Globalization and its impact

Content:

Introduction

Globalisation refers to the trend toward countries joining together economically , through education,
society and politics, and viewing themselves not only through their national identity but also as part of
the world as a whole

Globalisation is a major change that occurred across the globe in the late 20th century.

This has political cultural as well as economic dimensions

We identiy three types of movements within international economic exchanges

-the first is the flow of trade in good as well as services

-the second is the flow of labour- the migration of people in search of employment

-the third is the movement of capital for short term or long term investements over long distances

HisWhat is the history of globalisation

There is some debate about what stage in history we should call the
beginning of globalisation. Some believe that globalisation has been
around since human migratory routes were formed (as early as the 1st
century BC). Certainly, humans have been trading goods forever, but
when it comes to moving goods across borders, the creation of the
Silk Road is widely acknowledged to be one of the earliest large-scale
examples of globalisation.

The Silk Road was a trade route between China and Europe which
saw Chinese goods being sold in Europe for the first time. From
spices to silk, early global trade routes thrived over land and sea into
the 14th century, but it was at the end of the 15th century when global
trade truly took off in the Age of Discovery.
During this time, European explorers linked the East and West and
discovered the Americas, and now common-place foods like potatoes,
tomatoes, coffee, and chocolate became available in Europe.

Whilst these early examples certainly introduced the world to global

trade, it is the Industrial Revolution that historians truly regard as the
beginning of globalisation as we know it today.

While globalization has been accelerating since the 20th century its
roots can be traced back centuries. The history of globalization can be
divided into four major periods.

The first period began in the 16th century with the age of exploration ,
when European nations began to establish trade routes and colonies
in orther parts of the world.This led to the exchange of goods, ideas
and technologies between different regions.

The second period began in the 19th century with the industrial
revolution , which bought significant changes in transportation and
communication technology. The steam engine , telegraph and
railroads made it easier to transport goods and communicate across
long distances. This period also saw the rise of capitalism and the
development of modern economic systems.

The third period of globsalisation began after world war 2 with the
establishment of international organizations such as the united
nations, the world bank and the international monetary fund . This
organizations were created to promote international cooperation and
economic development.This period also saw the rise of multinational
cooperation and the growth of global trade.

The fourth and the current period of globalization is characterized by

the spread of technology and the internet, which has made it easier
then ever before to connect with people and businesses around the
world. This period has also seen the emergence of emerging markets
and the rise of economic powerhouse such as chine and india.

While globalization has bought many benefits such as increased

economic growth and cultural exchange , it has also faced significant
criticism. Critics argue that globalization has contribured to income
inequality, the exploitation of workers and environmental degradation.

Types of globalization
1) Economic – counties that trade with many others and have few trade barriers are economically
globalized
2) Social- A measure of how easily information and ideas pass between people in their own
country and between different countries. ( includes access tp interent and social media
platforms)
3) Political- The amount of political cooperation there is between countries

Causes of globalization
1) Improved communication
The development of communication technologies such as
internet, email and mobile phones have been vital to the
growth of globalization because they help MNCs to
operate throughout the world
The development of satellite TV channels such as BBC
and CNN have also provided worldwide marketing
avenues for the concept and products of globalization

2) Improved transportationld
The development of refrigerated and container transport,
bulk shipping and improved air transport has allowed the
easy mass movement of goods throughout the world.
3) The growth of mnc
The rapid growth of big MNCs such as Microsoft , Mc donalds and
Nike is a cause as well as a consequence of globalization.
Globalisation allows MNCs to produce goods and services and to

sell products on a massive scale throughout the world .

4) Free trade agreements
MNCs and rich capitalist countries have always promoted global free trade as
a way of increasing their own wealth and influence.
International organizations such as the World Trade Organization and the
IMF also promote free trade.

