Globalization is
a process of interaction and integration among the people, companies, and
governments of different nations, a process driven by international trade and
investment and aided by information technology.
It is a process
of interaction and integration among the people, companies, and governments of
different nations, a process driven by international trade and investment and
aided by information technology.
This process has
effects on the environment, on culture, on political systems, on economic
development and prosperity, and on human physical well-being in
societies around the world. Basically globalization is interchange of understanding and
information around the world.
Globalization
implies the opening of local and nationalistic perspectives to a
broader outlook of an interconnected and interdependent world with free transfer of
capital, goods, and services across national frontiers. However, it
does not include unhindered movement of labor and, as suggested by
some economists, may hurt smaller or fragile economies if applied indiscriminately.
Read more: http://www.businessdictionary.com/definition/globalization.html#ixzz3NzgfhgUZ
Read more: http://www.businessdictionary.com/definition/globalization.html#ixzz3NzgfhgUZ
According to bbc
news, Globalisation has been taking place for hundreds of years, but has
speeded up enormously over the last half-century.
Globalisation has resulted
in:
· a company operating in more than one country
· greater dependence on the global economy
· freer movement of capital, goods, and services
· recognition of companies such as McDonalds and Starbucks in LEDCs
· Although globalisation is probably helping to create more wealth in developing countries - it is not helping to close the gap between the world's poorest countries and the world's richest.
Reasons for globalisation
There are several key factors which have influenced the
process of globalisation:
·
Improvements in transportation --- larger cargo ships mean that
the cost of transporting goods between countries has decreased. Economies of
scale mean the cost per item can reduce when operating on a larger scale.
Transport improvements also mean that goods and people can travel more quickly.
·
Freedom of trade --- organisations like the World Trade Organisation (WTO)
promote free trade between countries, which help to remove barriers between
countries.
·
Improvements of communications --- the internet and mobile
technology has allowed greater communication between people in different
countries.
·
Labour availability and skills --- countries such as India have
lower labour costs (about a third of that of the UK) and also high skill
levels. Labour intensive industries such as clothing can take advantage of
cheaper labour costs and reduced legal restrictions in LEDCs.
·
Globalisation is having a dramatic
effect - for good or ill - on world economies and on people's lives.
·
Some of the positive impacts are:
· TNCs bring wealth and foreign currency to local economies when they buy local resources, products and services. The extra money created by this investment can be spent on education, health and infrastructure.
· The sharing of ideas, experiences and lifestyles of people and cultures. People can experience foods and other products not previously available in their countries.
· Globalisation increases awareness of events in far-away parts of the world. For example, the UK was quickly made aware of the 2004 tsunami tidal wave and sent help rapidly in response.
· Globalisation may help to make people more aware of global issues such asdeforestation and global warming - and alert them to the need forsustainable development.
Negative impact of globalisation
·
Critics include groups such as environmentalists,
anti-poverty campaigners andtrade unionists.
·
Some of the negative impacts include:
· There are no guarantees that the wealth from inward investment will benefit the local community. Often, profits are sent back to the MEDC where the TNC is based. Transnational companies, with their massive economies of scale, may drive local companies out of business. If it becomes cheaper to operate in another country, the TNC might close down the factory and make local people redundant.
· An absence of strictly enforced international laws means that TNCs may operate in LEDCs in a way that would not be allowed in an MEDC. They may pollute the environment, run risks with safety or impose poor working conditions and low wages on local workers.
· Globalisation is viewed by many as a threat to the world's cultural diversity. It is feared it might drown out local economies, traditions and languages and simply re-cast the whole world in the mould of the capitalist North and West. An example of this is that a Hollywood film is far more likely to be successful worldwide than one made in India or China, which also have thriving film industries.
· Industry may begin to thrive in LEDCs at the expense of jobs in manufacturing in the UK and other MEDCs, especially in textiles.
· Anti-globalisation campaigners sometimes try to draw people's attention to these points by demonstrating against the World Trade Organisation. The World Trade Organisation is an inter-government organisation that promotes the free flow of trade around the world.
So conclusion Globalisation, a result of social development, can be described as the increase in cross-broader trade and influence on the economic and social behaviour of nation states (David Begg, 2003:272). This process has affected the world widely and deeply, principally in economics, industrial, technological, political and cultural aspects.
Over the past decade, as the liberalization of national and openness of global markets, globalisation has benefitted the world significantly, such as income improved, increase of imports and exports, industrial development, thus, free flow of trade, capital and information have produced the best outcome for growth and human welfare. Therefore, it is little doubt that globalisation has positive impact on developed and developing countries so we as citizen have to do something to better up the system of globalization.
in the end i would like to share with you guys some picture. =p
globalization affect in political systems
globalization affect in economic development
globalization affect human physical well-being in societies
same
globalization affect population
THANK YOU

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