Globalization

Definition 1: Globalization (or globalisation) describes an ongoing process by w

hich regional economies, societies, and cultures have become integrated through
a globe-spanning network of communication and trade. The term is sometimes used
to refer specifically to economic globalization: the integration of national eco
nomies into the international economy through trade, foreign direct investment,
capital flows, migration, and the spread of technology.[1] However, globalizatio
n is usually recognized as being driven by a combination of economic, technologi
cal, sociocultural, political, and biological factors.[2] The term can also refe
r to the transnational circulation of ideas, languages, or popular culture throu
gh acculturation.
Definition 2: Globalization is a process of interaction and integration among th
e people, companies, and governments of different nations, a process driven by i
nternational trade and investment and aided by information technology.
Definition 3: globalization refers to the trend toward countries joining togethe
r economically, through education, society and politics, and viewing themselves
not only through their national identity but also as part of the world as a whol
e. Globalization is said to bring people of all nations closer together, especia
lly through a common medium like the economy or the Internet.
Definition 4: People around the globe are more connected to each other than ever
before. Information and money flow more quickly than ever. Goods and services p
roduced in one part of the world are increasingly available in all parts of the
world. International travel is more frequent. International communication is com
monplace. This phenomenon has been titled "globalization."
Definition 5: globalization "is a widely-used term that can be defined in a numb
er of different ways. When used in an economic context, it refers to the reducti
on and removal of barriers between national borders in order to facilitate the f
low of goods, capital, services and labor... although considerable barriers rema
in to the flow of labor..
Definition 6: the diminution or elimination of state-enforced restrictions on ex
changes across borders and the increasingly integrated and complex global system
of production and exchange that has emerged as a result.
Definition 7: globalization is the result of systemic trends manifesting the mar
ket economyâ s grow-or-die dynamic, following the rapid expansion of transnational
corporations. Because these trends have not been offset effectively by counter-t
endencies that could have emanated from trade-union action and other forms of po
litical activity, the outcome has been globalization

Positive impacts of Globalization

Globalization is the new catchphrase in the world economy, dominating the globe
since the nineties of the last century. People relied more on the market economy
, had more faith in private capital and resources, international organizations s
tarted playing a vital role in the development of developing countries. The impa
ct of globalization has been fair enough on the developing economies to a certai
n extent. It brought along with it varied opportunities for the developing count
ries. It gave a fillip for better access to the developed markets. The technolog
y transfer promised better productivity and thus improved standard of living.
Negative impacts of Globalization
Globalization has also thrown open varied challenges such as inequality across a
nd within different nations, volatility in financial market spurt open and there
were worsening in the environmental situation. Another negative aspect of globa
lization was that a majority of third world countries stayed away from the entir
e limelight. Till the nineties, the process of globalization in the Indian econo
my had been guarded by trade, investment and financial barriers. Due to this, th
e liberalization process took time to hasten up. The pace of globalization did n
ot start that smoothly.
Economic integration by 'globalization' enabled the cross country free flow of i
nformation, ideas, technologies, goods, services, capital, finance and people. T
his cross border integration had different dimensions - cultural, social, politi
cal and economic. More or less the economic integration happened through four ch
annels -
1. Trade in goods and services
2. Movement of capital
3. Flow of finance
4. Movement of people
Advantages of globalization

The gains from globalization can be cited in the context of economic globalizati
on:
â ¢ Trade in Goods and Services - From the theoretical aspect, international
trade ensures allocating different resources and that has to be consistent. Thi
s specialization in the processes leads to better productivity. We all know from
the economic perspective that restrictive trade barriers in emerging economies
only impede growth. Emerging economies can reap the benefits of international tr
ade if only all the resources are utilized in full potential. This is where the
importance of reducing the tariff and non-tariff barriers crop up.
â ¢ Movement of Capital - The production base of a developing economy gets e
nhanced due to capital flows across countries. It was very much true in the 19th
and 20th centuries. The mobility of capital only enabled savings for the entire
globe and exhibited high investment potential. A country's economic growth does
n't, however, get barred by domestic savings. Foreign capital inflow does play a
n important role in the development of an economy. To be specific, capital flows
either can take the form of foreign direct investment or portfolio investment.
Developing countries would definitely prefer foreign direct investment because p
ortfolio investment doesn't have a direct impact on the productive capacity expa
nsion.
â ¢ Financial Flows - The capital market development is one of the major fea
tures of the process of globalization. We all know that the growth in capital an
d mobility of the foreign exchange markets enabled better transfer of resources
cross borders and by large the global foreign exchange markets improved. It is m
andatory to go in for the expansion of foreign exchange markets and thus facilit
ate international transfer of capital. The major example of such international t
ransfer of funds led to the financial crisis - which has by now become a worryin
g phenomenon.
Thus, globalization has the fair and rough share of its impacts and thus we can
surely hope for more advancement in the global economy due to this process.

Benefits of globalization
"We have moved from a world where the big eat the small to a world where the fas
t eat the slow", as observed by Klaus Schwab of the Davos World Economic Forum.
All economic analysts must agree that the living standards of people have consid
erably improved through the market growth. With the development in technology an
d their introduction in the global markets, there is not only a steady increase
in the demand for commodities but has also led to greater utilization. Investmen
t sector is witnessing high infusions by more and more people connected to the w
orld's trade happenings with the help of computers. As per statistics, everyday
more than $1.5 trillion is now swapped in the world's currency markets and aroun
d one-fifth of products and services are generated per year are bought and sold.

Buyers of products and services in all nations comprise one huge group who gain
from world trade for reasons encompassing opportunity charge, comparative benefi
t, economical to purchase than to produce, trade's guidelines, stable business a
nd alterations in consumption and production. Compared to others, consumers are
likely to profit less from globalization.
Another factor which is often considered as a positive outcome of globalization
is the lower inflation. This is because the market rivalry stops the businesses
from increasing prices unless guaranteed by steady productivity. Technological a
dvancement and productivity expansion are the other benefits of globalization be
cause since 1970s growing international rivalry has triggered the industries to
improvise increasingly.
Some other benefits of globalization as per statistics:
â ¢ Commerce as a percentage of gross world product has increased in 1986 fr
om 15% to nearly 27% in recent years.
â ¢ The stock of foreign direct investment resources has increased rapidly a
s a percentage of gross world product in the past twenty years.
â ¢ For the purpose of commerce and pleasure, more and more people are cross
ing national borders. Globally, on average nations in 1950 witnessed just one ov
erseas visitor for every 100 citizens. By the mid-1980s it increased to six and
ever since the number has doubled to 12.
â ¢ Worldwide telephone traffic has tripled since 1991. The number of mobile
subscribers has elevated from almost zero to 1.8 billion indicating around 30%
of the world population. Internet users will quickly touch 1 billion.
Globalization leading to social anxieties:
Listed below are the three sources of anxiety between worldwide markets and soci
al steadiness:
â ¢ Across the nations, globalization triggers the services of large section
s of working people more effortlessly substitutable,
â ¢ Commerce can set free factors that weaken guidelines in national practic
es, for example workers in South Carolina are replaced by child laborers in Hond
uras,
â ¢ Globalization and its cutthroat rivalry makes it hard for administration
to perform important tasks of offering the social programs