Concept of Globalization and its Main Principles - Essay Example

GLOBALIZATION and Section # of GLOBALIZATION PRINCIPLE: Globalization is the integration of the world into one large common society, be it be from any perspective: financial, social, technical or political. Every product, commodity, process, idea, person, thing has become internationalized in the concept of globalization. Every nation has access to the resources of the other nation very easily. The boundaries of time, costs, restrictions and nationality to use a certain resource is lost as people now can acquire basic commodities from each other's country. Its not just about commodity, but due to the concept of globalization, people possessing specialized skills can also be imported in our home countries who can work for us and earn foreign exchange for their country. Therefore, in the exchange of specialized skills people, both the countries benefit greatly. The country who calls the people from abroad benefit from their knowledge and mastery over a particular topic whereas those people who go abroad to work will benefit themselves and their country by earning foreign exchange. PRACTICE: The subject of globalization would be classified under practice because it has actually made the world into one global village where nothing is alien, no country is inaccessible and people are open to rapid environmental changes because they have accepted the concept of globalization and they know that their country does not live in isolation. Countries which are ethnocentric may challenge the concept of globalization. These are the countries that fill the category of traditional thinking. Countries which feel that they are independent of the rest of the world and they can exist very well in a closed economy. But the aspects of interdependency and being part of an open economy when it comes to globalization challenge these aspects of traditional thinking. The term globalization exists as a fact in our lives now. The term started gaining popularity in late 1990's therefore it cannot be called a newly formed one. It is neither standard as the concept is fresh and new for people all over the world. Therefore, it would be justified to call it radical because it has far-reaching impact in the way things are done now. It has the power to bring many changes in the way countries deal with each other and in the way countries exist and operate. PARTICULARS: The major subdivisions or aspects of globalization would be: Industrial: Industrial globalization includes those production outlets where production is being done for foreign companies. Often, a garment company in USA might find it more cost-efficient to produce their clothing in a factory in China than in their own country. Financial: Financial markets have sprung up all over the world, each posing some benefits and opportunities to global investors. Investors who want to diversify their risk can go global when it comes to their money and finances and where it should be invested. Economic: The world is one global market now. Slippers made in Germany will be easily available to a consumer in India. The buying and selling of goods and services has become global with each company trying to cater to foreign buyers and fighting off global competitors. Political: Political globalization is when certain forums or communities are created which take the responsibility of regulating world politics and the politics that arise when nations interact with each other, whether in the financial, economic or industrial market. Cultural: the concept of "world culture" is emerging nowadays. A concept whereby all the cultures of the world are welcome and intercultural diversity is not neglected. People are getting to know each other's culture more than ever before. The diffusion of different cultures into each other also comes under cultural globalization. Social: social globalization is the acceptance of norms, values and beliefs of another country into one's own country. For example, supposing, gender inequality might be okay in Africa but has no roots in USA. Since globalization is taking pace at such a fast rate, Africans might feel a change in their attitude due to the prevalence of such freedom for women in USA. PERSONS: Senator Douglas Roche, O.C.: He is a thorough supporter and proponent of globalization and sees the concept as inevitable. Says that nations who think of themselves as independent will face the negative consequences soon. Economist Xavier Sala-i-Martin: he is a contributor to the discussion of economic globalization. The discussion entails that whether income inequality is decreasing between the world or not. Sala-i-Martin did a thorough analysis and submitted the result stating that this is true. Journalist Naomi Klein: Belonging to Canada, Naomi Klein has written a book named No Logo: Taking Aim at the Brand Bullies and highlights the element of anti-globalization. Entrepreneur-turned-minister Charles Taze Russell: he is an American who introduced the term "corporate giants" that is those companies who believe in going global and operating in an open economy. He also gave many initial concepts of globalization and was successful in predicting many things which we see today as part of globalization. PERIOD: Since 1981, economists have been frequently making use of the word "globalization". While study economics, these economists are referring