nations. The web of
globalization continued to spin out through the Age of Revolution, when ideas about liberty,
equality, and fraternity spread like fire from America to France to Latin America and beyond. It
rode the waves of industrialization, colonization, and war through the eighteenth, nineteenth, and
twentieth centuries, powered by the invention of factories, railways, steamboats, cars, and planes.

History of globalization

Many scholars say it started with Columbus’s voyage to the New World in 1492. People
traveled to nearby and faraway places well before Columbus’s voyage, however, exchanging
their ideas, products, and customs along the way. The Silk Road, an ancient network of trade
routes across China, Central Asia, and the Mediterranean used between 50 B.C.E. and 250 C.E.
is perhaps the most well-known early example. As with future globalizing booms, new
technologies played a key role in the Silk Road trade.

Purpose:

The goal of globalization is to provide organizations a superior competitive position with lower
operating costs, to gain greater numbers of products, services, and consumers.

Examples of globalization include:

(1) Intergovernmental organizations: Globalization has made it possible for

international organizations to be created through treaties between many different
countries. Examples include the European Union, the United Nations, the World
Bank, the World Trade Organization (WTO), and the International Monetary Fund
(IMF).
(2) Intergovernmental treaty: Many governments across the world have engaged in
treaties or trade policies to make it easier for international investment and trade.
These treaties, called free-trade agreements, include the North American Free Trade
Agreement (NAFTA) and the Comprehensive Economic and Trade Agreement
(CETA).
(3) Multinational corporations: A multinational corporation is an organization that
does business in many different countries. Globalization is the reason that
multinational businesses exist. For example, globalization allows major US
corporations to sell their products to Mexico, Europe, and China.
Types of Globalization:
There are three types of globalization.
(1) Economic globalization.
(2) Political globalization.
(3) Cultural globalization.
(4) Globalization.
(5) Automotive Industry Globalization.
(6) Food Industry Globalization.
(7) Technological Globalization.
(8) Banking Industry Globalization.
Globalization in Sociology:

(i) Sociologists Martin Albrow and Elizabeth King define globalization as:

"All those processes by which the people of the world are incorporated into a single world
society."

(ii) In The Consequences of Modernity, Anthony Giddens writes:

"Globalization can thus be defined as the intensification of worldwide social relations which
link distant localities in such a way that local happenings are shaped by events occurring
many miles away and vice versa."

Benefits of Globalization:

Globalization can benefit a country’s economy in many ways:

(1) Increases economic growth: By increasing the international exchange of goods,

technological advances, and information, globalization increases economic
development for any country participating in the global economy. An increase in
economic growth means better living standards, higher incomes, more wealth in a
country, and, often, less poverty—in short, the overall well-being of a country.
 (2) Makes production more affordable: A global market allows businesses wider
access to production opportunities and consumers, meaning that there are more goods
available at a wider range of price points.
(3) Promotes working together: When different countries come together to engage in
trade and investments in a global financial market, they become interdependent and
often come to rely on one another for certain goods and services.

Disadvantages of Globalization:

While it can benefit nations, there are also several negative effects of globalization. Cons of
globalization include:

(1) Unequal economic growth: While globalization tends to increase economic growth
for many countries, the growth isn’t equal—richer countries often benefit more than
developing countries.
(2) Lack of local businesses: The policies permitting globalization tend to advantage
companies that have the resources and infrastructure to operate their supply chains or
distribution in many different countries, which can hedge out small local businesses
— for instance, a local New York hamburger joint, may struggle to compete with the
prices of a multinational burger-making corporation.
(3) Increases potential global recessions: When many nations’ economic systems
become interdependent, the likelihood of a global recession increases dramatically—
because if one country’s economy starts to struggle, this can set off a chain reaction
that can affect many other countries simultaneously, causing a worldwide financial
crisis.