The effects of Globalisation

1) Changed food supply-Food supply is no longer tied to the seasons. We
can buy food anywhere in the world at any time of the year.
2) Division of labour- Because MNCs search for the cheapest locations to
manufacture and assemble components , production processes may be
moved from developed to developing countries where costs are lower.
3) Less job Security- In the global economy jobs are becoming more
temporary and insecure
4) Damage to environment- More trade means more transport which uses
more fossil fuels and causes pollution.Climate change is a serious threats
to our future.
 5) Cultural Impact-Websites such as Youtube connect people across the
planet.

What are the different types of globalisation?

Despite the common understanding of globalisation as a solely
economic or financial concept, globalisation relates to our lives in a
wide variety of ways. Ideas and traditions from around the world are
traded as cultural globalisation, and we fly from country to country
freely due to geographical globalisation.

Examples of Globalisation
Globalisation is more than just the global exchange of money,
technology and goods. Below are some examples of different types of
globalisation.

Economic globalisation

The ongoing development of processes, seizing of opportunities, and

solving of the challenges of economic activity around the world.
Examples include the spread of capitalism, an increase in market
trading and exports, and the forming of global economic policies.

Cultural globalisation

The sharing and trading of cultural beliefs, traditions, and ideas.

Examples of this include the rise of K-Pop (Korean pop music).

Digital globalisation

The sharing of data and information on digital platforms that speeds

up and improves how we connect to people around the world.
Examples include big tech platforms like Facebook, Instagram, and
YouTube.

Financial globalisation

The rise in global financial systems and the exchanging of money

globally. Examples include the global stock market, which relies on the
economy as a whole and where a decline in one market has a knock-
on effect on others.

Geographic globalisation

The ever-changing organisation of different regions and countries

around the world. Examples include the sharing of visas between
certain countries which enable people to work, live, and travel easily in
countries other than their own.

Political globalisation

The development and influence of international organisations which

decide on actions and laws at an international level. Examples of such
organisations include the European Union, the UN, and even the
World Health Organisation.

Ecological globalisation

Refers to the growing movement towards seeing the Earth (and its
upkeep) as a single entity of which we must all be responsible.
Examples include the COP26 summit which saw countries from
around the world come together to tackle climate change as one
global team.

Why is globalisation important?

As we’ve covered, globalisation is inevitable in our increasingly
connected world. If we want to make the most of global resources by
sharing wealth, ideas, and knowledge, then globalisation is key.

Globalisation allows us to trade freely and work together as one

planet. Whether it’s large corporations boosting local economies
overseas by investing in resources and products or countries agreeing
to work together against climate change in the Paris Agreement,
globalisation enables us to work together for the greater good

The benefits of globalisation

Globalisation has far-ranging benefits in many industries and areas.
Some of these benefits include:

Economic and financial benefits

globalisation has lifted many countries out of poverty by sharply
increasing trade, economic, and financial exchanges.

In turn, this has led to strong global economic growth and contributed
to the acceleration of the industrial development that has given us the
advanced technologies and commodities we now can’t imagine living
without.

Similarly, the simplification of global financial regulations has made it

easier for the world’s key financial players to exchange capital. This
has led to a healthy, global financial market with international
contracts and exchanges at a consistently high level.
Cultural benefits
Aside from economics and finance, globalisation has seen the
movement of people across borders increase exponentially. We now
think nothing of flying across the world for business or pleasure. Be it
migration, expatriation, or travelling, the intermingling of people from
across our planet has undoubtedly led to hugely important exchanges
of culture.

This international tourism can help local economies, improve job

prospects for individuals, and create all kinds of opportunities to
explore the world.

As well as new customs, clothing, beliefs, and perspectives, with new

people comes new tastes. Food like coffee, avocados, and bananas
are now consumed all over the world, despite being native to tropical
temperatures.

Additionally, cultural exchange in the forms of books, television, and

film has been accelerated with the technological advancements of the
21st century. The internet is connecting us in a way we’ve never seen
before. In 2021, someone in the US can load the latest episode of an
Icelandic television programme minutes after it airs, without having to
leave their home.

