by Samee Shaik

Background to Globalization

Globalization is the economic, cultural, and political integration of people, including companies and governments, worldwide. This occurs through international trade and investment as well as support from current global factors which come into play, such as the emergence of a new industry. Globalization has been around for centuries however the current trends in society change how globalization is achieved. For example during the middle ages, the silk road was used for traders to travel to distant lands so that they may buy, sell, and interact with the people of those lands. In modern times one may interact and conduct business with another who lives afar through the internet or by phone rather than travel to where they are, demonstrating the impact of information technology in today's society.

Factors of Globilization

Many factors play a role in globalization including;

  1. Politics: as information technology, people, and money now have access to move freely around the world countries are opening their borders up to immigrants and offering trade agreements to foreign companies, countries are also working together in organizations, such as the United Nations, in order to address world issues such as crime, hunger and poverty, and currents trends in the environment such as global warming.
  2. Economy: many companies are now relying on international trade and foreign markets in order to achieve maximum revenue with distant countries helping them by offering agreements such as reducing or removing tariffs, outsourcing involves opening factories in foreign countries and offering employment there as the working conditions are much cheaper and productive in comparison
  3. Culture: individuals around the world are now exposed to popular foreign artifacts such as movies, songs, food, and clothing which may then become popular within their own country, becoming integrated in their own culture
  4. Technology: people are able to travel and communicate with others far more efficiently than in the past with the emergence of revolutionizing technologies such as the phone by Alexander Graham Bell, planes by the Wright brothers, as the emergence of the internet and information technology thus giving companies and individuals the options to travel or communicate with people in different countries

Benefits of Globalization

  • greater free trade results in many global economic advantages such as decreased prices for consumers, lower tariffs for international companies, increased employment worldwide, etc
  • assists in the upbringing of developing nations by giving them access to advanced technology as well as an environment in which human rights and prosperity may thrive
  • cultural mingling as more individuals have access to information about lifestyles in foreign countries
  • trans and multinational companies are able to invest in plants within distant countries providing them with employment

Drawbacks of Globalization

  • increased competition between both local and multinational companies
  • loss of jobs as companies tend to open plants with cheaper working conditions, these plants also tend to have poor working standards due to the exploitation of the workers
  • large companies are able to exploit tariffs and may completely avoid paying taxes in other countries
  • quick spread of diseases, such as Ebola and HIV, leading to the onset of pandemics

Works Cited

Forbes. Forbes Magazine. Web. 11 Feb. 2016.

Guest, Lorie, and David Notman. Fundamentals of International Business: A Canadian

Perspective. Toronto: Thompson Educational Pub, 2010. Print.

"Globalization." National Geographic Education. 2011. Web. 11 Feb. 2016.

"Globalization Pros and Cons List." OccupyTheory. 2014. Web. 11 Feb. 2016.