Definition of Globalization
There are both positive and negative effects of globalization. The definition of globalization refers to the integration of the markets in the global economy, leading to increased trading of national economies. A simple definition of globalization is to speed up the movements and the exchanges of human beings, goods and services, technologies, and cultural practices across the globe. In the course of globalism definition, it promotes and increases the integration and interaction among the geographical boundaries and population around the globe. Both positive and negative effects of globalization have impacted society as a whole.
The term globalization is derived from the term globalize, referring to the commencement of the international economic network. Theodore Levitt has been credited for using the convention of the definition of globalization into the mainstream business audience. According to the WHO, the definition of globalization is the increased interconnectedness and interdependence of people and countries.
In general, the definition of globalization or globalism definition is the word to describe the ever-increasing inters dependence of the world’s economies, culture, and population. Economic partnerships have been built between the countries over the centuries, to facilitate the movement of all the resources, having pros and cons of globalization. The interdependence has been brought about by inter-trade in the goods and services, technology, people, and the flow of information and the investment. Thus, globalization is a process of the integration and interaction of the countries, companies, and people worldwide. Globalism definition aims to bring the economies of the world together. In light of the definition of globalization, peoples, services, and goods move freely across the world.
Moreover, the definition of globalization has facilitated international trade, allowing different nations to utilize their competitive advantage, enabling all other countries to enjoy the benefits while facing some pros and cons of globalization. Thus the definition of globalization can be referred to as the process of integration and integration among companies, people, and government bodies. Globalization has grown manifolds due to advances in communication technology and transportation. Hence, globalism definition is based on local, national, and regional integration and interaction.
In the context of the definition of globalization in academic literature, it is divided into three areas, namely economies, cultural, and political globalization. Moreover, globalism definition capture elements of existence, intensity, velocity, and impact. The globalism definition gained popularity after the cold war in early 1990 and became a popular concept in social sciences. Globalism definition, therefore, refers to the arrival of the international network of the economic system. Thus, the globalism definition describes the way how the countries come together as one big global economy, making trading between the countries more manageable and efficient. Globalism definition also describes the ways the countries and the people integrate and interact, while also facing certain pros and cons of globalization.
Examples of Globalization
The definition of globalization includes a much wider term than just the flow of goods or services: Some examples of globalization are:
Economic globalization: The definition of globalization in the context of economic globalization includes the development of inter-trade among geographical boundaries.
Financial globalization: Augmentation of global finance, with monetary exchanges and commercial exchanges, in terms of globalism definition.
Cultural globalization: The intermingling of cultures worldwide, forming a supra culture, is also an example in the context of the definition of globalization pros and cons of globalization.
Political globalization: Development, influence, and contribution of international organizations like WHI, IMF, has also been an influencing factor in enlarging the definition of globalization manifolds.
Geographic globalization: Treating the world as one global market, introducing new organization and hierarchy has broadened the concept of the definition of globalization, having pros and cons of globalization to this.
Once getting an insight into globalism definition, it is also important to have an understanding of the pros and cons of globalization or the positive and negative effects of globalization. Due to globalization, the growth of the developing and the developed countries both have created a positive and negative effect of globalization worldwide. The growth has both benefitted as well as has some negative effects of globalization. It carries some pros and cons of globalization along with it. The following are some of the positive and negative effects of globalization.
Causes of Globalization
The primary constituents that have resulted in the integration, in the light of the definition of globalization are having pros and cons of globalization to this are:
Improved Transportation: There has been a rapid increase in globalism definition with the rapid growth of transportation. This has led to a more significant movement of goods and people across the globe, apart from having the pros and cons of globalization in the same context.
Improved Technology: Improved technology has made communication and the sharing of information more easily worldwide due to improved technology. For example, the internet has brought the world together in terms of trade, people, communication, etc.
Growth of Multinational Companies: Tapping and entering new markets with a global presence, has led to an increase in light of globalism definition. The pros and cons of globalization should also be taken care of in this regard.
