SUBJECT : GLOBALIZATION – MEANS, EFFECT & ASPECTS

Name : Apurv Mukund LondheCollege :SP College ,Pune

What is Globalization ?

Globalization is the process of international integration arising from the interchange of the world views, products ,ideas & culture .

It is nothing but world wide exchange of national and cultural resources

International Monetary Fund (IMF) identified four concepts of globalization

Trade & Transaction Capital & Investment Movement Migration & Movement of People Dissemination of People .

Philosophy, religion, language, the arts, and other aspects of culture spread and mixed as nations exchanged products and ideas.

The overland Silk Road that connected Asia, Africa, and Europe is a good example of a type of Globalization . It is how exchange began .

Further , in 19th century we were modernized .Telephones ,Vehicles & many other inventions took place which gave strength to globalization .

Given picture shows Extent of the Silk Road and Spice trade routes owned by 1453 .

History of Globalization

History of Globalization has three phases :

I. Archaic Globalization II. Proto GlobalizationIII. Modern Globalization

Globalization is divided in these phases -

Archaic Globalization : Globalization at the time of earliest civilization until 1600 is Archaic

Globalization .

It describes relation between communities and states - How they were created by geographical spread of ideas and social norms at both local and regional levels.

The archaic globalization existed during Hellenistic age .

Proto Globalization :

Proto Globalization or early modern globalization is a period roughly between 1600 and 1800 .

It distinguishes itself modern on basis of expansionism , method of managing global trade & the level of information exchange .

Proto Globalization was characterized by the rise of maritime european empire .

In 16th and 17th century it developed further when chartered companies like British East India Company & Dutch East India Company were established.

Modern Globalization :

During the 19th century, globalization approached its modern form as a result of the industrial revolution .

In the 19th century, steamships reduced the cost of international transport significantly and railroads made inland transport cheaper.

The invention of shipping containers in 1956 helped advance the globalization of commerce,

In the late 19th century and early 20th century, the connectedness of the world's economies and cultures grew very quickly.

Globalized society offers a exchange of good thoughts , good ideas , good products and many more . We are living in 21st century which is a Modern Globalization .

All were the four phases in the history of Globalization .

Aspects of Globalization : What it Led to ? With improvements in transportation and communication,

international business grew rapidly after the beginning of the 20th century.

Trade : International business arrangements have led to the formation of multinational enterprises (MNE), & MNC – Multi National Companies eg. MCDonalds , Samsung , Sony etc.

Tourism : Globalization has made tourism a popular global leisure activity. The World Health Organization (WHO) estimates that up to 500,000 people are in flight at any one time

Sports : Globalization has continually increased international competition in sports

Olympic Games , Asian Games etc. were introduced.

Economics : Economic globalization is the increasing economic interdependence of national economies across the world.

Current Developing Economies are increasing its strength through Foreign Direct Investment . I,e. It helps foreign investment in our growth .

Politics : Politics is getting a turn due to globalization . Many of the countries are now interdependent on each other thus the We can conclude that in future their might be question on existence of UN council , G8 , WTO etc.

Environment : Biggest issue of globalization is environment. Human challenges to the natural environment, such as climate change, cross-boundary water and air pollution, over-fishing  all have only one basic reason Globalization .

These were the few aspects : which shows what globalization led too . .

This graph itself shows how globalization helped for the econmoc growth of the countries . It shows both the growth – i.e Growth of Nations as well as Growth of Corporate Sectors

Positive Aspects of Globalization

More Efficient Market : The sign of an efficient market is where there is an equilibrium between what buyers are willing to pay for a good or service and what sellers are willing to sell for a good .

Increase in Competition : With more competitors to fight over market share, each company has to constantly look to improve their goods or services or create more value for their customers.

This means better products and sometimes lower prices, which is always a good thing for buyers.

Stabilized Security : Globalization has halted many conflicts that could have turned ugly if their country’s financial health didn’t depend on the other.

More wealth equality throughout the world : Globalization may have stopped you from buying another flat screen TV, but it also helped countless people in developing countries put food on their table for their families.

Negative Aspects of Globalization

Globalization uses up finite resources more quickly : Due to use of finite natural resources World will be facing the problem of Global Warming & various environmental issues.

Globalization increases world carbon dioxide emissions : It is due to easy availability of goods emitting CFC’s .

With the dollar as the world’s reserve currency, globalization leads to huge US balance of trade deficits and other imbalances : Example is the latest one with Rupees .

Globalization tends to move taxation away from corporations, and onto individual : It is due to industries that contribute more in GDP . Government somewhere gives them concessions . But at the same time taxes are collected more from the common people .

OUR CONCLUSION

Each country should have its own limit of extension of policies .

Sustainable Development of World must be considered .

Balancing Development along with Balancing Environment will lead to sustainable growth.

If anything used in excess always degrades . So world and we people have to limit our needs!!!

Thank You

THE END