Natalie Clyde N.

Mates
BSA2-2

Concepts of Globalization

Let us define first what is Globalization.

Globalization according to Peterson Institute for International

Economics, is the word used to describe the growing interdependence of the
world's economies, cultures and populations, brought about by cross-border
trade in goods and services, technology and flows of investment, people and
information. In summary, globalization refers to the process of expanding
the business all over the world. It has been said that globalization is inherent
in human nature since it already existed 60,000 years ago. People have
been trading goods since civilization began. According to the information
that I gathered, In the 1st century BC there was the transportation of goods
from China to Europe. The goods being transported took place along the Silk
road (the east-west trade routes between Greece and China). This was the
most remarkable development in the history of Globalization. Because goods
were sold across the continents for the first time ever. Globalization kept on
growing gradually since 1st BC. In 7th century AD, the religion of Islam
spread. Arab merchants led to a rapid expansion of international trade and
Muslim traders paved their way. The focus of the trade at this time was
spices. Fast forward, finally in the 20th-21st Century Globalization took its
ultimate form. It is also the time where the development of technology and
the internet took place. This was a massive aid for Globalization. Hence,
E-commerce plays a huge role in Globalization. Upon conducting this
research, I was able to appreciate more how E-commerce plays a big role to
support our needs especially in these times of pandemic. One of the leading
E-commerce platforms used in the Philippines are Lazada and Shopee as it
provides its users with technically everything that they need from clothing,
kitchen wares, books and many more. Because of trade developments and
financial exchanges we often think of globalization as an economic and
financial phenomenon. However, it includes a much wider field than just
exchanges of goods and services. Often referred to as the ​globalization
concept map​. Some examples of globalization are;
 ● Financial globalization can be linked with a rise of the global financial
system with international financial exchanges and monetary
exchanges.
● Economic globalization is the development of ​trade systems within
transnational actors such as corporations or NGOs
● Cultural globalization refers to the interpenetration of cultures which,
as a consequence, means nations adopt principles, beliefs, and
customs of other nations, losing their unique culture to a unique,
globalized supra-culture;
● Political globalization​, the development and growing influence of
international organizations such as the ​UN or ​WHO means
governmental action takes place at an international level.
● Sociological globalization information moves almost in real-time,
together with the interconnection and interdependence of events and
their consequences.
● Technological globalization is the phenomenon by which millions of
people are interconnected thanks to the power of the digital world via
platforms such as Facebook, Instagram, Skype or Youtube.
● Geographic globalization is the new organization and hierarchy of
different regions of the world that is constantly changing. And lastly;
● Ecological globalization accounts for the idea of considering planet
Earth as a single global entity – a common good all societies should
protect since the weather affects everyone and we are all protected by
the same atmosphere.

Now, what are the Benefits of Globalization? There are numerous benefits of
globalization according to VelocityGlobal which includes the following;
1. Lower cost of products -It allows companies to lower-cost ways to
produce their products which therefore increases their global
competitiveness that drives them to drive their prices down which also
results to a wide variety of choices that the customers can choose
from.
2. Access to new markets - ​Companies interested in these benefits look
for flexible and innovative ways to grow their business overseas.
3. Access to new cultures - Globalization makes it easier than ever to
access foreign culture, including food, movies, music, and art.
 4. Spread of technology and innovation - Many countries around the
world remain constantly connected, so knowledge and technological
advances travel quickly.
5. Higher standards of living across the globe - ​According to the World
Bank​, extreme poverty decreased by 35% since 1990. Further, the
target of the first Millennium Development Goal was to cut the 1990
poverty rate in half by 2015.
While there are benefits that globalization brings there are also
negative effects/challenges which includes the following;
1. Incurring tariffs and export fees - since there are vast of products
being traded, it doesn’t change the fact that it incurs tariffs and export
fees.
2. Loss of cultural Identity - While ​globalization has made foreign
countries easier to access​, it has also begun to meld unique societies
together. The success of certain cultures throughout the world caused
other countries to emulate them.
3. Foreign worker exploitation - lower costs are really beneficial to
customers but it also creates tough competition that leads some
companies to search for cheap labor sources.

 
\References: 
 
Kolb, M. (2018, October 29). ​What is Globalization? Peterson Institute for International
Commerce. ​https://www.piie.com/microsites/globalization/what-is-globalization

Essay on globalization on students and childrens​. (n.d.). Toppr.Com. Retrieved January

18, 2021, from ​https://www.toppr.com/guides/essays/globalization-essay/

What is Globalization: Definition, Benefits, Effects, Examples.​ (2020, October 6).

Youmatter.World.​https://youmatter.world/en/definition/definitions-globalization-definition-
benefits-effects-examples/

VelocityGlobal. (2020, March 30). ​Globalization Benefits and Challenges​. Globalization

BenefitsandChallenges.​https://velocityglobal.com/blog/globalization-benefits-and-challe
nges/