Causes and effects of globalization - Essay Example

Causes and Effects of Globalization Causes and Effects of Globalization The term globalization is used to refer to the elimination ofboundaries and increase in interaction between two or more nations (Ervin, 2008, p.2). There are several reasons due to which globalization has occurred, which include: increase in significance of multinationals, decrease in trade barriers and development of technology. The effects associated with the globalization progress include: increase in mobility of working population, creation of new global markets and changes in cultures.

Globalization took place as the developing regions understood the importance of multinationals operating in their nation and as companies recognized the importance of expanding their business globally (Ritzer, 2007, p.70). Decrease in trade barriers such as quota systems and import, export duties even became an underlining reason that promoted globalization. When trade barriers were removed, consumers realized that they can obtain goods and services at much lesser prices as compared to the goods and products available and produced locally.

Globalization was even created as organizations and nations understood the importance of technological advancements that were taking place in other regions and due to their desire to obtain these technological advancements. Globalization has been impacting humankind both in negative and positive way. This process has increased job opportunities for the workforce throughout the world, now people can find employment anywhere around the world. Another positive effect was that the developing nations have started working for developed nations which aided in solving the problem of unemployment rate in these nations.

Due to globalization, interaction between cultures increased and cultural boundaries became blurred, and due to this people of one nation started accepting and adopting the cultures of other nations. ReferencesErvin, J., & Smith, Z. A. (2008). Globalization: A reference handbook. Santa Barbara, Calif: ABC-CLIO.Ritzer, G. (2007). The Blackwell companion to globalization. Malden, MA: Blackwell Pub.