The negative impact of globalisation

Whilst the benefits of globalisation are plain to see, with great power,
comes great responsibility. Globalisation is complex, and its influence
on our world isn’t always positive.

Why is globalisation bad?

While the economic impact of globalisation can be seen as a benefit
for all, many argue that it operates in the interests of the world’s
richest countries. Income inequality, trade that benefits parties
disproportionately, and the unequal distribution of wealth, are just a
few of the criticisms against some of the countries leading the way in
globalisation.

Environmental challenges of globalisation

enabling us to gain new perspectives and explore new cultures, has
had an undoubtedly negative impact on our planet. The emissions
created by travel have contributed to global warming, an increase in
greenhouse gases, and high levels of air pollution.

While globalisation has accelerated industrial production,

the consequences on the environment are plain to see. Deforestation
and the depletion of natural resources has had huge consequences
for global ecosystems and biodiversity. The production of single-use
materials like plastic has also contributed to problems with waste
disposal and increased pollution around the world.

Globalisation also leads to a redistribution of jobs and commerce. For

example, the UK was once a steel producing powerhouse. This fueled
the national economy, providing jobs for thousands of people.
Globalisation has led to UK manufacturers shutting down, as they are
unable to compete with the low priced steel provided by China. This
leads to job losses in the UK and raises questions over the regulations
and low wages being offered to workers in China.

As well as the sustainable and economic challenges, many argue that

cultural globalisation will lead to the forming of a homogenous ‘super-
culture’. Without unique cultural attributes that define nations, could
some valuable parts of global culture be lost forever?

The anti-globalisation movement

The term ‘anti-globalisation’ is a new term referring to those who
believe globalisation causes more damage than good. Those who are
part of the anti-globalisation movement believe globalisation is
enabling rich companies and nations to exploit their workers, people,
and the environment.

Anti-globalisation activists hold protests against everything from third-

world debt and capitalism to child labour, believing that the nature of
globalisation helps the world become less accountable for its actions.

Influence of technology internet

advantage

Economic impacts

Growth of International Trade: Countries can specialize in goods and services they produce most
efficiently.

Increased Competition: Businesses must innovate and improve efficiency to compete globally.

Job Creation and Job Loss: While some sectors thrive, others may decline, leading to job displacement in
certain industries.

Cultural impacts

Cultural Exchange: Globalization fosters cultural interactions, leading to a blend of traditions, languages,
and lifestyles.

Cultural Homogenization: The spread of dominant cultures can threaten local traditions and languages.

Challenges to Identity: Global interconnectedness can create tension between global influences and
local identities.

Social impacts

Global Awareness: People are more informed about global issues, such as climate change and human
rights.

Migration and Diaspora: Globalization has increased migration, leading to multicultural societies but also
potential conflicts.

Inequality: While globalization can lead to economic growth, it can also widen the gap between rich and
poor, both within and between countries.

Environmental impacts
Resource Exploitation: Increased demand for resources can lead to environmental degradation.

Global Environmental Movements: Awareness of global issues has led to international cooperation on
environmental challenges.

Sustainable Practices: Globalization can promote the spread of sustainable technologies and practices.

Disadvantage

Economic disparities

Job replacement’

Environmental degradation

Health risk

While globalization brings numerous benefits, it also presents significant disadvantages that must be
acknowledged and addressed. Balancing global integration with local needs and sustainability is crucial
for ensuring that the benefits of globalization are equitably shared.

Factors that have enabled globalization

1) Technology-
Rapid growth of technology has been one major factor that has stimulated the globalization
process . Due to the result of improvements in transportation technology good are delivered
faste across long distances at lower costs
The developments in information and communication technology have been more remarkable .
telecommunication facilities are used to contact one another around the world to access
information instantly and to communicate from remote areas
Interntet allows us to send instant email

SPEECH SAMPLE

Globalisation touches every part of our life from the products we buy, the food we eat and the way we
communicate with each other. Globalisation is also tied to some of the biggest issues we face in the
modern era including climate change, trade and terrorism and spread of deathly diseases.

