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GLOBALIZATION
Definition, Effects & Examples
What is globalization? The World Health Organization defines globalization as "the
increased interconnectedness and interdependence of peoples and countries." In other
words, it is the process by which the cultures, economies, and political events in the world's
many countries have become dependent on one another.
History of Globalization
Globalization did not begin in the 20th century. It is a process that has occurred at different
paces and in different ways over the past three millennia. Many of history's great empires,
including the Roman and British Empires, created a type of international economy and culture
that were, in many ways, analogous to modern-day globalization.
The construction of vast trading networks, including roads and seaways, was one of the
hallmarks of early globalization. Ancient empires spread their languages to other people and
helped to spread technology, religion, and goods over a wide area. Modern globalization
began during the 20th century, most particularly after the end of World War II. The invention
of the television allowed images to be transmitted across the globe almost instantaneously.
For the first time in history, people could see major news events unfolding before their eyes.
It was also during this time that America rose to be the world's predominant economic,
political, scientific, and military power. American imports and exports drove much of the
world economy, and its popular culture influenced people the world over.
By the beginning of the 21st century, the proliferation of communications technologies,
especially the internet and smartphones, sparked a revolution in globalization. These
technologies not only allow people all over the world to conduct business, exchange electronic
documents, and enjoy entertainment in a convenient and expeditious manner.
In addition to technological innovation, major political changes took place which allowed
globalization to progress. International treaties, such as NAFTA, allowed for the free flow of
goods and services from one country to another. One major consequence of this was the
outsourcing of manufacturing jobs from industrialized nations like the United States to
developing countries such as China and India.
Globalization has greatly influenced the standard of living around the world. The standard of
living is the level of wealth, comfort, material goods and necessities available to a certain
social economic class in a certain geographic area.
Examples of Globalization
What are some examples of globalization today? Multinational corporations such as
Amazon, Google, Apple, and Facebook are examples of international corporations that have
not only benefited from globalization but have been one of the main engines of its success.
Each of these products create goods and services that are considered indispensable by people
on every continent.
The World Trade Organization (WTO) is the international organization that regulates trade
between nations. However, international trade, transportation, and communications is
regulated by a number of other institutes as well, including the United Nations.

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Globalization Effects
One of the main positive effects of globalization has been the rise of the middle class in
developing nations such as India and China. The outsourcing of manufacturing jobs from the
United States, Europe, and Japan has meant that nations in developing countries have
become major production centers for goods needed in other parts of the world.
Another positive benefit is that it allows people in developed countries to have access to
goods and services that were produced with very low labor cost. This has made consumer
goods much more affordable than they would have been if manufactured in a wealthy
country.
Some other positive effects include:
• Access to a wider variety of foods.
• More education opportunities for people in developing countries.
• Scientific research carried out by a larger community of people.
• More international cooperation in regards to controlling global warming.
• Lowering production costs of products.
Just as globalization has had many positive effects, it has had a number of negative ones as
well. Within industrialized countries, many blue collar jobs in the manufacturing industry have
been sent to other countries. This has led to an increase in unemployment for people without
a college degree. In fact, it has become increasingly difficult for men and women in the
working class to find meaningful employment.
Another major problem is deforestation. The need to grow food for an ever-growing world
population has meant the clearing of forest land in order to make room for agriculture. The
clearing of forests has contributed to global warming and has greatly decreased the
biodiversity of the planet. The problem of deforestation is especially problematic in tropical
countries such as Brazil and Indonesia.
Some other major problems that have arisen due to globalization include:
• Cybercrime
• Terrorism
• Pollution of the oceans
• Migration of refugees
• Human trafficking
Individual Effects
Individually, most people in the world have found that globalization has radically changed
their lives. In the industrialized world, almost everyone has access to a smartphone and other
types of computer technology. This allows them to conduct their personal and business affairs
comfortably from their homes.
Socialization, which was once a process that occurred at the local level, cannot take place in
a global virtual community. People can have friends, colleagues, and acquaintances in almost
any part of the globe.
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Social Effects
In regard to society as a whole, people have more interaction with those from other parts of
the world on a daily basis. This is not only due to mass migration, but to the fact that many
people often work in international corporations with coworkers who come from many other
parts of the world.
Cultural Effects
One of the major cultural factors that have resulted from globalization is the development of
English as the international lingua franca of business and science. English's dominance as a
world language began during the days of the British Empire, but the rise of the United States
as a superpower in the 20th century cemented the use of the English language as the world's
preeminent means of communications.
Music, television, and movies from many countries now have a global audience.
Economic Effects
The economies of every country on Earth are at least partially dependent on the economies
of the rest of the world. It is now almost impossible to discuss a nation's economy without
analyzing in detail international trade and the presence of international corporations on its
soil.
Countries now compete for international corporations by offering them tax incentives to
relocate to their nation. Many companies use the global market to increase the life cycle of
their products. Life cycles are the duration of a product's popularity in a particular country.
If a product becomes unpopular in one country, it may then be marketed by a company in
another nation.
Political Effects
The politicians of most countries see globalization as a good and necessary thing.
International trade is a major political issue in most countries. However, there has also been
a major backlash against globalization, especially by blue collar workers in industrialized
societies. Many working class voters resent having their jobs sent overseas. As a result, there
has been a growth in nationalist sentiment in Europe and the US.
Technological Effects
Besides the technologies mentioned previously, globalization has led to the development of
a number of other technologies. Among these are:
• Satellites
• Self-driving vehicles
• Drones
• Immunotherapies
Technological progress over the last few decades is increasingly driven by cooperation
among scientists and engineers from all over the world.
Environmental Effects
While deforestation and global warming are the two main effects that globalization has
had on the environment, there are many others. One of these is ocean acidification. The
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lowering of the average pH of the Earth's oceans has meant the destruction of the world's
coral reefs and the decimation of the organisms that live there. Additionally, forest fires in
Australia, Europe, and North America have been attributed to excess CO2 in the atmosphere.
Globalization Advantages and Disadvantages
In all, globalization has had many positive benefits to the people of the world in terms of
economics and scientific progress. The disadvantages lie mainly in the emission of
greenhouse gasses, increase in pollution, and deforestation. However, scientists, activists,
and politicians worldwide are trying to solve these problems by fostering conservation and
developing technologies that use renewable energy.

