Concepts of Globalization

• Economic globalization - is the growth of trade systems among transnational players such as multinational firms and non-governmental organizations;

• Financial globalization - is associated with the emergence of a global financial system characterized by international financial and monetary exchanges. When one stock market declines, it has a negative impact on other markets and the economy as a whole. This is a prime example of how the global economy is financially interconnected.

• Cultural globalization - refers to the interpenetration of civilizations, which results in nations adopting the values, beliefs, and clothing of other nations, so losing their own culture to a globalized supraculture;

• Political globalization - the growth and increasing importance of international organizations such as the United Nations and the World Health Organization have led to the internationalization of government activity. There are other international organizations, such as Doctors without Borders and Oxfam.

• Sociological globalization - Information moves practically in real-time, along with the connectivity and interdependence of events and their outcomes. People also move frequently, blending and merging diverse societies;

• Technological globalization - the phenomena by which millions of individuals are networked via digital platforms such as Facebook, Instagram, Skype, and YouTube.

• Geographic globalization - is the continually shifting arrangement and hierarchy of the world's many areas. In addition, transportation and air travel have become so accessible and affordable that, with the exception of a few countries that require visas, it is possible to explore the world with minimal constraints.

• Ecological globalization - refers to the concept of viewing planet Earth as a single global entity – a common good that all countries should conserve because the weather affects everyone and we all share the same atmosphere. In this context, it is commonly stated that the poorest, least polluting nations will suffer the most from climate change.

Advantages of Globalization

1. Transfer of Technology

Technology transfer around the world is beneficial to us. The agreement allows any country to borrow the technology and utilize it in their country for general development. We can simply speak with each other from anywhere on the planet by utilizing advanced technology at a little cost, time, and effort.

2. Better Services

Better services are constantly provided by globalization. Water supply, mobile networking, internet, electricity supply, and other services have become easier and better as a result of technical improvement. By the way, globalization has also resulted in widespread access to the internet.

3. Standardization of Living

The integration of economies, as a crucial process of globalization, enables countries to combat poverty and raise people's living standards.

4. Development of Infrastructure

Because of technology growth and its global dissemination, it is possible to strengthen a country's infrastructure. Countries are better able to provide services to their citizens. Infrastructure development equates to overall country development. It is vital to state here that economic expansion and infrastru tural development are mutually beneficial.

5. Foreign Exchange Reserves

Because of international financial flows, governments might accumulate foreign exchange reserves as a result of globalization.

6. Economic Growth

Globalization implies maximizing resource utilization, with deficit resources procured and surplus resources exported to other countries. This ensures that the economy as a whole grows.

7. Affordable Products

With access to cutting-edge technology, countries can offer things to their citizens at reasonable prices. Globalization encourages competition in domestic economies, and in order to compete, corporations cut product prices or use a penetration pricing strategy.

8. Contribution to World GDP Growth Rate

Globalization ensures that every country contributes to global GDP growth.

9. Extensions of Market

Above all, globalization encourages market expansion. It gives domestic enterprises the potential to become global. Domestic enterprises, for example, may experience saturation in demand for their products or services; nevertheless, via globalization, domestic companies can sustain and serve the expanding wants of foreign clients.

Disadvantages of Globalization

1. Cultural Loss

Aside from all the benefits globalization has had on allowing cultural exchanges it also homogenized the world’s cultures. That’s why specific cultural characteristics from some countries are disappearing. From languages to traditions or even specific industries. That’s why according to UNESCO, the mix between the benefits of globalization and the protection of local culture’s uniqueness requires a careful approach.

2. Growing Inequality

Globalization can exacerbate global inequality by boosting specialization and trade. Although specialization and commerce increase per capita income, they can also produce relative poverty.

3. Increasing Unemployment Rate

Globalization has the potential to raise the unemployment rate. Globalization necessitates more competent labor at a lower cost. However, countries with weak institutions are unable to produce highly trained workers. As a result, the unemployment rate in such countries is rising.

4. Trade Imbalance

The balance of trade is the value difference between a country's exports and imports of commodities and services. As a result of globalization, any country can trade with any other country on the planet.

That is why, in some cases, developing countries are so reliant on wealthy countries for import goods, despite having lower export capabilities than import. The trade deficit has been present.

5. Environmental Plunder

As a result of globalization, the rate of industrialization is accelerating. Industrialization promotes economic prosperity while also harming the environment. Globalization loots from nature and harms us greatly.

Importance of Globalization

Globalization enables countries to take advantage of economic synergy and work together to address political, social, and economic concerns. Additionally, globalization expands prospects for businesses to extend operations in overseas markets. By embracing foreign investment, a country supports infrastructure development. Government leaders are able to discuss strategies to enhance economic conditions cooperatively and share in the beneficial economic outcomes.

References:

9 advantages and disadvantages of globalization. (2021, March 27). SCHOOL OF POLITICAL SCIENCE. https://schoolofpoliticalscience.com/advantages-and-disadvantages-of-globalization/

Effects of globalization to E commerce. (2017, March 16). Share and Discover Knowledge on SlideShare. https://www.slideshare.net/EvangelineLachica/effects-of-globalization-to-e-commerce-73196078

Globalization. (n.d.). https://education.nationalgeographic.org/resource/globalization

https://vittana.org/19-advantages-and-disadvantages-of-globalization

What is globalization? Examples, definition, benefits and effects. (2019, January 21). Youmatter. https://youmatter.world/en/definition/definitions-globalization-definition-benefits-effects-examples/

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https://medium.com/the-entrepreneurial-diary/globalization-b84321eff1fa

https://youmatter.world/en/definition/definitions-globalization-definition-benefits-effects-examples/