Globalisation is the process by which economics, societies,and cultures become integrated through a
global network of trade, communication, and exchange. It has a profound impact on the world, both
positive and negative.

On the positive side, globalization has led to increased economic growth and prosperity. The ability to
trade goods and services across borders has allowed countries to specialize in what they do best and to
access a wider range of markets. This has led to increased efficieny and competitiveness and has helped
to reduce poverty and improve living standards in many parts of the world.
Globalisation has also facilitated the spread of ideas and knowledge. Advances in communication
technology have made it easier for people to connect and share information across borders. This has led
to greater cultural exchange, and has helped to promote understanding and tolerance between
different societies and cultures.

However , globalization has also some negative impacts. One of the most significant is the widening of
the gap between the rich and the poor. While globalization has led to increased economic growth and
prosperity in many parts of the world, it has also create gap between rich and poor. Mnay developing
countries have struggle;ed to compete in a global economy, and have been left behind. This has lead to
increasing inequality , both within and between countries.

Globalisation has also contributed to environmental degradation. The increased production and
consumption of goods and services has put pressure on the planet’s natural resources and has led to
pollution and climate change.

Negative and positive impacts of globalization;

POSITIVE IMPACTS

1)Economic Growth- Globalisation has contributed to economic growth of countries by promoting trade
and investment opportunities , leading to an increase in GDP and job opportunities.

2)Technological advancement : Globalisation has allowed acces to latest technology and expertise from

Other countries’ which has helped in the development of various industries such as IT and
Manufacturing

3)Cultural Exchange : Globalisation has led to cultural exchange where Nepal have learned and adopted
practices and traditions from other countries and this also creates unity.

4)Improvement in education: Globalisation has led to an important improvement in the education

system , with the establishment of international universities, collaborations with foreign institutions and
access to online education.

5)Access to international markets:Globalisation has allowed businesses the acees to international

markets leading to the growth of export sector and diversification of economy.

6) Improvemt of healthcare: Globalisatipn has led to the improvement of healthcare facilities , with the
availability of advanced medical equipment, technology and expertise from other countries. We can
adopt foreign technology and import eqyupments.

7) Increased trade and less barriers:

SOME IMPACTS FOR CONSUMER

1) Access to wider variety of products: Globalisation has led to an increase in the availiability of a
wider variety and products in the market. Consumer have access to products from different
countries and cultures and can choose from a range of options.
2) Lower prices: Globalisation has led to increased competitions which has resulted in lower prices
for many products.
3) Improved quality:Globablisation has led to an improvement in the quality of product available in
the market. Companies are adopting international standards to improve quality of their
products.

NEGATIVE IMPACTS OF GLOBALISATION

1) Exploitation of labor: Manifacturing companies of foreign countries tend to set up their business
in developing countries. Globalisation has led to the exploitation of labor , with low wages , poot
working condition and lack of job security in many industries.
2) Dependence on imports: Globalisation has led to a dependence on imports, which has led to a
decline in domestic production and an increase in the trade deficit.
3) Threat to small businesses: With the entry of multinationalcooperations and the dominance of
big players in the market
4) Cultural homogenization: Globalisation has led to cultural homogenization , where local cultures
are being replaced by global trends and practices , leading to the loss of traditional knowledge
and practices.
5) Environmental Degradation – Globalisation has led to environmental degradation due to
increased production and consumption of goods , leading to air and water pollution,etc
6) Brain drain- Globalisation has led to the brain drain , with the migration of skilled professionals
to developed countries for better job opportunities and higher salaries

Globalisation has both positive and negative impacts. It is important for countries to balance
the benefits anfd challenges of globalization to ensure sustainable development