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What is globalization?
Globalization can be thought of as the result of everything being interconnected, the
global economy opening up, and the consequent increase in trade between nations.
Globalization causes the spread of financial products, goods, technology, information, and jobs
across national borders and cultures. Globalization's far-reaching consequences are complex
and politically charged. Globalization, like major technological advances, benefits society as a
whole while harming certain demographics. It is also the increasing interdependence of the
world's economies, cultures, and populations due to cross-border trade in goods and services,
technology, and flows of investment, people, and information.

Moreover, globalization refers to the world becoming more interconnected. Globalization

is associated with business trends such as outsourcing, free trade, and international supply
chains. It is important because it expands the global market and allows more and different
goods to be produced and sold at lower prices.

The rise of globalization is also significant because it is one of the most powerful forces
influencing the modern world, so much so that understanding the world without understanding
globalization can be difficult. Furthermore, it is a business expansion phenomenon that allows
for the mobilization of resources among nations in order to ensure their optimal utilization for
global growth.

When did globalization begin?

Since ancient times, humans have sought out remote locations to settle, produce, and
exchange goods made possible by advances in technology and transportation. However, global
integration did not take off until the nineteenth century. Following centuries of European
colonization and trade activity, the first "wave" of globalization was propelled by steamships,
railroads, the telegraph, and other technological advances, as well as increased economic
cooperation among countries. Globalization eventually waned and crashed in the disaster of
World War I, which was followed by postwar protectionism, the Great Depression, and World
War II. Following World War II in the mid-1940s, the United States led efforts to resurrect global
investment and trade under agreed-upon ground rules, launching a second wave of
globalization that is still ongoing, despite occasional financial crises and mounting political
investigation.

The term "globalization" as we know it today first appeared in the 1980s, as a result of
several technological advances that increased international interactions. The introduction of the
personal computer by IBM in 1981, and the subsequent evolution of the modern internet, are
two examples of technology that aided in the advancement of international communication,
commerce, and globalization.
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Throughout history, globalization has ebbed and flowed, with periods of expansion and
retrenchment. Both have occurred in the twenty-first century. Following the terrorist attacks in
the United States on September 11, 2001, global stock markets collapsed, but recovered in the
years that followed.

The Silk Road is arguably the most well-known early example of exchanging ideas,
goods, and customs. This was an ancient network of trade routes across China, Central Asia,
and the Mediterranean used between 50 BCE and 250 CE. New technologies were crucial to
the Silk Road trade, as they would be in other eras of globalization. Coins were made possible
by advances in metallurgy, transportation, and agriculture, and more food could be transported
between locations thanks to the construction of roads that connected the major empires of the
time. Along with Chinese silk, Roman glass, and Arabian spices, these tendrils of trade also
allowed for the spread of ideas like Buddhism and papermaking techniques.

These kinds of exchanges undoubtedly picked up speed during the Age of Exploration
when European explorers looking for new sea routes to Asia's spices and silks instead ran into
the Americas. Once more, technology was crucial to the maritime trade routes between ancient
and recently discovered continents. The development of the magnetic compass and new ship
designs were crucial to the explorers' success. Christian missionaries were transported on ships
carrying plants, animals, and Spanish silver between the Old and New Worlds, expanding trade
and intellectual exchange to a previously unconnected region of the world.

During the Age of Revolution, when concepts of liberty, equality, and fraternity spread
like wildfire from America to France to Latin America and beyond, the web of globalization
continued to widen. It was propelled by the development of factories, railways, steamboats,
cars, and airplanes through the eighteenth, nineteenth, and twentieth centuries as it rode the
waves of industrialization, colonization, and war.

Globalization accelerated in the Information Age. Modern communications satellites

made it possible for Americans to watch the 1964 Summer Olympics in Tokyo for the first time
thanks to advancements in computer and communications technology, ushering in a new era of
global connectivity and redefining what it meant to be "connected." Someone in Germany could
read about a breaking news story in Bolivia in real time thanks to the World Wide Web and the
Internet. A hundred years ago, it would have taken a week or more to travel from Boston,
Massachusetts, to London, England; today, it can be done in a matter of hours. Global
economies also experienced a significant impact from the digital revolution, becoming more
interdependent and information-based. In the modern era, every significant global economy is
affected by the economic success or failure at one focal point of the global web.

