- To study process of globalization
- To study its nature and effects
Globalization is the process of worldwide integration that results through the
exchange of ideas, products, and other cultural aspects. Advances in
transportation and telecommunications infrastructure, such as the development of
the telegraph and its offspring, the Internet, are significant drivers of
globalization, resulting in increased interconnectedness of economic and
Though academics put the roots of globalization in the contemporary era, others
trace its history back to the European period of exploration and journeys to the
New World. Some claim that the origins date back to the third millennium BCE.
The interconnectedness of the world's economies and cultures increased rapidly
in the late nineteenth and early twentieth centuries. Globalization and its good
and negative consequences are the subject of intense discussion.
While many people believe that globalization has the potential to make societies
richer through trade and to bring knowledge and information to people all over
the world, many others believe that globalization contributes to the
exploitation of the poor by the rich and poses a threat to traditional cultures
as the process of modernization changes societies. Some people associate the bad
elements of globalization with terrorism.
To simplify a complex issue, they claim that exploitative or deteriorating
circumstances lead to the attraction of informal "extremist" networks that
conduct criminal or terrorist actions on a global scale. And, due to modern
technology and interconnected civilizations, these networks now cover the globe.
Terrorism is "globalized" in this sense as well.
Globalization: It's Nature
The following are the major threads for the nature of globalization:
- Increasing and increasing connectivity of civilizations throughout the
- Almost unhindered global flows of financial money, news, and cultural
- Increased activity and influence of international corporations (MNCS).
- Growing economic development in many nations is accompanied by rising
- The emergence of a worldwide consumer culture More travel and migration
from more nations to more countries; quicker modes of transportation and
technological communication, such that time and space are progressively
- Increased public knowledge of what is going on in the globe and the
potential consequences for their own nation.
- The fast expansion of government and non-government supranational
organisations that complement, replace, and assist the nation-operations
This mentality resulted in the establishment of global trade governing
organisations such as the World Trade Organization, the Organization for
Economic Cooperation and Development, and the European Union. These groups aim
to liberalize trade by eliminating import/export taxes and government
The rapid rise in the rate of globalization has been aided by the advent of
technology, which has enabled quick communication and transportation between
geographically distant locations. China's entry into the global trade market has
boosted supply and demand for completed goods, which is strengthening global
Economists tend to see globalization as a net "benefit." Economists, on the
other hand, appear to be driven only by their erroneous models, unable to
recognise real-world issues. They omit to mention that the universe is finite,
which is an important point to remember. We don't have an endless supply of
resources or the capacity to deal with pollution at any one time. That is why we
are creating a "alternative" that is at best transient.
Positive Effects of Globalization
The topic of globalization has gotten a lot of attention lately. Proponents laud
it as a world-changing event, while detractors call it neo-imperialism. It has
had a mixed reception. Despite the difficulties, it's still worth it. It's
admirable how many people there are in the globe. We'll look at some of
globalization's benefits in the following sections. It is praiseworthy the role
that has played in improving the lives millions of people across the globe.
We'll look at how globalization has benefited society in the following
- Increased Competition
The increased quality of goods as a result of global competition is one of
the most noticeable consequences. Domestic companies are forced to raise
their standards and customer satisfaction levels to compete with foreign
competitors, so they have become more customer-centric in order to stay in
business. Additionally, when an international brand enters a new country, it
does so with some goodwill that it must live up to. This leads to market
rivalry and a "survival of the fittest" scenario.
Companies have expanded into emerging nations as a result of globalization,
creating jobs for the locals. However, depending on your point of view, it
may be either beneficial or terrible. Investing in developing countries and
taking use of the available talent has been made possible as a result. The
development of local businesses and the creation of jobs are both hampered
in emerging nations because of a scarcity of capital. In such situations,
individuals in underdeveloped nations may also find work because of the
worldwide character of the companies. However, as a result of this transfer
of employment to the developing world, individuals in the industrialized
world are feeling the squeeze.
- Investment and Capital Flows
The amount of Foreign Direct Investment (FDI) that comes into emerging
nations like Brazil and India has to be seen as well. Many businesses have
invested directly in Brazil and India by establishing manufacturing
facilities. Profitable companies attract a lot of international investment,
which raises the country's foreign currency reserves.
- Foreign Trade
When talking about the consequences of globalization, it's impossible to
ignore the role that international commerce plays. Even in ancient times,
comparative advantage was a consideration. Despite the fact that commerce
has its roots in the early kingdoms, globalization has formalised it. To
achieve what they desired in the past, individuals had to use unethical
methods like destroying kingdoms and nations. Humanely, it's done now with
understanding on all sides. People who conduct business in an uncivilized
manner will have to deal with the World Commerce Organization (WTO) and
other international bodies created to monitor and regulate international
- Spread of Technical Know-How
Despite the widespread belief that all breakthroughs take place in the
developed world, technological know-how gets transported there as a result
of globalization. There would be no one else to profit from new discoveries
and treatments if they remained locked up in the nations that made them.
