Consumers also have access to a wider variety of goods. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Though the world gold price quadrupled over 10 years and electronics have become ever cheaper, globalization has not alleviated the poverty and violence in the country. A large reason why people from all around the world are able to gather in large cities in developed nations is due to Globalization. When American companies move their production to China and other countries with plentiful, cheap labor, American workers suffer under factory closures, layoffs, and skyrocketing unemployment rates where they live. Sustainable prosperity is when people of any ethnicity,religion or gender have all their needs met, all have an equal opportunity to create wealth and all to have the chance to pursue happiness. Trusted by over 1 million students worldwide. These three types influence one another. Not all the positive effects of globalization take place at the scale of billions and trillions of dollars. The relative instability of many African nations is cited by experts as one of the reasons why Africa has not benefited from globalization as much as countries in Asia and Latin America.Benefits of GlobalizationGlobalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Organizations that build 5G data centers may need to upgrade their infrastructure. The Global Millennial is a think-tank for global economic discussion. Trade on the Silk Road played a significant role in the development of South-Asian countries. Economic growth in India correlated substantially with this increase, averaging 6.5% a year during that time. In a world where globalization is widely accepted, those who work hard will be able to climb the social ladder despite their background because everyone has equal opportunities. Globalization, or globalisation as it is known in some parts of the world, is driven by the convergence of cultural and economic systems. For example, cell phones came quickly to the African continent, with cell phone use currently growing every year in sub-Saharan Africa and approaching 90% in countries such as South Africa. Therefore, globalization has emerged as an . This is part of whats known as economies of scale where businesses can make huge profits by producing more items with less effort and time while still charging the same price for each item. Write CSS OR LESS and hit save. Our writers can help you with any type of essay. It may be necessary to hold the "test" button down for up to 10 seconds to reset the alarm. Ultimately, globalization needs better management, and the failure to manage increased flows across national borders is what gave rise to the financial crisis, climate change and COVID-19. Furthermore, we wouldnt see as much cultural diversification as we do today without international trade. What Is Globalization and Why Is It Important? 8. For example, blockchain provides a transparent ledger that centrally records and vets transactions in a way that prevents corruption and breaches. Thats why setting boundaries and not pushing limits is the most efficient moderate card on the poker table today. The garment industry in Bangladesh, for instance, employs an estimated four million people, but the average worker earns less in a month than a U.S. worker earns in a day. Any interactives on this page can only be played while you are visiting our website. David is a 19-year-old Canadian student currently attending the University of Guelph. Combining efforts and resources allows for more creativity and innovation to solve problems that affect people all around the globe. 2. 2. This generally means what they can produce and provide most efficiently, with the least amount of resources, at a lower cost than competing nations. Hi! Most companieson the planet are working remotely, so the assumption might be that most companies are indeed remote-first. When the firms realize the Importance of Globalization and mold their business operations according to the same, they have huge access to international markets. World GDP has grown from about $50 trillion in 2000 to about $75 trillion in 2016, primarily as a result of economic interdependence and the increased global trade it allows. And hence, the increased level of competition elevates the level of innovation and novel ideation as the native firms have to beat the competition with the strategic ideas and out of the box product and service offerings to survive and stay relevant in the market. NGOs also compile and spread knowledge. No country should in any way fund a political candidate in another country, because this threats the solidity of this potential candidate. And this way, you can rake higher profits and sales as your target market has expanded and multiplied. While globalization is often referred to as a contemporary or modern phenomenon, globalization can be studied from a historical perspective, by using the historical record spanning many centuries or millennia. .chakra .wef-facbof{display:inline;}@media screen and (min-width:56.5rem){.chakra .wef-facbof{display:block;}}You can unsubscribe at any time using the link in our emails. These globalization pros and cons show that a borderless world potentially offers many benefits, but with many enormous challenges, which need to be resolved for globalization to be workable. But with the power of globalization, new firms are able to tap the international markets through the facilities of social media and online selling and can enjoy their slice of sales and profits with international customers. The European Centre for International Political Economy reports that globalization has helped reduce high inflation rates in western economies, so each dollar of consumer spending goes further. Increased trade promotes international competition. But they also can destroy local businesses, exploit cheap labor and threaten indigenous cultures. Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. Passionate about literature, books, and weaving words into phrases, Im pursuing an academic career in English Literature and Linguistics and have been working as a content writer since 2016. Because of globalization, the world has become a much smaller place where distances between countries have been eliminated which allows people to do things much more easily and quickly than before. Changing the way trade and financial exchange and interaction occurs among nations also promotes the cultural exchange of ideas. September 28, 2021 by Zuha Salman Leave a Comment. Make sure your essay is plagiarism-free or hire a writer to get a unique paper crafted to your needs. If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. When assessing the importance of Globalization, its good to look back to where it originated; Extent of the Silk Road and Spice trade routes blocked by the Ottoman Empire in 1453 spurred exploration and saw rise to international trade. Turning our back on globalization is not the . Globalization is useful not only for opening doors to new places but also for sharing technology and information across borders so everyone can benefit from it, especially those who live in less developed countries, so they experience important improvements which increase their standard of living. Globalization has ebbed and flowed throughout history, with periods of expansion and retrenchment. What are the theories of Globalisation and their use, Your email address will not be published. Multinational corporations are a tangible example of globalization. Globalization Makes Us More Productive, 10. Interconnected markets also mean that with a lack of regulation, if something goes wrong, the repercussions will resound globally. The advantages of globalization are actually much like the advantages of technological improvement. According to the Economic Policy Institute, the U.S. trade deficit with China that is, the amount by which our imports, which tend to cost U.S. jobs, exceed our exports, which tend to provide them has lost the United States 3.4 million jobs since 2001. The views expressed in this article are those of the author alone and not the World Economic Forum. For example, when countries adopt certain technologies developed by other countries, this improves employment conditions for their citizens. This . Humans tend to take free things for granted, however, and consequently overexploit nature. Globalization Lowers The Costs of Commodities, 6. Required fields are marked *. They can also use their phones to track the prices of crops and find out which markets will bring in more money. Globalization Helps With Economic Growth, 4. The Importance Of Economic Globalization. Globalization has made the world more connected which allows us to work together towards the future by sharing ideas and experiences that will help us overcome any obstacles we might face, regardless of where they come from. Furthermore, we wouldnt see as much cultural diversification as we do today without international trade. Pay the writer only for a finished, plagiarism-free essay that meets all your requirements. The outsourcing of labor also leaves a dearth of jobs in industrialized countries, where labor is more expensive. Sometimes they must contend with different types of legal and banking systems entirely. The Economic and Employee Benefits of a Flexible Working Environment, Get started with Amazon CodeGuru with this tutorial, Ease multi-cloud governance challenges with 5 best practices, How to ensure iPhone configuration profiles are safe, How to remove a management profile from an iPhone, How to enable User Enrollment for iOS in Microsoft Intune, Use Cockpit for Linux remote server administration, Get familiar with who builds 5G infrastructure, Do Not Sell or Share My Personal Information. This means that companies can offer goods at a lower price to consumers. He currently studies Public Management and economics with hopes of one day becoming an accomplished journalist. Azure management groups, subscriptions, resource groups and resources are not mutually exclusive. Global trade is also made more difficult and facing rising threats from other factors, such as these: Globalization is a longstanding trend that is in the process of changing and possibly slowing. And with this merit both the parties involved customers, as well as the companies, are able to take benefit of the same. Copyright 2023 About Curiosity Desire | Privacy Policy | Terms & Conditions | Contact Us. The World Trade Organization (WTO) provides a host of resources, topics and articles indicating that globalization is vital to future business success as many businesses are on the brink of . Pregnant women without access to traditional medical care can use their phonesto keep in touch with midwives. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. Meanings and Perspectives of Globalization, This example was written and submitted by a fellow student. Difficulty navigating these systems may lead to impediments in expanding to new countries and severe repercussions for missteps made. Your email address will not be published. Hundreds of philosophers and social observers have taken sides for many years, either supporting or opposing the standard . Common ground Kaleidoscope of opinions - but much common ground 65. Basically, when we talk about Globalization, we arent just talking about the trade of goods and exchange of capital, we must realize the various social and cultural opportunities that have been realized with international trade. The resulting advancements lead to results like the spread of motorized farm machinery in Southeast Asia, for instance, where there had previously only been manual labor. Give us your paper requirements, choose a writer and well deliver the highest-quality essay! For example, Cuba sent doctors to Italy at the beginning of the pandemic to assist with the crisis as it developed there. More recently, nationalist political movements have slowed immigration, closed borders and increased trade protectionism. Imagine McDonalds stores springing up in Ukraine and Vietnam, and Americans frequenting Indian restaurants in Montana and falafel carts in New York. Here are just a few. Imagine a doctor in Chicago reading The New York Times and the Guardian and Al Jazeera. Proponents of globalization argue that it improves the state of the world in many ways, such as the following: Many proponents view globalization as way to solve systemic economic problems. Globalization is more than just an economic phenomenon; it has had a deep impact on society and culture. The more countries and regions of the world become intertwined politically, culturally and economically, the more globalized the world becomes. Conflicts can occur anywhere in the world, which is why its important for us to have a way to resolve them quickly while minimizing any damage that they might cause. It began when prehistoric tribes settled and were able to outmuscle wandering tribes. For any subject. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. Writing, to me, is the smoothest way to explain things to others and share knowledge with them. Increasing populations of immigrants and refugees present a challenge for industrialized nations. At its core globalization is an easing of borders, making them less important as countries become dependent on each other to thrive. 1. Though it has become commonplace to say it, its true that the world is getting smaller. Forbes reports that the move toward globalization has led to deindustrialization throughout the United States, which was once home to many more factories and auto plants. The 21st century has witnessed both. To further help guide your global expansion journey, read our eBook on 10 International Expansion Mistakes to Avoid, available for download here: Bolsteredby 2020s demand for new technology to facilitate our work and connect us, tech has proven to be a resilient industry around the world. The effects of globalization can be felt locally and globally, touching the lives of individuals as well as the broader society in the following ways: While the effects of globalization can be observed, analyzing the net impact is more complex. The premodern period saw technological advances that allowed trade and communication to flourish. Globalization has enhanced the entire world on the course of the past hundred years. Automation speeds up processes and supply chains, giving workforces more flexibility and improving output. This makes goods and services more affordable for everyone who can then purchase them. They can achieve higher revenues in unsaturated markets while saving money via the lower cost structure that results from cheaper labor, rent, and materials. Globalization is a term used to describe how trade and technology have made the world into a more connected and interdependent place. It ignores any environmental damage thought to be the result of globalization. This is simply on the scale of media, but it should go as far as politics. This helps protect our traditions and keeps our cultures from disappearing as technology and culture continue to change. When a commodity becomes available from another region or country, it gets produced there instead of somewhere else, which drives the costs of that commodity down worldwide. Globalization is manifested in the growth of world trade as a . The global financial crisis, for example, hit many nations hard. The firms . Globalization Allows People Stick To Their Roots, 8. In other words, when countries that were hitherto closed to trade and foreign investment open up their economies and go global, the result is an increasing interconnectedness and integration of the economies of the world. Our writers span all areas of the globe and vary greatly in age and expertise. Fill out this form to download the content in a PDF format. But it does suggest that, in the same vein as Chomsky's theory of universal grammar, associations between linguistic sounds and visual features could be hardwired into the human brain. Globalization can simply be defined as the process of going global. Globalization is the process in which people, ideas and goods spread throughout the world, spurring more interaction and integration between the world's cultures, governments and economies . Owing to the above-mentioned reason, new and small firms find it difficult to find a strong foothold in the market. The solution is easy if you ask me is