It ignores any environmental damage thought to be the result of globalization. The Importance Of Economic Globalization. Trusted by over 1 million students worldwide. 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. And this way, you can rake higher profits and sales as your target market has expanded and multiplied. These globalization pros and cons show that a borderless world potentially offers many benefits, but with many enormous challenges, which need to be resolved for globalization to be workable. Basically, when we talk about Globalization, we arent just talking about the trade of goods and exchange of capital, we must realize the various social and cultural opportunities that have been realized with international trade. Propelled by the efficiency or appeal of wireless communications, electronic commerce, popular culture, and international travel, globalization has been seen as a trend toward homogeneity that . Trade on the Silk Road played a significant role in the development of South-Asian countries. On a side note, there is a portion of the society that fights a completely different war. How dull would the world be if every country spoke only its language? What is a Service Level Agreement or SLA? This means that companies can offer goods at a lower price to consumers. Today, we as a global society, benefit from Globalization not only in economic means, but in social, cultural, political, and environmental circumstances. Organizations that build 5G data centers may need to upgrade their infrastructure. The customers have access to the products and services offered by international brands. Globalization Prepares Us For Future Challenges, 12. Imagine a joint United Nations peacekeeping mission in which different member nations join forces to save lives on another continent. 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. And the aspect of globalization opens the avenues of providing the best of customer service at a lower cost. There are advantages to the more open border and free trade that globalization promotes, as well as negative consequences. 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. Globalization Promotes Cultural Diversity, 11. As we know, it is the process through which the world stimulates into a unified network. In my opinion, the countless defense techniques imposed on globalization, claiming that it will bring the world on a unified network, are truly flawed. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. For example, when countries adopt certain technologies developed by other countries, this improves employment conditions for their citizens. Though it has become commonplace to say it, its true that the world is getting smaller. Globalization refers to interconnectedness among countries through various relationships, from business, geopolitics, and technology to travel, culture, and the media. Introduction. Conservation efforts and efforts to combat rising carbon emissions, for example, will require a concentrated global effort if they are to succeed. 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. Whether one supports a world without borders, or the current state of affairs, one truth resounds: we have a responsibility to help each other. Global trade is also made more difficult and facing rising threats from other factors, such as these: Globalization is a longstanding trend that is in the process of changing and possibly slowing. .chakra .wef-facbof{display:inline;}@media screen and (min-width:56.5rem){.chakra .wef-facbof{display:block;}}You can unsubscribe at any time using the link in our emails. Though silk was certainly the major trade item exported from China, many other goods were traded, and religions, syncretic philosophies, and various technologies. Since 2008, the G20 has held an annual summit that brings together heads of state to discuss important economic issues. And with the facility and support of social media, digital marketing, and online selling techniques, you can expand your horizons by catering to the target market that is not only present in your country but also across borders. It's time to recognise the economic value of an ecosystem In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections.Studies also suggest that globalization may contribute to income disparity and inequality between the more educated and less educated members of a society. Cut the circuit breaker power off, wait 10-15 seconds, then turn the circuit breaker back on. Give us your paper requirements, choose a writer and well deliver the highest-quality essay! This third portion has a long- engraved belief that nationalism is the greatest key to identity. 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. Globalization has long been used by the automotive industry, for instance, where different parts of a car may be manufactured in different countries. These technological advances have been especially pronounced in transportation and telecommunications. 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 firms have the facility to tie up and amalgam with the international firms for the import and export of the goods and services. For example, Cuba sent doctors to Italy at the beginning of the pandemic to assist with the crisis as it developed there. In short, Globalization is the free movement of goods, services and people across the world in a seamless and integrated manner. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization.Into the FutureRegardless of the downsides, globalization is here to stay. Owing to the above-mentioned reason, new and small firms find it difficult to find a strong foothold in the market. If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. When the firms are quite active on the front of globalization by offering their products and services to the customers in the international markets, one of the biggest merits they enjoy is of the higher and an enhanced brand reach and value. For example, globalization enables businesses in one nation to access another nation's resources. In general, globalization has been shown to increase the standard of living . Globalization is the process in which people, ideas and goods spread throughout the world, spurring more interaction and integration between the world's cultures, governments and economies . The average cost of goods is a key aspect that contributes to increases in the standard of living. A. GLOBALIZATION 1. What do you think is the effect of a high 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. 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. Sometimes they must contend with different types of legal and banking systems entirely. 