HOLY ANGEL UNIVERSITY

HOLY ANGEL UNIVERSITY

SCHOOL OF BUSINESS AND
ACCOUNTANCY
First Semester, A.Y. 2021 – 2022

Marcie Gabrielle Villanueva

2nd year Business Management

B-231 Contemporary World

Mr, Giovanni Lagman

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Globalization is the term used to describe the way countries are becoming more interconnected

economically. It is also mean the spreading of a business, culture or any technology on an international

level. This is also an effort to reduce the geographical and political barriers for the smooth functioning

of any business. It visualizes that one can purchase and sell goods from any part of the world,

communicate and interact with anyone, anywhere in the world and also enables cultural exchange among

global population. Globalization is an international process driven by trade investment, technology and

finance. This process contributes to the relationship between societies and individuals around the world.

Also, globalization has wedged individuals and communities across the world and has considerably

influenced property development, fueled by the fast changes in technology and therefore the exaggerated

quality of goods, services, capital and labor over the past decades. Its has greatly modified economies,

societies and the natural setting and has created our world interconnected ever than before.

Because of the pandemic, there are a lot of comments saying that Coronavirus has signaled the end of

the era of globalization. This pandemic will force trade in the context of globalization to continue to

evolve. The covid, along with some potential political roadblocks, will slow the pace of globalization in

this era. The damage to the economy that happened may also make the leading countries realize that the

globalization needs to be managed, and that free-market globalization can be as socially destructive as

it is financially profitable. However, the basic logic of globalization has not gone away and it is here to

stay.

The Covid pandemic is not likely going to put the world’s level of globalization below the stage during

the 2008-09 global financial crisis and that is according to the 2020 edition of DHL Global

Connectedness Index.

The only thing that the pandemic made collapse is the people flow however, the trade has bounced back

strongly, the capital flows are now taking back and recovering and digital information flows has been

flowing.
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The global trade recovery has outperformed even the most optimistic early projections. In March and

April 2020, goods trade fell faster than it did during the Great Depression and the Global Financial

Crisis. However, it began to grow again in June and by November, it had returned to its pre-pandemic

level. Despite the initial setbacks, commerce has proven to be a lifeline for economies and health care

systems. As social alienation pushed expenditure from local services to imported commodities, trade in

medical supplies and electronic skyrocketed. Covid-19 affected cross-border investment flows even

worse than trade. At the start of the pandemic, investors withdrew historic sums of portfolio capital from

emerging countries, although these flows immediately stabilized and subsequently rallied in late 2020.

So far, bold fiscal and monetary policy solutions have kept the Covid-19 crisis from becoming a global

financial crisis. There were signals of a halt in the globalization of information flows prior to the

pandemic. International internet traffic, phone conversations, royalties and scientific collaboration all

experienced a decline. However, as the pandemic spread, digital flows increased as employment, leisure

and education moved online. While commerce, capital and information flows all played a constructive

part in pandemic response, human mobility had to be limited to stop the virus from spreading, resulting

in this year’s historic drop in people flows.

We often think of globalization as an economic and financial phenomenon because of the trade

developments and financial exchanges. Nonetheless, it encompasses a considerably broader range of

activities than merely the flow of products, services or cash. There are some examples of globalizations

and those are: economic globalization, political globalization and cultural globalization. These three

examples are still relevant today.

Economic globalization is the development of trade system within transnational actors such as

corporations or NGO’s. Political globalization is the rise in power and influence of international

organizations such as the United Nations and the World Health Organization implies that government
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action now takes place on a global scale. And Cultural globalization refers to the interpenetration of

cultures, which means that nations embrace the values, beliefs and costumes of other nations, resulting

in the loss of their own culture in favor of a globalized supra-culture.

These globalizations are relevant because without these three, there will not be a corporations or NGO’s

that will run a business in order for the economy to flow. Power and influence of international

organizations, are important also because they are the ones that govern the government. And lastly,

embracing the values and beliefs of the other groups, countries or nations is important in order for us to

adapt the changes that are happening.

The future of globalization looks at the three possibilities, the first of which is a backlash against

globalization, with more limitations on mobility and a strengthening of political authoritarianism as a

result, the second potential is that nationalist populism would wane, allowing for a return to neoliberal,

left-leaning globalization, possibly with a high-tech veneer. A deadlock between the two forces of

nationalism and market globalism is the third alternative. Globalization has both generated and

responded to new global challenges that are beyond the grasp of any single nation-state and we need

new, more inclusive and long-term solutions based on ethnical globalism ideals.

The bottom-line for business is that Covid-19 has not reduced globalization to anywhere near the level

required for strategists to focus on their native countries or regions. Globalization has never been easy

for businesses, but if foreign possibilities and competitive challenges were important before the

pandemic, they will undoubtedly be important in 2021 and beyond. And because nations that are more

connected to global flows grow quicker, we need more globalization rather than less to speed up the

recovery from Covid-19.

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https://www.dhl.com/global-en/spotlight/globalization/global-connectedness-index.html
https://www.google.com/amp/s/hbr.org/amp/2021/03/the-state-of-globalization-in-2021
https://guides.loc.gov/globalization/trends-in-globalization
https://searchcio.techtarget.com/definition/globalization