GLOBALIZATION

Globalization describes a process of increasing interdependence or the building of networks between individuals, firms, countries or regions.

EFFECTS of GLOBALIZATION The global common market has a freedom of exchange of goods and capital. There is a broad access to a range of goods for consumers and companies. Worldwide production markets emerge. Free circulation of people of different nations leads to social benefits. Global environmental problems like cross-boundary pollution, over fishing on oceans, climate changes are solved by discussions. More transborder data flow using communication satellites, the Internet, wireless telephones etc.

EFFECTS of GLOBALIZATION (Cont.) International travel and tourism increases. Worldwide sporting events like the Olympic Games and the FIFA World Cup are held. Local consumer products are exported to other countries. There is an increase in the desire to use foreign ideas and products, adopt new practices and technologies and be a part of world culture.

ADVANTAGES of GLOBALIZATION Goods and people are transported with more easiness and speed. The possibility of war between the developed countries decreases. Free trade between countries increases. Global mass media connects all the people in the world.

ADVANTAGES of GLOBALIZATION (Cont.) The interdependence of the nation-states increases. As the liquidity of capital increases, developed countries can invest in developing ones. The flexibility of corporations to operate across borders increases. The communication between the individuals and corporations in the world increases.

PROS of GLOBALIZATION There will be a global market for companies to trade their products to a wider range of options for people. Developing countries benefit a lot from globalization. To meet the increasing demands that follow globalization, there is an increase in the production sector. Competition keeps prices relatively low.

PROS of GLOBALIZATION (Cont.) The focus is diverted and segregated among all the nations. Communication among the countries is on the rise. As communication increases amongst two countries, there is interchange of cultures as well.

DISADVANTAGES of GLOBALIZATION Economic Problems Cultural Problems Unemployment Spread of Diseases

CONS of GLOBALIZATION Globalization is causing western people to lose their jobs as work is being outsourced to the Asian countries. The high rate of profit for the companies, in Asia, has resulted in a pressure on the employed Europeans. Companies are as opening their counterparts in other countries.

CONS of GLOBALIZATION (Cont.) There are experts who believe that globalization is the cause for the invasion of communicable diseases and social degeneration in countries. The threat that the corporate would rule the world is on high. It is often argued that poor countries are exploited by the richer countries where the work force is taken advantage of and low wages are implemented.

GLOBALIZATION CHALLENGES Globalization poses four major challenges that will have to be addressed by governments, civil society, and other policy actors (John W Sewell; 1998): One is to ensure that the benefits of globalization extend to all countries. That will certainly not happen automatically. The second is to deal with the fear that globalization leads to instability, which is particularly marked in the developing world. The third challenge is to address the very real fear in the industrial world that increased global competition will lead inexorably to a race to the bottom in wages, labor rights, employment practices, and the environment. And finally, globalization and all of the complicated problems related to it must not be used as excuses to avoid searching for new ways to cooperate in the overall interest of countries and people.

“ ? “ Is Globalization OR

GLOBALIZATION = COMPETITION ?

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