The meaning of globalization - Essay Example

The meaning of Globalization: The term Globalization refers to the movement of knowledge, ideas and goods across national borders. It is the diffusion of information and practices. This word became widely used in the 1980’s in order to describe the increased interdependence and connectivity of countries all over the world. The interconnectedness of the countries is not just economical, but it is also political, social and cultural. Globalization has now been escalated to such a level where events that take place miles away in another country can affect the local happenings and vice versa. (Giddens, 1990) It is considered as something more than internationalization, modernization or Westernization. Globalization involves the idea of the world being a single place and entity. And this could be reflected in phrases like “global economy” and “global village” which are now very commonly used in Model United Nations (MUN) all over the world. Globalization can be easily classified or broken down in different categories. 1. Economic Globalization Free movement of goods and services across borders is called Economic globalization. As a result, the economies of the world have now become much more integrated and interdependent upon each other. Formation of multinational companies and outsourcing also show a dramatic increase in the trend due to economic globalization. A great reduction in the trade tariffs and barriers has been seen in international trade which has encouraged free flow and movement of goods from one country to another. Apart from that, economic institutions such as the World Trade Organization (WTO) and International Monetary Fund (IMF)also help in the facilitation of barrier –free flow of goods and services amongst nations. 2. Cultural Globalization Increased interaction and communication of people belonging to different cultures is known as cultural globalization. When different cultures meet and interact with each other, it results in identical values, morals, ethics and philosophy. The increased movement of cultural globalization has had a huge impact on populations all over the world. Informational services all over the world have seen an internationalization of technologies such as Internet. Even though this expansion of technology has had some bad influence on some populations, such as the creation of Digital Divide, one cannot deny the advantages it has brought to the world of technology. It has had a dramatic impact on communication technology. The rise in the transmission of popular culture has eased its way from the countries of the North throughout the entire globe. (Robertson, 1992) The hegemony of “Western alien” culture over domestic culture has been analyzed and criticized by many critics. This can be seen in South Asian countries like India and Pakistan where increased globalization has seen a rise in “westernization” of culture. The popular culture of the west is found more amongst people who have easy and available access to Media and other technologies. The use of foreign, branded and exotic products has become extremely common amongst the masses which have also created a sense of inequality in many. 3. Political Globalization Political globalization focuses towards transnationalism and the influence that human associations have over the governments. By the 1990’s, the formation of national and international non-governmental organizations (IGO’s and INGO’s) had increased drastically and thus, their influence on governments had become even more strong. Popularity or dominance of one political system (such as Democracy, Monarchy, Military governments, Republic etc) in many countries can also be referred to as Political Globalization. People nowadays have become more aware of their political rights and so more and more countries are now shifting towards the Democratic system. The recent Tunisian and Arab revolution can be considered as a manifestation of Political globalization. Historical significance of globalization: Historically, globalization has its own significance and is linked with one of the most important events to have ever taken place. It all started way back in the 13th century when all of Europe and Asia was incorporated into a single system of economic exchange. There was economic surplus, increased wealth and foreign trade from which all derived benefits. This was the time when the first ever modern world system was formed. Even though the world systems were the same when it came to economic sustainability, transport technology, invention of money and credit production; Europe turned out to predominate the others and this saw the start of globalization. The damage caused by the plague ``Black Death`` and the collapse of the Mongol empire weakened China which was one of the major players in the race to achieve hegemony and power over other nations. Apart from this, the event that actually changed the world system was the conquest of Europeans to invade and capture America. Precious metals like alloy and platinum were to be brought to Spain and other European countries. And not just metals, capital in the form of Black slaves were exported and taken to different countries from Africa. (Janet, 1989) This trading of human capital continued for many centuries to come. Longer distances were covered by explorers and merchants would always take their customs, ideas, traditions and products into new lands and territories. This influenced the minds of the local masses who would later on adapt to the culture and practices which were brought to their land. The historical process of globalization is said to have begun with the trading of goods and the movement of people out of Africa to other parts of the world. Causes of Globalization: There was a rapid growth in the rise of globalization right after the fall of communism in Russia. As mentioned earlier, the era of 1890`s saw a great advancements in the field of technology. The information technology allowed ideas to travel faster and further to the concerned authorities. Information became easily available to everyone and education became a priority on every individuals list. This is why, the career opportunities which were only limited to the people of the developed countries also became accessible to the masses of the developing nations. Apart from that, easy availability and convenience of the mass transportation allowed people and