GLOBALIZATION: ADVANTAGES & DISADVANTAGES

The world people are living in today is more connected economically and politically. The
advancement in technology has contributed to the growth of globalization.
Globolization is a process whereby governments, nations, companies, and people interact
and integrate freely. Through globalization, the world has become more connected
economically, politically, socially, and culturally. Globalization in business refers to a situation
whereby a company starts operating in different countries. Through globalization, the
movement of goods and services, labor, and ideas has been eased greatly. This has been
made possible by the advancement of technology.
Globalization dates back to ancient times, when people interacted with other nations through
trade and exchange of goods. Through advancements in technology such as planes, cars,
phones, and the internet, there is a significant improvement in communication and
international trade which has increased globalization in recent years.
What are the pros and cons of globalization?
Globalization has helped many companies and countries grow and expand greater than they
were during the Industrial Revolution. However, globalization has its pros and cons.
Advantages of Globalization
Globalization has several advantages:
• Infrastructure development: Globalization offers great opportunities for nations to
work together and achieve great things together. When nations come together, they
pool resources together that would otherwise be too high for a single nation to
manage. Through cooperation, these nations can handle any problem they face.
Infrastructure development has also been contributed by the advancement of
technology. Advanced technology like modern buildings and roads have been spread
all over the world and this has played a significant role in the improvement of
infrastructures.
• Affordable products: Through the latest technology, different countries are now
able to provide their citizens with products at a reasonable and affordable rate.
Globalization encourages and promotes competition in local economies. In their
attempt to compete against the competition, companies reduce the prices of their
products; which is an added advantage to consumers.

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• Economic Growth: Increased globalization brings economic growth for all

participating nations.
The following are the reasons why all parties benefit economically:
• Labor accessibility: Globalization allows all nations to have access to a wide labor pool.
Less developed nations with a shortage of experts in a certain field like engineers and
doctors can get experts from developed countries. Developed nations can also
outsource low-skilled workers from developing nations. This is a great benefit for the
economic growth of both nations.
• Resources accessibility: Resources are one of the major reasons why countries trade.
Countries trade in order to have access to resources that they do not have. The
resources could be petrol, gold, coffee, tea, etc. When these resources fail to flow
across the nations, it becomes difficult to produce goods and offer other key services
vital in a nation's economic growth.
The wealthy benefit the most from globalization. They do so by influencing the
implementation of policies that are of benefit to them. Developed nations and international
companies import cheap labor from developing nations. The effect of this is an increasing
inequality, since the wealthy are able to produce and increase their products through cheap
labor.
Globalization has contributed significantly to the growth of technology industries compared
to other industries. Through globalization, the world has become a global village. Through
major inventions like mobile phones, the internet, and other communication channels, people
are able to communicate easily and freely from any corner of the world without meeting face
to face. This has allowed the flow of information to be easy, less costly, and timely.
Modern inventions like planes, vehicles, ships, and rails have eased the transportation of
goods and services among nations. It is now possible for a business person to leave China
and be in America within a short period of time.
Downside of Globalization
Globalization has several disadvantages, which include the following:
• Environmental challenges: Environmental problems have been associated with
globalization. Through globalization, many nations have developed major
infrastructures like roads, rails, and buildings. This has led to serious deforestation as
trees are brought down to construct these infrastructures. People, goods, and other
services are transported by cars, planes, trains, and ships which emit harmful gases
that pollute the environment.
• Globalization spreads diseases: Through globalization, nations encourage people
to travel worldwide freely and without much restriction. As this happens, diseases like
malaria, HIV/AIDS, coronavirus, and other diseases spread widely to countries where
the exposure is extremely minimal. The impacts are deaths and reduced economic
growth among the countries.
• Growth disproportionality: Globalization is capable of creating disproportionate
economic development among nations. People from developing countries migrate to
developed countries for jobs and other opportunities. This automatically increases the