Economic and political knowledge have also extended far and wide as a result
of the development of know-how. The most apparent illustration of how
information spreads is the. Antibiotics from the West are flooding the
Indian market, while people in India are awakening aware to the advantages
of Ayurveda and Yoga, which are ancient Indian traditions.
- Spread of Culture
Not all excellent habits originated in a single culture. The world we have
today is a product of the fusion of many different civilizations. A
receptive population will recognise the faults in their own culture and take
up ideals that are more current or relevant to the current moment. Because
of the individuals they have accepted from different civilizations and
backgrounds, societies have grown and developed a whole new culture.
Globalization has facilitated the spread of everything from cooking
techniques to languages and traditions. Movies, musical genres, and other
kinds of art may all be categorized in the same way. A culture that has
adopted them has left an impact on them since they have migrated from one
nation to another."
- Spread of Education
Education has expanded widely as a result of globalization. Today, you have
the freedom to travel the globe in pursuit of the finest educational
institutions the world has to offer. A resident of the United States has the
opportunity to go to another continent in search of fresh experiences that
are unavailable to him back home. If you're dedicated, you may even
specialise in fields that aren't native to your nation and then teach what
you've learned back home. A excellent illustration of this is the fact that
American managers travelled to Japan to learn about the finest mass
production techniques, and then applied what they learned back in the United
- Legal and Ethical Effects
Once upon a time, the lack of jurisdiction was a barrier to criminal
prosecution. Criminals can no longer seek refuge in another country because
of international courts of justice, and they are thus brought to justice.
Security agencies and police from many nations have come to an agreement as
a result of globalization to combat global terrorism. As a result, criminals
may now be apprehended no matter where they go to avoid detection.
Negative Effects of globalization:
Today, globalization is a hotly debated topic. Its advantages and disadvantages
are hotly debated. Here, we'll examine the harm it does.
- Child Labor and Slavery:
Child labour and slavery have increased as a result of globalization,
according to different schools of thought. Companies that use minors may get
away with paying authorities in nations with weak or non-existent
accountability, which might lead to a rise in criminal activity. Critics
claim that because of globalization, the global market is now very
competitive, and immoral corporate activities occur as a consequence.
- Increase in Terrorism:
Terrorists and criminals may have benefited unintentionally from
globalization. One of the core principles of globalization is the freedom of
movement of people, resources, food, and ideas across borders. However, 9/11
served as a chilling reminder that those with malign intents may take
advantage of this freedom and do harm.
- Increase in Pollution:
People in developing countries - where the majority of companies have been
established - have their own reasons for opposing globalization in addition
to those of the industrialized countries. For a long time now, they've
complained that their cities have essentially been turned into giant trash
dumps, collecting everything from construction debris to hazardous waste.
- Resentment among People:
The wealthy are growing wealthier, while the poor are barely scraping by on
a daily basis. As long as the Occupy Wall Street demonstrations serve as a
reminder of how upset people are with the existing system, our leaders
should act to reduce poverty. If globalization had been successful, it would
have led to increased wealth and prosperity, but corporate greed and
incompetent governance have prevented this.
- Spread of Aids:
Few people in the United States knew that AIDS had its genesis in
Sub-Saharan Africa until the first known case was reported in the country in
1984. People from all over the globe came together because of globalization,
which is why a virus from the rainforest made its way to almost every nation
in the world.
- Degradation of environment:
It's no secret that environmental deterioration has been the subject of
heated discussion at many international conferences, and one of the main
elements contributing to the worsening of the situation is undoubtedly
globalization. Industrial and factory operations are depleting the earth's
natural resources, and pollution has deteriorated the air quality we depend
on for our existence.
There are many ramifications for a country's economy from globalization. The
international market has become more interdependent and competitive as a result
of globalization. As a result, trade in goods and services, as well as capital
movements, are interdependent. So domestic economic trends are not only driven
by domestic policies and market circumstances. Instead, both local and foreign
policy and economic circumstances have an impact on them.
Consequently, it is obvious that a globalizing economy cannot afford to overlook
potential actions and responses of policies and events elsewhere in the globe
when developing and assessing its domestic policy. As a result, the government's
policy options were limited, which indicates a loss of policy autonomy in
- Baylis John, Smith Steve and Owens Patricia, The Globalization of World
Politics (4" Ed, 2008) oxford university press
- Burchill Scott, Theories of International relation, 2005, Palgrave
Macmillan, New York.
Written By: Mohit Mandloi
- BA-LLB (Hons.) Semester III, NMIMS Indore