good to travel cheaply between national borders. Apart from that, IMF is also said to be responsible for the rise in the globalization. Structural Adjustment Program, commonly known as SAP, was created by the IMF in order to reduce the fiscal imbalances in the borrowing country`s economy. During the 1980`s, many third world countries sought help of the IMF and because of that they had to implement SAP in their respective countries. The Structural Adjustment Programs forced those Third World countries to open their economies up and indulge in more international trade and take more foreign investment. This led to the growth of economic, political and cultural globalization across the globe. After the end of the cold war, USA emerged as the world`s super power and thus, it was able to establish and declare hegemony over other countries to great extents. The influence of American media and culture could be seen in many countries and was termed as Westernization. Worldwide communications and entertainment played an important role in the increased hegemony and influence of Hollywood and other western culture on many populations of the world. ( Scholte, 2005) Also, after the rise in industrialization, the cost of manufacturing and production in terms of the labour unit has grown high. This led many companies and businesses to reach out to the less developed nations and utilize their cheap labour market. This outsourcing of services gave way to increased globalization all over the world. Controversies surrounding Globalization: Through globalization, world markets and governments come together and become more and more integrated over time. The word became much used in the 1980`s when the computer technology was on the rise. The new communication technology made it easier for companies and organizations to run and manage their business internationally. As technology advanced, trading of goods and services became easier; the flow of capital was much smoother and the migration of people across borders became more convenient. Without a doubt, Globalization has had many positive effects on countries and their economies; however, one can`t disregard the fact that globalization gave rise to many controversies that are now surrounding it. The rise in the formation of multinational companies began soon after the Second World War. As a result of globalization, these companies now have more unrestricted access to the world markets. Now this unrestricted trade has created a wide gap of inequality between the Developed and the Developing Nations of the World. Some regions like America and Asia easily integrated into the global economy and succeeded in achieving economic growth and prosperity. Whereas, other regions like Africa suffered poverty and political instability due to international trade. This shows how free markets ended up producing such outrageously different results in those counties. The prevalence of poverty, political instability and the North-South gap is directly attributed and linked to globalization. Strong and wealthy economies are now an important factor in determining the power and strength of a nation and as a result, United States of America has come up as the super power of the world. However, in the past recent years, People`s Republic of China is racing its way up to that level because of the great economic growth that it has shown. Another controversy that surrounds Globalization is the power of entities like World Trade Organization (WTO), International Monetary Fund (IMF) and World Bank (WB). According to experts, another result of globalization is the strengthening rise in the power and influence of such international institutions. Widespread protests against WTO have taken lave since the late 1990`s and many questions have been raised against the institution since then. However, the two issues that the protesters and anti-WTO activist have given much attention to are the rights of the labour class and the protection and preservation of the environment. The rights of the labours are being ignored and the labours feel that they are being exploited as outsourcing of business processes are increasing at a high rate. Global companies in the United States and Europe are taking advantage of the cheap, highly skilled labour that is being offered to them by developing countries like India. Whereas, the labour class of advance economies feel that they are being replaced by the cheap, low-wage workers in those developing nations. The part which is most uncared for is the environmental issues. The industries of the world expanded as a result of globalization which in turn has led to the rise of the environmental issues such as climate changes, Global Warming and extinction of animal species. The environmental crisis in Ireland started with in Irish government, attracting the Multinational companies into the country. But the toxic multinational companies caused a huge degradation in the environment and many protests and environmental movements took place in order to stop the destruction of the environment. The world today is suffering the consequences of environmental changes caused by such activities. (Leonard, 2007) Conclusion: The process of Globalization, that started decades ago, is perhaps unavoidable. One of the reasons could be the fact that technology will keep on advancing and hence creating new opportunities to be availed. The issue of environment, culture and business ethics raised by the WTO protestors may seem like an unreasonable argument for many but in reality, it is a matter of great concern for the future. REFERENCES: Robertson, R. (1992).Globalization: social theory and global culture. Pgs 11,172,184. Sage. Janet, A. (1989). Before European Hegemony: The World System A.D 1250-1350. Pgs 3, 68,170,214. Oxford: Oxford UP. Leonard, L. Barry, J. (2007). The environmental movement in Ireland. Pgs 41, 181. Springer. Giddens, A. (1990). The Consequences of Modernity. Pgs 64, 76. Stanford: Stanford University Press. Scholte, A. (2005). Globalization: A critical introduction. Palgrave McMillan. Business Week/Jude Chia. (2000, November 6). Globalization: Lessons Learned. November 3, 2011 http://www.businessweek.com/archives/2000/b3706206.arc.htm Blogcritics/Richard Marcus. (2007, April 16). Globalization and the International Monetary Fund. November 3, 2011 http://blogcritics.org/politics/article/globalization-and-the-international-monetary-fund/ Read More