The History of Globalization Concept - Essay Example

Running Head: Globalization Globalization of Globalization Globalization is a process inwhich the people of the world are united by a single society and transforming certain things into global ones. Economic, technological, sociocultural and political forces have now been united into a single society. It is also used to refer to the integration of national economies with the international economy by trade and foreign investment. Globalization specifically refers to economic integration of local economies with an international system. It aims to erase the national boundaries and governs international trade by comparative advantage. The concept of globalization became popular in the late 1980s and 1990s. Globalization began with Portuguese adventurers and navigators who established a chain of fortresses, key strong points and coastal areas to create a chain of economy and culture which was global in nature. Modern globalization began after World War II as economists, corporations and politicians recognized the negative aspects of protectionism. They saw the advantages of international economic integration. Several international institutions like the International Monetary Fund and World Bank were created to reduce the costs of trade and remove restrictions on free trade. Since then many barriers to international trade have been lowered. The World Trade Organization was established to promote free trade and reduce tariffs. It also called for the recognition of intellectual property restrictions. Globalization remains a unique phenomenon because of the rapid spread of technology, economic trade and foreign investment in many parts of the world. There are many affects of globalization which point out that we live in a globalized world (Friedman 56, 2005). The impact of globalization can be measured by the goods and services which form the proportion of national incomes. It can also be measured by the net migration rates and direct investment that comes inside a country by foreign organizations. Finally the impact of international research and development and the proportion of populations using modern technologies like the cell phone, internet, and motorcar on a country can measure the affect of globalization for a particular country. In addition to the economic measurement of globalization, it can also be measured by social and political factors. Globalization has changed the world in many different ways. It has heralded the advent of worldwide production markets which provide more access to foreign products for consumers and companies. Global financial markets have emerged in different parts of the world which provide better access to external financing for corporations and local borrowers. The creations of world organizations which regulate the relationships between nations and protect their rights have sprung up due to globalization. China is an amazing success story of globalization because of its tremendous economic growth rate. In recent years China's economy has rapidly grown. This rapid growth of economy is the important point in the field of economic development which has been acknowledged by the international community. The UN says that China is the backbone of Asia's economic development. This statement is enough to tell that China is playing an active role in contributing to the world economy. China's rapid economic growth has made a huge impact on the world's economy in stabilizing and recovery it. China is the globe's best commodity market (Ankerl 36, 2000). Chinese products are found all over the world. During the period of 1990-2001 China's export growth rate was 14.9% and the import growth rate was 15.5%. China's good and cheap exported products have benefited many consumers globally. American buyers of goods and products have saved about US$15 billion annually. China's rapid import growth rate has created various job opportunities globally. The foreign trade of China has enabled free flow and minimum utilization of resources with maximum benefit around the world. The most suitable investment market internationally is China. The increase rate of economic growth, internal market with various opportunities and the chances of investment have caught the eyes of international corporations. With the international corporation's interest, Chinese companies are getting global recognition. China is also the backbone of Asian economic growth. In 1997 when the East Asian countries economy was in crises, China cooperated with these counties and assisted them. China's rapid economic growth gave them the chance of immense export market and at the same time it helped them recover from their economic losses. Hence, China is actively involved in the global market. The current economic growth rate could make China into a superpower with wealth, power and technology to rival the United States. Globalization has helped China grow into a prosperous and powerful country. The advent of globalization has also witnessed an increase in information flows between geographically remote locations. It has seen the growth of cross cultural contacts which have lead to many local communities accepting foreign products and ideas (Kitching 52, 2001). Globalization has also seen global environmental challenges which can be solved only without international cooperation. Multiculturalism as a philosophy has spread and provided better access to cultural diversity. India, China and West continue to influence the local cultures of countries resulting in diversity and assimilation. Globalization has also brought international travel, tourism and migration. It has helped in spreading local consumer products and the creation of world wide cultural icons like Pokemon, Youtube, Orkut, Facebook, etc. Many famous world events like Olympics can be accessed by people using technologies like the internet and cable television. Technically globalization has helped in the creation of a global telecommunications infrastructure which has allowed easy and rapid flow of data and information using technologies like the internet, commercial satellites, submarine fiber optic cable and wireless telephones. Many proponents of globalization have established international organizations that have raised awareness against crime and corruption. They have highlighted the importance of cooperation between countries to fight against global crime. Supporters of globalization point out to the success of countries like China and India as having reduced poverty and enjoying good economic growth. They argue that globalization increases economic prosperity and promotes democracy. According to them it leads to reduction in poverty and unemployment. It also leads to a higher standard of living for many developing countries. Proponents of globalization also claim that it leads to democracy and capitalism for developing nations. Income inequality has diminished and the life expectancy for people has risen due to globalization (Mander 23,1996). Globalization also has its critics because many countries have taken processes or actions in order to demonstrate their sovereignty. Anti globalization groups, individuals and countries are opposed to the unregulated policies and political power of large corporations. They believe that these corporations have damaged the rights of citizens, environment and undermined the sovereignty of national governments. According to them globalization has resulted in poor working conditions and laws that infringe on the cultural practices and traditions of developing countries. Critics of globalization have pointed out to the damage of the planet and increased poverty, inequality and destruction of traditional culture. They reject the data used to propagate the benefits of globalization. Globalization in their view has caused social disintegration, breakdown of democracy and increased poverty (Mander 63,1996). Globalization has been a unique phenomenon which has reduced the economic, political and social boundaries. It has resulted in the creation of global telecommunications systems which have led to the rapid transfer of data and information between people and nations. Economically it has resulted in the integration of national economies with the international economy. Politically it has witnessed the advent of global institutions that regulate international law and prevent disputes between countries. It has also led to the creation of new ideologies and philosophies which have resulted in acceptance of foreign products and culture. It has opened up closed markets and created new economic opportunities for many developing countries. Despite its flaws and shortcomings, it can be concluded that we are living in a global world where we have access to information and data. References: Ankerl, Guy Global Communication without Universal Civilization. INUPRESS, Geneva, 2000. Friedman, Thomas L. (2005). The World Is Flat. New York: Farrar, Straus and Giroux. Kitching, Gavin (2001). Seeking Social Justice through Globalization. Escaping a Nationalist Perspective. Penn State Press. Mander, Jerry; Edward Goldsmith (1996). The case against the global economy': and for a turn toward the local. San Francisco: Sierra Club Books. Read More