Globalization is increasing global connectivity, intergration and interdependence in the economic, social, technological cultural, political, and ecological spheres. The Encyclopedia Britannica says that globalization is the process by which the experience of everyday life is becoming standardized around the world.
According the dictionary.com globalization is the act of globalizing or extending to other or all parts of the world .it is the process of growing and expanding to exist throughout the entire world. A situation in which goods and services or social and cultural influences, gradually become similar in all parts of the world. It is the way for manufacturers to sell their products all over the world without any restrictions.
Globalization is a good opportunity to the companies to deal with international markets. It has given technological advancement which resulted in easier travel and communication. Globalization has affected the countries in various ways such has socially, economically, culture, security, life style and ideas.
Globalization has benefited most of the countries. It has influenced the world's economy in many positive ways. It allows free trade practices, unlimited export of goods, and unlimited imports allow the citizens to have access to imported products, this will make the country to prosper. This could result in low power to rates on some countries. Globalization has brought countless benefits to our modern life.
Globalization as a term came to prominence in the 1980s. We have many incidents or trades in history which shows the existence of globalization. The trade routes of the Silk Road carried merchants, goods and travelers from China through Central Asia and Middle East to Europe and represented another wave of globalization.
European countries had investments overseas prior to World War 1. These evidence show us an earlier golden age of globalization. Though globalization is traced back to ancient times by historians, it truly began at the end of the 19th and beginning of the 20th century
The concept of globalization has advantages and also disadvantages. First of all we can highlight one of the major benefits of globalization. It is the creation of employment opportunities. People are able to migrate to different countries for better jobs. Which has influenced the poverty and also has increased lifestyle
changes . And also people can get better jobs at their own country without having to move because many multinational companies have their offices in other countries. Companies like Microsoft, Google, and Toyota etc.We can see so many online job opportunities where employees can work from home.
And also related to education it has influenced the educational institutions to spread across the globe. Students move from their home countries for better education opportunities. This has led to intergration of cultures and people from educational backgrounds. Developing countries have the most benefit from this.
And also the ability to collaborate with foreign universities and also the availability of books and resources over Internet has brought a huge change in the education industry.
With the impact of globalization travel around the world have become easier. Air travel is now affordable to common people .within hours people can arrive at their destination. Branded products are available in their own country. Such has Nike, old navy, new balance. You don't have to travel all the way to US to purchase these products.
Trade has become more competitive leading to production of high quality products. Prices of products have also become cheaper especially because of fierce Competition noted in the market. There are varieties of products for consumers to choose from making it a necessity for products to price them competitively. Increase in quality of goods and services help the consumer choose the product according to their need. This allows a person in America to wear cloths made in Malaysia and also to watch a live telecast which is taking place in another country on a TV made in Japan.
The increase in capital liquidity has allowed investors in developed countries to invest in developing countries. Free trade also reduce barriers such as tariffs, value added tax, Globalization discourages uneconomic import substitution and favour cheaper imports of capital goods which reduces capital output ratio in manufacturing industries. Cost effectiveness and price reduction of manufactured commodities will improve the terms of trade in favour of agriculture .at the same time big companies from developed countries have the freedom to operate in developing countries .for an example Japanese and European company such as Kawasaki and SIemens started producing high speed trains in China. This helped Chinese firms in gaining knowledge about the production process and Chinese companies such as China south Locomotive and Rolling stock Corp are producing
high speed trains on their own.
And also globalization has made communication easier. It also made possible for non English speaking countries to learn speaking English. And also flow of communication has allowed global mass media to tie the world together. Globalization has contributed to greater speed and ease of transporting goods and people. Countries joining together in all the aspects have also reduced the cultural barriers. The world has become one global village. Due to cultural understanding and spreading of democratic ideals has also led to reduction of war between well developed nations. Socially people have become more open and tolerant towards each other. It also enhances the efficiency in the banking insurance and financial sectors.
Even though supporters of globalization argue that it has benefited the world there are so many disadvantages we can highlight. The most common complaint is that globalization makes the rich even richer while making the poor even poorer. 86% of the world's resources are said to be consumed by the richest 20%of the world's
population. This means that the poorer 80% only gets to consume 14% of the world's resources.
And also developed countries can take advantage of underdeveloped countries weak regulatory laws in terms of environment protection. And also we need to discuss about the unfair working conditions. Many multinational companies accused of social injustice by exploiting labor in underdeveloped countries in order to cut costs. And also laborers are provided unhealthy working conditions. And they also use child labor in order to cut the labor costs .even the low wages and unfair treatments are much talked about disadvantages of globalization. Even
though increase in productivity has created employments growth this has also led to decrease the employment growth. Reason behind this change can be because companies move their production facilities from one place to another in search of cheaper labor when the laborers demand more wages. And also increase in technology has reduced the use of human labor in certain industries. We can highlight a good example very much talked about these days .Such as using driverless trains, buses and also driver less cars in future which reduces the need of
drivers. It will b good example for fall on employment rate due to globalization.
