It is very vital for the companies operating in todays dynamic and ever competitive market that the customer has to be given the topmost importance and priority in order to beat the competition and successfully survive in the market. In other words, when countries that were hitherto closed to trade and foreign investment open up their economies and go global, the result is an increasing interconnectedness and integration of the economies of the . This not only benefits the foreign companies (in this case, American companies like Apple) but also helps the countries being invested in by increasing their exports, creating jobs, closing the technology gap, and overall, improving quality of life. Global stock markets plummeted after the Sept. 11, 2001, terrorist attacks in the United States, but rebounded in subsequent years. The needed infrastructure may not be in place. What Is a Polycrisis and How Do We Get Out of It? Much has been written around the environmental benefits of going virtual, yet the jury is still out over whether thiswork modelis a full-proofsustainability enabler. And in such a scenario, large and known firms enjoy the power of monopoly in the market as they have been into the market for a longer period of time and have a huge list of loyal customers. Though countries may wish to help, too large an influx puts a strain on resources and social structures. Globalization informs all these scenarios. I mean, its not ok for a sociologist, especially one as profound as Giddens, to address a school of thought in such negativity. For example, cell phones came quickly to the African continent, with cell phone use currently growing every year in sub-Saharan Africa and approaching 90% in countries such as South Africa. Businesses in several different countries may be involved in producing even seemingly simple products such as cotton T-shirts.Globalization affects services too. These three types influence one another. Indeed, the working conditions of people at some points in the supply chain are deplorable. Globalization, or globalisation as it is known in some parts of the world, is driven by the convergence of cultural and economic systems. One of the most important things that globalization brings with it is a sense of empowerment for individuals who no longer have to rely on others in order to get what they want, instead taking matters into their own hands and going after whatever will make them happy. When American companies move their production to China and other countries with plentiful, cheap labor, American workers suffer under factory closures, layoffs, and skyrocketing unemployment rates where they live. Do Not Sell or Share My Personal Information, IT applications, infrastructure and operations, how companies are rethinking global supply chains, Business leaders call on G20 to drive affordable and responsible tech, 5G technology could increase global economy by $1.5tn by 2030, 7 supply chain management key terms you need to know, Blockchain food supply chain growth depends on clean data. For information on user permissions, please read our Terms of Service. Businesses can -- and often do Amazon CodeGuru reviews code and suggests improvements to users looking to make their code more efficient as well as optimize Establishing sound multi-cloud governance practices can mitigate challenges and enforce security. First of all, they agree that it is merely inevitable that globalization will hit previously established the national borders. Increased Open-Mindedness and Tolerance, Globalization Partners Can Help With Your Efforts at Globalization, industrialized countries have shipped their trash, mines in the Democratic Republic of Congo, Contact Globalization Partners International, Resilience Amid a Global Pandemic: Lessons from Australian Tech Success Stories, 5 Ways Companies Can Embrace Sustainability in a Remote Work Setting And How It Will Impact Their Future Growth, What UK Businesses Need to Know About Brexit in 2021, Setting Up An International Branch Vs. Subsidiary. Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies.With globalization, different parts of a product may be made in different regions of the world. Globalization has enhanced the entire world on the course of the past hundred years. Blockchain. And changes in shipping logistics technology moves raw materials, parts and finished products around the globe more efficiently. Our generation and future generations can strive to advance globalizations interconnectivity and progress throughout the world. When assessing the importance of Globalization, its good to look back to where it originated; Extent of the Silk Road and Spice trade routes blocked by the Ottoman Empire in 1453 spurred exploration and saw rise to international trade. Locate the circuit breaker that controls the power to the smoke detector. Though the world gold price quadrupled over 10 years and electronics have become ever cheaper, globalization has not alleviated the poverty and violence in the country. Those who support view globalization optimistically as promoting new growth and employment opportunities for low-income countries. The premodern period saw technological advances that allowed trade and communication to flourish. The G20 is made up of 19 countries and the European Union, including most of the world's largest economies. This is simply on the scale of media, but it should go as far as politics. The average cost of goods is a key aspect that contributes to increases in the standard of living. When assessing the importance of Globalization, its good to look back to where it originated; Extent of the, Click to share on Facebook (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Google+ (Opens in new window), How Steve Jobs Laid The Framework For Apple, How To Turn Any Passion Into A Well-Paying Career, A Brief History Of Global Economic Recessions, 4 Types of Jobs That Will Remain Safe From Automation, Ecology of Economics: Why We Cannot Have A Perfectly Sustainable Economy In Todays World, The worlds Top Ten Most Successful Economies, Capitalists Are No Angels, But Socialism Is Hell on Earth. A relationship that benefits one entity may damage another, and whether globalization benefits the world at large remains a point of contention. Its easy for people to fear others whom they have never met. The garment industry in Bangladesh makes clothes that are then shipped out across the world. As in other periods of human history where new connections are forged between geographies and