Globalization is the trend of investment funds and companies to move beyond national and domestic markets to other markets around the world, thereby increasing the interconnection of the planet. Globalization has had the effect of markedly increasing international trade and cultural exchange.
Proponents of globalization say that it helps developing nations catch up to industrialized nations much faster through improved employment and technological improvements; critics of globalization say that it disturbs national sovereignty and allows rich nations to ship domestic jobs overseas where labor is significantly cheaper.
Globalization can be used to explain the recent integration of domestic markets, industries, cultures and government policies around the world. This integration has happened through increases in the technical skills and efficiency of world commerce, communication and transportation. Primarily, globalization refers to the economic integration of the international markets, but it is also used to refer to the socio-cultural integration that has been caused by the rise of the net.
Public policy and technology are the two primary driving factors behind current globalization. Recent implementations of government policy, both domestic and internationally, have opened economic borders for countries across the world. Over the past 20 years, world governments have integrated a free-market financial system into fiscal policies, monetary policies and trade agreements. This evolution of economic systems has stimulated domestic production capacity and opened countries to increased financial opportunities abroad. World governments now focus on decreasing barriers to trade and actively promote international commerce in relation to investments, goods and services.
Technology has also been a significant reason behind the growth in globalization. Advancements in information technology (IT) and the flow of information across boundaries have enabled individuals to take control of their financial lives. Technology has helped people become more educated about economic trends and enables people to move financial assets and take advantage of investment opportunities. Technology has increased the ability to communicate globally, closing the gap between different cultures.
The Controversy Behind Globalization
At first glance, globalization is an amazing development. Those who don’t believe in globalization, however, cite the fact that it’s disproportionately benefited corporations in the Western world in the damage of developing economies, cultures and people. These critics actively work to strengthen domestic markets at the cost of free trade.