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gross domestic product of the host country. This leaves the other nation without
enough human resources.
• Globalization leads to trade imbalances: In most cases, developing nations rely
too much on developed nations. They import goods and other products more from
developed countries than they export. This causes a trade imbalance between the two
states.
Corporations have gained much influence in politics in recent times. Through investing in the
host country, they provide job opportunities, pay taxes, and contribute to that nation's
economic growth. Because of this, they always try to influence politics and policies which
favor their investments.
Globalization has lowered job security. Machines like computers have replaced workers;
robots are also in use today replacing workers. This is contributing to massive job losses.
Debates on the advantage and disadvantages of globalization
Globalization has been a topic for debate, and it has always attracted controversy. Those
who support globalization believe that it has many benefits to emerging countries. This is
because developed nations provide job opportunities and infrastructures that improve the
poor's living standards.
The critics of globalization argue that the wealthy benefit more through labor exploitation of
the poor. The owners and the managers of corporates will always support globalization while
human rights groups and some politicians will oppose globalization.

The Impact of Globalization on Developing, Transitional & Developed Countries

Globalization refers to how nations around the world interact economically, politically,
socially, and culturally. Explore the definition of globalization, and discover the different
impacts on developing, transitional, and developed countries around the world.
How are you watching this lesson right now? Are you on your laptop, or maybe a tablet, or
even your cell phone? When a company like Dell is building a computer, the computer may
be assembled in India (a developing country), though certain complicated parts were built in
China (a transitional country), while the research and development were done in the United
States (as you probably know, a developed country). All this is possible due to globalization.
Travel, communication, and trade between countries are becoming easy and create the
development of closer economic, cultural, and political relations among all the countries of
the world. Globalization impacts countries differently depending on the stage where their
economies are. In this lesson, we will explore the impact of globalization on developing,
transitional, and developed countries.
Types of Economies
First, let's ensure that we understand the three types of economies we'll be discussing:
Developing countries are nations with an underdeveloped industrial base where people
have lower life expectancy, less education, and less income. Examples of developing
countries are most of the countries in Africa and certain countries in east Asia.

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Transitional countries are those emerging from a different type of economy towards a
market-based economy. Transitional economy refers to all countries that attempt to change
their basic economic structure and policies towards market-style fundamentals. The best
examples of transitional countries are China and Russia.
Developed countries are countries with a lot of industrial activities and where people
generally have high incomes. They have post-industrial economies, meaning the service
sector provides more wealth than the industrial sector. The United States of America,
Australia, and most of the European countries are examples of developed countries.
An economy can have sectors in both the developing and developed stages, but cannot be
transitional at the same time.
Impact of Globalization
So now that we understand some characteristics of these economies, let's examine how
globalization affects them.
Globalization creates greater opportunities for firms in less industrialized countries to tap into
more and larger markets around the world. Thus, businesses located in developing countries
have more access to capital flows, technology, human capital, cheaper imports, and larger
export markets. Globalization allows businesses in less industrialized countries to become
part of international production networks and supply chains that are the main conduits of
trade.
Globalization gives access to the world market to transitional countries. They need to adapt
their production capability, their prices, and their product quality to be competitive with the
nations of the developed countries. Globalization changed and continues to change China.
This country is becoming a major economic player in the global world.
Globalization allocates the production in the countries where it is the most efficient and less
costly for the global world. Developed countries become more concentrated on services and
research and development. The best example in the United States is Apple. Apple created
and continues to develop iPhones in the US but outsources the mass production of iPhones
in China where the costs are lower.
Effect of Globalization Worldwide
Globalization creates a world market where cost efficiency can be reached. Developing
countries can produce products at the better price and help their populations live more
comfortable lives. Transitional countries can be more efficient in their productions. They can
create a good middle class for the benefit of their populations. Developed countries can
transfer their knowledge to developed and transitional countries and continue to use their
knowledge in research and development activities. Globalization can be good for the world,
but it needs to be monitored to avoid exploitation of the population and the creation of rich
and poor classes in developed and transitional countries.
Related to social classes in developed countries is education. Good education systems are
essential to continue to research and develop good products for developing and transitional
countries. Globalization can create a lower class that will suffer in a developed country if
education is not accessible easily and at a low cost for the entire population.
Globalization has created a global-sized need for energy and industry, and this need has been
abused and ignored to the extent that the future of life as we know it has been brought into

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question. You may or may not believe in global warming, but you cannot deny the existence
of the conversation.
Another downside is that globalization may have led to an increase in activities such as child
labor and slavery. In countries with little or no accountability, corporations employing children
can work smoothly by bribing the officials, which may result in an increase in illegal activities.
It's complicated to calculate all the positives and negatives of globalization and how it affects
different types of economies, but one thing's for sure, it has a major impact on our lives
every day.

Senior High School | Handout | Philippine Politics and Governance

DERICK R. REBAY – Subject Teacher