The definitions of globalizations are quite different in many sources, but the great movement of the people, the capital, goods and the ideas are acknowledged greatly due to the great level of integration pushed by the increased level of investment and trade - Globalization essay introduction. It can be termed as approaching towards a world without any borders. It basically talks about the process by which the societies the economies and the culture have become included through the global communication network, trade and transportation. Globalization term is used usually for the economic globalization which concerns the international and national economies integration through the foreign investments, trade, migration, capital outflows and the technology spread. Globalization is however documented to be driven by the socio-cultural, political, technological biological and economical factors.
Between the peoples and countries the sharing of knowledge, goods, services and cultures have always been there, but in the recent years the technological advancements have been great which has made the rate of exchange faster and easier. Challenges and opportunities are provided by globalization. The bigger profits from bigger markets mean greater amount of wealth and greater amount of wealth means a reduction in poverty and investing in for the developments in many of the countries. A country’s ability to take advantage from the changes can be restricted by the existence of weak infrastructure, weak policies and weak institutions. The different policies and decisions made by different countries put them in a situation that reduces the challenges offered by globalization and maximizes the benefits. The perceived issues and effects of globalization are strong feelings, though in reality globalization is a complex web of many of the things.
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How globalization began? There is no answer to it. The understanding of the history of globalization helps in the understanding of what globalization is. There are both technical and political meanings to the word globalization so all the different groups have different histories regarding it. However within the economics field and the political economy globalization is a history of about the increase of trade between the stable institutions and nations which allows in the exchange of the goods with very less amount of friction.
A combination of the laissez faire economic theory with the removal of the barriers in the movement of goods is what ‘liberalization’ means. Liberalization led to the specialization of the nations in the exports along with providence of pressure to end up other trade barriers and protective tariffs. The 19th century liberalization and the gold standard period often are called as “The First Era of Globalization”. This era grew with industrialization based on the Britannica Pax and the goods exchanged in currencies pegged to the specie. David Ricardo’s Comparative advantage work and Say’s law of General equilibrium was its theoretical basis. The nations were argued to trade effectively and if any disruptions in the supply and demand would automatically correct it. The gold standard institution came in the major industrialized nations in steps between 1850 and 1880 approximately though debated contentiously when the various nations were on the gold standard truly (Mahajan, 2006).
The 19th century is also called the first era of globalization sometimes (MaxGillivray, 2006). In the international trade and investment between the imperial and European powers their colonies and later the United States it was a period characterized of rapid growth. The Island Pacific and the Sub Saharan were incorporated into the world system in this period of time. At the beginning of the 20th century with the First World War this first era began to break down (Bawany, n.d).
With a set of dates, eras and epochs the first era of globalization is not well treated, since the interchanges of the people farther back in the history is unknown or unrecorded. It’ll be sufficient to term the European countries and the entities of the first era of globalization, as the period of exploration and colonization (Rowan, 2004). The reason for this is that the European travels had covered the major continents and were very well documented in the written forms and in the maps and the drawings. Many of the facts were not accurately recorded and many lies were told though. The disagreements, era’s epochs and many controversies though exist still about who was the first. More than the economic phenomena are what the first era of globalization applies too along with being contributory and catastrophic. Examples include the spread of plant and anima species with a chance of them improving the academic curiosity and food production and the transportation. The spread of plants and animal species though also introduced the invasive plants and many other problems in the first era. The other biological globalization of the first era includes that of the spread of the diseases, indigenous people’s death. Moreover the rape of the indigenous women and the European slaves, the travelers also went to places with indigenous population with no resistance to the advanced weaponry, genocide or rape of the indigenous people and the treatment for the diseases. The scientific, religious, artistic, academic and all other matters were globalized (Lindsey, 2010). Islam, Christianity and Judaism were all globalized in the first era and so were Hinduism, Atheism etc. The restrictions on education based on the social standing along with other European systems of education were introduced in the first era too (Williamson, 2001).
In the summary to the first era of globalization, it is usually possible to start with the first era’s definition but it is impossible to find an end to it. The impact of the first era of globalization is still counted, defined, delineated or enumerated even with the existence of the discrete historical milestones because it is an ongoing and extended process than a single short process which is definable (Young, n.d).
In comparison to the first era of globalization the current era has distinctive features. The spatio-temporal features are that of extensity, velocity and the global interactions impact which flows in all the directions. Organizational, the extraordinary social, economical and political power relations through the institutions that are new and of multi governance and multi layered. Reflexivity, popular consciousness of the global interconnections and worldwide elite as never before and the transnational social forces versus the national elites are the main contestation groups as opposed to the coercive empires of the subjugated colonial territories and the empires. Contestation, this is about the agenda settling new global politics, the multilateral regulation and coalition building often designed to contest globalization. An international imperial era this was until this current era. Westernization, this was until the current era of globalization, globalization was synonymous largely with the spread of westernization. Territoriality, the territorial control and the governance has been globalization’s core. State form, as compared to the phases earlier of globalization this current era is characterized as the big government. States here spend a large proportion of GDP and have responsibility management and the welfare of the populations. Today the states are therefore more visibly impacted by the globalization today. Democratic governance, the global governance structures have limited elements of the democracy whereas the individual states are democratic. The combining of the democratic ideals of the governance national with the global organization of the economic and social life raises unique dilemmas (Richardson, 2005).
In the current era of globalization there are many advantages and disadvantages that take place.
The advantages of it are that it brings increased number of competition which makes the firm much more innovative in order to adapt to the changes and compete in the market. Globalization reduces the middlemen and for the most efficient suppliers the firm can directly source for. The costs of production would be cut. The consumers are benefitted from the reduction in cost of production which is coupled with the competition globally (Suryadinata, 2006). Other advantages of the globalized market are that the GDP of the developing countries has increased considerably. The per capita has increased wealth which in turn has also trickled the life of the poor. The average income has increased to thrice as much. The education levels have also improved; globalization has been a catalyst to the jobs that require higher level of skill set so people are diverted towards education greatly. Competition on an even platform, all of the companies around the world are competing on a single global platform and this as a result allows for better options to the consumers.
The disadvantages of globalization in the current era are that, some of the firms may not be able to survive in the global competitive world or market. The domestic industry would be killed by cheap imports of the goods. This problem would lead to the problem of unemployment and to the affected country the current account deficit. The cheap imports of the goods from china for example the shoes and garments. By such an impact the domestic industry would be wiped out. Moreover there is an uneven distribution of the wealth, in the hands of some of the few individuals the wealth is concentrated and there is yet to see any of the major benefits of globalization. There are also different wage standards for the developing countries. A worker in the developed country may get more value for his technology work than a person in the developing country (Lovekar, 2007)
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