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May 04, 2009
The character and impact of globalization trends

The Character and Impact of Globalization Trends

Introduction

Globalization of both the economy and the society has confronted the world

over the past decade. A shift of focus and interest from the local market to the

international setting has demanded innovation not just in corporate leadership as

new information; forms of communication and technology are being offered to be

utilized in encouraging and reinforcing interaction among individuals. (2003) stated

that globalization has invaded our consciousness in many forms. Basically, it is an

inclusive term for the emergence of a global society in which economic, political,

environmental, and cultural events in one part of the world quickly come to have

significance for people in other parts of the world (2004) and is often branded as the

triumph of capitalism (2000).

Globalization represents the shift of the main venue of capital accumulation

from the national to the supranational or global level (2000). In globalization, people

around the globe are more connected to each other than ever before. Information

and money flow more quickly than ever. Goods and services produced in one part of
the world are increasingly available in all parts of the world. International travel is

more frequent. International communication is commonplace (2004). However, this

phenomenon has both positive and negative effects. Included in the negative

aspects are the rapid spread of diseases, illicit drugs, crime, terrorism, and

uncontrolled migration. On the other hand, globalization’s benefits are a sharing of

basic knowledge, technology, investments, resources, and ethical values (2004).

As such, this paper is an attempt to illustrate and discuss the characteristics

of globalization and the inherent impact of such trend.

Characteristics of Globalization

Globalization, has acquired considerable emotive force. Globalization has its

own meaning from different individuals. For some, globalization is a process that is

beneficial, i.e. a key to the future world economic development and also inevitable

and irreversible. Others regard it with hospitality even fear, believing that it

increases inequality within and between nations or organizations, threatens

employment and living standards and thwarts social progress.

Globalization (or globalization) in its literal sense is a social change, an

increase in connections among societies and their elements due to, among others,

the explosive evolution of transport and communication technologies. The term is

applied to many social, cultural, commercial and economic activities. Depending on

the context it can mean: (a)closer contact between different parts of the world

(globalization of the world, global village), with increasing possibilities of personal


exchange and mutual understanding between "world citizens", (b) or (economic

globalization), freer trade and increasing relations among members of an industry in

different parts of the world (globalization of an industry), (c) or some negative

exploitation aspects of economic globalization such as evasion of legal and moral

standards by moving manufacturing or mining and harvesting practices overseas

( 1998).

Globalization is a powerful real aspect of the new world system, and it

represents one of the most influential forces in determining the future course of the

planet. It has many dimensions: economic, political, social, cultural, environmental,

security, and others ( 2004). In popular discourse, globalization often functions as

little more than a synonym for one or more of the following phenomena: the pursuit

of classical liberal (or “free market”) policies in the world economy (“economic

liberalization”), the growing dominance of western (or even American) forms of

political, economic, and cultural life (“westernization” or “Americanization”), the

proliferation of new information technologies (the “Internet Revolution”), as well as

the notion that humanity stands at the threshold of realizing one single unified

community in which major sources of social conflict have vanished (“global

integration”) (2002).

Globalization has become identified with a number of trends, most of which

have developed since World War II. These include greater international movement of

commodities, money, information, and people; and the development of technology,

organizations, legal systems, and infrastructures to allow this movement. More

specifically, globalization refers to:


· An increase in international trade at a faster rate than the growth in the

world economy

· Increase in international flow of capital including foreign direct

investment

· Greater transborder data flow, using such technologies such as the

Internet, Communication satellites and telephones

· Greater international cultural exchange, for example through the export

of Hollywood and Bollywood movies

· Reduction in global cultural diversity through assimilation,

hybridization, Westernization, Americanization or Sinosization of

cultures

· Erosion of national sovereignty and national borders through

international agreements leading to organizations like the WTO

· Greater international travel and tourism

· Greater immigration, including illegal immigration

· Development of global telecommunications infrastructure

· Development of a global financial systems

· Increase in the share of the world economy controlled by multinational

corporations

· Increased role of international organizations such as WTO, WIPO, IMF

that deal with international transactions

· An increase in the number of standards applied globally; e.g. copyright

laws
Furthermore, globalization is an interdisciplinary concept used to mark the site

of struggles between local and global economies and experiences given the

contemporary transnationalization of capital, communication, and culture. In a

globalized world, fragmentation walks hand in hand with homogenization. To many

people all around the world, globalization has become synonymous to

Americanization. In fact, a simpler definition of globalization states that it is the

creation of a New World economic system (the American one). (2001) flatly used

the term "McDonaldization" of the world as a synonym for globalization.

Impacts of Globalization

Globalization has its own style of offering extensive opportunities for truly

worldwide development but it can be seen that it s not progressing evenly. Some

nations or organizations are becoming integrated into the global economy faster than

the others. Nations or organizations that have been able to integrate are seeing

advance growth and reduced poverty. With the undying influence of globalization to

the world, there are many organizations that are striving to adjust with these

influences.

Globalization broadly refers to the expansion of global linkages, the

organization of social life on a global scale, and the growth of a global

consciousness, hence to the consolidation of world society. Globalization is

historically complex; definitions vary in the particular driving force they identify. The

meaning of the term is itself a topic in global discussion; it may refer to "real"

processes, to ideas that justify them, or to a way of thinking about them. The term is
not neutral; definitions express different assessments of global change. Among

critics of capitalism and global inequality, globalization now has an especially

pejorative ring ( 2001).