civilizationswhether driven by empire building, technological change, regime change, or climate change-driven migration . As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. As the standard of living increased, more children of poor families left work and attended school.Consumers benefit too. Therefore, globalization has emerged as an . With more customers and enhanced brand reach and value, the sales and profits are sure to rake high and above as compared to being confined to the ones native country. Individuals who travel around the world for business or leisure andtry different foods, listen to different music, read different books, gain exposure to different media outlets, and learn to express themselves, even poorly, in another language gain a broader perspective on the world. This shows how globalization can be a big step forward towards economic growth and prosperity for everyone, encouraging countries to produce more goods and services. For more than 1,500 years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away. It's more. Hundreds of philosophers and social observers have taken sides for many years, either supporting or opposing the standard . Globalization presents challenges for multinational corporations in terms of capital investment and leadership. Many businesses located in the United States have outsourced their call centers or information technology services to companies in India. This growing openness towards different cultures has helped us learn what makes us special and unique, while at the same time learning about the similarities we share with one another. 5) Free movement of goods and services. More open access changes the way products are developed, supply chains are managed and organizations communicate. David is a 19-year-old Canadian student currently attending the University of Guelph. Increased trade promotes international competition. The effects of globalization can be felt locally and globally, touching the lives of individuals as well as the broader society in the following ways: While the effects of globalization can be observed, analyzing the net impact is more complex. The Rights Holder for media is the person or group credited. Plus there are so many opportunities for small as well as big players. These 5G providers offer products like virtual All Rights Reserved, Required fields are marked *. If you want a unique paper, order it from our professional writers. One of the best things about globalization is that it spreads different cultures and traditions worldwide which helps us learn from one another, making us more tolerant towards those who are different from ourselves as well as accepting our own differences as something special. And by embracing the aspect of globalization in the business, the firms are able to accomplish the same. Create a free account and access your personalized content collection with our latest publications and analyses. Without international trade, we would lack the physical and capital requirements to grow large cities that are abundant with skyscrapers that employ thousands of people who deal with international relations etc. But then again, doesnt that make the homosexual advocates ignorant and close-minded. Imagine a teenager in Poland listening to Rihanna at night and in the morning getting her Fjallraven-Kanken backpack ready for school, where she will read Proust, Dostoevsky, Murakami, and Bolao in her literature class. It shapes, and will continue to shape, the way people do business, travel, and connect. The European Centre for International Political Economy reports that globalization has helped reduce high inflation rates in western economies, so each dollar of consumer spending goes further. The G20, or Group of Twenty, is an international forum that aims to foster international cooperation by addressing global economic issues, such as financial stability and climate change. However, this movement can also heighten the spread of disease and promote ideas that might destabilize political economies. Laborers whose skills are less relevantin a global marketplace will have a hard time adjusting to a world dominated by globalization. Forbes reports that the move toward globalization has led to deindustrialization throughout the United States, which was once home to many more factories and auto plants. What are the positives and negatives of Globalization? The Importance Of Economic Globalization. Diseases, most notably plague, also spread along the Silk Routes. Trade on the Silk Road played a significant role in the development of South-Asian countries. Economic Globalization refers to those world Economic activities that beyond borders. Without globalization, it would be very difficult for refugees to flee war-torn countries like modern day Syria and Yemen. Effectively, this means that workers in the developed world must compete with lower-cost markets for jobs; unions and workers may be unable to defend against the threat of corporations that offer the alternative between lower pay or losing jobs to a supplier in a less expensive labor market.The situation is more complex in the developing world, where economies are undergoing rapid change. Ultimately, globalization needs better management, and the failure to manage increased flows across national borders is what gave rise to the financial crisis, climate change and COVID-19. When the United States outsources manufacturing to cheaper competitors in foreign markets, domestic manufacturing laborers lose their jobs. In general, globalization has been shown to increase the standard of living . Advances in technology have enabled and accelerated this flow and the resulting international interactions and dependencies. When the firms realize the Importance of Globalization and mold their business operations according to the same, they have huge access to international markets. And hence, the increased level of competition elevates the level of innovation and novel ideation as the native firms have to beat the competition with the strategic ideas and out of the box product and service offerings to survive and stay relevant in the market. Though it has become commonplace to say it, its true that the world is getting smaller. The Concept. The Triangular Trade network in which ships carried manufactured goods from Europe to Africa, enslaved Africans to the Americas, and raw materials back to Europe is another example of globalization. On a similar note, globalization increases the availability of jobs worldwide which is a great thing