Introduction and National of Global Trading Block: Global trading block like NAFTA, ASEAN, etc. has reduced national barriers, thus creating a stable trading platform for all the nations.
Reduced Trade Barriers: Through the support of organization such as WHO has encouraged global trade which can have positive as well as negative effects of globalization. The pros and cons of globalization are taken care of by these organizations.
Economies of Scale: Firms are enjoying gains from the economies of scale that have increased due to specialization.
Growth of Global Media: This has also led to an increase when, in the context of globalism definition that can also have negative effects of globalization.
Mobility of Labor: Global trade remittances in the current scenario play an essential role in transfer from the developed nations to the developing and underdeveloped nations. The reason is people are moving between different countries in search of work, thus increasing the national income of the nation. It can have both positive and negative effects of globalization.
Internet: It helps the firms to communicate and transmit information on a global level. This may help the firm to get specialized resources at a lower cost but can also have negative effects of globalization if not used in an ethical manner. Unethical use of it can result in having negative effects of globalization.
Positive and Negative Effects of Globalization: The Pros and Cons of Globalization
An insight into the pros and cons of globalization is very necessary to understand. The following are some of the negative effects of globalization.
Negative Effects of Globalization to Environmental Damage: Negative effects of globalization have led to an increase in production to meet global demands, resulting in the exploitation of natural resources, having a negative impact on the environment. One of the negative effects of globalization, as rules and regulations have on environmental protection are not strictly followed, which results in degradation of the environment.
Fluctuating Prices: Negative effects of globalization can lead to increased competition resulting in providing products or services at varying prices. Due to competition, the prices are always fluctuating, causing the business with the best prices to win, which can be negative effects of globalization. Negative effects of globalization can lead companies to reduce prices, thus reducing profits. This may lead to the layoff of the workers, one of the negative effects of globalization. To be competitive, companies are forced to reduce their prices. This is one of the negative effects of globalization as it reduces the ability to withstand social welfare.
Job Insecurity: Globalization helps in providing jobs to people in developing countries that offer cheaper manufacturing jobs. Companies avoid to set up business in developed countries as the wages are much higher. Thus, the negative effects of globalization are it can take jobs from one country and provide employment in another. These are serious negative effects of globalization in terms of job security.
Poverty Alleviation: On the one hand, globalization plays a role in reducing poverty in developing countries. It also registered the opposite trend in many of the developing countries in comparison to the proportion of the developing countries, which are the negative effects of globalization.
Unemployment: Unemployment is one of the key negative effects of globalization. Globalization has brought several job opportunities, but due to increased competitiveness, producers are looking for ways to cut costs, improve efficiency, and increase productivity with minimum resources. It results in employing the minimum workforce and replacing them with the use of the latest technology, is one of the negative effects of globalization.
Displacement of Workers: Negative effects of globalization are people have to leave their families and travel abroad as they work abroad, thus resulting in many negative consequences.
Increased Diseases: Negative effects of globalization are that it has led to an increase in more consumption of food, crops, etc. for which chemicals are used to minimize the duration and increase of profits. Thus the increased consumption of chemicals has led to an increase in numerous diseases, and reducing lifespan in developing countries is another negative effect of globalization.
Positive Effects of Globalization: Some positive effects other than the negative effects of globalization are
More access: More goods and services are available to people at much lower prices.
Eradicating Poverty: In terms of globalism definition, it has lifted people in developing countries from poverty, by increasing job opportunities in capital scarce, labor rich countries.
Better Information and Technology: It helps in the enhancement of better and advanced technology. It inspires and generates good ideas for adapting a superior and much better technology. It encourages free trade. Some more are as follows:
- Eliminates the issue of labor exploitation.
- Increase cultural awareness
- It results in more jobs.
- It eliminates currency manipulation
- It allows open lines for communication around the globe, which can be both pros and cons of globalization in a larger context.
Thus, these are some of the pros and cons of globalization or the positive and negative effects of globalization.