Hi, I am an MBA and the CEO of Marketing91. What Is Globalization and Why Is It Important? 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 . It was founded in 1999, following the 1997 financial crisis, and has met every year since then. How dull would the world be if every country spoke only its language? Roads, electrical grids, broadband internet, water, and sanitation may need to be upgraded or developed from scratch. Globalization is commonly thought of as a new phenomenon, but contact between diverse individuals is not new. Whether one supports a world without borders, or the current state of affairs, one truth resounds: we have a responsibility to help each other. Globalization Brings Better Acceptance Of Self, 9. With fewer restrictions on trade, globalization creates opportunities to expand. Globalization Prepares Us For Future Challenges, 12. Meanings and Perspectives of Globalization, This example was written and submitted by a fellow student. The many types of exchange that globalization facilitates can have positive and negative effects. Hundreds of philosophers and social observers have taken sides for many years, either supporting or opposing the standard dimension of global processes. Sustainable prosperity is when people of any ethnicity,religion or gender have all their needs met, all have an equal opportunity to create wealth and all to have the chance to pursue happiness. As the standard of living increased, more children of poor families left work and attended school.Consumers benefit too. Its clear that globalization provides an abundance of benefits worldwide but what are the disadvantages of globalization? 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. Anthony Giddens, the outstanding sociologist, believes that some social sectors quite simply dont share a positive feeling towards globalization and perhaps denounce it, while other sectors of the society are starting to acknowledge it, paving a way to inevitable consequences to come along capitalism. Blockchain facilitates the secure access to data required in industries such as healthcare and banking. Increased Flow of Capital. Passionate about literature, books, and weaving words into phrases, Im pursuing an academic career in English Literature and Linguistics and have been working as a content writer since 2016. The world of business has been blessed with a boon of globalization that has worked wonders not only for the big players in the market but also for the new and small ones that are still finding their strong foothold. This . They have very similar effects: they raise output in countries, raise productivity, create more jobs, raise wages, and lower prices of products in the world economy. This technology is enabling the development of decentralized databases and storage that support the tracking of materials in the supply chain. Without globalization, it would be very difficult for refugees to flee war-torn countries like modern day Syria and Yemen. Hardwired proposes that globalization originated from the basic motivation of human beings to seek a better life (Chanda, 2007). In a world where globalization is widely accepted, those who work hard will be able to climb the social ladder despite their background because everyone has equal opportunities. Your email address will not be published. International cooperation has a number of tangible benefits. Globalization Helps With Economic Growth, 4. Press the "test" button. Like it or not, globalization has proven to be a potent force for growth and development, and it is changing the world in ways that have a sweeping, sometimes unpredictable impact. The 2021 summit will be held in Rome, Italy, and will focus on recovery from the pandemic and climate change. Hardwired proposes that globalization originated from the basic motivation of human beings to seek a better life (Chanda, 2007). Required fields are marked *. You can get on a plane and in a matter of hours show up halfway around the world. There is no question about it globalization has transformed the modern world. For example, when countries adopt certain technologies developed by other countries, this improves employment conditions for their citizens. 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. 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. Hence, it is very imperative for firms to understand the Importance of Globalization. We do not assert that these events are unrelated to globaliza-tion, or that they are unimportant. The outsourcing of labor also leaves a dearth of jobs in industrialized countries, where labor is more expensive. Another example is Vietnam, where globalization has contributed to an increase in the prices for rice, lifting many poor rice farmers out of poverty. A relationship that benefits one entity may damage another, and whether globalization benefits the world at large remains a point of contention. 