Impact of globalization on the poorest people in underdeveloped countries:

The mean by “globalization” is all encompassing concept, and the aspect of

globalization, that is international trade. If we look back over the past 30 years, developing
countries had very high levels of trade protection, so they had high barriers on imports in terms
of taxes, and they restricted imports quantitatively, by quotas or licenses. During the 1980s and
1990s, many countries decided to abandon these protectionist policies and implemented large-
scale trade reforms. For example, India implemented trade reforms in 1991, and its average tax
on imports dropped from over 80% to an average of 30% in the late 1990s. Colombia went from
50% to around 13%. We observed big increases in trade flows as a result.

Economic growth: is the main channel through which globalization can affect poverty. When
countries open up to trade, they tend to grow faster and living standards tend to increase. The
usual argument goes that the benefits of this higher growth trickle down to the poor. It has been a
bit trickier, especially with aggregate data, to pinpoint how exactly the poor have been benefited.

The Future of Globalization Hold:

Current forecasts indicate that international flows will start growing again as the COVID-19
pandemic comes under control. Although 2020 has been a low point for many globalization
metrics, leaders are finding clues about the future of globalization and actionable implications for
their companies by focusing on a few key drivers. These include:

(i) Global growth patterns: International flows tend to swing dramatically with
macroeconomic cycles. Real growth can only be restored once the pandemic is fully
brought under control.
(ii) Supply chain policies: Shifting approaches can reshape trade, but the focus now falls
on redundancy versus reshoring.
(iii) Superpower frictions and fragility: Before the pandemic, this driver already
destabilized international business. There has been a vast extension of state power
that drove the need for ideological competition. This could possibly shape a more
regionalized world, but nothing is set in stone yet.
(iv) Technological shifts: The adoption of e-commerce, videoconferencing, and the use
of A.I. have all been supercharged by COVID-19. Before the pandemic, most leaders
focused on how tech could reduce global flows. But now, organizations are
considering how tech trends can change their standing vis-à-vis their competitors,
customers, suppliers, etc.

Globalization: Blessing or Curse?

“Globalization” is the product of two world-wide revolutions:

1 ) one in economics

2) in technology.

The success of Single-Gear Economic Fundamentalism has established market freedom

as the economic goal. The revolution in technology has made its achievement a possibility. By
almost impenetrable barriers and therefore “closed” to international trade. Completely “open”
economies have no barriers restricting the two-way flow of resources between themselves and
the rest of the world. The majority, however, are more or less leaky affairs somewhere between
these two extremes. A significant step has been taken towards what was once no more than a
distant dream of bringing peace and harmony to the world

The Nuclear Transformation of Economics:

With the shrinking of time and distance, caused by improvements in transport and
communications and by the revolution in information technology, barriers to competition have
fallen. Individual countries have become less isolated and therefore less insulated from the
outside world; they have lost a significant degree of natural protection. This has coincided with
the free-market revolution and the world-wide movement towards deregulation of markets.

Early and modern Globalization:

Early modern globalization is distinguished from modern globalization on the basis of

expansionism, the method of managing global trade, and the level of information exchange. The
period is marked by such trade arrangements as the East India Company, the shift of hegemony
to Western Europe, the rise of larger-scale conflicts between powerful nations such as the Thirty
Years' War, and the rise of newfound commodities—most particularly slave trade. The
Triangular Trade made it possible for Europe to take advantage of resources within the Western
Hemisphere. The transfer of animal stocks, plant crops, and epidemic diseases associated with
Alfred W. Crosby's concept of the Columbian Exchange also played a central role in this
process. European, Muslims, Indian, Southeast Asian, and Chinese merchants were all involved
in early modern trade and communications, particularly in the Indian Ocean region.

Conclusion:
Globalization has changed the whole world. World become a global village every country knows
what the happening in the world. It has changed the trading style, improve marketing, sale of
goods, help in education, agriculture and the field of medicine. There is a clear difference
between the early and modern globalization.