to countries deciding about factors of production while producing anything and therefore, a very important consideration then is that of globalization. It has to be seen whether the company is operating in a closed economy country or wants to operate in the global market. The term "globalization" gained recognition and popularity in late 1990s. that is when the general masses and population started becoming global and understood the depth of the term. This is when the common man started to shop from foreign markets online or allow any cultural invasion from the other end of the world. The first era of globalization occurred during the 19th century when trade was at its peak between United States of America, the European colonies and its imperial powers. It was highly incentive-driven for all these parties to trade with each other. After the Second World War, globalization reached its heights as now technology had also advanced so much that it was more cost efficient for firms to have their production units abroad. The Muslim traders and explorers had already initiated the concept of a global economy in the Islamic Golden Age. PLACES: The process of globalization had its roots and origins in Europe. This is because it includes the discovery of the New World. The office of GATT {General Agreement of Tariffs and Trade) has minimized the barriers to international trade. PHRASES: The term "Internationalization" has often been used as a replacement for the concept of globalization. But recently the phrase has been understood as having other meanings. It has a narrow meaning which only encompasses two countries. PICTURES: "People have accused me of being in favour of globalization. This is equivalent to accusing me of being in favour of the sun rising in the morning." Clare Short PROSPECTS: Benefits derived from globalization are immense and varied. The concept of globalization can drive the whole life of an individual or the complete working of a company. Individuals, groups or companies can use it to their utmost benefit. Individuals can use it for personal financial investment, and companies can use it for a variety of purposes for eg cost effective production or specialized labour. PROBLEMS: The limitations that exist are the visa problems that people face while they have to travel to some other country. Getting a visa is often a very difficult process. Globalization is a radical term and so huge in its scope that there is seldom some concept which can replace it. There might still be some kind of hindrances in terms of language differences and attitude and belief differences. When people from two countries with diverse cultures interact, they might face difficulties in understanding each other. One might be from the collectivist culture while the other might be from the individualistic culture. PERFORMANCE: The knowledge of globalization is highly useful for any individual who wants to truly evolve himself and remain ahead in this fiercely competitive world. Anyone who wants to diversify his risks by investing his money in global markets will need a good understanding and knowledge of global financial markets. Any firm who wants to serve its customers quality goods and yet be cost effective will need to scan the world to see where production would cost them the lowest. A person who wants to be the best piano player in the world will need the best piano with all the features and therefore, he need to study which country will provide him that, if not his. The availability of this information will offer an enhancement of perspective as well as effectiveness of work for any individual, group or firm because all resources to do the best or to be the best cannot be present in your own country and at your disposal. Work will be only effective if one opens their eyes to other opportunities. Perspectives will also get enhanced as a person will see other countries as being better in producing certain things or posing better opportunities. The conclusion is that globalization has taken over every aspect of our lives. If we see around our home only, we will be having brands that are international or will be wearing clothes made of cotton imported from some other country. Globalization is inevitable and therefore, each country should try to accommodate it to improve its GDP, per capita income and standard of living. The recommendation would be that countries should try to channelize the power of globalization in constructive ways rather than devoting it to gain power over other countries. Gaining competitive advantage for the production of a good over other countries is something, but the tension that gets created between countries when some specific precious commodity is naturally available to a country is another. PUBLICATIONS: o "Web sites and Internet Resources" Globalisation and its Impact on Trade. Retrieved February 20, 2008 from web title http://www.allbusiness.com/north-america/united-states/120214-1.htm Globalisation Guide. Retrieved February 20, 2008 from web title http://www.globalisationguide.org o "Journals, Periodicals, Brochures, etc." The dawn of globalization - Quadrant Globalisation: Ending the tyranny of distance - Quadrant Globalisation and Hunger in an Era of Economic Lunacy The downside of globalization - NZ Business The roots of globalization - Quadrant o "Books" Sweeney, Simon (2005) Europe, the State and Globalisation Read More