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. For example, blockchain provides a transparent ledger that centrally records and vets transactions in a way that prevents corruption and breaches. Businesses find cheaper raw materials and parts, less expensive or more skilled labor and more efficient ways to develop products. Studies at Princeton shows that over 85% of men and women in underdeveloped countries do not appreciate the basic forms foreign influence; be it movies, songs, or even politics. World Health Organization (WHO) defines globalization as "The increased interconnectedness and interdependence of peoples and countries. All rights reserved. The 21st century has witnessed both. User Enrollment in iOS can separate work and personal data on BYOD devices. Make sure your essay is plagiarism-free or hire a writer to get a unique paper crafted to your needs. It may be necessary to hold the "test" button down for up to 10 seconds to reset the alarm. 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. (MBA2013MBA) [A] to accelerate the I.T. The resulting advancements lead to results like the spread of motorized farm machinery in Southeast Asia, for instance, where there had previously only been manual labor. This, in turn, spurs innovation and, in some cases, the exchange of ideas and knowhow. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. The importance of Globalization is a phenomenon that involves the free movement of humans among different regions of the world, exchange of information, and open market for businesses. The views expressed in this article are those of the author alone and not the World Economic Forum. Humans tend to take free things for granted, however, and consequently overexploit nature. Its easy for people to fear others whom they have never met. Globalization Allows Access To New Cultures, 2. In my opinion, the countless defense techniques imposed on globalization, claiming that it will bring the world on a unified network, are truly flawed. 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. Not all the positive effects of globalization take place at the scale of billions and trillions of dollars. This threatens to undermine investment and the shared understanding that is vital to address our shared threats. One of the biggest benefits of Globalization is that there is a free movement of goods and services manufactured and offered by the firms on national and international levels. Transportation. Globalization is about the interconnectedness of people and businesses across the world that eventually leads to global cultural, political and economic integration. Trusted by over 1 million students worldwide. Higher unemployment leads to discontent, strain on the social safety net, and lower tax revenue from income. Here we discuss the opportunities and challenges in achieving the kind of global growth and success we can all share. India has seen an increase in the value of its computer service exports from $11 billion in 1995 to almost $110 billion in 2015. Among the critiques of globalization are the following issues: Technological advances, particularly blockchain, mobile communication and banking, are fueling economic globalization. Globalization informs all these scenarios. Imagine a joint United Nations peacekeeping mission in which different member nations join forces to save lives on another continent. It shapes, and will continue to shape, the way people do business, travel, and connect. One of the main aims and objectives of the firm is to attain a higher market share, higher sales, and higher profits. It began when prehistoric tribes settled and were able to outmuscle wandering tribes. This, however, is not the case. 15 Benefits of Globalization You Probably Didnt Know, 1. Thus . Meanings and Perspectives of Globalization. Globalization Lowers The Costs of Commodities, 6. Like that time the US-funded Hamid Karzai in Afghanistan back in 2005, he later ended up as a puppet following any strategy the US adopts. All Rights Reserved. I mean, its not ok for a sociologist, especially one as profound as Giddens, to address a school of thought in such negativity. National Geographic Headquarters 1145 17th Street NW Washington, DC 20036. You can Skype, text, or use Whatsapp. These 5G providers offer products like virtual All Rights Reserved, When this happens, the world will come together, regardless of race, religion, and nationality. 2. Globalization provides a wealth of benefits, but it also comes with economic and cultural consequences that can be difficult to navigate. A modern example of this is American companys outsourcing labour to Mexico and China because labour costs are cheaper in these areas. With globalization, understanding other peoples culture becomes a lot easier and simpler so it certainly makes sense for people who have no interest in going abroad whatsoever to explore the opportunities that globalization offers them. Countries find themselves limited in the aid they can provide without detriment to their own citizens. Realization of the Importance of Globalization is a win-win situation for all the parties involved. Problems in Globalization: Jobs Loss and Transfer to Lower Cost Countries, Globalization in Context: Diminishing Religious Differences, The Effects that World War i and World War II had on Minority Groups in America. Those who advocate them usually have hidden agendas, and they often come from developed nations (nations with the greatest effect). Manufacturing. No country should in any way fund a political candidate in another country, because this threats the solidity of this potential candidate. Therefore, globalization has emerged as an . At G-P, our industry leading Global Employment Platform helps companies unlock their full potential by building highly skilled global teams in days instead of months. In short, Globalization is the free movement of goods, services and people across the world in a seamless and integrated manner. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. Giddens likes to label these people as, those who view globalization as synonymous to the westernization and Americanization.. It employs as many as four million people, but the average worker earns less in a month than a U.S. worker earns in a day. In 2013, a textile factory building collapsed, killing more than 1,100 workers. The introduction of 4G and 5G technologies has dramatically increased the speed and responsiveness of mobile and wireless networks. Our writers can help you with any type of essay. Nonetheless, rising levels of protectionism and anti-globalization sentiment in several countries could slow or even reverse the rapid pace of globalization. Any interactives on this page can only be played while you are visiting our website. Though silk was certainly the major trade item exported from China, many other goods were traded, and religions, syncretic philosophies, and various technologies. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. I could go on about this forever! Spain is a permanent guest of the organization. The economic benefits of globalization to much of the world are hard to ignore. The efficiency, cost- and carbon-saving benefits of remote meetings will change the face of airport travel. Setting up a business in a new country, especially a developing country, requires substantial upfront capital. Increasing populations of immigrants and refugees present a challenge for industrialized nations. The rapid adoption of mobile technology hasspurred entrepreneurism in countries like Kenya. Liked this article? For instance, a Chinese herbal cosmetic brand can cater to Indian markets quite easily as Indians love to indulge in herbal products. The pandemic has had similar effects on borders and immigration and also disrupted supply chains. 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. (2021, Mar 23). Globalization, or globalisation as it is known in some parts of the world, is driven by the convergence of cultural and economic systems. History shows that our ancestors travel from Africa to other places in search of food and security. March 28, 2021 Admin. World GDP has grown from about $50 trillion in 2000 to about $75 trillion in 2016, primarily as a result of economic . Our generation and future generations can strive to advance globalizations interconnectivity and progress throughout the world. Indeed, the working conditions of people at some points in the supply chain are deplorable. Policies that promote free trade, open borders and international cooperation all drive economic globalization. Globalization contributes largely to sustainable prosperity for all people. I personally believe that these three portions are correct in their own sense. Common ground Kaleidoscope of opinions - but much common ground 65. If your company is looking at foreign markets for business expansion, one of the most important questions you need to ask yourself is whether you want to open an overseas branch or a foreign subsidiar. 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. Azure management groups, subscriptions, resource groups and resources are not mutually exclusive. It is the ability to move and communicate easily with others all over the world in order to conduct business internationally. Imagine a pair of jeans in the mall with a made in China tag inside. The views and perceptions of people depend on who they are, where they live and what they possess. Though countries may wish to help, too large an influx puts a strain on resources and social structures. The customers have access to the products and services offered by international brands. Globalmillennial.org. The premodern period saw technological advances that allowed trade and communication to flourish. A modern example of this is American companys outsourcing labour to Mexico and China because labour costs are cheaper in these areas. Three of the main themes addressed were empowering people, especially women and youth; safeguarding the planet; and long-term strategies to share the benefits of innovation and technological advancement. Globalization is the most important trend of global development. They can also use their phones to track the prices of crops and find out which markets will bring in more money. The firms . And by embracing the aspect of globalization in the business, the firms are able to accomplish the same. The outsourcing of work also contributes to lower prices, as many companies hire foreign laborers to do the work for lower pay. In general, globalization decreases the cost of manufacturing. 1996 - 2023 National Geographic Society. When medical professionals from around the world came together through Doctors Without Borders, in cooperation with the World Health Organization, and workedto eradicate SARS in Vietnam, they prepared a SARS kit afterward and developed guidelines for dealing with the infection. Interconnected markets also mean that with a lack of regulation, if something goes wrong, the repercussions will resound globally. 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. Globalization is a word that has multiple meanings and perspectives. 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