Globalization

Globalization

Introduction

Globalization can be defined as a process that encompasses both national and international states. It is a form of networking brought about by increment in commerce, production, exchange of information and individuals migrating. It is an interaction between individuals, companies, countries with commerce, movement and company membership.

Globalization has various aspects, that is, political, economic, social cultural and environmental. Globalization in the economic aspect arises as a result of companies transacting beyond the borders. This might be through obtaining foreign companies, exporting their products and services into other nations or when companies diversify their operations by having branches in foreign nations. This will in turn result in the movement of finance from one nation to another making globalization financial. It can be therefore characterized by cross border use of goods and services, company diversification and growth and heightened development in trade and investment between nations. Globalization can be viewed in different forms, that is: political, social cultural, economic and environmental.

Globalization in the political perspective comes up as a result of interconnection between world leaders such as government officials, international observers and ambassadors. All this officials meet as a result of membership to the United Nations, World Bank, International Monetary Fund, World Trade Organization, European Union and the Red Cross International Committee.

Cultural globalization refers to the interaction between different national beliefs and global companies through trade in goods and services and traditional beliefs aided by technological communication, that is, media coverage, social media networking, and utilization of cell phones.

Globalization in the social aspect can attributed to the mobility of people as they create ties socially with others.  The movement is brought about by employment or family relations. The level of connection internationally heightens due to individuals sending capital to their home countries while creating ties in the foreign nations.  The last aspect is environmental globalization which refers to connections created as a result of environment issues. Due to the interconnection between the different nations, the environment issues become international issues. Some of these issues include global warming, environmental pollution and destruction of the ozone layer. Activists from all over the globe come together with the main aim being to find a solution to the environmental crisis.

History of Globalization

Globalization financially goes back to the late nineteenth century. During this period, Britain was the leading economy in the globe and so set prices for conversion of all currencies to gold.  It also centralized capital systems such as the Bank of England which acted as loaner to its operations in other nations.

The Capital system was neutralized by the First World War which it never recovered from. Due to the depression and the emergence of the Second World War, Britain’s banking powers ceased. The international community divided into self-standing states generating their own money capable of conversions to other forms. In the late twentieth century, certain economic regions grew prominent concentrating exchange of gold on three forms of money, that is, the Yen from Japan, the Dollar from the United States and the Mark from Germany.

Regional and national growth was supported by the emergence of the control bodies in the twentieth century. They were created to enhance nation economic balance in the region. This however regulated development and initiated instability at instances of exchange rate fluctuations. This was greatly experienced in the Mexican Region, Southeast Asian Region and the Argentinian Region. The three major currencies gave room for floating rates of exchange hence stabilizing economies associated with them. Liberalized monetary systems allowed countries to get finances they required to reconstruct their economic systems.

Globalization in the economic form developed following the down fall of the fixed Bretton rate. At that time, the rate of international commerce had gone beyond the prior rate. Politically, globalization grew in the late twentieth century.  This was as a result of development of international bodies such as the United Nations, World Bank, World Health Organization, European Union and the International Labor Organization. These bodies play a critical role in promotion of cohesion and stability between their member countries. For instance, the European Union nullifies trade barriers, movement restrictions, generating similar trade protocols for their member countries

Importance of Globalization historically and today

Assistance Provision

Developing nations are able to get funds from international bodies due to the existence of the huge capital intensive industry; they are able to access international funds to cater for their initiative development programs. Establishment of the World Bank was based on assistance provision through monetary aid for nation stricken by war. It also provided loans with low interest rates and long repayment period. As a result, more countries joined as members and helped generate more finance to help the bank carry out its function. The assistance provided may be in term of crisis to enable it reclaiming its original position.

Disease Control and Prevention

Globalization enhances transfer of pathogenic organisms from one region to another through travel. The travels may be due to vacations, meetings or even commercial trade. This can enhance transfer of diseases across nations.  These in turn enhances necessity for international information sharing on health matters which will enhance the people’s standard of living and health care. It helps change the peril factor perception and instead as an opportunity to understand our surrounding environment that causes harm and ways of preventing and treating the diseases. Globalization also significantly influences growth in technology. This in turn enhances medications improving the nation’s health care system.

Balancing Income Distribution

Globalization has been greatly supported by the international government bodies such as the WTO, WHO and the IMF. They help developing Nations reduce the gap between the rich and poor and thus balance income distributions between different regions of the economy. High foreign investment will raise the economic level reducing income disparity.

Cultural Interaction

The world today has become a village. Unlike in the past, they can now receive information from far away, they can consume products and services not created by them and can also share and mix cultures as a result of their interaction. This in turn initiates harmony between individuals improving relations. People in contrasting regions on the globe poses the same virtues and practices to their neighbors. A consistent culture aids individuals in the culture and from another culture to understand an outcome of a situation. The heightened interaction has increased understanding among individuals from the diverse cultural backgrounds.

Better Standards Of Living

Trade interconnection has greatly improved the standards of living for individuals in the developing countries. In order for a nation to attract foreign direct investment, two important areas are prioritized, that is: the economic framework(less political interference, corruption level and friendly tax policies) and human aspect (properly emphasized human right by the country’s constitution). This will raise the economic levels significantly and thus offer better standards to its members.

Economic Liberalization

The existence of the International Monetary Fund, the World Bank and the European Union aid in liberalization of commerce and initiate similar protocols on their member countries. They go further to develop a common government and market allowing individuals to move freely without any restrictions on the borders and minimizing trade restrictions. This in turn boosts the economic welfare of the interacting nations through availing variety goods and technology.

Conclusion

Globalization since the beginning has posed a huge impact to all nations over the globe. Globalization has made the entire world a single unit where information can be sent instantly from one part of the globe to the other. Individuals can use products and services from another part of the world or even transact on a common online platform whole far away. Anything that happens in the world is transmitted by technological means to all other regions. Everyone is now aware of what is happening due to globalization.

It has proven its significance especially to the developing nations. The international bodies developed to institute globalization have provided monetary aid to the member nations stricken by crisis, availing loans at low interests for development purposes, implementing policies meant to enhance and instate liberalization in the member countries. Liberalization in turn has strengthened trade through free border movement and common trade policies. As a result, the nation’s enjoy cultural interaction, technology advancement, proper health care systems, improved living standards and equitable balanced wealth distribution.

Reference

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Ponzetti, James. International encyclopedia of marriage and family. Macmillan Reference USA, 2003.

Globalization, Social and Economic Aspects Of

Smelser, Neil J., and Paul B. Baltes, eds. International encyclopedia of the social & behavioral sciences. Vol. 11. Amsterdam: Elsevier, 2001.

Auerbach, Michael P. “Financial Globalization.” In Investments & International Finance, 57-62. Business Reference Guide. Ipswich, MA: Salem Press, 2014. Gale Virtual Reference Library (accessed December 1, 2017).

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