Globalizations
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Globalization is the process of increasing interdependence and integration among economies and societies, impacting trade, communication, and cultural exchange globally. It encompasses economic globalization, cultural globalization, and political globalization, with significant advantages such as lower prices for consumers and increased market opportunities for domestic firms, but also drawbacks like competition challenges for developing countries and cultural homogenization. The overall effects of globalization vary based on individual identities and regional contexts, leading to both opportunities and conflicts worldwide.
Globalizations
- 2. Globalisation Globalisation is a process of increasing interdependence and integration of economies and societies to such an extent that an event in one part of the globe affects people in other parts of the world. Thinkers and Scholars all over the world often talk of global culture, global economy and global governance.
- 3. Under the norms of globalisation the political restrictions on the trade of goods, services, technology and information has reduced. Exchange of technology, information, goods and services has also been subject to the economic concerns rather than the political concerns which happened during the cold war. However, this process has not been consistent throughout the world; it has led to the conflict and fragmentation between different countries and even different groups of people within the same country. The impact of gloablisation is relative to group identity, geographical location, culture, gender and the skill capacity of the individuals.
- 4. • Greater free trade. • Greater movement of labour. • Increased capital flows. • The growth of multi-national companies. • Increased integration of global trade cycle. • Increased communication and improved transport, effectively reducing barriers between countries.
- 6. Type of Globlisation Economic Globlization: Economic globalization is the increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, services, technology, and capital. Whereas the globalization of business is centered around the diminution of international trade regulations as well as tariffs, taxes, and other impediments that suppresses global trade, economic globalization is the process of increasing economic integration between countries, leading to the emergence of a global marketplace or a single world market.
- 8. Cultural globalization • Cultural globalization refers to the transmission of ideas, meanings, and values around the world in such a way as to extend and intensify social relations. This process is marked by the common consumption of cultures that have been diffused by the Internet, popular culture media, and international travel. This has added to processes of commodity exchange and colonization which have a longer history of carrying cultural meaning around the globe. The circulation of cultures enables individuals to partake in extended social relations that cross national and regional borders. Cultural globalization involves the formation of shared norms and knowledge with which people associate their individual and collective cultural identities. It brings increasing interconnectedness among different populations and cultures.
- 9. Political globalization • Political globalization refers to the growth of the worldwide political system, both in size and complexity. That system includes national governments, their governmental and intergovernmental organizations as well as government-independent elements of global civil society such as international non-governmental organizations and social movement organizations. One of the key aspects of the political globalization is the declining importance of the nation-state and the rise of other actors on the political scene.
- 10. Impact of Globlization • Provide a platform worldwide • Increase in economy of an organization. • It make different region closer on basis of business • Exchange of ideas improve business skill. • It also provide information up/down of international market
- 12. Advantages: The benefits of globalisation are related to the benefits of free trade. 1. Consumers will have a wider choice of goods, and prices are likely to be lower. Globalisation has been an important factor in the falling price of manufactured goods. 2.Globalisation gives an opportunity for domestic firms to export a wider market. Export led growth has been an important factor in increasing economic welfare in Asian countries. 3. Globalisation enables increased specialisation of production. This specialisation enables firms to benefit from economies of scale. This leads to lower average costs and increased efficiency. 4. Globalisation causes increased competition between different firms and countries. This puts pressure on firms to be increasingly efficient and offer better products for consumers. 5. Increased Inward Investment. The process of globalisation has encouraged firms to invest in other countries. For example, many firms are relocating call centres to countries like India, where wage costs are lower. This inward investment benefits developing countries because it creates employment, growth and foreign exchange. Some foreign companies are criticised for exploiting cheap labour. But often the wages are higher than otherwise.
- 13. Disadvantages 1. Developing Countries May Struggle to compete. If a developing country wishes to develop a new manufacturing industry, it may face higher costs than advanced industries in the west, who will benefit from years of experience and economies of scale. To develop an industry it may be necessary to have protection from cheap imports; this gives the firm chance to develop and gain economies of scale. 2. Globalisation keeps Developing countries producing primary products. Developing countries may have a comparative advantage in primary products, however, this offers little scope for economic growth. Primary products have a low income elasticity of demand. Therefore, with economic growth demand for products increases only slowly. Primary products often have volatile prices, this can cause the economy to be subject to fluctuations in income 3. Multi national Companies may be able to force out local retailers, leading to less choice for consumers and less cultural diversity. 4. Movement of Labour. globalisation enables workers to move easily around. however, this may cause the highest skilled workers of developing countries to leave for better paid jobs in developed countries.