Basic concept of Globalization with definition and advantage

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Basic concept of Globalization with definition and advantage

Globalization is actually the idea that there will be no national boundary in the world of business and commerce and all the trade will operate on an international scale. Recognizing the cultural diversity of the world to build a harmonious world is another agenda of Globalization.

Concept of globalization

People have derived benefits from the geographical locations of one another since ages. This has been done by way of migration, trade and business relations. Likewise, even today the same phenomenon continues on a large scale by introduction of free trade agreements and novel developments in the international relations which enable the states to benefit from each other’s interests. This process of inter-state integration and interaction is called globalization.

Definition

Globalization, the word means to make “global”, meaning making global ties or making something or usage of something accessible and not restricted to a single territory. The process is leaving a significant impact on the international community and on its environment, politics, society and economic development. Besides, globalization has made gradual changes in the health sector and individual well-being of societies.

The need for globalization

Not all things are in abundance everywhere, but they can be in abundance at a particular place. For example if somebody is growing vegetables in their lawn and they have more than their consumption requirement then they would want to sell them to make the most of the yield and others will buy from them to escape the costly market rates. This is exactly how globalization works. Countries even go a step ahead by availing themselves of the cheap labor opportunities abroad. For example, a Japanese automobile company manufactures its automobile parts in say Pakistan, assembles them in Bangladesh and sells the finished cars in the other countries. Japan would only see which States can offer the most economic friendly results without compromising the quality.

Historical background

After the WWII, there has been a significant rise in the world trade. There has been a 20% increase in the volume of free trade particularly since 1950s, whereas the foreign investments have doubled.

Thomas Friedman, an American journalist and author precisely opines on globalization that it is getting “farther, faster, cheaper and deeper”.

Advantages of globalization

Globalization by removing the barriers also frees the States from their technological deficits. This improves not only the industrial sector but greatly impacts the healthcare segment as well when the States have begun to import advanced machinery and other assets that couldn’t be manufactured within their territories. This also boosts the development in the developing and underdeveloped countries by the flow of information and technology across borders.

Impact of globalization on law

Globalization has evidently impacted the legislation of the States. The laws of developed States have been incorporated by other states by way of Ordinances. Mostly the laws adopted relate to the areas which haven’t been touched by the domestic legislators. Intellectual property laws can be an instance where TRIPS Agreement of WTO has been made the basis for the Copyright, Trademark and Patent laws in various developing countries protecting the individuals and businesses.

The progress of China

China has reached the zenith of the world prosperity by globalizing only. It has impacted foreign markets to the extent that there’s not a single State where Chinese goods and services are not found. Yes, globalization extends to services as well. Developed countries invite foreigners by offering them with the unbeatable working opportunities. That’s the reason most Asians are seen working in the USA as doctors, engineers, lawyers etc. As a result, there has been an exchange of ideas, languages and over all culture. Inter-culture marriages are also an outcome of globalization.

Drawbacks

Nevertheless, excessive interdependence between the States at times gets problematic. For example in 2010 when Greece met debt crisis the impact was seen on the entire Europe. Plus due to increased demand for goods and amplified industrialization driven by globalization, the world is facing global warming, which is currently the biggest disaster for the world to face.

 Facts about Globalization:

  • As a result of globalization, world per capita GDP rose from $680 to $6,500 in between 1900 and 2000 where the rise was so inconsequential before that.
  • The dramatic rise of the GDP didn’t help the countries with low assets that much but surveys and statistics show that the quality of life and growth have become better with globalization.
  • The most striking facilitator of the globalization is the Internet.
  • Japan, Korea, China, and Taiwan are the countries have used the positive factors of globalization the most to develop their economy and the quality of life.
  • The WTO, the World Bank, and the IMF (International Monetary Fund) are the explicit result of globalization.
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