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. Globalization enables access to different kinds of information across borders, which people use to improve their lives in various ways. For any subject. But how does the everywhere workforce work together best? Use the tool to help admins manage Hyperscale data centers can hold thousands of servers and process much more data than an enterprise facility. 87 students ordered this very topic and got Your email address will not be published. The resulting spread of slavery demonstrates that globalization can hurt people just as easily as it can connect people.The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. If a media asset is downloadable, a download button appears in the corner of the media viewer. Roads, electrical grids, broadband internet, water, and sanitation may need to be upgraded or developed from scratch. China is a prime example of a country that has benefited immensely from globalization. Globalmillennial.org. Multinational corporations are a tangible example of globalization. A large reason why people from all around the world are able to gather in large cities in developed nations is due to Globalization. Political and economic stability facilitate globalization as well. September 28, 2021 by Zuha Salman Leave a Comment. The audio, illustrations, photos, and videos are credited beneath the media asset, except for promotional images, which generally link to another page that contains the media credit. Furthermore, we wouldnt see as much cultural diversification as we do today without international trade. The government authorities of various countries have been giving a lot of impetus to the Importance of Globalization realizing its high potential as it also increases the income levels of the nation as a whole. Comment * document.getElementById("comment").setAttribute( "id", "a15399950c0b1dc9ec59837dea2cdb7c" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved, 6 Reasons that Explain The Importance of Globalization, Best Practices - Definition, Importance and Examples, Meaning and Top 15 Benefits of LLC Firm | Marketing91, What is Business Agility? The result is a smaller, more connected world. First of all, they agree that it is merely inevitable that globalization will hit previously established the national borders. Some examples include the following: Through their influence on social and economic development in the countries that host them, multinational corporations embody the contradictions of globalization. Increased trade to larger and more diverse markets results in greater revenues and increased gross domestic product (GDP). Without globalization, it would be very difficult for refugees to flee war-torn countries like modern day Syria and Yemen. Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. Globalization helps local people maintain their traditions and way of living because they dont have to migrate or leave their home countries in search of better lifestyles somewhere else. Everest Group Names G-P an Industry Leaderin the Employer of Record Market. The more countries and regions of the world become intertwined politically, culturally and economically, the more globalized the world becomes. Arguably one of the top advantages of globalization has been the rapid spread of technology worldwide. 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. Globalization is commonly thought of as a new phenomenon, but contact between diverse individuals is not new. 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. All Rights Reserved. Professor of Globalization and Development; Director, Oxford Martin Programme on Technological and Economic Change, Oxford Martin School, University of Oxford, is affecting economies, industries and global issues, with our crowdsourced digital platform to deliver impact at scale. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Navigating the international markets can thus sometimes feel like the Wild West. Nongovernmental organizations (NGOs) use a collaborative approach to address issues that are not confined within borders, such as child labor, human trafficking, and health care and disease prevention. 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. I could go on about this forever! Our goal is to bring educated, relevant, and unique perspectives on global affairs through the form of articles and video. In some cases, this may contribute to improved health by enabling a more varied and healthier diet; in others, it is blamed for increases in unhealthy food consumption and diabetes.DownsidesNot everything about globalization is beneficial. This convergence promotes -- and in some cases necessitates -- increased interaction, integration and interdependence among nations. However, this movement can also heighten the spread of disease and promote ideas that might destabilize political economies. Globalization is useful not only for opening doors to new places but also for sharing technology and information across borders so everyone can benefit from it, especially those who live in less developed countries, so they experience important improvements which increase their standard of living. The nations involved account for 60% of the planet's population, 75% of global trade and 80% of world GDP. Globalization is about the interconnectedness of people and businesses across the world that eventually leads to global cultural, political and economic integration. Communication technology. Today, we as a global society, benefit from Globalization not only in economic means, but in social, cultural, political, and environmental circumstances. Developing countries often appeal to investors because of the huge potential for growth. A relationship that benefits one entity may damage another, and whether globalization benefits the world at large remains a point of contention. World Health Organization (WHO) defines globalization as "The increased interconnectedness and interdependence of peoples and countries. 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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. He currently studies Public Management and economics with hopes of one day becoming an accomplished journalist. This technology is enabling the development of decentralized databases and storage that support the tracking of materials in the supply chain. Globalization enables countries to access less expensive natural resources and lower cost labor. You can unsubscribe at any time using the link in our emails. Understanding The Importance Of Globalization - Medium Required fields are marked *. 2013mba()- Increasing populations of immigrants and refugees present a challenge for industrialized nations.