Globalization can defined as the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure. Globalization has two facets; there are the globalization of markets and the globalization of production. The globalization of markets is merging of historically distinct and separate national markets into one huge global marketplace.It is important to recognize that significant differences still exist among national markets requiring companies to customize market, strategies, product textures, and operating practices to meet the condition in particular markets.
The most global markets currently are not markets for consumer product where national differences in tastes and preferences are still often important enough to act as a brake on globalization. The globalization of production is sourcing of goods and service from locations around the globe to take advantage of national differences in the cost and quality of factors of production like land, labor and capital.Early outsourcing efforts were primarily confined to manufacturing enterprising but today more companies are taking advantage of modern communications technology to outsourcing service activities to low-cost producers in other nations.Globalization can provide more employment to people in a country when companies have foray into the developing countries and hence generated employment for them. Here, we can get high employment than other countries. It has given an opportunity to invest in the emerging markets and explore the talents that they will be used in the future for their own benefit.
In developing countries, there is often a lack of labor capital which hinders the growth of domestic companies and hence, employment. People of developing countries too can obtain gainful employment opportunities. Globalization also can increase competition for their companies. Customer service and the ‘’customer is the king’’ approaches to production have led to improved quality of product and services.
As the domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market.Beside when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates competition in the market and a survival of the fittest situation. One of the most powerful effects of globalization is the spread of education.
Today, you can move in the search of the best educational facilities in the world, without any hindrance. A person living in US can go to another continent for a new experience which he may not find in the home country. If one is interested, one can even get a specialization in subjects indigenous to a country and spread that knowledge to the home country.A good example of that is how the American managers went to Japan to learn the best practices in the field of mass production and incorporated that knowledge in their own production units. There is a lot of technology development that countries have undergone over the years and helping in sharing of information and technology. This helps most of the developing nation’s progress at the same speed as the developed nations.
Globalization makes the economy of one country dependent on the economy of the other country.Any change in economy one country will affect the other. Thus, government becomes more concerned about one another to curb the economical imbalance between them. Globalization also helps in increase of demand of product. This in turn increase rate of production.
Manufacturing thus, find this profitable and helps in availability of ore jobs. Globalization of the mass media has reduced the global space substantially, keeping the people informed about all latest international happenings through different television channel.It also can improve in global communication networks leads to easy flow of important information not only to individuals but at company level as well. Globalization will make a free trade zones that having less or no tariffs. All countries involved in the free trade are at a profit. Globalization also will give effect to investor.
There are free movements of capital offers access to the foreign investment to many countries like United State of America. So, there are many advantages from globalization activities that can give benefit to one country.First is an economic problem. If the entire world becomes a global village, any sort of economic disruption in one nation will have a disastrous impact on various other nation which are closely related to it in term of trade and commerce.
It will be a domino effect wherein disturbance in one economy would result in disturbance in another. Culture and globalization also seem to be at the loggerheads. Globalization may lead to loss of cultural identity as Western ideas are always imposed upon the Eastern thoughts. Critics of globalization are also of the opinion that it will hamper the age-old cultures which have been followed religiously all over the world.
There are many countries in the world which would never agree to compromise when it comes to culture or religion. Migration will become even easier, and the influence of local cultures and traditions will slowly start to wear down. Incessant westernization of Southeast Asian nations has already put western cultural beliefs and traditions under the scanner in these countries. Globalization also can spread of diseases to people in one country.
Increase in flow of people will also result in spread of diseases, and thus make people more vulnerable to health issues.We do have many examples in history wherein outbreak of a particular disease happened in some part of the world, and before we could realize it spread throughout the world. Globalization is supposed to fuel and guarantee social, political and economic unification. However, developed and established economies continue to exploit the 'sharing' business to empower their own strong and wealthy economies. Subsequently, in the political arena, the reallocation of power is surfacing in the form of industrial and technological rivalry.
On the social front, the world is now at a loss in the attempt to guard and flaunt diversity that is enriching. The random influx of ideology and lifestyles and unmonitored intercultural communication has resulted in the creation of a pseudo culture that is common across boundaries. Globalization also gives pressure on the employed people of developed countries who are always under the threat of their jobs being outsourced. Disadvantage of globalization is the increasing number of the loafer.
After the industrial revolution, industry gravitate some particular countries.Because of that, these countries became a power in industry. However production decreased and so unemployment was raised in the other countries. Another reason of the unemployment rise is that the need of less manpower.
As stated at Wikipedia, many workers found themselves suddenly unemployed, as could no longer compete with machines which only required relatively limited work to produce more product than a single worker. Globalization causes the poor citizens having more requirements when provides the increasing of productivity and life standard of societies.To begin with productivity is indeed increased as it can be seen that the population of the world is rising rapidly even uncontrollable and more people means that there is a need of more product too. Thus Globalization responds the needs of 7 billion people. Moreover the standards of life is a lot better than 50 years ago as they are more machines and systems invented in developed countries supporting all world.
There are many disadvantages from globalization activities that can give effect to all factors.
