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Globalization

1. Definition
The worldwide movement toward economic, financial, trade, and communications integration. Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately.

2. Definition of 'Globalization'
The tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. Globalization has had the effect of markedly increasing not only international trade, but also cultural exchange.

Advantages of Globalization:

Resources of different countries are used for producing goods and services they are able to do most efficiently. Consumers to get much wider variety of products to choose from. Consumers get the product they want at more competitive prices. Companies are able to procure input goods and services required at most competitive prices. Companies get get access to much wider markets It promotes understanding and goodwill among different countries. Businesses and investors get much wider opportunities for investment. Adverse impact of fluctuations in agricultural productions in one area can be reduced by pooling of production of different areas.

Disadvantages of Globalization:

Developed countries can stifle development of undeveloped and under-developed countries. Economic depression in one country can trigger adverse reaction across the globe. It can increase spread of communicable diseases. Companies face much greater competition. This can put smaller companies, at a disadvantage as they do not have resources to compete at global scale.

There are benefits and disadvantages to globalization. Firstly, globalization is good for certain countries more, such as those in the First World or Global North. Rich countries like the USA, UK, Germany etc. can sell more products and goods to new markets in the Global South or poorer countries. Think of McDonald's and Starbucks and other big American brands. We can find McDonald's everywhere (almost). Due to globalization, many local brands and businesses in poorer developing countries go bankrupt and can't survive the economic might of these rich countries. Local cultures and traditions change. People no longer wear national costumes because they all want to look like Hollywood stars and wear jeans, for example. People want to become "American" and consume everything American. Also because of globalization, more and more people are learning and speaking English to the detriment of local languages. There are more international schools and the focus now is on the acquisition of this global language rather than their own L1 or mother tongue.

Other things to consider: * Reduces international poverty * Contributes to the spread of technology * Adds to the profitability of companies and corporations * Builds stronger trade ties and dependencies between nations * Major motivation for moving overseas is to exploit more lax labor laws and low environmental standards * Homogenizes the world culture, both positively and negatively * Destroys entire industries in developed countries (e.g. US automakers, textile manufacturing)

Since people wrote mostly positive things, here are some negative things (playing devil's advocate). 1. Globalization can ruin the environment. Moving things from one area to another wastes oil, etc. 2. Globalization can ruin local economies. There is a movement that wants to buy local especially organic foods. 3. Globalization can lead to hyper-specialization, which can be good, but also negative. There is something great about being a generalist. Also what if something goes wrong. To know things generally give an incredible perspective that specialists do not have. 4. Globalization can be driven by people with "know how" and power and they can systematically fleece the world.

Advantages of Globalisation

Globalisation helps in brinign whole wolrd as one village. Every consumer have free and frquent reach to the products of foreign countries. Optimum use of natural resources possible. Helpfull in cost reduction by eliminating cross border duties and fees Helpful in employment generation and income generation

Disadvantages

Globalisation is direct attack on local tiny and small industry. Global companies with hi-fi infrastructure almost ruins the local traditional small and medium industries Increases cut throat competition. Globalisation increases monopoly by countries equiped with know-how and power.

Globalization brings the following disadvantages: 1.it increases the gap between the poor and rich.-income inequalities-poverty trap2. cultural convergence-more people are moving towards the western fashion 3.environmental harrm-resourses are used up-scarcity-creates externalities-pollution-waste products 4.demand more of skilled workers and causing redundancy of skilled workers

Advantages of Global Marketing

Lower Marketing Costs: If you are to consider the lump-some cost, then, yes, it is high, but the same cost goes even higher if the company has to market a product differently in every country that it is selling. Global Scope: Scope of this kind of marketing is so large that it becomes a unique experience. Brand image Consistency: Global marketing allows you to have a consistent image in every region that you choose to market. Quick and Efficient Use of Ideas: A global entity is able to use a marketing idea and mold it into a strategy to implement on a global scale. Uniformity in Marketing Practices: A global entity can keep some degree of uniformity in marketing throughout the world.

Disadvantages of Global Marketing


Inconsistency in Consumer Needs: American consumer will be different from the South African. Global marketing should be able to address that. Consumer Response Inconsistency: Consumer in one country may react differently than a consumer in another country. Country Specific Brand and Product: A Japanese might like a product to have a traditional touch, whereas an American might like to add a retro modern look to it. In this case, a global strategy is difficult to devise. The Laws of the Land Have to be Considered: Original company policies may be according to the laws of home countries. The overseas laws may be conflicting in these policies. Infrastructural Differences: Infrastructure may be hampering the process in one country and accelerating in another. Global strategy cannot be consistent in such a scenario.

