What is globalization?

Globalization is defined as the extension of trade,

commerce and culture of an economy across different
nations. It allows economies to exchange domestic
products, services, technologies, ideas and other
resources globally.
This can be defined in various ways.
1.) Globalization is the increasing interaction of people,
states, or countries through the growth of international
flow of money, ideas, states, and culture. Thus,
globalization is primarily focused on economic process
of integration that has social and cultural aspects.
2.) It is the interconnectedness of people and business
across the world that eventually lead to global,
cultural, political, and economic integration.
3.) It is the ability to move and communicate easily
with others all over the world in order to conduct
business internationally.
4.) It is the free movement of goods and services, and
people across the world in a seamless and integrated
manner.
5.) It is the liberalization of countries of their impact
protocols and welcome foreign investments into
sectors that are the mainstays of its economy.
6.) It refers to countries acting like magnets attracting
global capital by opening up to their economies to
multinational corporations.
Some authors also provided definitions of this term:
1.) Martin Albrow and Elizabeth King defined
globalization as those processes by which the people of
the world are incorporated into a single world society.
Some authors also provided definitions of this term:
2.) Anthony Giddens defines globalization as the
intensification of worldwide social relations which link
distant localities in such a way that local happenings
are shaped by events occurring many miles away and
vice versa.
Some authors also provided definitions of this term:
3.) Roland Robertson, Professor of Sociology at the
University of Aberdeem, described globalization in1992
as the compression of the world and the intensification
of the consciousness of the world as a whole.
Of course, it’s
McDonald’s!
It is called as the
FRIES THAT BIND US.
Do we even have to
ask? It’s Starbucks!
No other than - the
MAGIC BEAN shop!
• Automobile manufacturing makes use of spare parts from
different countries and is finally assembled in one country.
• Computer parts and accessories are manufactured in a foreign
country and are sold in another country.
• Popular fast food chains like KFC, Starbucks, Dominos etc are
based out of the USA, but have many branches around the world.
• Multinational companies like HSBC, Citi Bank, Deloitte etc have
offices around the world.
Though many scholars place the origins of
globalization in modern times, others trace its history
long before the European Age of Discovery and voyages
to the New World some even to the third millennium BC.
Large scale globalization began in the 1820s. In the late
19th century and early 20th century, the connectivity of
the world’s economies and cultures grew very quickly.
In 1897, Charles Taze Russell coined related term,
‘corporate giants.’ This term refers to the largely
national trusts and other large enterprises of the time.
In 1930, the word ‘globalize’ as a noun appeared in a
publication entitled Towards New Education where it
denoted a holistic view of human experience in
education.
In 1970’s, the word ‘globalization’ was coined. In 2013,
this term was used to mean ‘borderless city’ referring
to international migration.
In the early part of 1981, the term ‘globalization’ had
been used in its economic sense. However, in the late
half of the 1980s, Theodore Levitt popularized the term
‘globalization’ by bringing it into the mainstream
business audience.
Lately in 2000, The International Monetary Fund (IMF)
identified four (4) basic aspects of globalization:
1. Trade and Transactions
2. Capital and Investment Movements
3. Migration of Knowledge
4. Dissemination
It is only in 2017 when the word ‘globalization’ was
oftenly used in teaching, in discussion, in meetings and
conferences, in lectures and so on.
In 2018, the phenomenon of globalization is now on full
swing in all academic disciplines.
The jet engine, the internet, e-banking, e-books, e-bike, the
LRT, MRT and other inventions of science and technology
are attributable to the spread of globalization. These are
some of the modern offspring of development in our
infrastructure system. These improvements that people
enjoy today in this contemporary world have been major
factors in globalization which have generated further
interdependence in economic and cultural activities among
nations.
Likewise, environmental challenges such as global
warming, cross-boundary water, air pollution, and over-
fishing of the ocean are linked with globalization.
Globalizing processes affect and are affected by business
and work organization, economics, socio-cultural
resources, and the natural environment. Academic
literature commonly subdivides globalization into three
major areas: economic, cultural and political.
The following are the dimensions of globalization:
1. Planning to expand the business on a worldwide scope
2. Giving up the distinction between domestic and foreign
market and instead developing a global outlook of such
business.
3. Locating the production and the physical facilities of the
business by considering global business dynamics
irrespective of national consideration.
4. Creating product development and production
planning on a global market sphere.
5. Global sourcing of the factors of production such as
raw materials components, machinery, technology,
finance and others that are obtained from the best
source anywhere in the world.
6. Global orientation or organization structure and
management culture.
Why do we have to globalize especially at this
contemporary world? Here are the reasons:
1. Rapid shrinking of time and distance across the globe.
One can easily cross the bridge going to the other side
of the market place due to advance tools of technology
than before.
Why do we have to globalize especially at this
contemporary world? Here are the reasons:
2. Domestic markets are no longer rich as a consequence
of many interlocking factors.
3. Companies and institutions go global to find political
and economic stability which is relatively good in other
countries than the country of origin.
4. To get technological and managerial know-how of other
countries due to their advancement in science, technology,
education, health, and other fields of discipline.
5. To reduce high transportation costs if one goes globally
using the advance tools of communication and
information.
6. To be close to raw materials and to markets for their
finished products which are not available in the country of
origin.
7. The creation of the World Trade Organization
(WTO) had made it possible in stimulating
increased cross border trade. There are other
world bodies like the UN and several
arbitration bodies where countries agree.