to form a new global council to monitor the impacts of globalization. This essay is available online and might have been used by another student. As of the start of 2021, the United Kingdom (UK) is no longer part of the European Union (EU) or theEuropean Atomic Energy Community. Globalization also captures in its scope the economic and social changes that have come about as a result. With fewer restrictions on trade, globalization creates opportunities to expand. The infant mortality rate in Kenya, especially in its slums, is one of thetop 65 in the world, but globalization has provided tools to help address some of the difficulty with pre- and postnatal care. This convergence promotes -- and in some cases necessitates -- increased interaction, integration and interdependence among nations. What is globalization? The importance of Globalization is a phenomenon that involves the free movement of humans among different regions of the world, exchange of information, and open market for businesses. However, of far greater importance is the sheer magnitude, diversity, and complex- Globalization Promotes Cultural Diversity, 11. So when something has gone global it means that its reach is far and wide. Learn how companies are rethinking global supply chains to avoid disruption and reap the benefits of globalization. 5) Free movement of goods and services. Businesses find cheaper raw materials and parts, less expensive or more skilled labor and more efficient ways to develop products. Like that time the US-funded Hamid Karzai in Afghanistan back in 2005, he later ended up as a puppet following any strategy the US adopts. Globalization Brings Better Acceptance Of Self, 9. Create a free account and access your personalized content collection with our latest publications and analyses. One of the biggest benefits of Globalization is that there is a free movement of goods and services manufactured and offered by the firms on national and international levels. For example, quite many US and UK companies outsource their customer service call center services to the Asian markets as the manpower is quite nominal as compared to their home countries. Hi, I am an MBA and the CEO of Marketing91. Required fields are marked *. And with the facility and support of social media, digital marketing, and online selling techniques, you can expand your horizons by catering to the target market that is not only present in your country but also across borders. Examples include the following: The term globalization as it's used today came to prominence in the 1980s, reflecting several technological advancements that increased international interactions. Though countries may wish to help, too large an influx puts a strain on resources and social structures. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. If it werent for this moderate globalization, no doubt the world wouldnt have been as advanced as it stands today. Countries find themselves limited in the aid they can provide without detriment to their own citizens. Your email address will not be published. This ultimately benefits many families financially and emotionally. Increased trade to larger and more diverse markets results in greater revenues and increased gross domestic product (GDP). They bring jobs, skills and wealth to the region they are investing or doing business in. The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. Our writers will help you fix any mistakes and get an A+! However, this movement can also heighten the spread of disease and promote ideas that might destabilize political economies. By expanding into new countries, businesses reach markets that are hungry for their novel goods and eager to pay top dollar for them. Since the start of civilization, people have traded goods with their neighbors. Conservation efforts and efforts to combat rising carbon emissions, for example, will require a concentrated global effort if they are to succeed. The views and perceptions of people depend on who they are, where they live and what they possess. A modern example of this is American companys outsourcing labour to Mexico and China because labour costs are cheaper in these areas. The 2020 summit was to be in Riyadh, Saudi Arabia, but was held virtually because of the pandemic. This threatens to undermine investment and the shared understanding that is vital to address our shared threats. If you have questions about how to cite anything on our website in your project or classroom presentation, please contact your teacher. Globalization is the most important trend of global development. You can use a phone to reach someone instantly, no matter how far across the globe that person is. You cannot download interactives. Globalization enables countries to access less expensive natural resources and lower cost labor. 2023 Globalization Partners. Economic globalization also affects cultural globalization through the import of goods and services that expose people to other cultures. The outsourcing of work also contributes to lower prices, as many companies hire foreign laborers to do the work for lower pay. You can Skype, text, or use Whatsapp. I personally believe that these three portions are correct in their own sense. No matter how much you believe in your argument, one should not outcast those who oppose them because that ruins the whole point of liberal thought casing. Realization of the Importance of Globalization is a win-win situation for all the parties involved.