Types of globalization
There are three types of globalization:
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1. Economic globalization. This type focus on the integration of international financial

markets and the coordination of financial exchange. Economic globalization can be seen
in free trade agreements such as the North American Free Trade Agreement and the
Trans-Pacific Partnership. Multinational corporations that operate in two or more
countries play a significant role in economic globalization.

2. Political globalization. This type includes national policies that unite countries
politically, economically, and culturally. NATO and the United Nations are examples of
political globalization organizations.

3. Cultural globalization. This type of globalization focuses on the technological and

societal factors that cause cultures to converge. These include improved
communication, the widespread use of social media, and access to faster and better
transportation.

These three types interact with one another. Economic globalization is powered, for example, by
liberalized national trade policies. Political policies also have an impact on cultural globalization,
allowing people to communicate and travel more freely around the world. Economic
globalization influences cultural globalization by importing goods and services that expose
people to different culture.

Benefits of globalization
Globalization allows countries to gain access to less expensive natural resources and labor.
Therefore, they can produce lower-cost goods that can be sold around the world. Advocates of
globalization argue that it improves the world in a variety of ways, including the following:

 Resolves economic issues. Globalization shifts jobs and capital to places where they
are needed. It provides rich countries with lower-cost resources and labor, while
providing less fortunate nations with jobs and the investment funds they require for
development.

 Encourages free trade. Globalization puts pressure on countries to reduce tariffs,

subsidies, and other trade barriers. As a result, economic growth is boosted, jobs are
created, businesses become more competitive, and consumer prices are reduced.

 Promotes economic development. In theory, globalization provides poorer countries

with access to foreign capital and technology that they would not have otherwise.
Foreign investment can improve the standard of living for citizens of those countries.

 Promotes positive trends in human rights and environmental protection.

Globalization supporters point to increased global attention to human rights and a
shared understanding of the impact of people and production on the environment.
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 Encourages mutual cultural understanding. Advocates see increased travel and

cultural experiences as a positive aspect of globalization that can contribute to
international cooperation and peace.

Negative consequences of globalization

Numerous advocates see globalization as a means to address systemic economic problems.
However, critics believe it is increasing global inequality. Among the globalization criticisms are
the following:

 Markets are destabilized. Critics of globalization claim that the removal of trade
barriers and greater freedom of movement of people undermines national policies and
local cultures. Labor markets, in particular, are impacted when people cross borders in
search of higher-paying jobs or when businesses outsource work and jobs to lower-cost
labor markets.

 Harmful to the environment. Transporting goods and people between countries

emits greenhouse gases and has a negative impact on the environment. Global travel
and trade can also unintentionally introduce invasive species into foreign ecosystems.
Fishing and logging industries, for example, tend to go where business is most profitable
or regulations are less stringent, resulting in overfishing and deforestation in some parts
of the world.

 Reduces living standards. Companies that relocate operations overseas to cut costs
can eliminate jobs and increase unemployment in the home country.

 Aids in global recessions. Global recessions are more likely in tightly integrated global
markets. The financial crisis and Great Recession of 2007-2009 are excellent examples
of how intertwined global markets are and how financial problems in one country or
region can quickly affect other parts of the world. Globalization reduces individual
countries' ability to effectively use monetary and fiscal policy to control the national
economy.

 Hurts cultural identities. Globalization critics decry the annihilation of unique cultural
identities and languages that comes with the international movement of goods and
people. At the same time, even without the movement of people and trade, the internet
and social media are driving this trend.

 Increases the possibility of pandemics. Critics argue that increased travel increases
the risk of pandemics. The 2009 H1N1 (swine flu) outbreak and the coronavirus
outbreaks in 2020 and 2021 are two examples of serious diseases that spread quickly
across multiple countries.