for people because more job opportunities mean higher salaries and living standards, which in turn keeps bringing new money into the economy so it feeds itself allowing everyone to benefit from globalization. You can order an original essay written according to your instructions. Navigating the international markets can thus sometimes feel like the Wild West. Debates about globalization are one of the reasons that there is undoubtedly no topic today more dif cult to get one ' s head around, let alone to master, than globalization. The many types of exchange that globalization facilitates can have positive and negative effects. They enable businesses to access lower priced raw materials and parts, take advantage of lower cost labor markets and access larger and growing markets around the world in which to sell their goods and services. Owing to the above-mentioned reason, new and small firms find it difficult to find a strong foothold in the market. At its core globalization is an easing of borders, making them less important as countries become dependent on each other to thrive. Give me your paper requirements and I connect you to an academic expert. Hi! Globalization has altered the way we live and earn a livelihood. Rapid advances in technology and telecommunications are responsible for much of this change. The firms have the facility to tie up and amalgam with the international firms for the import and export of the goods and services. Press the "test" button. Transportation. Furthermore, we wouldnt see as much cultural diversification as we do today without international trade. Nationalism and increasing trends toward conservative economic policies are driving these anti-globalization efforts. Whats the solution then? India, for example, is a country whose GDP has benefited immensely from globalization in the technology sector: Globalization also means that businesses can realize greater profits by tapping into previously untouched markets and taking advantage of lower local costs. On this platform, I aim to utilize my passion for writing in the best possible manner, using it as a medium to share whatever knowledge I have with the readers. Arguably one of the top advantages of globalization has been the rapid spread of technology worldwide. Globalization is the most important trend of global development. 24. The G20's president is selected annually on a rotating basis, and that person's home country hosts the summit. The global financial crisis, for example, hit many nations hard. But it does suggest that, in the same vein as Chomsky's theory of universal grammar, associations between linguistic sounds and visual features could be hardwired into the human brain. Your email address will not be published. 2. NGOs also compile and spread knowledge. Most Kenyans dont have access to banks or bank accounts, but they can use their phones to send and receive funds, using a text-based app since most mobile phones in the country are not smartphones. Any interactives on this page can only be played while you are visiting our website. The word globe as we know it refers to earth. Political and economic stability facilitate globalization as well. They can also use their phones to track the prices of crops and find out which markets will bring in more money. Globalmillennial.org. Exploiting cheap markets and lax regulations in developing nations has caused pollution and suffering in those countries, even as profits soar abroad. Proponents of globalization argue that it improves the state of the world in many ways, such as the following: Many proponents view globalization as way to solve systemic economic problems. Pregnant women without access to traditional medical care can use their phonesto keep in touch with midwives. Hire a verified expert to write you a 100% Plagiarism-Free paper. Learn how companies are rethinking global supply chains to avoid disruption and reap the benefits of globalization. These technological advances have been especially pronounced in transportation and telecommunications. When the firms realize and apply the Importance of Globalization, they make their tasks simpler at much-lowered costs and overheads. The internet has increased the sharing and flow of information and knowledge, access to ideas and exchange of culture among people of different countries. What is a Service Level Agreement or SLA? When a commodity becomes available from another region or country, it gets produced there instead of somewhere else, which drives the costs of that commodity down worldwide. Higher unemployment leads to discontent, strain on the social safety net, and lower tax revenue from income. Copyright 2023 About Curiosity Desire | Privacy Policy | Terms & Conditions | Contact Us. Money, products, materials, information and people flow more swiftly across national boundaries today than ever. The outsourcing of labor also leaves a dearth of jobs in industrialized countries, where labor is more expensive. For example, globalization enables businesses in one nation to access another nation's resources. Your email address will not be published. This essay is available online and might have been used by another student. You can use a phone to reach someone instantly, no matter how far across the globe that person is. Trade allows countries to specialize in what they produce the most efficiently and sell their goods for a profit, while importing goods that cannot be produced domestically or are cheaper to import than produce locally. As consumers realize they have a variety of options from all corners of the globe, they will choose to purchase the best and cheapest options, requiring companies to enhance quality and provide affordable prices if they wish to remain competitive. You can Skype, text, or use Whatsapp. This, in turn, spurs innovation and, in some cases, the exchange of ideas and knowhow. For example, quite many US and UK companies outsource their customer service call center services to the Asian markets as the manpower is quite nominal as compared to their home countries. Fill out this form to download the content in a PDF format. And the aspect of globalization opens the avenues of providing the best of customer service at a lower cost. Advances such as automation and 3D printing have reduced geographic constraints in the manufacturing industry. This threatens to undermine investment and the shared understanding that is vital to address our shared threats. Their new knowledge helps develop stronger empathy and appreciation for people of other