Globalization: Factors and salient features

Globalization: Factors and salient features

What is globalization?

Globalization can be defined as the integration between countries through foreign trade and foreign investments by multination corporations (MNCs). MNCs are playing a major role in the process of Globalization.

So we can say, globalization is a process through which a society opens up to outside influence whether it is production, trade, politics, culture, fashion, etiquette, literature, fine arts, dance forms, or music.

In simple words, ‘globalization is the increasing level of interconnection among people and places throughout the world. Economic globalization is the most important form of globalization.

Economic globalization involves the integration and exchange of capital, technology, and information, across country borders. Globalization affects society, culture, politics, resources, ecology, and the natural environment. So we can say ‘under globalization more and more goods and services, investments and technologies, and cultures are transferred between countries.

Beginning of globalization:

Globalization began with European discoveries in the late 1400s or even earlier, but its increase accelerated form in terms of trade and financial investment, at the beginning of the 1990s.

factors of Globalization

Globalization has been facilitated by several factors but three are highlighted:

1. Rapid improvement in technology: It is one of the major factors that has stimulated the globalization process. Information and communication technology or IT has played a major role in spreading out the production of services across countries.
   • With the use of technology, transportation is much improved, by which the faster delivery of goods across long distances is possible at a lower cost.
   • The development of information and communication technology has played the most important role in the globalization process.
   • Internet and telecommunication have been changing rapidly and communication in the world, and to communicate in the remote area became possible.
2. liberalization of trade and investment policies: Taxes on imports are an example of a barrier to trade. Government can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
   • Removing barriers or restrictions set by the government is known as liberalization.
3. Pressure from international organizations such as WTO: These organizations say that all barriers to foreign trade are harmful, so they should be removed. Trade between countries should be ‘free’. All countries in the world should liberalize their policies.
   • World Trade Organization aims to liberalize international trade.
   • WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers, on the other hand, WTO rules have forced the developing countries to remove trade barriers.

Salient features of Globalization

The salient features of globalization are as follows:

• The spread of Ideas, Technologies, Crimes, and Diseases: In most developing countries there is a wish to modernize and develop their economies to enjoy a better standard of living. In this case, the transfer of technologies, communication, and transportation for economic development is essential and these also facilitate terrorism, together with drugs, armament, slave trafficking, and the spread of HIV/AIDS and other diseases.
• Human Mobility: A large number of educated, skilled, and semi-skilled people get attracted by developed countries for work and better-paying jobs. This leads to the migration of people from one country to another. These people from developing countries send part of their income to their home country, and to their relatives at home. Perhaps, the migration of educated people from developing countries leads to brain and skill drain.
• A shift in Dominant Ideologies, Religions, Faith, and Belief: As a result of globalization after 1990, democratic ideas spread and more countries opted for open elections. The involvement of countries increased in International relations. The religious and cultural forces such as language, and tradition became significant as political dependence, particularly in most of the poor and less developed countries.
• Easy Access to Images and Messages through the Media TV, Film, Internet, and Print: Modern culture is spreading throughout the world through films, movies, and internet facilities. The print media such as newspapers, books, magazines, etc., are increasingly controlled by international consortia.
• The Negatives Goes Uncontrollable: Due to the increasing speed of global media, the spread of ideas, communication, and faster transport, there is a lower level of control by countries leading to an expansion of arms, drugs, and people trafficking that have huge financial rewards.

While globalization has benefited consumers and producers with skill, education, and wealth, many small producers and workers have suffered as a result of the rising competition.

Fair globalization would create opportunities for all and also ensure that the benefits of globalization are shared better.

 

source: https://www.ilo.org/global/lang–en/index.htm

You can also read: 💡 

• NITI Aayog (National Institution for Transforming India)
• Agricultural systems in the world: A brief introduction of agricultural systems
• Economics: A Brief Introduction of Economic Systems and Sectors in Economy
• Washington Consensus

Thank you 🙂