However, some economists and sociologists believe that globalization has not created jobs globally; rather, it simply shifted employment opportunities from developed countries to developing countries. As a result, when China is experiencing high job growth, The United States, on the other hand, is suffering from high unemployment rate.
They also claim that globalization encourages dependency on other countries so that if one country's economy collapses, it is very likely that other countries' economies will be damaged as well. The 2008 global economic crisis had well demonstrated how this dependent relationship worked very negatively among countries during the crisis. There is another disadvantage of globalization is fall in small scale industries .an example is bamboo furniture making industry in India.
Due to cheap plastic furniture making industry the bamboo furniture making industry faces fall in their industry. Considering this we can say globalization also have resulted in closure of home grown companies.
Deceases like AIDS ,Mars , Zika can spread fast through travelers is a direct consequence of globalization .and some countries face the threat of losing their traditional values .this can have bad influence on future generation. As a result of people become more mechanical violence become part of life. So globalization has
given rise to competition, anti national activities and of course terrorism. We can also argue that one of the primary issues which are negatively impacted as a result of globalization is the environment. We need to point out the environmental issues too. Such as water pollution, climate change, air pollution, and soil pollution.
These environmental issues need to be solved on urgent basis. As Stieglitz (2007) states, "[a]failure of environmental stability poses an even greater danger for the world in the long run...Unless we less environmental damage, conserve on our energy and other natural resources, and attempt to slow global warming, disaster
lies ahead. Global warming has become a true challenge of globalization...
There are many environmental impacts of economic globalization. Climate change is a global issue. As a result of the emissions of tonnes of polluting gases (called greenhouse gases - GHGs) from industry, transportation, agriculture and consumer practices, the atmosphere is gradually warming. The entire planet will be affected
by the climatic changes and impacts which are predicted e.g. increased droughts and floods, rising sea-levels, more extreme temperatures, etc.
In order to prevent loss of environment there is need of using eco friendly technologies. And also people need to have environmental awareness.
One of the negative side effects of globalization is cultural shock. Worldwide networks and televisions have severely affected young people. For an example younger generation imitate the behaviors of famous movie stars or change their dress codes according to what they see in television advertisements. At the same time addiction and dependence on social media has changed peoples thoughts and lifestyle too.
Globalization sets up a currency "race to the bottom," with each country trying to get an export advantage by dropping the value of its currency.
Because of the competitive nature of the world economy, each country needs to sell its goods and services at as low a price as possible. This can be done in various ways-pay its workers lower wages; allow more pollution; use cheaper more polluting fuels; or debase the currency by Quantitative Easing (also known as "printing money,") in the hope that this will produce inflation and lower the value of the currency relative to other currencies.
In conclusion. We can say globalization is inevitable and we must urge individuals, companies and governments to use a more balanced approach by taking the appropriate steps to deal with matters relating to the financial or economical gains verses the social, political or ecological concerns of the world. Globalization is therefore an important development in human development. It is therefore important to embrace it. Through the support of local governments, big organizations, and universal organizations, entrepreneurial initiatives are capable of taking advantage of globalization and economic liberalization, to increase the effectiveness in the world market, as well as enhanced service to the overall customers. Globalization has therefore had a positive impact on the lives of people around the globe with minimum disadvantages.
Jack Welch had explained globalization in a better way. He says that we can understand that Globalization has changed us into a company that searches the world, not just to sell or to source, but to find intellectual capital, the world's best talents and greatest ideas. So researches should analyze the negative impacts of globalization and try hard to minimize. In that case globalization should be environmentally and socially sustainable.
Three practical options are available to policy-makers to try to overcome the contradictions and challenges of globalization. First and most important are microeconomic policies. By providing better education and job training policymakers in developed economies can help their societies to adapt to the pressures of globalization and technological advance. Developing-country governments also need to provide the necessary physical and institutional infrastructure to unlock growth. This not only means building roads, railways and ports, but also enforcing the rule of law, tackling corruption and removing economically distorting price subsidies on staple goods.
Second, investment in technology can open new opportunities for sustainable growth. New technology can replace centralized energy infrastructure with more flexible, distributed systems that can lower costs while reducing carbon emissions. Technological innovation also has the potential to reduce health care costs for
ageing societies through self-diagnosis and treatment, and through robotized caring.
Thirdly policy-makers need to coordinate their economic policies at multilateral levels in ways that reflect countries' economic interdependence. Regional institutions, from the European Union to the Association of Southeast Asian Nations (ASEAN), are essential components in this process, given that they can help governments to lower barriers and coordinate standards at a pace and within a cultural context that will be less disruptive than some multilateral initiatives. These three options will help to reduce the negative impacts of globalization.