cultures. Where it is dangerous or difficult to travel, small business owners simply use their mobile phones to reach clients and contractors. Definition, Importance and Examples. For instance, the exchange of people and goods across borders can bring fresh ideas and help business. Globalization contributes largely to sustainable prosperity for all people. Economic growth in India correlated substantially with this increase, averaging 6.5% a year during that time. Cut the circuit breaker power off, wait 10-15 seconds, then turn the circuit breaker back on. Globalization is a term used to describe how trade and technology have made the world into a more connected and interdependent place. You can get on a plane and in a matter of hours show up halfway around the world. The worlds economy is expected to grow by 4.9 percent by 2022 just because of globalization. Imagine a pair of jeans in the mall with a made in China tag inside. Increased trade to larger and more diverse markets results in greater revenues and increased gross domestic product (GDP). When the NWICO was founded 30 years ago, it aimed at limiting the western influence on the media of less developed nations, and so it was today. A large reason why people from all around the world are able to gather in large cities in developed nations is due to Globalization. Amidst the debate, fears, political polarization, and regrets surrounding globalization, we cannot ignore a central reality: much of it is not reversible or even resistable. In a globalized economy, countries specialize in the products and services they have a competitive advantage in. And today, every nation is dependent and interdependent on each other for some of the other requirement. Globalization has made the world more connected which allows us to work together towards the future by sharing ideas and experiences that will help us overcome any obstacles we might face, regardless of where they come from. Consequently, trade and travel have been recognized as significant determinants of the spread of disease. Because of globalization, the world has become a much smaller place where distances between countries have been eliminated which allows people to do things much more easily and quickly than before. The process happens through foreign trade, capital flows, transferring technology, providing services, interdependence and mutual connection. And with globalization, the competition reaches its peak as the native players of any country face the competition from the outside firms luring and attracting their loyal customers with the products and services that are high on innovation and novelty. The customers have access to the products and services offered by international brands. the more important determinants of modern economic growth. When this happens, the world will come together, regardless of race, religion, and nationality. Liked this article? As borders between different countries become more permeable, it becomes much easier for citizens of one country to experience other ways of living and visiting different places. Advances in air and fast rail technology have facilitated the movement of people and products. Globalization Helps Reduce Inequality, 13. Globalization refers to interconnectedness among countries through various relationships, from business, geopolitics, and technology to travel, culture, and the media. September 28, 2021 by Zuha Salman Leave a Comment. Does it go without saying that the Armenian Culture, for instance, is way older and richer than that of the United States, but have you ever heard of it? For more details, review our .chakra .wef-12jlgmc{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;font-weight:700;}.chakra .wef-12jlgmc:hover,.chakra .wef-12jlgmc[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-12jlgmc:focus,.chakra .wef-12jlgmc[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);}privacy policy. International cooperation has a number of tangible benefits. For example, when countries adopt certain technologies developed by other countries, this improves employment conditions for their citizens. World GDP has grown from about $50 trillion in 2000 to about $75 trillion in 2016, primarily as a result of economic interdependence and the increased global trade it allows. Pay the writer only for a finished, plagiarism-free essay that meets all your requirements. Businesses find cheaper raw materials and parts, less expensive or more skilled labor and more efficient ways to develop products. Today, we as a global society, benefit from Globalization not only in economic means, but in social, cultural, political, and environmental circumstances. Globalization is part of that shrinking world, bringing people together for common or competitive goals. When the firms understand the Importance of Globalizationthey open themselves an anthology of fresh avenues and horizons for growth and success that they have always wished for as there is a free movement of goods and services between various nations all across the globe. Interconnected markets also mean that with a lack of regulation, if something goes wrong, the repercussions will resound globally. To say that globalization is always subjective and destructive is also a primitive conclusion. However, the exploitation of globalization is also inadequate for the less developed nations. Meanings and Perspectives of Globalization, This example was written and submitted by a fellow student. But if people have networked with others from elsewhere over the world, spoken with them about common problems, and partaken of their food and culture, they are better able to perceive their common humanity and treat these others as equals. Giddens likes to label these people as, those who view globalization as synonymous to the westernization and Americanization.. Increasing populations of immigrants and refugees present a challenge for industrialized nations. As we know, it is the process through which the world stimulates into a unified network. Increased Flow of Capital. Be careful, this sample is accessible to everyone. Here are just a few. Critics also suggest that employment opportunities for children in poor countries may increase negative impacts of child labor and lure children of poor families away from school. The importance of this economic phenomenon cant be stressed enough; arguably the most significant contributor to increasing a countrys GDP (standard of living) is foreign direct investment that is, foreign companies who invest in your country.