Characteristics of globalization
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Globalization is the process of bringing all countries together in a forum. There are various
globalization characteristics that can define what globalization is and how it works. The world is
becoming a "global village" as a result of globalization. The following are some of the main
characteristics/features of globalization:

National Economic Integration

One of the primary characteristics of globalization is the integration of the national and global
economies. Countries' financial markets, trades, and economies are all interconnected.

And this kind of connection and integration had never been seen before. This aids in the
development of integrated countries' financial markets, specialization, economies of scale, and
economic progress.

Free Market Economy

Globalization takes place in a market economy. The economy operates without government
intervention.

The market is handed over production, importing, exporting, selling, purchasing, pricing, and
distribution. Product prices are determined by demand and supply rather than by government
regulations. Globalization is a purely free market in which the government serves as a regulator
and facilitator.

Economic Interdependence

Economic interdependence is central to globalization. It assumes that no single country has the
necessary power, capital, resources, and other factors to produce all products that meet all of
the country's needs.

A company should export enough products to the required country and import the products it
requires. Countries are reliant on others for goods, services, technology, and so on.

Product Free Movement

Globalization has resulted in the free movement of goods and services. Globalization facilitates
free trade. Governments reduce various tariffs, subsidies, and other factors that make it difficult
for people to move products across borders.

This means that consumers will have access to a variety of high-quality products at lower prices
in the market. It also provides people with job opportunities, raising their standard of living.

Free Flow of Production Factors

Globalization also refers to the free flow of production factors such as capital, labor, technology,
management, and entrepreneurship across national borders. As a result of globalization, factors
of production that are inputs for the production process are supposed to move freely from one
nation to another.
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This is why there has been an increase in foreign employment. People (labor) are now free to
move to a foreign country with certain requirements such as Visas, Passports, and other
documents.

Standardization of Technology

Companies all over the world must adopt globally accepted standardized technologies as
globalization facilitates technology transfer. The best example is Windows-based computer
technology, which has virtually eliminated differences in personal computer applications by
replacing them with a standard one.

Furthermore, as a result of globalization, businesses are forced to develop technologies that are
compatible with the global market, and their movements are simplified.

Global Competence

Globalization is also distinguished by global competition. Today's competition is global, not

regional, national, or company to company.

Global competition has had both positive and negative consequences. On the positive side, it
has resulted in high-quality products at low prices, international cooperation, customer
supremacy, global job opportunities, and so on. Furthermore, it endangers domestic businesses
as well as the environment, culture, and values.

In this global age, businesses must think globally and devise strategies to compete globally.

Global Corporations and Global Image

Global corporations, or multinational corporations (MNCs), are the primary proponents of

globalization, and globalization allows them to do business globally.

MNCs such as Coca-Cola, Pepsi, Unilever, Toyota, Sony, Honda, and others are on the rise as
the globalization trend continues.

Whenever they operate on a global scale, they develop a global image and brand. Consider the
Apple Company. What do we think of it? Perhaps its quality and global image.

Global Organizations Supported

The main enablers of globalization are the WTO, IMF, UN, World Bank, and so on. Because of
such organizations, free trade, free economy, market, free flow of goods, capital, resources, and
so on are introduced and promoted across countries.

Increase in World Trade Volume

More commodities, materials, and products are traded in the global market as a result of
globalization. Communication and transportation are reducing delivery times and allowing more
countries to participate in global trade.
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A growing number of companies are becoming more involved in and reliant on the global
market. Similar products can be found in various countries, and the world is shifting toward the
small village. All of these factors are contributing to the rapid expansion of international trade.

Acquisitions and fusions

Globalization has increased the number of mergers and acquisitions. Many domestic industries
are being bought out or forced to merge with international firms and multinational corporations
as a result of globalization. This is primarily due to increased competition and the requirement to
meet local demands.

Due to the fierce competition in the global market, companies must expand their size and
volume of operations, which encourages mergers and acquisitions.

References:

https://www.techtarget.com/searchcio/definition/globalization

https://tyonote.com/characteristics_of_globalization/

https://education.nationalgeographic.org/resource/globalization/