Some Advantages Some Disadvantages


Increased free trade between nations Increased liquidity of capital allowing investors in developed nations to invest in developing nations Corporations have greater flexibility to operate across borders Global mass media ties the world together Increased flow of communications allows vital information to be shared between individuals and corporations around the world Greater ease and speed of transportation for goods and people Reduction of cultural barriers increases the global village effect Spread of democratic ideals to developed nations Greater interdependence of nation-states Reduction of likelihood of war between developed nations Increases in environmental protection in developed nations Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor Increased likelihood of economic disruptions in one nation effecting all nations

Corporate influence of nation-states far exceeds that of civil society organizations and average individuals Threat that control of world media by a handful of corporations will limit cultural expression Greater chance of reactions for globalization being violent in an attempt to preserve cultural heritage Greater risk of diseases being transported unintentionally between nations Spread of a materialistic lifestyle and attitude that sees consumption as the path to prosperity International bodies like the World Trade Organization infringe on national and individual sovereignty Increase in the chances of civil war within developing countries and open war between developing countries as they vie for resources Decreases in environmental integrity as polluting corporations take advantage of weak regulatory rules in developing countries

Globalization is the process by which states become interdependent on each other on all spheres of life. It is a process where countries go global by adapting universal characteristics involving human race. It is therefore the process of uniting people of the world into one unit with universal characteristics. This characteristics include; systems of education, politics, democracy, economy among many others. Through globalization economies, civilizations and societies become integrated into a globalised arrangement of political ideas. In a global world there is free flow or movement of improved technology. Technologies can be new discoveries, inventions and innovations. Technology built or discovered in one continent is shared for use or exploitation in other countries. Therefore with the advancement of technology developing countries have developed technological know-how and this has lead to improvements in the industries. Most industries in the developing countries are now able to work effectively, improving efficacy and makes works easier. This saves a lot of time wasted by ineffective machines leading to increased profits and earnings. With globalization there has been establishment of multinational or transnational corporations. This shows there is an increased investment in all nations across the world. This multinationals also are responsible for employing a large number of individuals from the investor states therefore reducing high levels of unemployment in this developing countries. Globalization leads to high investment levels and therefore increased wealth. Wealth is generated through economic gains of globalization. The gains have increased access healthcare and water. This consequently has a direct effect to life expectancy levels. Research conducted reveals that more than eighty-five per cent of the population is expected to live for almost sixty-eight years and above. This therefore demonstrates that globalization has a direct effect on access to healthcare and stressing the need to access healthcare services.

Globalization

Your shirt was made in Mexico and your shoes in China. Your CD player comes from Japan. You can travel to Moscow and eat a Big Mac there and you can watch an American film in Rome. Today goods are made and sold all over the world, thanks to globalization. Globalization lets countries move closer to each other. People, companies and organizations in different countries can live and work together. We can exchange goods , money and ideas faster and cheaper than ever before. Modern communication and technology, like the Internet, cell phones or satellite TV help us in our daily lives. Globalization is growing quickly. A German company can produce cars in Argentina and then sell them in the United States. A businessman in Great Britain can buy a part of a company in Indonesia on one day and sell parts of another business in China the next, thanks to globalization. Fast food companies open shops around the world almost every day.

Coca Cola - A symbol of globalization

History of Globalization

Globalization is not new. For thousands of years people have been trading goods and travelling across great distances. During the Middle Ages, merchants travelled along the Silk Road, which connected Europe and China. The modern age of globalization started with the Industrial Revolution at the end of the 18th century. New machines were able to produce cheaper goods. Trains and steam-powered boats transported products farther and faster. Since 1980, globalization has been moving at a faster pace. Today it is easier for companies to work in other countries. The Internet gives them the chance of reaching more customers around the world. Teleworkers work for firms that may be far away. However , there is a growing debate over globalization. Governments are in favour of globalization because the economy can grow. Other people are not so sure that there are only advantages. Here are some arguments from both sides:

Good sides

Globalization lets countries do what they can do best. If, for example, you buy cheap steel from another country you dont have to make your own steel. You can focus on computers or other things. Globalization gives you a larger market. You can sell more goods and make more money. You can create more jobs. Consumers also profit from globalization. Products become cheaper and you can get new goods more quickly.

Bad sides

Globalization causes unemployment in industrialized countries because firms move their factories to places where they can get cheaper workers. Globalization may lead to more environmental problems. A company may want to build factories in other countries because environmental laws are not as strict as they are at home. Poor countries in the Third World may have to cut down more trees so that they can sell wood to richer countries.

Globalization can lead to financial problems . In the 1970s and 80s countries like Mexico, Thailand, Indonesia or Brazil got a lot of money from investors who hoped they could build up new businesses there. These new companies often didnt work, so they had to close down and investors pulled out their money. Some of the poorest countries in the world, especially in Africa, may get even poorer. Their population is not as educated as in developed countries and they dont have the new technology that we do. Human, animal and plant diseases can spread more quickly through globalization.

Many experts say that we need a different kind of globalization in our world today. There must be ways to make sure that all countries profit from the good sides of globalization. We should help poorer countries by giving them better education and showing them how new technology works. Every year, leaders of the worlds biggest industrial countries get together to discuss economic problems. This meeting is called the G8 summit. In the last few years groups against globalization have organized protest marches and demonstrations to point out that not everyone is happy with how the worlds economy is developing.