Globalization is the trend toward increased economic, cultural, and social connectedness between individuals, businesses, and public organizations across international borders. The term is also used to describe a set of beliefs that promotes such a sense of connectedness. In more specific terms, economic globalization can be defined as an increasingly international approach to the production, distribution, and marketing of goods and services. Globalization involves an emphasis on international financial transactions, the removal of international trade restrictions, and the increase in worldwide communication. It affects many complex political, social, economic, and environmental issues.
Some forms of globalization have existed for thousands of years through travel, migration, trade, and the spread of culture. The trend accelerated in the late 1900’s, largely as a result of technological developments. These developments included improvements in transportation, printing, shipping, sound and video recording, and computer technology. As a result of these and other advances, many businesses developed international products, services, and organizations in an effort to do business in a number of countries. At the same time, improved international communication raised global awareness of important issues. Many people believe such communication helped the spread of democracy and human rights. The rise of the Internet contributed greatly to this increasing connectedness.
Features of globalization.
One of the main features of globalization has been the growth of multinational corporations—that is, businesses that have branches, subsidiaries, and plants in many countries. Such corporations have greater flexibility and access to resources than corporations that operate in only one country. For example, if a multinational corporation’s plant in one country is unprofitable, the corporation can close it down and move operations to another country where there are better opportunities. This flexibility can lead to greater profits for the corporation. However, many people argue that this flexibility contributes to poor wages and working conditions in the countries in which operations take place. See Multinational corporation .
Another major element of globalization is the reduction and elimination of trade restrictions between various countries and regions. For example, many such restrictions have been eliminated by the General Agreement on Tariffs and Trade (GATT) and the North American Free Trade Agreement (NAFTA). The World Trade Organization (WTO) also works to encourage the free flow of raw materials, components, finished products, and services between countries.
Other powerful international organizations besides the WTO have played an important role in globalization. The World Bank and the International Monetary Fund (IMF), for example, develop economic policies and encourage global cooperation. The United Nations (UN) works to achieve peace and human dignity throughout the world. The World Health Organization (WHO), the Food and Agriculture Organization (FAO), and other UN agencies work to solve problems, such as disease and hunger, that affect people in many countries.
The effects of globalization are complicated and diverse. For instance, globalization has helped spread ideas, scientific advances, and new technologies throughout the world. However, it has also contributed to the spread of military weaponry and technology, thus complicating many conflicts. Many people believe that globalization makes all parts of the world more similar, thereby reducing cultural diversity.
The debate over globalization.
Many people see globalization as a positive step toward a “global village” that greatly benefits from worldwide cooperation. Supporters believe that the development of a global economy makes the world more prosperous and efficient. In addition, globalization can promote peace, supporters claim, by reducing tension between governments.
Opponents of globalization argue that the process enables powerful nations to take advantage of weaker ones. They claim that it gives excessive power to corporate interests and weakens labor protections. They also say it interferes with the governmental processes of individual countries. Many people believe that globalization threatens democracy, because governments and voters do not make certain decisions. They believe that globalization may cause corporations to move plants to countries with poor labor relations and loose environmental regulation. Such weak regulation could make conservation of the world’s resources more difficult.
In the 1990’s and early 2000’s, these and related concerns led to antiglobalization protests at high-profile meetings of economists and government leaders.