Economic "globalization" is a historical process, the result of human

innovation and technological progress. It refers to the increasing integration of

economies around the world, particularly through trade and financial flows. The term

sometimes also refers to the movement of people (labor) and knowledge

(technology) across international borders. There are also broader cultural, political

and environmental dimensions of globalization that are not covered here. At its most

basic, there is nothing mysterious about globalization. The term has come into

common usage since the 1980s, reflecting technological advances that have made it

easier and quicker to complete international transactions—both trade and financial

flows. It refers to an extension beyond national borders of the same market forces

that have operated for centuries at all levels of human economic activity—village

markets, urban industries, or financial centers (2002).

Among the aspects, in which globalization has significant implications, it is

that of culture that has implicit effects for such are abstract. Furthermore, the

economic and the political aspects contribute in shaping such effects in the cultural

dimension and vice-versa, as (1997) expounds, “Globalization has economic roots

and political consequences, but it also has brought into focus the power of culture in

this global environment - the power to bind and to divide in a time when the tensions

between integration and separation tug at every issue that is relevant to international

relations.” In this sense, globalization perpetuates the cultural dimension for the latter
plays an indispensable role in enhancing and in limiting the phenomenon itself.

Moreover, in relation to such merit of globalization, (1997) comments, “The

homogenizing influences of globalization that is most often condemned by the new

nationalists and by cultural romanticists is actually positive; globalization promotes

integration and the removal not only of cultural barriers but of many of the negative

dimensions of culture.” It could be deduced from this notion that globalization is

significant to culture for the former is a unifying factor of the borderless society,

which is an offshoot of the phenomena.

Fewer trade barriers and unprecedented technological advances have

accelerated the pace of globalization. The advances in communication technology

make it easier to enter the international market through the efficient marketing and

advertising strategies that a number of international business organizations invest in

by utilizing the services provided by the Worldwide Web (2001). Electronic data

communication (EDC) facilitates the exchange of data at tremendous speeds; it sorts

and integrates data with other information available to the recipients (businesses,

banks, capital markets) from other sources. Individual countries and trading and

currency blocs alike view the fast-moving e-business sector as having a direct

impact on the countries’ and blocs’ competitiveness in the global market (1999). The

tremendous growth of technological advancement has become the driving force of

contemporary industries.

Although there are many criticisms that were pointed out to globalization, it

cannot be denied that it has its own benefits. One of the benefits of globalization is it

describes the ongoing global trend toward the freer flow of trade and investment
across borders and the resulting integration of the international economy. Because it

expands economic freedom and spurs competition, globalization raises the

productivity and living standards of people in countries that open themselves to the

global marketplace. For less developed countries, the benefits of globalization is

obvious, globalization offers access to foreign capital, global export markets, and

advanced technology while breaking the monopoly of inefficient and protected

domestic producers. Faster growth, in turn, promotes poverty reduction,

democratization, and higher labor and environmental standards. Globalization has

produced enormous benefits for very large numbers of people (2004).

A mistake critics often make is to blame poverty and income inequality on

globalization. But, in the majority of cases, these are more the result of domestic

circumstances in individual countries. For years, industrialized countries put too

much emphasis on pressing developing countries to open up their capital markets,

and paid too little attention to helping them develop the domestic institutions required

to use resources more efficiently and to create economic and social progress.

Improving the legal and educational systems and social safety nets of developing

countries ought to be global priorities to help these countries cope with and take

greater advantage of globalization (2004).

Furthermore, the process of globalization is commonly recognized to be

characteristic of contemporary international developments. Contemporary processes

of globalization have several dimensions or faces: technological, cultural, religious,

economic and political. None of these is in itself good or bad. All should be

understood as ambiguous, with potential for good and evil, but in the current phase
of globalization it is important to distinguish the different faces of globalization and

identify with a potential to pursue the good. Globalization implies two distinct

phenomena. First, it suggests that political, economic and social activity is becoming

worldwide in scope. Secondly, it suggests that there has been an intensification of

levels of interaction and interconnectedness among the states and societies (1991).

Among these relations are those created by the progressive emergence of a global

economy, the expansion of transnational links which generate new forms of

collective decision-making, the development of intergovernmental and quasi-

supranational institutions, etc. (1990 ). Consequences of globalization are

controversial and not necessarily positive.

We often meet features of Americanization or globalization in our life. The

United States of America have great influence on world’s culture, on its customs,

values, and people. Some people want to look like Americans and they try to do

what Americans do, wear what Americans wear, and try to live how Americans live.

They believe that having acquired American lifestyle means they have an advantage

over those who are not Americanized. Although they do not learn the language, they

inherit the American customs and holidays, style of their life, their traditions.

American fashion is distributed internationally but is not made for international

markets: they are made for the US market, by, for, and about Americans. Thus, one

can conclude, to enjoy these easily accessible products one must be or become

American and the more one consumes, the more one becomes American, thereby

enabling increasing pleasure and ease in this consumption. Americanization is a

case in point of a basic process of acculturation. It results in sounding the alarms of


cultural imperialism and cultural alienation: one becomes what he/she consumes,

because in order to consume he/she must become the targeted consumer. This is

the equivalent of saying: because Science is a product of Western European

civilization, then to become a scientist one must become westernized, i.e. adopt

Western mores, values, and ways of thinking.

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